What is your Ideal income?

Uhhhh, how old are you? I am guessing you just got your diploma? You

will hear many different replies, many of which will be philosphical in

nature. However, it truly is different for everyone. And it depends on

what channel you work for (Indy, Wirehouse, etc). I find most Indies are

happy with a comfortable income, with very good work/life balance. Most

wirehouses seem to nurture a more competitve environment, so the

salary expectations are quite a bit higher. But I can’t imagine anyone in

this business settling in at anything under 100K.



Of course, this is a broad generalization.

[quote=anonymouse55]

I see alot of people on here that talk about being a big producer and this or that firm caters to small time clients. WHat is your measure of a successful financial advisor in terms of yearly income. I know there are several other factors that comprise being a successful advisor. WHat do you consider a great yearly income?

For me that woud be anything over $100,000. By the time I hit 40 hyears old I'd like to be at $200,000.

150-Good

250-Really Good

350-Great

500-Ideal

[quote=rook4123]150-Good
250-Really Good
350-Great
500-Ideal
[/quote]

Hell, there's some kind of X box 360 or something that is selling for more than $500.  I can't imagine anybody being satisfied with less than a thousand.

[quote=Broker24]Uhhhh, how old are you? I am guessing you just got your diploma? You
will hear many different replies, many of which will be philosphical in
nature. However, it truly is different for everyone. And it depends on
what channel you work for (Indy, Wirehouse, etc). I find most Indies are
happy with a comfortable income, with very good work/life balance. Most
wirehouses seem to nurture a more competitve environment, so the
salary expectations are quite a bit higher. But I can't imagine anyone in
this business settling in at anything under 100K.

Of course, this is a broad generalization.[/quote]

Broker24 you're hilarious. I could do without the sarcasm.

Actually, I think Broker24 was pretty close to the concensus...

...and if you're here long, that's mild sarcasm compared to what you'll get...

[quote=Indyone]

Actually, I think Broker24 was pretty close to the concensus…

...and if you're here long, that's mild sarcasm compared to what you'll get...

I’m a newbie, but below are my targets for total compensation.  I think they are fairly realistic for a successful producer in my firm and region.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

LOS     Income

3          $150k

5          $250k

10        $450k

--WM

55, though there was a hint of sarcasm, I actually meant that.  If your ideal income is 100K that you are shooting for, and you want to hit 200K by 40, you can’t possibly be much older than 25.  Most people need at least 10-15 years in the biz (or more) to hit 200K net/net (depending on how they start and what they start with).  Point being, I wanted to make sure you are being realistic in your “income trajectory” assumptions.  If you made that statement, and you are actually about 35 years old, then you would be way off base.  Getting to 125K net can be achieved relatively quickly with really hard work, but making the leap up to 200K takes time in the biz, experience, and a strong, established network.  None of that can be done quickly.

Broker 24, the only part I took offense to was

"Uhhhh, how old are you? I am guessing you just got your diploma?"

Anyways Im not going to cry about it. My mom just made me homemade cookies and a cold glass of milk so im going to go eat a snack.

…now you’re learning how to play…

Getting to 125K net can be achieved relatively quickly with really hard work, but making the leap up to 200K takes time in the biz, experience, and a strong, established network.  None of that can be done quickly.

An interesting truth. Not that the first 125k is easy. A lot of us indys really value the "balance" - more like, not really working that hard. Also, you get a little burned out, so living on 125k after "expenses" (which can be a little creative, of course) - that means, maybe, at least 200k GDC after "haircut" to the broker dealer - in the right geographic area, a pretty nice lifestyle if you want to be laid back (like, only have one part-time staff), and work about 25 or 30 hours per week most of the time.

And then, from the client's point of view, they get a very happy, stable advisor who is highly motivated to keep things on track for all. I love this business. But I often feel guilty about not doing more marketing, hiring more staff, doing bigger numbers.

My ideal income is $1,000,000 on a 40 hour work week. 

[quote=anonymous]My ideal income is $1,000,000 on a 40 hour work week.  [/quote]



I have met a handful of folks that make that kind of money. Some of
them several million a year. And they all have one thing in common.

They work their a-- off. I’m talking 70+hrs a week on the low.

I also know quite a few who make this kind of money.  As a rule, you are correct that they worked long and hard to get to that type of income.  However, the nature of our business allows someone to work less and less hors while maintaining income.

I will never accomplish my goal if I start working a 40 hour week before my income is darn close.

Yes that is true. That is why I love it. Eventually I will work less
for more. I haven’t met a broker yet making a million a year though.
I’ve met a couple million dollar producers though. The people I was
referring to are business owners or fund managers.

Most of the people who I know making $1,000,000 + originally came from the insurance side of the business.   

But do you know anyone making eleventy kabillion dollars?  That’s my target.

I want to make every penny I am capable of making.  I have been blessed with great skills.  Now, I want to use them to prosper, donate to charity, and to help my clients.

A successful man is one who can make more money than his wife can spend.

I want to feel good about spending a crazy amount on a paint job on my boat.  Thats my next goal.

[quote=rightway]I want to feel good about spending a crazy amount on a paint job on my boat.  Thats my next goal.
[/quote]

Dude you are SERIOUSLY obsessed with that!!!

[quote=skeedaddy2]A successful man is one who can make more money than his wife can spend. [/quote]



Benjamin Graham defined a wealthy person as being someone who didn’t have to balance their checkbook. That’s my goal.

"Benjamin Graham defined a wealthy person as being someone who didn't have to balance their checkbook. That's my goal."

The beauty of it being that as long as you spend less than you take in, you are that guy.

Wealth defined by contentment.

Mr. A

My definition of wealthy is anybody who works because they want to as opposed to needing the income. 

[quote=mranonymous2u]

“Benjamin Graham defined a wealthy person as being someone who didn’t have to balance their checkbook. That’s my goal.”

The beauty of it being that as long as you spend less than you take in, you are that guy.

Wealth defined by contentment.

Mr. A

Yes I win! I don’t have to balance my check book. Own nothing and have nothing.



500,000 is an attractive number. 1,000,000 is a really nice number.



One smart way to live is below your means. I mean if you owe 100k a year in bills you have to make more then that. If you live within your means then you have a lot more disposable income. That is partial happiness.



Everyday I bump into people who are so far in the red they don’t know of life without debt. That must really suck and I will never be in that position. The last thing someone new in this industry wants to have is massive debt and no connections. Might motivate some, but its desperation more then motivation.



Also one has to realize that living in Ok vs. NYC or LA is far different. One can make 100k in OK and do quite well. In NYC, DC or LA I suspect you are average.

[quote=AirForce]Yes I win! I don’t have to balance my check book. Own nothing and have nothing.



500,000 is an attractive number. 1,000,000 is a really nice number.



One smart way to live is below your means. I mean if you owe 100k a year in bills you have to make more then that. If you live within your means then you have a lot more disposable income. That is partial happiness.



Everyday I bump into people who are so far in the red they don’t know of life without debt. That must really suck and I will never be in that position. The last thing someone new in this industry wants to have is massive debt and no connections. Might motivate some, but its desperation more then motivation.



Also one has to realize that living in Ok vs. NYC or LA is far different. One can make 100k in OK and do quite well. In NYC, DC or LA I suspect you are average.[/quote]

All so true…and so many of those folks in debt up to their eyeballs are so caught up in having the newest hottest consumer goods that they don’t even realize how badly they’re screwing themselves!

Most people just lack accountability. Successful business owners know they have to be lean and mean. To many people today want to blame everyone from Bush to the credit card company.



Credit is not the enemy, but misuse of credit is the enemy.



I wonder how many people have 100k clear from taxes. The number must be extremly low.

[quote=AirForce]Most people just lack accountability. Successful business owners know they have to be lean and mean. To many people today want to blame everyone from Bush to the credit card company.



Credit is not the enemy, but misuse of credit is the enemy.



I wonder how many people have 100k clear from taxes. The number must be extremly low.[/quote]

I wonder how many on this board paid 100k in taxes last year…  Now THAT’s some serious cash flow…

One of my first jobs was as a draftsman trainee for a consulting engineering firm. My boss, a Profesional Engineer, handed me my first paycheck, all of $110 before taxes and said, "You'll make a lot more money in the future and all it will do is give you more money to spend. The more you make, the more you spend. "  All, these years later as I've worked my way up to $500 a week, I find that his words ring true.

Serious cash flow? Enough to live without borrowing. Something this business can give us. Cash is king. Buy houses, furniture, cars etc using cash. If you own it noone can take it from you. That's security. And security is peace of mind. It also puts you into a "Take this job and shove it" position. Noone has power over you. Cash moves the power to your court. Wanna take a month off and ride your bicycle across the country or go sit on a beach in the south pacific? Who's going to tell you you can't?

I'm not totally there yet. still workin on it, but I gotta tell you, walking into a local Ford dealership and buying two Mustang Cobra convertibles and writing a check, nice! ( of couse we had to take a second and third mortgage, the kids went without new shoes, and it was peanut butter and jelly for a year or so, but hey, we rode in style). Seriously, having the cash flow to be able to do that without worrying about it is what I'm talking about.

Cash is king!

Enough cash flow to never need to balance my check book again.

Everyone has different needs at different times in their lives.  As an ....ahem..... well seasoned  financial advisor I don't "need" as much as someone who is just starting out.  I own my home, my children are grown and have fantastic careers (yay!!  don't need my help), I have all the toys (cars, boats, computers, HDTV, sound systems, jewelery) I want....well ok I would like to buy a 49 Buick Convertible. We live in an area that is pretty laid back. We don't need to put on airs to compete or gain prestige in the community. My husband is self employed with more work than he can possibly do.

The point is that my needs are much less than someone with little children and just starting out in the business. You can't put a number on what is the ideal income as it is different for each of us. So my net (not including my husband's business) which is usually about 90K is more than adequate for our lifestyle.  For someone else, it probably is peanuts.  I work only as hard as I want to and am perfectly happy with not being an elevently kabillion dollar producer.

[quote=babbling looney]

Enough cash flow to never need to balance my check book again.

Everyone has different needs at different times in their lives.  As an ....ahem..... well seasoned  financial advisor I don't "need" as much as someone who is just starting out.  I own my home, my children are grown and have fantastic careers (yay!!  don't need my help), I have all the toys (cars, boats, computers, HDTV, sound systems, jewelery) I want....well ok I would like to buy a 49 Buick Convertible. We live in an area that is pretty laid back. We don't need to put on airs to compete or gain prestige in the community. My husband is self employed with more work than he can possibly do.

The point is that my needs are much less than someone with little children and just starting out in the business. You can't put a number on what is the ideal income as it is different for each of us. So my net (not including my husband's business) which is usually about 90K is more than adequate for our lifestyle.  For someone else, it probably is peanuts.  I work only as hard as I want to and am perfectly happy with not being an elevently kabillion dollar producer.

[/quote]

BL, as usual, well said and a very good point. Sounds like you have what we are all striving for.

Question: Wanna trade kids?

I love my four children, but I gotta tell you, I can't wait for the self sufficient part to start.

It is amazing as I read this post about income being our scorecard..(mine included) .. I just wanted to get you guys some statistics from the US GOVT on who is where with income...

SOURCE: US Census Bureau, 2006

Of those individuals who were older than 25 years of age, over 42% has incomes below $25,000 while the top 10% had incomes exceeding $75,000 a year. The distribution of income among individuals differes substantially from household incomes as 42% of all households has two income earners. As a result 15.8% of households has six figure incomes, even though only 5.63% of Americans had incomes exceeding $100,000. The following chart shows the income distribution among all 191,884,000 individuals aged 25 or higher as recorded by the United States Census Bureau. All numbers are given in 1000s.[7]

SOURCE: US Census Bureau, 2006[7]

It’s funny, I find that the prospects I run into that are financial wrecks with

debt out their ears are the same ones that only have $5,000 to invest,

and are wrangling over fees, commissions, whatever. “They can do it

themselves”. They are happy with their suck-a$$ Putnam or Janus mutual

funds that lost 75% 6 years ago and “are gonna make it back to even

before they sell”.