This may be a pathetic question since there are such extremes, but I wonder if ML says if you are here for 5 years you should make 200k?

5 years times 7.5 mill per year= $37,500,000 AUM. 



$37,500,000 times 1% annual revenue off those assets = $375,000.



At roughly 40% payout = $150,000.



This is a conservative estimate- you could definitely make more
depending on how your book is structured, so yes 150-200k is
accurate. 

Thanks scorpio.. Okay so on that note if one were to perform as expected and make 150 to 200k in 5 years.

Would it be better to be independent and turn that 200k into 400k or 80%? I do understand that reputation has to be established when independent.

I wonder if there are any big independent firms in NYC? I am sure there are, but do these independents do as well as the firms? 

5 years times 7.5 mill per year= $37,500,000 AUM. 
$37,500,000 times 1% annual revenue off those assets = $375,000.
At roughly 40% payout = $150,000.

"Thats accurate, but depending on how your book is structured the 1% fee will vary... For simplicity sake, if you have 37 $1MM accounts, you will probably be charging less than 1% ( due to competitive reasons, lets say 80 bps..)... If you have 74 $500K accounts you could probably get away with charging around 1.5-2% on those fee accounts, thus increasing your gross and net income afther the wires dip their fingers into the pot... I have seen both types of books. It all comes down to your client base and how you want to structure the fee schedule... I know that one producer team in our office charges full boat for fee based accounts- 3%, and they do well because they add value and they have great relationships with their clients....

The path I am going to take is comprehensive wealth mgmt. I hear the more products a firm offers the better. So we throw in a few mortgages, annuities and insurance. It seems to me this can also increase the salary.

For those who actually post solid information.. Thank you very much.. I suspect I am not the only "groupie" on this website

[quote=executivejock]

The path I am going to take is comprehensive wealth mgmt. I hear the more products a firm offers the better. So we throw in a few mortgages, annuities and insurance. It seems to me this can also increase the salary.

For those who actually post solid information.. Thank you very much.. I suspect I am not the only "groupie" on this website

[/quote]

You're welcome, CMC.

At Merrill Lynch: POA Program: Either $40k or under guaranteed for 24mths or $40+ for 18mths. That is assuming that you are meeting your quarterly goals. Assuming $15m in assets at POA completion you should receive at at a minimum $15m *.01 = 150000*.40 = 60,000. Worst case = $50,000 best case depends on how much you make on your assets. A safe rule is 1% of total assets *40bps.

[quote=executivejock]

Thanks scorpio… Okay so on that note if one were to perform as expected and make 150 to 200k in 5 years.

Would it be better to be independent and turn that 200k into 400k or 80%? I do understand that reputation has to be established when independent.

I wonder if there are any big independent firms in NYC? I am sure there are, but do these independents do as well as the firms?