Is $400K TTP the New $1MM Producer?
In post meltdown world have annual production numbers been revised by recruiters or by industry standards. Is $1MM gross still the holy grail? Or have many former $1MM producers turned into $400k producers? And have the $400k producers dropped to $300k or less and are getting let go by the wirehouses?
Actually, I think there are a lot of former $1mm producers that are in for a tough road. Most of those guys that I know in the area (outside of Jones) are in their 50’s and 60’s, and have built to $1mm over decades. Many of them started in the 80’s, and more than half their book is just market appreciation over the past 25-30 years. Betwen clients dying, leaving, and assets being down, it’s tough to go at it again when you’ve been cruising for 5-10 years (or more) on autopilot.The guys that are going to continue to excel are those that either got to $1mm very quickly (and rather recently), or have a clear path and gameplan to keep going despite the market (the exceptional ones). Many of these guys have actually increased production this past year. I actually talked to a guy a few days ago from SF (moved from Merrill) who does primarily 401K's. His business was up 15% in 2008, mostly due to new assets from new 401K plans and assets that continue to roll in from the existing plans.