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Production Requirements - MSSB?

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Aug 21, 2009 1:08 am

Got an offer from Morgan Stanley Smith Barney a few days ago - what does $350,000 in new net flows come out to?  Is it 3.5 million in total premium brought to the firm?

Aug 21, 2009 2:28 pm

Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.

Aug 21, 2009 2:57 pm

$350,000 new net flows is my production requirement 9 months into production - trying to figure out what the equivalent is to the premium brought to the firm.  The requirement goes up to $1,000,000 new net flows by 18 months.   

Aug 21, 2009 3:53 pm
chief123:

Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.



I don't get the tier structure. If you are at the min of Level III you are out after 1 year? What happens if you are at Level 1 or 2 after the first year?
Aug 21, 2009 3:56 pm
Otane:

[quote=chief123] Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.[/quote]

I don’t get the tier structure. If you are at the min of Level III you are out after 1 year? What happens if you are at Level 1 or 2 after the first year?

  You stay.  
Aug 21, 2009 4:30 pm

exactly… The recruiter my friend spoke to in the northwest said, they are pretty strict about(their are monthly and quarterly goals also to hit… But he mentioned that timing plays a roll also, had a good guy start in beginning 2008 and after the market crash and losing 20-50% of his assets in market declines there was no way he was going to make it, so they chopped him…

Aug 21, 2009 5:30 pm

[quote=chief123] exactly… The recruiter my friend spoke to in the northwest said, they are pretty strict about(their are monthly and quarterly goals also to hit… But he mentioned that timing plays a roll also, had a good guy start in beginning 2008 and after the market crash and losing 20-50% of his assets in market declines there was no way he was going to make it, so they chopped him…

[/quote]



That was dumb to chop him. Everyone was in the same boat, and you probably wasted good talent there. It seems to me they want you to be a market timer as well. If that is the case, they should pay more to manage the assets.

Aug 21, 2009 5:39 pm

They are what they are… either make it or don’t, no excuses.

Aug 21, 2009 6:47 pm
ohbrother1:

$350,000 new net flows is my production requirement 9 months into production - trying to figure out what the equivalent is to the premium brought to the firm.  The requirement goes up to $1,000,000 new net flows by 18 months.   

    Net new flows means from accounts you opened yourself. This clause is put in for those who come in and inheirit part of a book and never open any new accounts.   The absolute minimum is $5MM AUM after 18 months. Though its likely you BOM would have already let you go if that's all you had anyways.
Aug 21, 2009 7:12 pm
chief123:

Rumor has it there are 3 tiers… I. $70K production/$9MM assets II. $50K production/$5.2MM in assets there is a III. $30K/$3.5MM but if you are there you get cut… second year is pretty much double.

  Its actually as follows: (first year tiers) Tier 1: $10MM AUM, $75k Gross, $4MM Fee Based. (two of the three) Tier 2: $7MM AUM, $60k Gross, $3MM Fee Based. (two of the three) Tier 3: $5MM AUM, $50k Gross, $2MMFee Based. (two of the three)   Quarterly and yearly bonuses are paid for each tier, with tier 1 and 2 getting stock bonuses after each year.   You aren't required to hit these, but its likely your BOM would cut you anyways if you didn't at least hit tier 3.
Aug 21, 2009 7:21 pm

Are you not in the northwest, because my buddy got the previous goals… maybe different depending on where you are in the country

Aug 21, 2009 8:04 pm
chief123:

Are you not in the northwest, because my buddy got the previous goals… maybe different depending on where you are in the country

  These aren't goals, just bonus tiers. They are the same for everyone in the FAA training program. The do however change every calendar year.
Aug 21, 2009 9:27 pm

I got a similiar yet slighly different question. Newbie question - dont scream at me... What does "trailing production" mean? As in "requires 150k - 175k trailing production. Thanks for the help!

Aug 21, 2009 11:59 pm

[quote=NYMtgBanker]

I got a similiar yet slighly different question. Newbie question - dont scream at me… What does “trailing production” mean? As in "requires 150k - 175k trailing production. Thanks for the help!

[/quote]

Trailing production (sometimes referred to as “T12”) is your production over the previous 12 months.  For example if in 2008 your production was $100K in January 2009 your T12 is $100K.  If in January 2009 you do $5K more than you did in January 2008 your T12 would now be up to $105K.

BF
Aug 22, 2009 2:42 am
Brett "f*** FACE" Farve's Tagline:   Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." GWB 8/5/04   And I guess what we have now is by far better?   "the war should have never been authorized, and should have never been waged, and on which we've now spent $400 billion, and have seen over 3,000 lives of the bravest young Americans wasted" BHO 2/12/07
Aug 22, 2009 11:10 am

Debolt,



I’m lovin the Bricktop" avatar



"Hence the saying, as hungry as a pig"

Aug 22, 2009 3:09 pm
SB0807:

[quote=ohbrother1]$350,000 new net flows is my production requirement 9 months into production - trying to figure out what the equivalent is to the premium brought to the firm.  The requirement goes up to $1,000,000 new net flows by 18 months.   

    Net new flows means from accounts you opened yourself. This clause is put in for those who come in and inheirit part of a book and never open any new accounts.   The absolute minimum is $5MM AUM after 18 months. Though its likely you BOM would have already let you go if that's all you had anyways.[/quote]   Anybody know how team production is handled?? Say team gives you $10 million in assets as your percentage of AUM and you are responsible for financial planning, marketing client contact, etc.  does that mean you fail to hit your net new flows money? Anyone join a team or have experience?   Thanks!!!
Aug 22, 2009 5:03 pm

I got the impression from my interview with MSSB that I would be on my own.  In a big office with other advisors, but on my own as far as dollars.

  Did NOT get the impression I would be given any assets.  Is this typical?
Aug 23, 2009 3:33 am

[quote=Omar]Debolt,

I’m lovin the “Bricktop” avatar

“Hence the saying, as hungry as a pig”[/quote] In the quiet words of the Virgin Mary… come again?

Aug 23, 2009 2:40 pm

So if I don’t get hired on a team, I don’t get any assets, still have to hit my goals, and I’m on my own?

  Is the whole corporation hiring teams now, or still individuals?