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Investment Banker to FA ?!

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Sep 12, 2012 7:22 pm


I am considering becoming an FA at a wirehouse.

I have spent 20years as an investment banker at the Top 5 Bulge Bracket Investment Banks (some have wirehouse subs). The flexibility and ability to use my past knowledge and rolodex of HNW / C-Level clients might make this a good career choice.

My first two summer internships on Wall St. were making 300+ cold calls/day for an RR who is now ranked in the Top 10 RRs in the USA; so I am aware of the business to a degree.

My questions are below:

1.) Is joining the ML or MSSB Programs a rolling process or do they have a new class in Spring, Summer, Fall, etc. Can you apply to a geographic area? I am in NYC but want to move to LA / OC

2.) What are the exact details of your first year:

-2012 Base salary at ML or MSSB: $75K?

-I have read you wont get paid on any account below $250K; so on a $500K account do you get paid on whole or just net $250-500K?

-I have read you need to bring in between 1-2 New Households per month

-What is min AUM in first year to make your hurdles: $10M, $15m?

-Can you put all your accounts on a 'fee-only' wrap account from start or is there resistance

3.) Usual Metrics of building a book:

Is opening 25 accounts of $500K possible in first year? (aggressive/conservative)

If you can put that (25x $500k) AUM on a 1.5% fee platform it appears your AUM is $12,500,000 and you make enough in commission to cover your $75,000 base.

In year 2-3 with same metrics (25 accounts @$500K / yr.)

Yr2: AUM $25,000,000 Salary & commission: $150,000
Yr2: AUM $37,500,000 Salary & commission: $225,000

Is this correct?

I am trying to model min. number of average accounts, AUM, Fee% to get to the hurdles necessary in the wirehouse FA programs.

It appears after Yr. 3 this career can really kick in and produce income from $250-500-750K if you keep on adding incremental AUM and accounts from $500K-$1M.

I realize the job is massive prospecting, networking, seminar speeches and NOT investment banking / schmoozing.

ps, I posted this on rookie forum...but its dead as a dooknob there..