How many assets for $250k gross?

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Sep 30, 2005 7:02 am

I know there is no exact answer and it would be different at every
firm, but if you are not doing fee based, how much in assets would be
required to consistently do $250k gross a year?

Sep 30, 2005 8:21 am
BullMarket:

I know there is no exact answer and it would be different at every firm, but if you are not doing fee based, how much in assets would be required to consistently do $250k gross a year?


Why do you only want to do $250,000 gross?

Sep 30, 2005 8:58 am

Assuming an ROA of 1%, that'd be $25 million for $250k.  Probably most ROA's fall between 1 & 2%.

Sep 30, 2005 6:27 pm
Leroy Brown:

Why do you only want to do $250,000 gross?





I don't, but just starting out it would be kinda silly to ask how much
it would take to do $500,000 or $1,000,000 gross since it would be
quite a while before I can reach those numbers.  I figure $250,000
gross is a good medium term (3-5 years) goal.

Sep 30, 2005 6:31 pm
Duke#1:

Assuming an ROA of 1%, that'd be $25 million for $250k.  Probably most ROA's fall between 1 & 2%.

Sep 30, 2005 6:32 pm
Duke#1:

Assuming an ROA of 1%, that'd be $25 million for $250k.  Probably most ROA's fall between 1 & 2%.





Thanks, is that true for non-fee based?

Oct 2, 2005 8:55 pm

It all depends on your turn of assets, but 1% is a little high for my book. I run about .75-.85.  In other words, take the trailing 12 months and divide by current assets, that will give you your ROA or velocity. Then to figure what assets you need take that and divide by trailing 12 you want to give you the approximate velocity you would need. Bear in mind the longer that you are in the business, typically your velocity would tend to decrease slightly. Hope that helps.