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Oct 29, 2009 8:51 pm

I am in talks with an RIA about potentially joining the firm as an Financial Advisor. They are willing to pay a salary and potentially a percentage of the revenue. They manage about 300 million at 1 % with a staff of 8. I was wondering if anyone has expereicence with a set up like this and what percentage of revenue would be reasonable to ask for ?

Oct 29, 2009 10:22 pm

Gonna sell some bonds to your Sigma Alpha Epsilon Brothers? Phi Alpha, fag.

Oct 30, 2009 7:40 am

[quote=Aviator01]Gonna sell some bonds to your Sigma Alpha Epsilon Brothers? Phi Alpha, fag.[/quote]

That’s productive

Oct 30, 2009 8:20 am

What type of investments does the RIA do?  Will you be incharge of your clients’ portfolios, or does the RIA manage everything to a model? 

Oct 30, 2009 8:23 am

They manage a few different models for clients, but each portfolio is unique.  I would not be managing the money.  I would be acting as a CFP for the existing clients.  My other main function would be gathering new clients and additional assets.  I would be opening a new office for them in an area far from thier main office.  This new office has clients near by that i would be in charge of and again a big part is gathering new assets.

Oct 30, 2009 8:29 am

Sounds like a pretty good deal. I’d certainly never give someone a portion of my revenue for simply being a planner for clients. Of course, any additional business you bring, you should be compensated for. But that should be standard.

Oct 30, 2009 8:30 am

I’m no compensation expert, but I would expect for that type of position a starting salary PLUS a cut of the fee for all new assets brought in by you.  The percentage you would get would trail off over the years on that asset.

Oct 30, 2009 8:33 am

I didn’t understand the part where you said "The percentage you would get would trail off over the years on that asset. "   Are you talking about normal trailing comission?   My goal would be to become a partner after I bring in an agreed upon amount of assets.  The partners are much older then m so I would like to buy them out at some point.   Does any of this cound realistic?   Thanks

Oct 30, 2009 8:40 am

That I don’t know - I’m not an expert.  I’m sure there are more people on this site with more experience.

  What I meant was say the first year you get 50% of the fee from the client you brought in.  The 2nd year of the client you get 25% of the fee, next year 10%, next year 5% etc.   There are many ways to skin a cat, and it doesn't seem like firms discuss compensation very often with eachother.   There is a RIA compensation seminar coming up though.
Oct 30, 2009 8:42 am

Thanks for your help. 

Oct 30, 2009 8:43 am

Don’t base any decisions off of what I said.

Oct 30, 2009 8:45 am

ofcourse.   Its nice when people actually reply to a post rather then make a joke out of it or make fun of the person who posted it.