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RickRoss View Drop Down
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    Posted: Oct/26/2010 at 7:54pm

Previously, I worked for a wirehouse being brand new to the business in a new area for about 1.5 years.   I am now looking at an FA opportunity at both VALIC and Chase.  Clearly, they're two different types of FA roles, both of which are different than my role as an FA at the wirehouse. 

I'm looking for some honest opinions / feedback from the community.  I'll briefly outline below what I like / dislike about each opportunity:

VALIC

Likes: Flexibility (work from home), Full Benefits (as a W-2), Income Potential ($18K base year 1 + $50K residuals + commission on new sales), Captive Client Audience (mostly Teachers), Boss (seems very reasonable).

Dislikes: Company Name (is it STILL a big deal?), not being able to receive $ amount of inherited book of business in writing (told 750-1,000 clients and $50K in residuals, guaranteed, but I doubt they'll put it in writing).

CHASE

Likes: Company Name, Work Environment (out of bank branch vs. wirehouse w no prospects), People/Team Environment.

Dislikes: Working every other Saturday, seemingly high-pressure environment, people typically want to go in/out of bank and probably aren't as receptive to talking to an FA.

Benefits for both firms seem comparable.  Not sure if there are things I'm not considering or any other major do's/don'ts to be aware of before accepting an offer.  VALIC seems to have rec'd a bad rep, but I'm wondering if things have changed at all recently. 

Any honest feedback would be sincerely appreciated.  Thanks. 
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Ron 14 View Drop Down
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RickRoss - welcome to the board.
 
I can't comment on VALIC at all, but obviously the inherited book of business seems to be the pivot point as to whether or not it is a good opportunity.
 
I left Chase 3 months ago after spending 2 years there. The name is powerful and will bring people in. The work environment is miserable because the branch turnover is extremely high in all positions (this is the case at all banks) and the sales strategy at Chase revolves around literally preventing people from seeing a teller and instead FORCING them to sit with a banker and be sold something, whether it is a debit card, credit card, savings, loan or investment.
 
With that being said the FA opportunity isn't bad in some situations. You don't really have a boss watching over you. You have a manager who covers an area of about 20-25 FA's and you will see him maybe twice a month. They strongly encourage managed accounts, but the payout is real low so it is difficult to go strictly with managed accounts. There are a few things that I would need to know to tell you if it is worth it or not.....
 
1.) How many branches will you have?
2.) Will you be the only FA in the branches?
3.) Is there an existing book of business and if so, how much?
4.) Are these branches new builds ? (built in last 5 years)
5.) What is the deposit base of the branches?
6.) What is the teller transaction count of each branch?
 
I know that is a lot of information, but it is critical that you have these answers. If the investment manager won't give you this information demand you have it. The deposit base can be found on FDIC.gov, but the rest needs to come from him.
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RickRoss View Drop Down
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1.) 2 Branches (both smaller "hubs")
2.) Yes
3.) Yes, but "small" as I'm told.  They said "it was a mess" and had basically already been cherry picked.
4.) I do not believe they are new builds, but I could be wrong.
5.) Total deposit base of about $46MM.
6.) I believe they told me, but I do not remember, sorry.
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RickRoss View Drop Down
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Oh, and thanks for the welcome.  Sorry, didn't mean to be rude.  Just wanted to get straight to the point.
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Ron 14 View Drop Down
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Originally posted by RickRoss RickRoss wrote:

1.) 2 Branches (both smaller "hubs")
2.) Yes
3.) Yes, but "small" as I'm told.  They said "it was a mess" and had basically already been cherry picked.
4.) I do not believe they are new builds, but I could be wrong.
5.) Total deposit base of about $46MM.
6.) I believe they told me, but I do not remember, sorry.
 
That is almost the exact situation I started with at Chase. 46MM just isn't enough. The investment book would have to be over 10mil for that to work out. Are you in an area flooded with Chase branches? If there are details you don't want to speak about on the public forum you can PM me as well.
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Originally posted by Ron 14 Ron 14 wrote:

Originally posted by RickRoss RickRoss wrote:

1.) 2 Branches (both smaller "hubs")
2.) Yes
3.) Yes, but "small" as I'm told.  They said "it was a mess" and had basically already been cherry picked.
4.) I do not believe they are new builds, but I could be wrong.
5.) Total deposit base of about $46MM.
6.) I believe they told me, but I do not remember, sorry.
 
That is almost the exact situation I started with at Chase. 46MM just isn't enough. The investment book would have to be over 10mil for that to work out. Are you in an area flooded with Chase branches? If there are details you don't want to speak about on the public forum you can PM me as well.
 
I'd totally agree that $46 million in deposits is pretty small and will likely require substantial effort solely on your part to gather sufficient assets to make that work.  that being said, it beats having to completely build a book from scratch on your own.
 
From a strictly monetary standpoint, VALIC's opportunity seems to put the most $$$ in your pocket, at least initially.  At the same time, you're right.  The name still carries a lot of negatives that will have to be overcome with at least some prospects.  Icecold does a lot of teacher business, though not as a captive VALIC rep.  He may be able to give you some color on what that kind of rep business looks like.
 
Frankly, both choices have their negatives, but if that's the only two opportunities you have in hand, hold your nose, pick one, and start making lemonade.
"Independence is like the Berlin Wall. People are only jumping in one direction." - Philip Palaveev - November 2005. "You are never free...unless you are independent..." - Indyone - May 2005.
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IceCold can tell you all you need to know about Valic.  I think he had a lengthy post about them a few years ago on the "other" board.
“We are all Antifa” - Hacksaw 9/12/2025
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Mike Damone View Drop Down
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Welcome to the forum RickRoss!
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RickRoss View Drop Down
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Thanks.  So I took the job with VALIC.   I think JP Morgan was shocked I said no.  Maybe they'll think twice about being so cocky next time.
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Ron 14 View Drop Down
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Congrats Rick! Keep us posted as to how it works out and how things are going.

Don't worry about turning JPMC down. If you go to them in 6 months they will still make an offer to you. They have no problem re-hiring guys who have quit so they won't have a problem if you go back.
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That's right bitches.  5 years from now, Rick & I will have 17,000 households between us!  
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Originally posted by RickRoss RickRoss wrote:

Thanks.  So I took the job with VALIC.   I think JP Morgan was shocked I said no.  Maybe they'll think twice about being so cocky next time.
 
Really??
 
How do you go from Wirehouse to VALIC...
 
That is like penthouse to janitor..(not that wires are a penthouse, but you get the idea).
 
JPM cocky?? Yeah I think they deserve to be after not being as stupid as C, BAC, etc...


Edited by Chief - Oct/30/2010 at 2:51am
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Chief View Drop Down
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Originally posted by iceco1d iceco1d wrote:

That's right bitches.  5 years from now, Rick & I will have 17,000 households between us!  
 
Seriously tell the truth about VALIC, why don't you work for them?
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Originally posted by Chief Chief wrote:

Originally posted by iceco1d iceco1d wrote:

That's right bitches.  5 years from now, Rick & I will have 17,000 households between us!  
 
Seriously tell the truth about VALIC, why don't you work for them?
 
I already spoke to Rick privately about VALIC.  Why don't I work for them?  The inherited book you get is MORE sticky than at a bank.  Not only do you have a non-compete, but in order to take most of your clients, you need to move to another firm that has payroll slots at the employers you cover.  In addition to that, you'll have no less than 1,000 accounts, maybe 2,000 if you have a big area to cover and inherit a decent book, and you wouldn't have many "A" clients to focus on moving.  In addition to that, VALIC is IMPOSSIBLE to transfer clients from. 
 
Aside from all of that nonsense...you're a VA salesman at VALIC.  To my knowledge, they don't really have any fee-based platform to speak of.  Very, very, limited product base to choose from.  You absolutely could not service any type of HNW investor. 
 
Rick sees this as a pro, but I see it as a con...you work from home.  I do a lot of work from home, but I have an office to meet with clients, etc. 
 
I'm not with an insurance type firm; we're a 403(b)(7) type of firm (although we do have some other companies annuities on our platform, if a client wishes). 
 
 
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@Chief: I think there is too much of a focus on company names.  With all that aside, they are two different business model going after two different client types.  Whichever makes more sense for a person, good for them.  I don't really think there is anything overly glamorous about having a cubicle at a wirehouse in one of the largest, most prestigious firms on the street.  I also don't think there's anything glamorous about being handed a telephone and computer and being told "goodluck."
 
As for VALIC, my understanding is that there are many offerings.  I know someone who recently went through their training, and they have quite a bit to offer, including a managed platform.  Sure, it's an insurance company, but that doesn't mean you can't trade stocks and have mutual funds in a wrap account.  Might not be a heavy focus for some, but it's an option.  I'm happy with my decision and if I'm wrong, I can always go elsewhere.  It's virtually the same as being shown the door by the "glamorous wirehouse."
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Ron 14 View Drop Down
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Originally posted by Chief Chief wrote:

Originally posted by RickRoss RickRoss wrote:

Thanks.  So I took the job with VALIC.   I think JP Morgan was shocked I said no.  Maybe they'll think twice about being so cocky next time.
 
Really??
 
How do you go from Wirehouse to VALIC...
 
That is like penthouse to janitor..(not that wires are a penthouse, but you get the idea).
 
JPM cocky?? Yeah I think they deserve to be after not being as stupid as C, BAC, etc...
 
What are his options if he isn't cutting it at a wire?
 
The people at the retail bank at Chase have no reason to be cocky about anything. Give me a fucking break. They had absolutely nothing to do with the success of the brand over the last few years at all.  You know the management types at Bank One/Chase as well as I do. Joe Smith a retail bank investment manager in Anywhere, USA has no reason to be a dick, yet most of them are.
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Originally posted by RickRoss RickRoss wrote:

@Chief: I think there is too much of a focus on company names.  With all that aside, they are two different business model going after two different client types.  Whichever makes more sense for a person, good for them.  I don't really think there is anything overly glamorous about having a cubicle at a wirehouse in one of the largest, most prestigious firms on the street.  I also don't think there's anything glamorous about being handed a telephone and computer and being told "goodluck."
 
As for VALIC, my understanding is that there are many offerings.  I know someone who recently went through their training, and they have quite a bit to offer, including a managed platform.  Sure, it's an insurance company, but that doesn't mean you can't trade stocks and have mutual funds in a wrap account.  Might not be a heavy focus for some, but it's an option.  I'm happy with my decision and if I'm wrong, I can always go elsewhere.  It's virtually the same as being shown the door by the "glamorous wirehouse."
 
Rick Ross - you made an educated decision with the information you had available to you. Go after it and don't look back. Wires aren't as glamorous as people think and Banks/403b providers/EJ aren't as bad as people think. The turnover at the retail bank at Chase is HUGE. I quit 3 months ago without giving any notice. I faxed in a resignation and walked out the door. My book is still sitting there without an advisor and if I called today wanting to come back they would take me. The Chase opportunity will always be there. If you believe Valic was the best move then follow your instincts and tell everyone who questions you to Fuck off.
 
Good luck.
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Originally posted by Ron 14 Ron 14 wrote:

Originally posted by Chief Chief wrote:

Originally posted by RickRoss RickRoss wrote:

Thanks.  So I took the job with VALIC.   I think JP Morgan was shocked I said no.  Maybe they'll think twice about being so cocky next time.
 
Really??
 
How do you go from Wirehouse to VALIC...
 
That is like penthouse to janitor..(not that wires are a penthouse, but you get the idea).
 
JPM cocky?? Yeah I think they deserve to be after not being as stupid as C, BAC, etc...
 
What are his options if he isn't cutting it at a wire?
 
The people at the retail bank at Chase have no reason to be cocky about anything. Give me a fucking break. They had absolutely nothing to do with the success of the brand over the last few years at all.  You know the management types at Bank One/Chase as well as I do. Joe Smith a retail bank investment manager in Anywhere, USA has no reason to be a dick, yet most of them are.
Jamie Dimon provides cover...same reason everyone who works at a wire is cocky... a couple old people built the firm... and now everyone acts like they had something to do with it..
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Originally posted by Ron 14 Ron 14 wrote:

Originally posted by RickRoss RickRoss wrote:

@Chief: I think there is too much of a focus on company names.  With all that aside, they are two different business model going after two different client types.  Whichever makes more sense for a person, good for them.  I don't really think there is anything overly glamorous about having a cubicle at a wirehouse in one of the largest, most prestigious firms on the street.  I also don't think there's anything glamorous about being handed a telephone and computer and being told "goodluck."
 
As for VALIC, my understanding is that there are many offerings.  I know someone who recently went through their training, and they have quite a bit to offer, including a managed platform.  Sure, it's an insurance company, but that doesn't mean you can't trade stocks and have mutual funds in a wrap account.  Might not be a heavy focus for some, but it's an option.  I'm happy with my decision and if I'm wrong, I can always go elsewhere.  It's virtually the same as being shown the door by the "glamorous wirehouse."
 
Rick Ross - you made an educated decision with the information you had available to you. Go after it and don't look back. Wires aren't as glamorous as people think and Banks/403b providers/EJ Seriously... newbie meetings...regional circle jerks..."what's working now that you took over a $30M book"....''fees are bad, fees are bad...have you seen our new fee based program"..aren't as bad as people think. The turnover at the retail bank at Chase is HUGE. I quit 3 months ago without giving any notice. I faxed in a resignation and walked out the door.That's because you are a pimp..But chase is doing what the industry is doing...working towards limiting advisor compensation by stripping away prospects (i.e. more advisors per branch)..of course when you buy Bear Stearns for a case of miller lite...you can do that because the big time advisors are still there... My book is still sitting there without an advisor and if I called today wanting to come back they would take me. The Chase opportunity will always be there. If you believe Valic was the best move then follow your instincts and tell everyone who questions you to Fuck off.
 
Good luck.
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