Something doesn’t pass the smell test here. If you have a job offer as a broker trainee, you would have already negotiated a package including temporary salary while you train, get licensed and incrementally weening you off as your production is expected to grow (from nothing). That being said, your question implies that you plan to fail, so, how long will that take?

I would say in this business, 5 years, minus the minimum amount you can make to keep your job (because you will get salary, bonus, commissions - but you need to be netting a certain amount to keep your job). You will have tough months for the first 5 years. After 5 years, you should really be able to support yourself. But you will never have a zero net month, so you would only need a PORTION of each months expenses covered with savings.



I would actually back into it from the other direction. Decide how much you need to live on. Inlclude annual payments (RE taxes, etc.), sporadic expenses, etc. So you have your monthly budget, now determine what gross production number you need to do to hit that net paycheck (don’t forget taxes, insurance, etc.). If it’s only a few thousand in expenses (like when you’re young and single), you’re in great shape. If you got a family, mortgage, cars, debt, etc. and your monthly expenses are like $6-8K or more, then you better have a real plan (or re-think this business), cuz that’s a big NET nut to hit in the early years.

1 year at least, and that means not spending any of that during the “salary” year…

Yes, I clearly plan to fail. I mean, if I fail, Mr. Paulson and the “people” will pay me, right?

No, not in production but I am a registered rep with a B/D.

[quote=B24]I would actually back into it from the other direction. Decide how much you need to live on. Inlclude annual payments (RE taxes, etc.), sporadic expenses, etc. So you have your monthly budget, now determine what gross production number you need to do to hit that net paycheck (don’t forget taxes, insurance, etc.). If it’s only a few thousand in expenses (like when you’re young and single), you’re in great shape. If you got a family, mortgage, cars, debt, etc. and your monthly expenses are like $6-8K or more, then you better have a real plan (or re-think this business), cuz that’s a big NET nut to hit in the early years.[/quote]

That’s about what I was thinking of doing, backing into it. Push everything into savings and they pay myself a salary (living expenses) out of that.

He means that because we are W-2 employees it is illegal for  us to have a month where we don’t make any money.  They are required to pay us minimum wage.  So, there isn’t a month where we don’t make any money at all, like you might if you were indy and had a really terrible month or were paid quarterly on your fee based biz. 

Good point.  However, at Jones, most things pay you monthly (including SMA’s and advisory accounts).  Although I do get some annuity and non-preferred fund trails quarterly.