Fair Comp?

Employee

What are your expenses? If you don’t get benefits or have to pay for things normally included as part of employment, then the payout is not really what it seems.

No expenses really. It’s for a regular employee position, benefits etc included.  Even a marketing budget.

Sounds like a pretty good deal to me,

Payout of 55% and they pay for everything?  Honestly, it sounds too good to be true.  The only way you get to that payout at most firms is through bonuses at much higher production levels.

Well that level of payout isn’t until year three.  I inquired with some people who’ve been there for years and they confirmed it. 

good comp plan if:

1.  you are actually getting 55% of what you make - many firms take 1% or more off the top "to keep the lights on".  For example, if gross dealer concession on mutual fund is 5%, 4% goes to the 55% grid.  Works out to about 44% real payout.

Hmm, good points. I am fairly certain it is not 3, and I know it is not 2.  I’ll have to inquire about #1 and get back to you.
Thank you for the input. 

Here was the reply from someone currently at the firm I’m looking at. 

If it’s 5.75% on the mutual fund, 5% goes to the payout grid.  If it’s
4.50%, 4% goes to the grid.  What ever the .?? is, goes to the company hair
cut on mutual funds.   In wrap it’s .20%, so you price that into your fee.  
So if I want 1%, I charge 1.20% to the client.

I’m not sure how that sounds, is that the norm for the industry?

Who pays out the highest payouts?

"Who pays out the highest payouts? "

You do ....

That is not a company haircut.  If the commission is 5.75%, .75% goes to the MFD company and 5% goes to the BD.

What firm is it? Have never heard of such a plan.

Ameriprise. Let the bashing begin.

Ameriprise?..

Don’t hear much about them, besides their Riversource annuities.

Still a newbie, can you explain your comment Ice?  Is that a bad thing?

Hey ICE nice comment, I'm sure AMP has more wrap accounts then BOA-Merrill,Citi-Sb, and Wachovia-Wells...............

Ice,
I read the same article you are talking about.  Can’t remember which industry magazine.  The article broke the numbers down to SMAs, mutual fund wraps, etc.  I also remember being surprised how high they ranked.  Prior to the article I would have thought the same thing as jtx25.  I just would not have typed …  Why did GG ask “still a newbie”?  What the hell does that have to do with your statement about AUM?  Am I missing something here?

I was trying to say that I’m still a newbie, or really not even a newbie yet and wanted Ice to explain his comment because I didn’t understand it.  

GG,
I get it.  Sometimes it gets lost in translation.  I need to read slower.  Thanks.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20070212/FREE/70212007/1077/TOC&ht=wrap%20accounts%20wrap%20accounts%20wrap%20accounts

Same magazine.  It says Ameriprise is largest in wraps…Seperate accounts are not wrap accounts.  No judgement on the merits just a confirmation of Ice’s post.

So do FA’s using separate accounts earn less on those than wrap accounts?  Is there data out there that shows Wrap accounts perform only as good (or possibly worse) than separate accounts?   Could someone give a clear, lay person definition of each?  I greatly appreciate everyone’s input.
Thanks!

Thanks, great info and much appreciated.
 In my licensing class for insurance this week and man is it boring. 

Do you mind me asking how you got the deal you did?  Are you a transplant from H&R Block, or part of their Career Changer program, or is that how they have structured the entire new hire program?

This is their new Career Changer program.  I understand they are just rolling it out and it sounds like I’ll be one of the first on it.  Compared to many other firms I’ve looked into, it seems like a pretty good deal. I’m sure there are others better, but I really can’t complain.