47% ooCH. 

ML  gets $18,550 you get $16,450 

They make more then you

havent been around for a while.  this has likely been asked before, but what actually is a net new household?  I'd presume that the retirement plan for a small business , lets say 20 employees,  would  be a new "household".   If that's true, what makes it a 'net" new household?  From what I see on boards here, the retirement plan assets of just 2 small business wold seem to meet that hurdle ?    Was offered FA trainee positions with several different firms over past year, as i have a relatively extensive network of  specialized small business contacts/biz owners whose employees know very little about 401k's saving, investing etc. . However, the caveat of course is that the biz owners are likely already working with an FA or someone, maybe a brother in law etc., although i haven't really asked them all yet

On the lighter side, getting a book going woulld appear relatively easy (i mean that as compared to a college grad cold calling) to get a book going,  Im not suggesting it would be easy but it seems feasible. 

I did the interviews as a backup plan in case i was downsized and lost current job etc. but so far so good, even thoug hi think i cold do well in FA world.

but..back to question re: net new households for ML pmd

[quote=FApath]

so production credits are a proxy for earned commissions from what I can tell. In general, a small business with a 600k retirement plan would generate what kind of productiion credit  ?. ?  Some small bizzes have plans for employees, some don't. some new accounts would be -or might be - transfers from other firms, and some may be totally new business, starting a plan from scratch for the small business.   Just trying to learn here from those with insights and experience. thanks.

[/quote]

.25% - .50% on the assets.  600k retirement plans are not incredibly profitable.  You are talking between $1500-3000 in PC's or Gross Commission.  Of course you could always overcharge (1%) and have someone else come in, charge .50%, and take it from you.

FApath, make no mistake - this will be the hardest thing you've ever had to do.  Worth it the long run if you gut it out ?- Most definitely.  Times will not be easy for 2-3 years at a minimum.

These relationships you have..nice to have, don't get me wrong.  But they probably already have an advisor, especially if they have anything to invest (250k+). Uprooting an existing relationship is not always an easy thing to do.  Most people are not exactly thrilled about hearing another "sales pitch" from a rookie advisor.

There are ways around all of that, but it does take time.   Don't want to be a downer, but don't go into it thinking it will be a cakewalk - it isn't.

[quote=FApath]

havent been around for a while.  this has likely been asked before, but what actually is a net new household?

[/quote]

Any new household opened where the combined assets/outstanding liability balance is >$250K. Mortgage only households count if the liability balance is >$250K. A household must meet 2 of 3 requirements: last name, same address, same SSN/TIN. Any person/entity with a pre-existing relationship/account are not net new. Net new also includes any pre-existing account that moves north of $250K would also count.

If you lose an account or an existing account moves below $250K that would count as a net lost household. If your goal is 2 net new households you have to attain just that. So, if you gain two net new and lose one you only have one net new.

[quote=ZwingDing]

[quote=FApath]

havent been around for a while.  this has likely been asked before, but what actually is a net new household?

[/quote]

Any new household opened where the combined assets/outstanding liability balance is >$250K. Mortgage only households count if the liability balance is >$250K. A household must meet 2 of 3 requirements: last name, same address, same SSN/TIN. Any person/entity with a pre-existing relationship/account are not net new. Net new also includes any pre-existing account that moves north of $250K would also count.

If you lose an account or an existing account moves below $250K that would count as a net lost household. If your goal is 2 net new households you have to attain just that. So, if you gain two net new and lose one you only have one net new.

[/quote]

thank you, that's what I had thought.  While i know the career is challenging and small employer retirement plans don't sound like much, my own informal polling of many of the employees of these potential prospects is that there is very low participation in the employers retirement plan. no rep comes by to explain to the benefits of why they should particpate etc.   A little education can go a long way, with a $600k plan becoming $1mm or more after there is buy-in from the employees who have finally received some education on how to make contributions, lower their current tax liability, and save for retirement etc..or a very very rainy day if they had to ever tap into it to borrow as a last resort.   While the biz owners themselves  likely have their personal wealth managed by an advisor, and perhaps the same advisor has the employer 401k plan also, none of that does the rank and file employees any good if they don't know anything about it or how to ask questions or how to get involved in it.   That's the essence of the value proposition.   However, I already do rather well,  steadily employed, with no real need to make career move to take the risk and try somethng like this yet. Several colleagues have suggested I do it, but, well, the more rational side of me says: keep the current gig, no grind in an office all day, car allowance, make sure the family is fed and my own mortgage and kids college funded. Priorities. That's really the deciding factor.

Although, as a part-time gig for hobby and fun sake,  i could probably do something like making referrals to an Indy but I havent exlpored that option really.  Thanks for the feedback though..truly appreciated