I am in talks with an RIA about potentially joining the firm as an Financial Advisor. They are willing to pay a salary and potentially a percentage of the revenue. They manage about 300 million at 1 % with a staff of 8. I was wondering if anyone has expereicence with a set up like this and what percentage of revenue would be reasonable to ask for ?
[quote=Aviator01]Gonna sell some bonds to your Sigma Alpha Epsilon Brothers? Phi Alpha, fag.[/quote]
What type of investments does the RIA do? Will you be incharge of your clients’ portfolios, or does the RIA manage everything to a model?
They manage a few different models for clients, but each portfolio is unique. I would not be managing the money. I would be acting as a CFP for the existing clients. My other main function would be gathering new clients and additional assets. I would be opening a new office for them in an area far from thier main office. This new office has clients near by that i would be in charge of and again a big part is gathering new assets.
Sounds like a pretty good deal. I’d certainly never give someone a portion of my revenue for simply being a planner for clients. Of course, any additional business you bring, you should be compensated for. But that should be standard.
I’m no compensation expert, but I would expect for that type of position a starting salary PLUS a cut of the fee for all new assets brought in by you. The percentage you would get would trail off over the years on that asset.
I didn’t understand the part where you said "The percentage you would get would trail off over the years on that asset. " Are you talking about normal trailing comission? My goal would be to become a partner after I bring in an agreed upon amount of assets. The partners are much older then m so I would like to buy them out at some point. Does any of this cound realistic? Thanks
That I don’t know - I’m not an expert. I’m sure there are more people on this site with more experience.What I meant was say the first year you get 50% of the fee from the client you brought in. The 2nd year of the client you get 25% of the fee, next year 10%, next year 5% etc. There are many ways to skin a cat, and it doesn't seem like firms discuss compensation very often with eachother. There is a RIA compensation seminar coming up though.
ofcourse. Its nice when people actually reply to a post rather then make a joke out of it or make fun of the person who posted it.