Bank Investment Consultant articles from August 2007

Bank Investment Consultant archives from August 2007

Contents August 2007.
August 1, 2007... COVER STORY 12 To Fee or Not to Fee By Howard J. Stock Lucrative fee business is in everyone's sights. But most banks are slow to make recurring revenue a priority. Changes to the broker-dealer exemption and a short-term loss...

Spreading The Word.
August 1, 2007... Washington Mutual released a new commercial as part of its ad campaign a few weeks ago. The campaign features a young, savvy consumer who, naturally, has found exactly what he is looking for at WaMu. Clamoring for his business is a pen full of...

Best Practices Yield 58% More Revenue.
August 1, 2007... Brokers who work at banks that employ best practices produce $141,258 more in annual revenue than their peers at other banks, according to a white paper penned by Kehrer-LIMRA and sponsored by Pershing. Their production averages $418,648. ...

Many More Millionaires.
August 1, 2007... The number of U.S. millionaires grew by 9.4% in 2006, compared with 6.8% growth in 2005, according to the Merrill Lynch/Cap Gemini 2007 World Wealth Report. Worldwide, there are 9.5 million people with more than $1 million in assets. Those...

Why Client Loyalty Proves Elusive for Bank Brokerage.
August 1, 2007... As wealth increases, so does the number of clients' brokerage firms. Investment firms seek the security and comfort of a long-term, monogamous relationship with their clients, but those clients are difficult to tie down. As a result,...

Blurring Bank/Brokerage Lines at Raymond James.
August 1, 2007... While many bank executives focus on selling wealth management to bank customers, Steve Raney, president and CEO of Raymond James Bank, is working with Raymond James's 5,000 financial advisors to move customers in the other direction. "We're...

Investment Revenue Soars.(Financial report)
August 1, 2007... Bank holding company revenue from mutual fund and annuity sales is up a stunning 40.1%, according to Michael White Associates. Total income from these sales was $5.6 billion in the first quarter of 2007, up from $4 billion in the fourth quarter...

To Fee Or Not To Fee: The Holy Grail of recurring revenue is in reach. But there are more reasons why tardy banks are slow to snatch it up.
August 1, 2007... Fee business, with its ongoing source of revenue, supposedly remains a coveted goal for most banks, yet advisory accounts remain a mere blip on their revenue radars. And the road to recurring revenue just got a little bumpier. Banks not only...

POP QUIZ: Test your knowledge with these sample questions from the Series 65 exam.
August 1, 2007... 1. Using multiple asset classes in an investment portfolio reduces which of the following? a) Liquidity risk b) Credit risk c) Interest rate risk d) Market risk 2. Under the Securities Act of 1933, which of the following is NOT a security?...

Doing the Right Thing: How Nick Kondra is helping the people most advisors wouldn't want.
August 1, 2007... Most bank reps understandably target clients who at the very least fall into the mass-affluent category. But Nick Kondra, a financial consultant for Investment Professionals Inc. (IPI) at First State Bank in Clute, Texas, is working with the...

Developing Your Branch: Creating synergy within your branch network can give your business-building efforts a big boost.
August 1, 2007... Have you heard The Story about the new advisor and the less than favorable first impression he imparted on his new branch? The story goes something like this: The advisor pulls up to the branch in a Mercedes and strolls into the branch...

Life Insurance for the Living: Accelerated death benefits and long-term-care riders are breathing new life into cash value insurance policies.
August 1, 2007... As long as whole and universal life insurance policies have existed, personal finance gurus have disparaged them as a waste of investable assets. Jerry Hunsanger, an investment consultant with Harbor Financial Services, (an affiliate of...

Exploring the Alternatives: When wealthy clients ask how alternative investments can help them, their advisors had better have answers.
August 1, 2007... Alternative investments-hedge funds, commodities funds, real estate and private equity-are risky business. They tie up an investor's money, sometimes for years; can collapse in a heap of red ink overnight; require huge investments just to play...

Help Wanted: A junior broker can provide a big boost to your production, improve your client relationships and enhance your quality of life.
August 1, 2007... Most top producers have considered adding an apprentice or "junior broker" to their practices. But what is the best way to do so? Seven steps can help you hire, train, compensate and manage an apprentice so you can move your practice forward....

Pay To Play.
August 1, 2007... The Numbers - Apprentice pay (compensation including benefits): $50,000 - Expected return on investment: 15% - Current payout on gross dealer commission (GDC): 33% - Expected payout on GDC (based on combined, increased...

The Beaver State Booms.
August 1, 2007... BIC: What new opportunities exist in your region? Fenton: We recently partnered with a large property and casualty insurance company. We refer commercial and group benefit business and in return they refer qualified account retirement...