Average salary

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Jul 31, 2005 12:26 am

Curious if there is any data out there on what people make in this industry.


I read up and the avg financial advisor makes some where around 80k? Or 30 bucks an hour..


Does anyone have any idea what the average broker or advisor should make if they are doing well? Of course there are outliners or those who make a fortune and those who drop out after a year...

Jul 31, 2005 12:30 pm

This may be a pathetic question since there are such extremes, but I wonder if ML says if you are here for 5 years you should make 200k?

Jul 31, 2005 12:49 pm

5 years times 7.5 mill per year= $37,500,000 AUM. 



$37,500,000 times 1% annual revenue off those assets = $375,000.



At roughly 40% payout = $150,000.



This is a conservative estimate- you could definitely make more
depending on how your book is structured, so yes 150-200k is
accurate. 

Jul 31, 2005 2:23 pm

Thanks scorpio.. Okay so on that note if one were to perform as expected and make 150 to 200k in 5 years.


Would it be better to be independent and turn that 200k into 400k or 80%? I do understand that reputation has to be established when independent.


I wonder if there are any big independent firms in NYC? I am sure there are, but do these independents do as well as the firms? 

Jul 31, 2005 2:47 pm

5 years times 7.5 mill per year= $37,500,000 AUM. 
$37,500,000 times 1% annual revenue off those assets = $375,000.
At roughly 40% payout = $150,000.


"Thats accurate, but depending on how your book is structured the 1% fee will vary... For simplicity sake, if you have 37 $1MM accounts, you will probably be charging less than 1% ( due to competitive reasons, lets say 80 bps..)... If you have 74 $500K accounts you could probably get away with charging around 1.5-2% on those fee accounts, thus increasing your gross and net income afther the wires dip their fingers into the pot... I have seen both types of books. It all comes down to your client base and how you want to structure the fee schedule... I know that one producer team in our office charges full boat for fee based accounts- 3%, and they do well because they add value and they have great relationships with their clients....

Jul 31, 2005 2:57 pm

The path I am going to take is comprehensive wealth mgmt. I hear the more products a firm offers the better. So we throw in a few mortgages, annuities and insurance. It seems to me this can also increase the salary.


For those who actually post solid information.. Thank you very much.. I suspect I am not the only "groupie" on this website

Jul 31, 2005 3:05 pm
executivejock:

The path I am going to take is comprehensive wealth mgmt. I hear the more products a firm offers the better. So we throw in a few mortgages, annuities and insurance. It seems to me this can also increase the salary.


For those who actually post solid information.. Thank you very much.. I suspect I am not the only "groupie" on this website




You're welcome, CMC.

Jul 31, 2005 11:39 pm

At Merrill Lynch: POA Program: Either $40k or under guaranteed for 24mths or $40+ for 18mths. That is assuming that you are meeting your quarterly goals. Assuming $15m in assets at POA completion you should receive at at a minimum $15m .01 = 150000.40 = 60,000. Worst case = $50,000 best case depends on how much you make on your assets. A safe rule is 1% of total assets *40bps.

Aug 1, 2005 1:13 am
executivejock:

Thanks scorpio.. Okay so on that note if one were to perform as expected and make 150 to 200k in 5 years.


Would it be better to be independent and turn that 200k into 400k or
80%? I do understand that reputation has to be established when
independent.


I wonder if there are any big independent firms in NYC? I am sure
there are, but do these independents do as well as the firms? 





Have you considered Starbucks?  They're always hiring baristas,
and I hear they offer stock options to full time employees.....