Ok, I'm curious. I've been reading up on a few things ("Building A Million Dollar Financial Services Practice"), and I get that as a FA, your pay is directly related to the amount of business you bring in - but I'm a little hazy on the ratio of assets that I bring in to how much I'll see in my own personal bank account.
Lets say I'm prospecting...and I hit it off with some guy who is worth a ton, and he wants me to invest $1,000,000. He comes into my office later that week and we sit down and get him all squared away. Boom. I have $1,000,000 in assets that I'm managing.
Now, what will this mean for me in terms of my next paycheck? Will it vary a lot between EJ, Merrill, RJ, etc.? Will I get a percentage of his $1,000,000 all at once? Will it be spread out? Will I keep getting income from this guy's decision to invest with me over time? Or do I need to KEEP landing $1,000,000 accounts to sustain any form of income?
Can anyone help me understand?
It depends on your firm and what you're doing. If you're doing a fee based business at 1%, you'll get per year from that client assuming no market adjustments $10,000. That is $833.33, some companies pay it by the quarter which is $3,333.33. But, you don't get to keep all of that most wires you get around 35% payout which would be $1,166.67. If you're doing mutual funds with a load based comission it could be different. I know you're looking at Ed Jones and they are pretty much a mutual fund sales shop with an Ameircan Fund for every situation.