Advisorheads Homepage
Forum Home Forum Home > Introductions > Greenhorn Introductions
  New Posts New Posts RSS Feed - Greetings, PMD at ML
  FAQ FAQ  Forum Search   Events   Register Register  Login Login

Greetings, PMD at ML

 Post Reply Post Reply Page  123 15>
Author
Message
apac707 View Drop Down
Senior Member
Senior Member


Joined: Oct/08/2014
Location: California
Status: Online
Points: 744
Post Options Post Options   Thanks (0) Thanks(0)   Quote apac707 Quote  Post ReplyReply Direct Link To This Post Topic: Greetings, PMD at ML
    Posted: Oct/08/2014 at 7:37pm
Hello,

I am glad I found this forum. I am currently a PMD at merrill and still studying for my exams. To give you a background of myself I previously worked in an investment company for a little over a year in operations and have a masters in finance. I have been managing money on the side (no compensation though) for a few years and have some households to bring over including my own family's day 1. 

I am looking to learn and get ideas on how to build my practice. 

Thanks
Back to Top
RIArules View Drop Down
Senior Member
Senior Member
Avatar

Joined: Mar/15/2010
Status: Online
Points: 14165
Post Options Post Options   Thanks (0) Thanks(0)   Quote RIArules Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 8:05pm
Welcome! Those accounts should buy you a little time, depending on their size. Good luck!
We may "rob you slowly," but you're not going to see that shit.

Edward Jones Newb, Circa September 2016
Back to Top
Wet_Blanket View Drop Down
Admin Group
Admin Group
Avatar
S'All Good Man!

Joined: Mar/10/2010
Location: New England
Status: Offline
Points: 24341
Post Options Post Options   Thanks (0) Thanks(0)   Quote Wet_Blanket Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 8:11pm
Good luck. I got my start at an investment company too doing ops.
When money is speech, speech isn't free.
Back to Top
MichaelBurton View Drop Down
Senior Member
Senior Member
Avatar

Joined: Jun/02/2014
Location: Austin, Texas
Status: Offline
Points: 1044
Post Options Post Options   Thanks (0) Thanks(0)   Quote MichaelBurton Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 8:24pm
Welcome. What is a PMD? I am not familiar with ML lingo.
Back to Top
Crimson View Drop Down
Senior Member
Senior Member
Avatar
King of the Wicker People

Joined: Feb/03/2013
Status: Offline
Points: 1931
Post Options Post Options   Thanks (0) Thanks(0)   Quote Crimson Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 8:30pm
Welcome to the forum. We have a few ML guys... I think Joker knows about the PMD.
Back to Top
RickRoss View Drop Down
Senior Member
Senior Member
Avatar

Joined: Oct/26/2010
Status: Offline
Points: 1171
Post Options Post Options   Thanks (0) Thanks(0)   Quote RickRoss Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 9:52pm
Practice Management Development program, aka Poor Mans Dream program.  You'll fail out.  Hate me now, but later you'll realize I'm right.  Just be ready to move that money back out in 1-2 years when you're sucking wind.
"Act as if you are the MF bomb..... even if you are one of those snap pops you throw on the ground."
-gotplanning, 2/9/12
Back to Top
Chief View Drop Down
Senior Member
Senior Member
Avatar

Joined: Mar/12/2010
Status: Offline
Points: 12863
Post Options Post Options   Thanks (0) Thanks(0)   Quote Chief Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 10:17pm
Don't bring your family accounts til year 3/4 when you are no longer a rookie
"You like winning don't you?" "Saves you from having to say the word please."

Good point Chief. Iceco1d 10/30/12
Back to Top
Jersey33 View Drop Down
Senior Member
Senior Member
Avatar
Helado Jr.

Joined: Jun/09/2013
Status: Offline
Points: 785
Post Options Post Options   Thanks (0) Thanks(0)   Quote Jersey33 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/08/2014 at 11:08pm
Originally posted by RickRoss RickRoss wrote:

Practice Management Development program, aka Poor Mans Dream program.  You'll fail out.  Hate me now, but later you'll realize I'm right.  Just be ready to move that money back out in 1-2 years when you're sucking wind.

+1
Without struggle there is no progress
Back to Top
apac707 View Drop Down
Senior Member
Senior Member


Joined: Oct/08/2014
Location: California
Status: Online
Points: 744
Post Options Post Options   Thanks (0) Thanks(0)   Quote apac707 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/09/2014 at 2:03am
thanks for your honesty. Day 1 ill have $1.5 million in wrap accounts, 3 households. I really like ML's training program and I am learning how to listen to the clients needs and wants and ask powerful questions to make myself relevent as a FA to put an answer to their problems. 

If i fail, I fail...but I will learn how to prospect, service clients, wealth management, and so forth. ML is paying for my series 7, 66, and insurance so along with the training, I will be quite valuable to other investment firms out their if I do "fail out". 

What I am hoping to do is see if I can be placed into a bank of america branch. From what I hear, it's getting a constant stream of warm referrals at the bank. 
Back to Top
DaveW View Drop Down
Senior Member
Senior Member
Avatar

Joined: Feb/15/2013
Status: Offline
Points: 1041
Post Options Post Options   Thanks (0) Thanks(0)   Quote DaveW Quote  Post ReplyReply Direct Link To This Post Posted: Oct/09/2014 at 8:23pm
You sound like you're drinking koolaid straight from the bull's d(&*
 
1.5MM will give you a two month head start. Two months isn' t much... whether you succeed or fail will ultimately have nothing to do with whether or not you manage your family's money.
"80% of lottery winners go bankrupt because 100% of lottery players are retarded."
Back to Top
RipRock View Drop Down
Senior Member
Senior Member
Avatar

Joined: Oct/29/2013
Status: Offline
Points: 1558
Post Options Post Options   Thanks (0) Thanks(0)   Quote RipRock Quote  Post ReplyReply Direct Link To This Post Posted: Oct/09/2014 at 8:31pm
apc707, I am guessing you are also giving the hometown discount to these folks (your parents) so the revenue will likely be less than $10k PCs. 

Let me show you a magic trick. 

Check the branch newsletter and find out who is #2 or #3 on Net New Housholds - show him the $1.5, tell him he can sign it for FOG or whatever shit that they are doing now and ask for $3mm of fee based assets in return. Also ask for some mortgages, and dead weight clients to call and network with - another $1 to $2mm. $1.5mm to $5mm (except it will still only pay $10k pcs),


Back to Top
apac707 View Drop Down
Senior Member
Senior Member


Joined: Oct/08/2014
Location: California
Status: Online
Points: 744
Post Options Post Options   Thanks (0) Thanks(0)   Quote apac707 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/09/2014 at 11:56pm
That's a no go, these three households are not a bargaining chip, they really believe in me. 

Although I know that task at hand is tough, I am not deterred and will prospect haard. Going to work my ass off, this is my job so Im gonna give it my all

$1.5M in a wrap account charging 1.3% is $19,500 PCs/yr. 

I don't buy mutual funds, I allocate individual stocks/some etfs and bonds~ That's my differentiation. At the investment company I worked for before I was trained under the warren buffett style of investing, value investing. I do discounted cash flow analysis to determine the future stock price and do analysis on the fundamentals of the business, ect. ect. Master in finance~

I am building my prospect list and have about 250, will add more doctor offices. I will try to network with doctors as clients, and I sort of know many of them just plain don't know much about money. 

Time will tell, but even if I fail, I will have learned so much and if need be, move over to morgan stanley, start my own RIA, or join another RIA. 
Back to Top
Sportsfreak View Drop Down
Moderator
Moderator
Avatar
Wise Old Perv

Joined: Mar/09/2010
Status: Offline
Points: 22448
Post Options Post Options   Thanks (0) Thanks(0)   Quote Sportsfreak Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 7:23am
Originally posted by apac707 apac707 wrote:

That's a no go, these three households are not a bargaining chip, they really believe in me. 

Although I know that task at hand is tough, I am not deterred and will prospect haard. Going to work my ass off, this is my job so Im gonna give it my all
This is not your job, this is your business owner. Think like a business owner, even though right now you dont have a business.

$1.5M in a wrap account charging 1.3% is $19,500 PCs/yr. 

I don't buy mutual funds, I allocate individual stocks/some etfs and bonds~ That's my differentiation. At the investment company I worked for before I was trained under the warren buffett style of investing, value investing. I do discounted cash flow analysis to determine the future stock price and do analysis on the fundamentals of the business, ect. ect. Master in finance~
Be careful here. How are you going to find the time to do discounted cash flow analysis on all of the individual stocks you are buying for clients, and monitor those stocks, and still have the MONSTROUS amount of time you will need, to sufficiently prospect and build your book. this statement, smells like sure failure (the bold)

I am building my prospect list and have about 250, will add more doctor offices. I will try to network with doctors as clients, and I sort of know many of them just plain don't know much about money. 
You will run into lots of people who don't know much about money, but think they know as much or more than you do. Unfortunately, they won't learn the truth by talking to you, they will only learn it by blowing themselves up 7 times. And if you try to tell them the truth (that they dont know much) you will need to choose your words very carefully, or you will insult them, and lose them as prospects. Always remember that this job is 40% psychologist/55% salesman/10% 5% investment manager. If you try to make it anything else, you will fail

Time will tell, but even if I fail, I will have learned so much and if need be, move over to morgan stanley, start my own RIA, or join another RIA. 


Edited by Sportsfreak - Oct/10/2014 at 7:24am
Sorry MINT, SF is right, I was wrong......Helado...March 8th, 2014
Back to Top
Moraen View Drop Down
Admin Group
Admin Group
Avatar
Batman

Joined: Mar/09/2010
Status: Online
Points: 14899
Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 7:37am
Originally posted by Sportsfreak Sportsfreak wrote:

Originally posted by apac707 apac707 wrote:

That's a no go, these three households are not a bargaining chip, they really believe in me. 

Although I know that task at hand is tough, I am not deterred and will prospect haard. Going to work my ass off, this is my job so Im gonna give it my all
This is not your job, this is your business owner. Think like a business owner, even though right now you dont have a business.

When will you have the time with all of the analysis you are doing?

$1.5M in a wrap account charging 1.3% is $19,500 PCs/yr. 

I don't buy mutual funds, I allocate individual stocks/some etfs and bonds~ That's my differentiation. At the investment company I worked for before I was trained under the warren buffett style of investing, value investing. I do discounted cash flow analysis to determine the future stock price and do analysis on the fundamentals of the business, ect. ect. Master in finance~
Be careful here. How are you going to find the time to do discounted cash flow analysis on all of the individual stocks you are buying for clients, and monitor those stocks, and still have the MONSTROUS amount of time you will need, to sufficiently prospect and build your book. this statement, smells like sure failure (the bold)

This is really not differentiation.  Many people do this - they are called analysts.  As SF said, you will fail.  You will fail hard.  Trust me when I tell you that there is no way for you to do this effectively. 

I am building my prospect list and have about 250, will add more doctor offices. I will try to network with doctors as clients, and I sort of know many of them just plain don't know much about money. 
You will run into lots of people who don't know much about money, but think they know as much or more than you do. Unfortunately, they won't learn the truth by talking to you, they will only learn it by blowing themselves up 7 times. And if you try to tell them the truth (that they dont know much) you will need to choose your words very carefully, or you will insult them, and lose them as prospects. Always remember that this job is 40% psychologist/55% salesman/10% 5% investment manager. If you try to make it anything else, you will fail

If this is your target, I would target people who went to medical school later in life.  Look for 35 year old residents.  They will likely not be as arrogant as the younger docs.

Time will tell, but even if I fail, I will have learned so much and if need be, move over to morgan stanley, start my own RIA, or join another RIA. 


You really don't know what you don't know.  If you want to make it in this business.  Take a step back out of what you think you know.  Listen to old guys like SF (God help me, helado) and some of the other board members here who with ML.  And Iamlegend.  Dude doesn't work for ML, but knows how to build a business.
I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis

Fiduciary as Fuck - iMo
Back to Top
RipRock View Drop Down
Senior Member
Senior Member
Avatar

Joined: Oct/29/2013
Status: Offline
Points: 1558
Post Options Post Options   Thanks (0) Thanks(0)   Quote RipRock Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 9:16am
Originally posted by apac707 apac707 wrote:

thanks for your honesty. Day 1 ill have $1.5 million in wrap accounts, 3 households. I really like ML's training program and I am learning how to listen to the clients needs and wants and ask powerful questions to make myself relevent as a FA to put an answer to their problems. 

If i fail, I fail...but I will learn how to prospect, service clients, wealth management, and so forth. ML is paying for my series 7, 66, and insurance so along with the training, I will be quite valuable to other investment firms out their if I do "fail out". 

What I am hoping to do is see if I can be placed into a bank of america branch. From what I hear, it's getting a constant stream of warm referrals at the bank. 

In Buffetology there is a metric called Mkt Cap to GDP ratio. Its high right now, really really high. Does that make this market attractive or unattractive for you? Just curious. If you need visuals,

http://www.advisorperspectives.com/dshort/updates/Market-Cap-to-GDP.php

Back to Top
MichaelBurton View Drop Down
Senior Member
Senior Member
Avatar

Joined: Jun/02/2014
Location: Austin, Texas
Status: Offline
Points: 1044
Post Options Post Options   Thanks (0) Thanks(0)   Quote MichaelBurton Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 9:17am
You are at a crossroads where you need to decide if you are an analyst (a book/computer person) or a Financial Advisor (people person / recruiter / counselor / relationship manager).

You have a long way to go if you want to ply your trade as an analyst. But if it is who you are, then own it. Get the next job working in support of a fund manager (even if its making his coffee), hopefully somewhere that will sponsor you for your CFA.

If you are a people person, then you have to let go of the granular expertise you would otherwise develop in a non-existent universe where you are so unique that people are lining up to bring you their money and willing to fill out the paperwork with your intern because, god forbid, they don't want to distract you from your genius.

Letting go means finding someone who you trust to do the analyst's work. And trusting them enough to never question any decision they make until you have a self-sustaining book. That will allow you to spend, hopefully, less than 5% on analysis. Because you need every ounce of energy you can muster to gather assets.

And BTW, your ML team already has these decisions made for you.

There is absolutely no middle ground on this. If you hear this and are thinking, OK, I'll put in the time effort to get the assets so that EVENTUALLY I can do the analysis, then that means you are, in your heart, an analyst. Choose option #1, take your lumps and work your way up until the people-people are delegating their money-mangement to you, which, based on the differention you described above, no one is going to do right now. No offense.

FWIW, you sound like an analyst to me, one who if he's not careful, is about to let his ambition for making money faster (like people-people can do much easier) take himself down a very painful road.

That's all I've got. Good luck.

Edited by MichaelBurton - Oct/10/2014 at 9:20am
Back to Top
apac707 View Drop Down
Senior Member
Senior Member


Joined: Oct/08/2014
Location: California
Status: Online
Points: 744
Post Options Post Options   Thanks (0) Thanks(0)   Quote apac707 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 10:41am
I see no harm in investing a portion of the assets in dividend paying bluechip stocks, Im not saying all the assets should, I also invest in ETFs and diversified funds. Not mutual funds in a wrap account never, that is double charging.
I see from your perspective how you can see this as dangerous for a greenhorn or someone who is new to finance and investing, but I assure you that I have done the due dilligence and have personally owned these stocks for almost a decade. Can you tell me why it is a bad idea to own a small position in a high quality company such as johnson and johnson, chevron, boeing, or the other bluechip stocks that i recommend? Buy and hold forever...
 
Diversification doesn't diversify against systematic risk, just look at 2008. So my philosophy is cash flow over cap gains with a buy and hold mentality.
 
In this business, you know, it is all about learning from a more experienced person. This ideas are not actually something I made up, but training from a mentor who has been in the business for 20 years and a system that I learned. Investments, in my opinion, is all about mentor and student.
 
But I would never buy A shares and then put it in a wrap account and charge a wrap fee on top, that to me is ripping off the client and being greedy. That is what happened to my family accounts with another financial advisor so I am bringing them on to ML.
 
What are your thoughts?
 
 


Edited by apac707 - Oct/10/2014 at 11:35am
Back to Top
helado View Drop Down
Senior Member
Senior Member
Avatar
The Resource

Joined: Jun/17/2013
Status: Offline
Points: 13260
Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 10:46am
Um, when you buy A-shares in a wrap account they are load waived.  Genius.
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
Back to Top
apac707 View Drop Down
Senior Member
Senior Member


Joined: Oct/08/2014
Location: California
Status: Online
Points: 744
Post Options Post Options   Thanks (0) Thanks(0)   Quote apac707 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 11:36am
So youve never seen it done where the client gets double charged? Ive seen it done several times, and the mutual funds purchased below the break point, scattered in $10,000 pieces to get the max comission. Plus churning of the account to get more commission. Ive seen it done at some third tier shops, but never ML, we get a warning and need to explain why we would do that.  Some FA's are way too greedy, so I make it a point to explain that to a prospect when I see their statement~

Edited by apac707 - Oct/10/2014 at 11:39am
Back to Top
Jersey33 View Drop Down
Senior Member
Senior Member
Avatar
Helado Jr.

Joined: Jun/09/2013
Status: Offline
Points: 785
Post Options Post Options   Thanks (0) Thanks(0)   Quote Jersey33 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/10/2014 at 11:43am
@apac707...Let this thread go lol. You know what you have to do to run your practice and just prepared enough to do it.  You are wasting your time trying to impress some of these guys and they will continue to grill every post you make because you are a newbie. ML is a tough program just be prepared to pay the price to succeed. Good luck to you!
Without struggle there is no progress
Back to Top
 Post Reply Post Reply Page  123 15>
  Share Topic   

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 11.04
Copyright ©2001-2015 Web Wiz Ltd.

This page was generated in 0.070 seconds.