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 ?
Gonna sell some bonds to your Sigma Alpha Epsilon Brothers? Phi Alpha, fag.
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.