Please help - 401k question
how do firms like SB,ML,MS handle 401k business? If I were to sign up a 100 person firm, with all 100 people invested in a 401k plan (mutual funds) - how are those assets handled? does this count towards your AUM and typically what is the production calculation?
I’d love to see if anyone has specific payout/grid info for these firms!!!
Not at any f those firms, but payout would be the same as any other MF trade in our system at AGE/WS
At Jones they count towards assets. Why wouldn’t they count? Our local MS office has a team that does almost exclusively 401K business. They may not be held at the firm, but you are broker of record, just like a 529, or vendor-held mutual fund.
At SB, they are not shown as part of your assets, but i believe (not 100% sure, i think this is a recent change) for trainees, they add the assets back for purposes of your bonuses.
The exception was always Citistreet plans, which were always included in your assets. But i am not sure how they are handling that since they became part of ING.
As far as gross, its the same payout as any MF.
At ML they can be held at the firm or held away, your choice, multiple platforms. Also, depending on how you structure the plan, it can be anywhere from 25 bps to 1%, you keep your grid payout, anywhere from 38 to 50% of that. It does count as an annuitized asset as far as ML training goes.