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What is the best firm?

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Mar 4, 2008 4:38 pm
iceco1d:

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). 

  $400K at a wire is 35 to 40%. Maybe low 40's at some. Income would be in the 150-160k range.
Mar 4, 2008 5:30 pm
Roadhard:

Based 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!

  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.   scrim
Apr 1, 2008 11:32 pm
Broker24:

[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.

  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.
Apr 3, 2008 3:26 am

[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?
Apr 18, 2008 2:43 am

[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%.