Should I take the opportunity?

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Oct 20, 2010 4:28 pm

I currently manage a branch for a bank and do very well for myself.  I am always one of the top performing managers in 2 states and make about $95K a year. 

Recently, I met a new client and have developed a relationship with this man.  He is about 61 years old (not retiring anytime soon) and is top producer for a major wirehouse.  His AUM is over $300M.  During a recent conversation, he mentioned that I should come work for him.  We will be meeting to discuss the potential opportunity in the near future.  This is always something that I have wanted to do. 

1.  What questions should I ask about the opportunity?

2. Has anyone had an opportunity like this in the past?  Seems to good too be true.

3. Does anyone have an Idea how compensation would work if I became this gentleman's partner?  Obviously, he is making over $1M a year.  I don't expect to make anywhere near that but would not be able to make less than what I am currently earning.  I am 28 years old and have a young family to support. 

4. Any advice or guidance is greatly appreciated.

Thank you!

Oct 20, 2010 5:48 pm

No. Keep managing a bank and get 2% raises every year. Dude, seriously, this isn't even a question. Find out everything you can about this guy, some major wire brokers have a decent website that'll tell you about their team, background, etc. Go and talk to him. If this guy is remotely serious about you joining him and if he mentions you working some of his book then this sounds like a pretty sweet deal. Be upfront with him though. Tell him what you make and what you want to make and how you can't make much less than x. In my experience vets like to hear that kind of thing.

Oct 20, 2010 6:03 pm

The most important questions for you to ask are what would your role be on his team once you got registered, and what does he envision your role to evolve into down the road.

Also make sure he gets you into the training program of the wirehouse, which would happen if he was bringing you on as a junior broker, rather than as a Client Service Assocatie

Oct 20, 2010 10:18 pm

Get it in writing.....

Oct 21, 2010 3:57 pm

Stay at the bank.....  You'd need over $20m under management just to get back to what you are making now, and it ain't easy.

Oct 21, 2010 11:47 pm

1. Find out how many other "partners" he has had in the past.  He may just be looking to tap your rolodex, have your bank relationships hand walked into his office so that he appears to be the guru - and two years or so into the opportunity - HE is making a boatload on your introductions - and YOU are dealing with 5k rollovers for Mrs. Jones and not able to make goals.  He may have done this dozens of times to people and this is why he has 300m under management. There is a team in our area that operates this way and in 4 years, I've seen them literally steam roll through 6 "partners".

 2. You aren't licensed and aren't experienced in this business, right? Talk with OTHER advisors in your area first.  Get a really good picture. Ask them about their worst experiences and the hardest aspects of the work. They may know about him and can provide insight. Talk with current or former Assistants, too. Assistants know more about whether someone is a jerk than anyone else.

3. No way he's making a a mil. At 61 with those kinds of assets - he is old school & he is transactional.  The book is probably barely annuitized or wrapped with recurring revenues. It's probably all bonds or transactional.

quote=addysdad]

I currently manage a branch for a bank and do very well for myself.  I am always one of the top performing managers in 2 states and make about $95K a year. 

Recently, I met a new client and have developed a relationship with this man.  He is about 61 years old (not retiring anytime soon) and is top producer for a major wirehouse.  His AUM is over $300M.  During a recent conversation, he mentioned that I should come work for him.  We will be meeting to discuss the potential opportunity in the near future.  This is always something that I have wanted to do. 

1.  What questions should I ask about the opportunity?

2. Has anyone had an opportunity like this in the past?  Seems to good too be true.

3. Does anyone have an Idea how compensation would work if I became this gentleman's partner?  Obviously, he is making over $1M a year.  I don't expect to make anywhere near that but would not be able to make less than what I am currently earning.  I am 28 years old and have a young family to support. 

4. Any advice or guidance is greatly appreciated.

Thank you!

[/quote]