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Please help - 401k question

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Sep 23, 2008 10:38 pm

how do firms like SB,ML,MS handle 401k business? If I were to sign up a 100 person firm, with all 100 people invested in a 401k plan (mutual funds) - how are those assets handled? does this count towards your AUM and typically what is the production calculation?

I’d love to see if anyone has specific payout/grid info for these firms!!!

Thanks,
Pennypacker

Sep 24, 2008 12:16 am

Not at any f those firms, but payout would be the same as any other MF trade in our system at AGE/WS

Sep 24, 2008 12:29 am

At Jones they count towards assets. Why wouldn’t they count? Our local MS office has a team that does almost exclusively 401K business. They may not be held at the firm, but you are broker of record, just like a 529, or vendor-held mutual fund.

Sep 24, 2008 12:43 am

At SB, they are not shown as part of your assets, but i believe (not 100% sure, i think this is a recent change) for trainees, they add the assets back for purposes of your bonuses.
The exception was always Citistreet plans, which were always included in your assets. But i am not sure how they are handling that since they became part of ING.

As far as gross, its the same payout as any MF.

Sep 24, 2008 12:49 pm

At ML they can be held at the firm or held away, your choice, multiple platforms.  Also, depending on how you structure the plan, it can be anywhere from 25 bps to 1%, you keep your grid payout, anywhere from 38 to 50% of that.  It does count as an annuitized asset as far as ML training goes.