What is the best firm?
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$400K at a wire is 35 to 40%. Maybe low 40's at some. Income would be in the 150-160k range.Billy, that is a broad question. Typically you estimate gross production @ 1% of AUm. So in the 40M AUM scenario, you are looking at 400K in production. At a wirehouse, you are probably looking at a 45-50% payout, with some other perks as well (so $180K - $200K in payout).
After three full years in my business I have about 25M AUM with about half of that annutized. My gross production last year was right about 300k and my payout is about 33% since I work in a bank where payouts tend to be lower than most. I purposely didn't kill myself building this practice simply because that is not my MO. If I want to rationalize I can always say I've worked as hard as I've always have and I will continue to do that going forward. My attitude is this a marathon and not a sprint. Sure, I could have 30-40M AUM if I would've put in 50 hour weeks every week and worked every Saturday/nights. Life is about balance and I love my leisure time. scrimBased on your first question, no matter where you start–be prepared to work your butt off for the next 3 to 5 years…a rookie is a rookie at all firms! As far as your income–work hard, be honest, and do the right thing and you will make a very good living—don’t do one of those and you might do well for awhile! Good luck!
True. That's exactly what I did over 2 years ago and now I'm looking for a place at the big firms. The experience it provided was incrediblly valuable, but buidling my book suffered at the hands of administration, compliance, and accounting.[quote=Ashland] One that has your name on it…[/quote]
True, except I get the impression he is just starting out. Tough to start out Indy.
[quote=Recon Scout]
True. That’s exactly what I did over 2 years ago and now I’m looking for a place at the big firms. The experience it provided was incrediblly valuable, but buidling my book suffered at the hands of administration, compliance, and accounting.[/quote]Recon, just out of curiosity, were you part of a team at your Indy firm? Or on your own?
[quote=Insideman] [quote=Recon Scout]
True. That's exactly what I did over 2 years ago and now I'm looking for a place at the big firms. The experience it provided was incrediblly valuable, but buidling my book suffered at the hands of administration, compliance, and accounting.[/quote]Recon, just out of curiosity, were you part of a team at your Indy firm? Or on your own?
[/quote] After extensive research, I started my own IAR firm, began to build my book, and commenced managing portfolios. There are days that I desire the structure of a large firm and, more recently, the sales training (a weakness I'm currently working on remedying), but when I look at 100% of my fees hit my account I simply smile. Though higher in the past, I've reduced my overhead to less than 5%, so I take home 95%.