500k in Production

Aug 1, 2007 6:56 pm

For the veterans in this forum how long did it take for you to reach this level of production?

When I began this long journey in 2004 my goal was to reach this level in 2008.   At this juncture I realisitically feel it will take until 2009 to hit this mark.

Thanks in advance for any feedback.

scrim

Aug 1, 2007 8:39 pm

it took me over 5 years at a wirehouse, but then i blew-up my book

it took me 2yrs at a bank

sounds like you're doing fine. keep it up!

Aug 1, 2007 8:53 pm

[quote=Vin Diesel]

it took me over 5 years at a wirehouse, but then i blew-up my book

it took me 2yrs at a bank

sounds like you're doing fine. keep it up!

[/quote]

Liar.

Aug 1, 2007 9:49 pm

[quote=Vin Diesel]

it took me over 5 years at a wirehouse, but then i blew-up my book

it took me 2yrs at a bank

sounds like you're doing fine. keep it up!

[/quote]

How'd you blow up you book.  Was everyone in Putnam?

Aug 1, 2007 9:52 pm

Liar.

How many advisors at 500k post here? (Unless they're only collecting 40%).

Aug 1, 2007 10:08 pm

I’m pretty sure that BankFC did it in a couple months, but he’s not here anymore.  Something about being found out to be a liar.

Aug 1, 2007 10:17 pm

It took 4 1/2 years I started in June.  It took until my fourth calendar year was complete and I did 504K.

Aug 1, 2007 11:01 pm

Well, taking home 175k or so from a bank is ok. Nothing to brag about. Is that what we are talking about, 500k at 35% or so? If there is a down market, I guess a lot of reps like to follow nervous money over to banks.

Aug 1, 2007 11:47 pm

[quote=pretzelhead][quote=Vin Diesel]

it took me over 5 years at a wirehouse, but then i blew-up my book

it took me 2yrs at a bank

sounds like you're doing fine. keep it up!

[/quote]

How'd you blow up you book.  Was everyone in Putnam?

[/quote]

individual tech stocks & options it was really fun for a while

Aug 2, 2007 12:32 am

[quote=roostertale]Well, taking home 175k or so from a bank is ok. Nothing to brag about. Is that what we are talking about, 500k at 35% or so? If there is a down market, I guess a lot of reps like to follow nervous money over to banks. [/quote]

It's OK I plan on making a whole bunch more here in the very near future, you make excuses, I make money.  I don't care where I earn it, when I cash the check it's all the same, plus I get away with a $350 suit and a pair of $60 dress shoes.  I am not worried about what kind of car I drive or what idiot I have to know down at the country club.

I do work my ars off. 9-5 all day, every minute well a 5 minute lunch.    I could be successful in any environment I just find this to be the most productive.  I know a bank rep who does 4 million GDC with bonuses etc she is clearing 50% + Not to bad for a broad in a cube.  Of course she has been there for like 15 years

Aug 2, 2007 3:37 am

[quote=roostertale]Well, taking home 175k or so from a bank is ok. Nothing to brag about. Is that what we are talking about, 500k at 35% or so? If there is a down market, I guess a lot of reps like to follow nervous money over to banks. [/quote] 175K is probably more than what 99% of the workers in this country earn.   I think it's something to be very proud of personally and I can't wait until I get there in 2009.

scrim

Aug 2, 2007 3:44 am

"175K is probably more than what 99% of the workers in this country earn.   I think it's something to be very proud of personally and I can't wait until I get there in 2009." scrim

Interesting. How do you define worker?

And what do you think is the bottom number to be in the
"Top 1 Percent of earners" is?

I'm gonna try to find out. But line up your guesses while I'm gone.

Aug 2, 2007 3:49 am

I have no idea really;  I was just throwing it out there.

I remember a book I read twenty years ago that said a 100k income was in the top 1% so adjusting for inflation I came up with my 175k.

Not sure the exact stats but 175k has to be way up there.

scrim

Aug 2, 2007 4:02 am

Different answers from a google search, one said 300M the other said 276M.

Both a little bit lower than I had hoped.

I remember seeing the number you had to do to be in the top 1/10 of 1 percent a number of years ago and that number was 140MM at the bottom (IIRC).

Meanwhile, the number to be in the top 5% (the percentage that politicians like to point at and pundits to holler about) What do you think that number is? To be the bottom guy in the top twenticile?

Off I go.

I'm thinking its around 70M. 

Aug 2, 2007 4:15 am

Well I'll be dipped! According to this http://www.census.gov/compendia/statab/tables/07s0678.xls

The bottom of the top 5%ers earned 173M in '04.

http://www.fedstats.gov/fast.html

Might just be a handy link to add to the old favorites folder.

Aug 2, 2007 4:44 am

Interesting factoids.

I do believe those stats are for household income as opposed to individuals.

Food for thought.

scrim

Aug 2, 2007 10:15 am

I think that doing 500k scrim in 2009 is great ..one thing too ..are you not Indy.. because the one thing everyone forgets here about banks is that you have a tremendous access to the aggregate asset of the bank.. for example in my branches I cover there are over $500 million in bank deposits.. .so you figure if you can get just 10% of that a year.. it doesn't take long for you to move upstream.. So $500k in 2 years is doable.. (case of Vin) .. I know if you are out hustling it on the street ..doing a lot of time marketing yourself.. then it will take you a bit longer.. 5 years is great IMHO .. to gross up $500k..

And as for the top earners .. I would be curious to know what it is by household myself..

BTW Bobby .. you really should check out the bank envrioment ..not to go there ..but to see it is like we say . and there is no need to call him a liar..

Aug 2, 2007 12:00 pm

whomitmayconcern

that is an interesting link

Aug 2, 2007 12:34 pm

[quote=whitewlfz]

I think that doing 500k scrim in 2009 is great ..one thing too ..are you not Indy.. because the one thing everyone forgets here about banks is that you have a tremendous access to the aggregate asset of the bank.. for example in my branches I cover there are over $500 million in bank deposits.. .so you figure if you can get just 10% of that a year.. it doesn't take long for you to move upstream.. So $500k in 2 years is doable.. (case of Vin) .. I know if you are out hustling it on the street ..doing a lot of time marketing yourself.. then it will take you a bit longer.. 5 years is great IMHO .. to gross up $500k..

And as for the top earners .. I would be curious to know what it is by household myself..

BTW Bobby .. you really should check out the bank envrioment ..not to go there ..but to see it is like we say . and there is no need to call him a liar..

[/quote]

In ten years, you could have all of the bank's deposits? I have a hard time with delusional people telling me that my perception of reality is distorted.

Aug 2, 2007 2:39 pm

[quote=Bobby Hull][quote=whitewlfz]

I think that doing 500k scrim in 2009 is great ..one thing too ..are you not Indy.. because the one thing everyone forgets here about banks is that you have a tremendous access to the aggregate asset of the bank.. for example in my branches I cover there are over $500 million in bank deposits.. .so you figure if you can get just 10% of that a year.. it doesn't take long for you to move upstream.. So $500k in 2 years is doable.. (case of Vin) .. I know if you are out hustling it on the street ..doing a lot of time marketing yourself.. then it will take you a bit longer.. 5 years is great IMHO .. to gross up $500k..

And as for the top earners .. I would be curious to know what it is by household myself..

BTW Bobby .. you really should check out the bank envrioment ..not to go there ..but to see it is like we say . and there is no need to call him a liar..

[/quote]

In ten years, you could have all of the bank's deposits? I have a hard time with delusional people telling me that my perception of reality is distorted.

[/quote] I cover one bank branch with approx 50M in deposits.   My own book is about 25M.    The bank branch is not growing deposits but my book is growing.    Eventually in a few years my book should have more deposits than my bank branch.

Scrim

Aug 2, 2007 2:41 pm

[quote=scrim67][quote=Bobby Hull][quote=whitewlfz]

I think that doing 500k scrim in 2009 is great ..one thing too ..are you not Indy.. because the one thing everyone forgets here about banks is that you have a tremendous access to the aggregate asset of the bank.. for example in my branches I cover there are over $500 million in bank deposits.. .so you figure if you can get just 10% of that a year.. it doesn't take long for you to move upstream.. So $500k in 2 years is doable.. (case of Vin) .. I know if you are out hustling it on the street ..doing a lot of time marketing yourself.. then it will take you a bit longer.. 5 years is great IMHO .. to gross up $500k..

And as for the top earners .. I would be curious to know what it is by household myself..

BTW Bobby .. you really should check out the bank envrioment ..not to go there ..but to see it is like we say . and there is no need to call him a liar..

[/quote]

In ten years, you could have all of the bank's deposits? I have a hard time with delusional people telling me that my perception of reality is distorted.

[/quote] I cover one bank branch with approx 50M in deposits.   My own book is about 25M.    The bank branch is not growing deposits but my book is growing.    Eventually in a few years my book should have more deposits than my bank branch.

Scrim

[/quote] Obviously, that last sentence should have read my book will BE BIGGER than my branches deposit base.

scrim

Aug 2, 2007 4:35 pm

[quote=pretzelhead][quote=Vin Diesel] How'd you blow up you book.  Was everyone in Putnam?[/quote]

And the Grand Prix family of funds, AIM Value, MFS Investor's Trust, MFS Research fund, Munder Net Net....etc.........

Aug 2, 2007 4:41 pm

[quote=scrim67][quote=Bobby Hull][quote=whitewlfz]I cover one bank branch with approx 50M in deposits.   My own book is about 25M.    The bank branch is not growing deposits but my book is growing.    Eventually in a few years my book should have more deposits than my bank branch.

Scrim[/quote]

How much of that book is dead money in B shares or annutites purchased in the last 2-3 years?

Or have you been there a long time as rep?  Just curious.........

Aug 2, 2007 4:54 pm

[quote=Bobby Hull][quote=whitewlfz]

I think that doing 500k scrim in 2009 is great ..one thing too ..are you not Indy.. because the one thing everyone forgets here about banks is that you have a tremendous access to the aggregate asset of the bank.. for example in my branches I cover there are over $500 million in bank deposits.. .so you figure if you can get just 10% of that a year.. it doesn't take long for you to move upstream.. So $500k in 2 years is doable.. (case of Vin) .. I know if you are out hustling it on the street ..doing a lot of time marketing yourself.. then it will take you a bit longer.. 5 years is great IMHO .. to gross up $500k..

And as for the top earners .. I would be curious to know what it is by household myself..

BTW Bobby .. you really should check out the bank envrioment ..not to go there ..but to see it is like we say . and there is no need to call him a liar..

[/quote]

In ten years, you could have all of the bank's deposits? I have a hard time with delusional people telling me that my perception of reality is distorted.

[/quote]

This is a phrase I thought I'd never get to say with a straight face:

Bobby, you're thinking like a banker! 

I take money from my bank's deposits all of the time.  And I say you are thinking like a banker because there are still a few of the old timers here that get annoyed everytime someone moves $10,000 from a CD to an investment, thinking that every dollar I gather comes directly out of their pocket.  You know what?  Their deposit base keeps rising, even though I do take money from them on a regular basis.  How, you may ask?  

Even though I take some money from them, the majority of it comes from bank customers bringing me OTHER money that they have, be it in other banks, with other brokers, or in 401k's.  I also tell my clients with CD's at other banks that they should move that money here (assuming that our rates are higher, which they ususally are).  So yes, in 10 years it is possible for a bank broker to have AUM higher than the bank's deposit base.

Aug 2, 2007 5:11 pm

In my opinion, i don't think the bank is going to like if your AUM exceeds their deposit base.  You can get away with it right now, b/c most banks have too much cash on hand and not enough loan growth.  So, they will trade that interest expense for the immediate income.  But if the interest rate enviroment changes, and they need cash to lend, your relationship could change. 

Just saying.....you might not want to call that to their attention.

Aug 2, 2007 7:42 pm

[quote=the word]

In my opinion, i don't think the bank is going to like if your AUM exceeds their deposit base.  You can get away with it right now, b/c most banks have too much cash on hand and not enough loan growth.  So, they will trade that interest expense for the immediate income.  But if the interest rate enviroment changes, and they need cash to lend, your relationship could change. 

Just saying.....you might not want to call that to their attention.[/quote]

That day will come, so be prepared for it. 

Aug 2, 2007 9:03 pm

[quote=the word]

In my opinion, i don't think the bank is going to like if your AUM exceeds their deposit base.  You can get away with it right now, b/c most banks have too much cash on hand and not enough loan growth.  So, they will trade that interest expense for the immediate income.  But if the interest rate enviroment changes, and they need cash to lend, your relationship could change. 

Just saying.....you might not want to call that to their attention.

[/quote]

I didn't call you a moron.

Aug 2, 2007 11:28 pm

I didn't call you a moron......what the hell?

Aug 3, 2007 12:26 am

I know I am new to these forums, but the question was "How  long did it  take you go get to $500k" and honestly id  love to hear some of the responses and how you did it, etc....instead of all the bickering..etc.

I mean honestly...I think there has only been  2 or 3 answers to that question in  3 pages!! lmao

Pinn

Aug 3, 2007 2:10 am

[quote=PinBroker]

I know I am new to these forums, but the question was "How  long did it  take you go get to $500k" and honestly id  love to hear some of the responses and how you did it, etc....instead of all the bickering..etc.

I mean honestly...I think there has only been  2 or 3 answers to that question in  3 pages!! lmao

Pinn

[/quote]

Yep you are new.  We mostly bicker amongst ourselves here, and sometimes have meaningful discussion. Please pay attention.

And to answer the original question it took me 5.5 years.

Aug 3, 2007 2:40 am

[quote=bluestars80][quote=scrim67][quote=Bobby Hull][quote=whitewlfz]I cover one bank branch with approx 50M in deposits.   My own book is about 25M.    The bank branch is not growing deposits but my book is growing.    Eventually in a few years my book should have more deposits than my bank branch.

Scrim[/quote]

How much of that book is dead money in B shares or annutites purchased in the last 2-3 years?

Or have you been there a long time as rep?  Just curious.........

[/quote] I've been in my program about 3 years.   I would estimate 2% of my entire book are B shares and annuities.   That is because I've never solicited an annuity and hardly ever use B shares.   

My book is about 55% fee based and most of the rest is money markets and A shares.

scrim

Aug 3, 2007 4:11 am

[quote=the word]

In my opinion, i don't think the bank is going to like if your AUM exceeds their deposit base.  You can get away with it right now, b/c most banks have too much cash on hand and not enough loan growth.  So, they will trade that interest expense for the immediate income.  But if the interest rate enviroment changes, and they need cash to lend, your relationship could change. 

Just saying.....you might not want to call that to their attention.

[/quote]

I'm smart enough to not call it to their attention.  As far as I know, no one in my bank even knows my AUM except for my assistant and myself.  It doesn't make sense to me, but they don't track it.  The only way I know is by having my assistant pull numbers from various places at the 1st of every month and plug them into Excel.

And by the time I am bigger than the branches I cover I will probably leave of my own accord anyway.  If I took just 1/2 of it I would be producing well north of $500,000/yr as an indy.

Aug 3, 2007 8:08 am

Being delusional (according to the site expert shrink Mr Hull)

I have to say that if you think you know the bank system .. and that they are all created equally good luck on that ..Because that is not the case.. and to judge them all as the same you will miss out.  Just like all Indy shops are different ..it is the same for banks.. So ease up eh ..and learn for yourself!

Aug 3, 2007 8:14 am

Oh and Pin …last year (year 3 ) combined gross was 470k (my business partner and myself -400k me and 70k him)  this year we (my team - 2 producers 1 SA 1 insurance specialist 1 private lender ) will do over $1MM in production (year 4). 

Aug 3, 2007 12:29 pm

When you post your #’ strip out what evryone else did and just give us what your being paid on.  I have a friend whose team did 2 Million he is going to make 70K, hardly impressive.

Aug 3, 2007 12:55 pm

I’ve always found production to be a fairly meaningless number.  There are two much more meaningful numbers.  1) What is your income?  2) How many people did you help?

Aug 3, 2007 2:30 pm

I don't do $500K in production now, I do $350K.  However, since my payout is 73% net, I make more money than I did at the bank at 35%, when I was doing over $500K........

So, I'm "lazy".........sue me...........

Aug 4, 2007 12:21 pm

[quote=bornagainbankr]When you post your #' strip out what evryone else did and just give us what your being paid on.  I have a friend whose team did 2 Million he is going to make 70K, hardly impressive.[/quote]

I am going to be paid on $525k this year roughly ..and tben bonuse on $200k ..from the team..

Aug 4, 2007 12:24 pm

And if you are wanting to know what I will make net …which is the point every Indie likes to bring up… I will get 37 points on every dollar and a 4 point bonus at year end on the total mentioned above…

Aug 4, 2007 2:00 pm

[quote=whitewlfz]And if you are wanting to know what I will make net ..which is the point every Indie likes to bring up... I will get 37 points on every dollar and a 4 point bonus at year end on the total mentioned above..[/quote]

Actually, I'm more interested in what service your employer provides for you that is worth $300,000. No intelligent person would pay that kind of money if they didn't feel like it was worth it.

Aug 6, 2007 10:53 am

You know I have heard the arguement about going indie.. I get your position ..but for me ..having been at EDJ (spare me the rant) and a  regional planning firm of only 30 people.. I like being at a bank And yes I can psopect.. I hold seminars now.. and I am not saying I will be here forever either..

I know ..they are taking ..whatever ..but when you get down to my payout and bennie's and everything else (full time SA/ modern office  overlooking a river/ year  end bonus / matches on 401k/ pension plan contributions/ stock options / season tickets to the box seats )  .. it is about 20% more whcih I know I would keep if I was to be indie..

So blast away about my intellect or whatever snide remarks you may like..

It is what it is..

[quote=Bobby Hull]

[quote=whitewlfz]And if you are wanting to know what I will make net ..which is the point every Indie likes to bring up... I will get 37 points on every dollar and a 4 point bonus at year end on the total mentioned above..[/quote]

Actually, I'm more interested in what service your employer provides for you that is worth $300,000. No intelligent person would pay that kind of money if they didn't feel like it was worth it.

[/quote]
Aug 6, 2007 3:54 pm

[QUOTEI am going to be paid on $525k this year roughly ..and tben bonuse on $200k ..from the team..[/quote]

SO, that's $202,250?  A nice living to be sure.  Like us Indies have said, the reason we went indie is that if you can budget and keep costs down, your net payout is higher, meaning you can fire your PITA clients, have a smaller book, and get paid the same on a net basis.

My example, I did $540,000 at a bank and got 35% = $189,000

In 2006, I did $353,500, and my net was 72.74%, so I got $257,136, and my book was $13 million less than at the bank........so I got a 36% raise to go indy with nobody looking over my shoulder or cutting payouts.........

Aug 7, 2007 2:50 am

I am in my 5th year at a wirehouse, $500k in T-12.  It wasn’t that hard