Pay through the years

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Jul 24, 2008 1:44 pm

Just curious as to what kind of money did you put in your pocket after certain time in the business?

This is what a broker I was talking to told me how he did, and was just wondering if this was the norm
 
year 1 - under 50
year 2- about 75k
year 3- 150k
year 4- 175k
year 5- 250k
This year he has done about 200K
 
All these are net payouts. He said he went 8a-8p m-th and 8a-4p friday
Never did weekends and just made sure he was always raising assets and treated his clients right.
About year 3/4 he never worked more then 40 hours.
 
Also have any of you hit a million yet? What year was that at?
Jul 24, 2008 2:28 pm

Newrepd - A simple question and I don't mean to offend. Why would a person share with you their income? I can understand if it was a parent , extremely close friend or family member or your accountant.

Just wondering?
Jul 24, 2008 2:53 pm

Because for the most part, the people behind these names are unknown.

I am not asking for to the point numbers, just a range
To be helpful
give me an idea what hard work can get you
Because it has been done before in the past by posters
 
no offense taken at all.....anything else?
Jul 24, 2008 3:07 pm

I agree  that the people are unknown and they may/or may not be able to give you the truth.

That being said , I would disclose my income to very few people ie. Accountant , Revenue Canada ( I don't have an option unfortunately ). Where I am going and perhaps just a life experience thing ....individuals that talk openly about their income to strangers in general are full of . You will work hard , you will work long hours and hopefully you work smart. That is what will determine your income , no majic formula.
Jul 24, 2008 3:14 pm

Also, even if you know the numbers. Everyone has a different situation. People inherit assets, people have wealthy families, people are on teams, people start from scratch, people have natural markets. You will absolutely work hard, work long, and get beat up. You can even think you were working hard, get 2 years in (like myself) and think what the heck has happened here and pick yourself up off the mat. I look for magic formulas too and there arent any. Just go to work and dial that phone over and over and over....

Jul 24, 2008 3:15 pm

BTW, I know that isnt what you want to hear, but there are a lot of quality veterans on this forum and that is what they have told me.

Jul 24, 2008 3:20 pm

Wire house numbers:


First year 100% salary:                      40 to 80k
2nd year salary and commission:       40 to 80K
3rd year 100% commission:               80k (200k production @ 40% payout)
4th year 100% commision:                123K (300k production @ 41%)
5th year 100% commission:              168k ( 400k production @42% payout)
 
On a fee basis at 1% to keep your job would require at least 20 million aum at the end of training. Some houses want more these days. The numbers above are valid fee or transaction. After five years LOS, length of service enters into the payout equation lowering payouts for slow builders. This ends up washing out lower quintile producers. The riches are split among the highest quintile producers. It's this self cleaning cycle that keeps everyone working hard. That, plus the money ain't bad!
 
How fast you build it it is up to you. There are people who have hit a million in production in their 2nd year. The fastest I've seen is about four years to a million in production. Most of my friends are million dollar plus guys with the largest being 2.5 mil. It took him about six years to cross a million. He blames me for taking so long. I trained him.
 
It's up to you. How smart are you and how hard are you willing to work?
 
Jul 24, 2008 3:31 pm

Another point that should be made and just an individual perspective. Ask how many of the veterans still arrive early in the office , or stay late in the office or meet with people on a Saturday or maybe a Sunday. RON 14 makes a valid number of points , you are going to feel like you have been kicked in the  some days or weeks. The difference is how you pick yourself back up and move forward. The old expression " funny how hard someone works to be lucky".

Jul 24, 2008 3:55 pm

The quickest I know of at Jones (from scratch) was 7 years - a guy in my region (he's at about 180mm AUM) will do it this year.  I know of many that did it sooner with a book from daddy or otherwise. 

Jul 24, 2008 7:45 pm
Thank you, BondGuy.
 
I actually think that this is an excellent question.  A salary upfront does not make your career, but heck, you need a point to base your expections upon. So, on this thread can someone comment on ED Jones? Bank of America? Wachovia? Raymond James? Insurance co's?
 
Again, we do not need YOUR comp, but what would you say is the average year by year for 5 years?
 
(If we have the information all in one thread, we can reference it to any new person asking.) Thanks
Jul 24, 2008 8:03 pm

Thank you very much BondGuy and everyone else with responses

Jul 25, 2008 12:22 am
norway401:

Newrepd - A simple question and I don't mean to offend. Why would a person share with you their income? I can understand if it was a parent , extremely close friend or family member or your accountant.

Just wondering?




Why would a person share with me their income?.... because I am a financial advisor. Do you mean to tell me you don't at least ask clients about their income?
I can't give you directions if I don't know where you are now. No wonder this posting is in "Rookies and trainees"

Jul 25, 2008 9:06 am

Correct me if I am wrong , your question was what do FAs earn? My reponse was based on individuals share confidential information with others as required? To wit : your bank when applying for a loan , your accountant when doing your tax returns , your FA when discussing investments. I know individuals that don't share income levels with their spouse.

But again what do I know?
Jul 25, 2008 9:12 am
renewed:
norway401:

Newrepd - A simple question and I don't mean to offend. Why would a person share with you their income? I can understand if it was a parent , extremely close friend or family member or your accountant.

Just wondering?




Why would a person share with me their income?.... because I am a financial advisor. Do you mean to tell me you don't at least ask clients about their income?
I can't give you directions if I don't know where you are now. No wonder this posting is in "Rookies and trainees"



Are you that broker's financial adviser? Are you this dumb in real life?

Jul 25, 2008 11:41 pm

[quote=]

renewed:
norway401:

Newrepd - A simple question and I don't mean to offend. Why would a person share with you their income? I can understand if it was a parent , extremely close friend or family member or your accountant.

Just wondering?




Why would a person share with me their income?.... because I am a financial advisor. Do you mean to tell me you don't at least ask clients about their income?
I can't give you directions if I don't know where you are now. No wonder this posting is in "Rookies and trainees"



Are you that broker's financial adviser? Are you this dumb in real life?
[/quote]


Am I his FA?, no. Am I this dumb in real life?, yep.

Anyhow, what I think he was wondering was a ballpark as far as income over the years. I can't stress how much that depends on your experience--starting from scratch, taking over a book or an office, etc--and your work ethic. And, of course your pay (salary) during the first year or two. For example, if you get a year of salary and then went 100% commission at year two, then it wouldn't be unusual for someone to make more in year one than in year two. Which actually provides a good kick in the pants to get in gear and have a good year three.

Jul 27, 2008 7:05 pm
norway401:

Newrepd - A simple question and I don't mean to offend. Why would a person share with you their income? I can understand if it was a parent , extremely close friend or family member or your accountant.

Just wondering?
 
When a good friend of mine, who is an advisor, was recruiting me to join this profession he was happy to share his earnings with me (300k).  It wasn't something he advertised and I am sure no one knew as he drove an old pickup truck, but he did not shy away from answering the question.
 
As to the first question, the numbers are higher than most I have seen for that time period and that certainly is not a bad thing.  I have advisors in my office who would love to make that much and they have been in the business 8-10 years.  Of course, they don't prospect and do not work even 35 hours a week.
 
If you are considering making the jump to this business, stay conservative with you estimates.  I worked with a guy who planned on hitting the highest bonus available every year and he budgeted that way.  He is now out of the business.