At Ids, A Rookie Planner Has To Cough Up A Bundle
Your article "Rethinking IDS from the bottom up" (Finance, Feb. 8) fails to address the main cause of high planner turnover: the high costs a new financial planner is subject to. The licensing fees for brokerage registration can cost $500 to $1,000, which is paid by the candidate before hiring. Sure, IDS has posted an average 22% jump in annual earnings. Any business could achieve a monumental climb in earnings if virtually all daily operating expenses were paid by employees. Office space, phone use (cold calling), mailing, and furniture rental are just a few expenses first-year planners on a limited stipend can look forward to.
Marc A. Krusko
Editor's Note: IDS says planners pay many of their own expenses because they are independent contractors.