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Potential Advisor

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Macduff View Drop Down
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Joined: Oct/27/2013
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Macduff Quote  Post ReplyReply Direct Link To This Post Posted: Aug/24/2022 at 11:21am
Originally posted by B24 B24 wrote:

Originally posted by Macduff Macduff wrote:

Originally posted by nest nest wrote:

I came to Ameriprise because the office I was brought in to run happens to be here. I didn’t do much due diligence on Amp. I’m on the franchise side and the comp was good so I took the job. Now that I’m here I would never choose Amp. I can’t believe the big EJ girl came over here. They clearly just paid her a fuck ton. They nickel and dime advisors constantly. Manipulating payout grids. Now just as of this week if you buy another Ameriprise book you have to hold it at the previous owners grid for 3 years! So if we’re at 91% payout and buy a book @ 75% we have to use the 75% for 3 years. Frustrate the hell out of me. They definitely are stock holder first mindset. Expensive for clients and advisors. 25 bps haircuts on all advisory accounts. I could go on but I’ll just ruin my day. 

That said, advisors can run the practice however they want. I’ve gotten to know a few other office and see how they run. Within an hour I have old school A shares guys, 100% recurring, and books that are 80% annuity slinging fucks. Just depends on the person like everything else. Ameriprise grid does steer towards managed accounts and charging for financial plans so that is the overall trend. 

This is going to cut into margins. When I was there, I saw some crazy multiples on book purchases. IIRC, I saw 4-4.5x on a couple. Lowering the profitability there hurts both the buyers and sellers. 

Fuck AMP though. I was an AFA in a P2 CAC practice and I couldn't stand it, for many of the reasons you mentioned. I saw the writing on the wall; it wasn't worth building a book there and being stuck, so I left and started over.

In their defense, they make it real easy to acquire other practices (probably helps keep assets in-house). Guy in my town has just been buying retiring advisor's books all over the place. I think he's close to $1B AUM, and he didn't gather most of that. 

For sure, that's why the multiples have been pushed so high. When you can move 100% of the book with a single form, it makes the transition easier.
“I was born for the storm, and a calm does not suit me.”

― Andrew Jackson
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johnalden View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote johnalden Quote  Post ReplyReply Direct Link To This Post Posted: Sep/16/2022 at 5:11pm
Originally posted by nest nest wrote:

I came to Ameriprise because the office I was brought in to run happens to be here. I didn’t do much due diligence on Amp. I’m on the franchise side and the comp was good so I took the job. Now that I’m here I would never choose Amp. I can’t believe the big EJ girl came over here. They clearly just paid her a fuck ton. They nickel and dime advisors constantly. Manipulating payout grids. Now just as of this week if you buy another Ameriprise book you have to hold it at the previous owners grid for 3 years! So if we’re at 91% payout and buy a book @ 75% we have to use the 75% for 3 years. Frustrate the hell out of me. They definitely are stock holder first mindset. Expensive for clients and advisors. 25 bps haircuts on all advisory accounts. I could go on but I’ll just ruin my day. 

That said, advisors can run the practice however they want. I’ve gotten to know a few other office and see how they run. Within an hour I have old school A shares guys, 100% recurring, and books that are 80% annuity slinging fucks. Just depends on the person like everything else. Ameriprise grid does steer towards managed accounts and charging for financial plans so that is the overall trend. 

I sat through an Ameriprise presentation very recently. I was impressed with their transition process among other things. I came away thinking they really have some good things going on. 
They did a proforma for me and went over all operating expenses. The 25 bps haircut you are referring to on fee based accounts was described to me as a fee that varies based upon the size of the household as well as the advisor's book of business. They told me the highest global admin fee would be 20 bps for my book, and only on small households. They told me that on larger households it could be as low as 5 bps. I'm waiting to get all of this in writing. Also, they told me I would not have to do financial plans that I charge for. Is this not correct?


Edited by johnalden - Sep/16/2022 at 5:11pm
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