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Is the grass truly greener

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Mar 3, 2014 11:37 pm

I have been with my current bank brokerage firm for almost 10 years.

After ignoring recruiting calls for years I decided to see what was out there.

I've been offered by WFA 60% of my trailing 12 as an upfront forgivble loan and a back end bonus of about 40% if I hit my current production numbers in the first two years.

For those who have transitioned I'd appreciate any valuable feedback.

What does "forgivable" actually mean in this case?  Am I making less per year because i'm actually paying this loan back each year of the term or is that not a factor?

Also,  I'm generally pleased where I am now for what that's worth and don't want upfront $$$$ to jade me.

scrim

Mar 4, 2014 12:30 pm

Is the grass greener? We are missing a lot of the variables…is this PCG or ISG we are talking about (I assume PCG)? Are you in a wire right now? While the money may or may not “jade” you, if you are going to go to the trouble of moving, you might as well get paid. A 60/40 offer is not the most lucrative in the world, but once again, it all depends on your production level and the channel you are considering to move into to.

Mar 4, 2014 3:05 pm

But am I truly “getting paid”. They say it’s a forgivable loan against future production

Mar 5, 2014 10:23 pm

To a certain extent the terms on a forgivable can vary, however it will mostly play out like this: You receive $100,000 as a forgivable loan with a 5 year term. $20,000 of the loan will be forgiven each year you remain with the firm, and usually tied to hitting production targets. After 5 years the entire $100,000 is forgiven and you can leave (if you choose). Assuming you stay and hit the targets you’ll never have to actually pay back the money.

As I said, there are other variables that can apply, but that’s the gist of how they work.