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Feb 23, 2010 2:56 am

New to the board, but been busy prospecting so now I have some time to post during off hours.



I am at a large wirehouse that offered training, base salary (almost gone) and payout that was not so great. I have been in the industry almost 2 years, in production about a year and a half with licensing etc.   Have 17M in AUM and T-12 is 140K, no inherited accounts. Built everything on my own.



I have an offer on the table with a firm 125% of T-12 upfront, 7 year note, with 35% flat payout. It could be more as production goes up with 35% gross production bonuses for the next 4 years, as long as I meet certain goals, which should be attainable.



What are your thoughts on this from senior members? I have had offers to join teams, but I am getting plenty of clients on my own and don’t think that sharing my book with a 30 year vet that wants me to prospect for him is in my best interest at this point.



Thanks in advance for your input.



G







Feb 23, 2010 3:06 am

Why not stay a couple more years build up some higher production numbers then take a check… 7 years in a long time for $175K… But need more info…

  What is current payout? What is breakdown of the $175?( all Citi stock)? Does that 35% guaranteed for all 7 years..   I agree  you shouldn't join a team if you can continue adding around $10MM/year.. impressive..(care to share?)
Feb 23, 2010 4:59 am

Thanks for your reply.



35% non fee based, 40% fee based flat pay out, no hurdles for 1st 4 years. Then if over 250K in 4 years, payout will be about 40%, which I better be doing, or this business is not for me.



In the meantime here is what I can get in the next four years in addition to the upfront $$$ for year one.



T-12 over 125K after month 24, bonus = 35% of T-12 no cap.



After month 36, 35% of T-12, no cap, 150K min gross.



After 48 months, 35% of T-12, no cap, 200K min gross.



Thoughts???

Feb 23, 2010 5:01 am

Forgot current payout is 24% of first 6K, 50% on rest of gross. Eventually goes to 24% of 1st 10K, 50% on rest of gross.

Feb 24, 2010 2:28 am

I agree with Cheif if 125% of 140K sounds nice, wait a little longer and 125% of 250, 350, ect will look even better.  Remember an advisor only has so many moves in his career before clients get fed up so don’t get caught up in moving too much.  Sounds like you have great momentum on your side, maybe stay a little longer.  Any problems with current firm?

Feb 24, 2010 4:42 am

If you are bringing in 1mil in new assets a month go Indy. Why do you need the wirehouse ?

Feb 24, 2010 1:59 pm

[quote=Ron 14]If you are bringing in 1mil in new assets a month go Indy. Why do you need the wirehouse ?[/quote]