Is my RIA underpaying me?
I am an advisor with 11+ years of experience within the advisory, annuity, and life insurance arena, I have a series 7, 66, life & health, and an AIF designation. I now only offer advisory and fee based planning services. I am working for what seems to be a shrinking wirehouse, even though I was told it was a RIA upon my hiring.
QUESTION: Am I getting f*d over or is this a normal comp structure for a wirehouse? Is it normal to have a $50,000 "deductible" before I start recieving any fees?!
I manage 50+ households with a total AUM of $16,000,000 of a senior advisor's book of business (C and D clients). Secondary objective is to bring in additional AUM - I have brought in and manage 15 households worth $6,000,000 in additional AUM.
1st - $50,000 salary with benefits to manage the 50+ households. There is no raise, bonus, or asset based increase in pay.
2nd - AFTER I bring in an additional $50,000 in advisory fees to the firm, I will then receive 40% on any fees received for dollars OVER 50,001 through 250,000 AND 45% on any fees received above $250,001.
Obviously, I want this $50K deductible removed, but will a small wirehouse/RIA change their policy for me?
Robb, I am not sure if you are employed by a a national/regional firm or an independent RIA, and just working with this advisor. If an independent, then it doesnt sound like a very fair deal for you unless there may be potential down the road to acquire the practice. I work with advisors who are considering going independent. Feel free to reach out if you want to discuss your situation in more detail.
That's somewhat like Edward Jones and the base is a little shy of Morgan Stanley. But those are diff from an IRA.