Starting Base Salary (Draw) For Financial Advisor

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Another cynical "top school" MBA in Los Angeles, California

49 months ago

I think most of you are full of it and just want to brag about your "top school" MBA so you don't feel so bad about wasting the dinero. Look -- we all have them.

No such thing as a free lunch & just wait for them to backtrack on your incentive pay. Don't be a pushover, get it in writing, or this isn't the field for you. Most people it's not. Don't "find your calling" -- work your ass off and learn to manage your hours better. Work sucks, stop trying to take the easy way out.

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hsong in Collegeville, Pennsylvania

48 months ago

FA2010 in Mill Valley, California said: I am interviewing with UBS and Morgan Stanley Smith Barney, and I would appreciate any advice on the salary ranges and commission split % during the startup period. I understand that most firms provide a guarantee for up to 28 months to allow a new FA to develop a book of business.

I have always been on a salary + commission compensation structure, but most of my income has come from variable pay for performance commissions.

What are the salary ranges? Does it vary by experience?

What firms provide the most lucrative start up packages for experienced financial services professionals?

Thanks in advance!

mark

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Prospective MS FA in Mattoon, Illinois

48 months ago

WEALTH MANAGERS in DUBLIN & PLEASONTON, you guys really give solid and realistic information/advice. Thank you for being a resource for your industry.

In my situation, a recruiter has contacted me and is trying to recruit me for the MS FA program. I have always wanted to get into financial services but the timing was always wrong. It also didn't make sense in my career until now because I didn't have the business or investing experience to really sell it credibly. However, now my concern is the realistic earning potential over my first year and how much of my savings it will eat into to cut my teeth in this industry. I am currently making $156k as a manager but am capped and really hungry for more and new challenges and something more competitive with no cap on my earning potential. All of the cold calling, prospecting and marketing is perfect for me. My limiting factors are that I am in a smaller rural community and would be working in a relatively large (given the community size) MS office that is about 10 FAs. I also have no soft relatives accounts to take over to get me to boost my numbers. My question is if I negotiate a $60k base and perform in the top 15% of new advisers can I hit $120k in commissions and base in my first year?

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ML Prospect in Staunton, Virginia

48 months ago

I am in a similar position as a lot of you. We have graduate degrees from good schools, have worked in the field for several years and are considering either going back into the FA field or taking the 'leap' and entering this arena. I have an offer from Merrill and have been contemplating this for a few days. With that being said, I would simply like to make one comment that I feel is going untouched here. For those of us considering this career, I think we need to step back and not concentrate so much on the money. Do you have a passion for the financial markets and an overall interest in eating, sleeping and breathing this business? Moreover, do you enjoy working with people and are you good at communicating your ideas in a coherent and perhaps persuasive manner? This IS NOT a glorified car sales job and anyone stating that simply has a lack of understanding of what it takes to be successful in this career and should probably not partake in forums such as this. Those people making the big dollars in this business have the aforementioned attributes previously discussed. They have a passion for the markets, they communicate EXTREMELY well and of course they can work their way into wealthy circles by providing a much needed service with the utmost integrity, discretion and the highest levels of customer service. The best in this business are extremely bright, work very hard and TRULY ENJOY THEIR JOB! You can't go into this career because you see dollar signs! You have to enjoy the work, enjoy working with people and have the right knowledge and skills to make this happen. I hope this helps some of you who are 'on the fence'!

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Prospective MS FA in Mattoon, Illinois

48 months ago

ML PROSPECT, I couldn't agree with you more! I'm right with you in terms of love of financial services, clients, being in it for the right reasons, not all about money, etc. It is all there. I've wanted to do this since I was in college. However, it's only now in my career after I have the business experience and insight that I feel I can credibly and effectively advise and sell the service. Were money not an issue, I would be in there like swimwear! However, like many, I've got a pretty big nut to crack each month with mortgage, private school, etc. Hard for me to imagine being able to weather 4 to 5 years of sub 100k compensation. I posted my dilemma on another thread here and a wealth adviser from CA states that is the reality. He's done it for 8 years and just cracked 200k in an affluent area...I want the answer to be that if I really work hard and sweat, I can get to $120-150 in a year or two but that just doesn't seem to be reality unless I magically bag a white whale. But those capt. ahabs are probably more like unicorns than reality. Let us know what you decide and how it goes. Thanks for your feedback!

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FSI Phase2 in Connecticut

48 months ago

I can give you some very relevant up to date input if you still need it Prospective MS FA. Let me know if you are still mulling the decision.

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Prospective MS FA in Charleston, Illinois

48 months ago

FSI Phase2 in Connecticut said: I can give you some very relevant up to date input if you still need it Prospective MS FA. Let me know if you are still mulling the decision.

FSI Phase2: Yes, please give me any input you can, as it looks like I am moving forward in the process. Thanks in advance!

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FSI Phase2 in Connecticut

48 months ago

You can indeed make more than your initial salary in your first year if you happen to have some very good prospects and bring more revenue to the firm than your pay is. There are both cash and stock bonuses that you can qualify for if you beat the goals, but getting into the six figure range in the first year will be difficult because you will be spending 5 months getting your licenses before you can start bringing in any assets.Going forward the income potential really is dependent on you and can be extremely lucrative.
Now for the reality check. Hopefully the Manager you are dealing with has told you that the success rate of new Advisors is 10% or less. I had no doubt that I would be in that 10% given the 22 months of salary that I would be getting. I am no stranger to hard work, long hours and develop trust very easily with people.
The problem is that given the economy, the 22 months has become quite a shrinking time frame. Keep in mind the 5 month training period I mentioned and I was let go after 9 months for not hitting the sales goals...so some simple math will tell you how short the ramp up time is.
This is not meant to discourage you because I do know people doing great with the company, but they began with them in a different time and with a different company culture.
If you have a good network of HNW individuals already you will be just fine. My circles were not made up of people with much in investable assets, and I also took the approach which sales professionals will tell you and tried to focus on totally cold new relationship building first. In my case the problem is that this just started to look like it was going to work very well over time...but time ran out and now I feel I have lost all of that time and credibility with those prospects. I hope this helps.

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Prospective MS FA in Charleston, Illinois

48 months ago

FSI Phase 2: Excellent, well balanced accounting of your experience! Similar to you, I'm not in circles with HNW individuals. I too can build relationships quickly, sell work hard, etc. However, as you clearly state, culture and economic conditions are so key to the fragile conditions starting out with zero book and a small window of time to produce. Given that small window, it seems like the only way to succeed is a very tightly defined niche market and streamlined prospecting system. Do you agree? In your experience, which prospecting methods and niches were worth your time and which were a waste of time? Lastly, which firm let you go and which firm are you working for now? Can't tell you how helpful this is especially from someone who can talk objectively about their personal experience.

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FSI Phase2 in Connecticut

48 months ago

Hello again. You are spot on with the niche market as long as it is a large enough pool to allow you to make the core of your business. The thing that seemed like it was going to work was reaching out to COI (Centers of Influence) such as Attorneys and CPAs. These are people who have very similar clients and who you can refer business back and forth with so it is in their interest. This unfortunately is not a quick road to clients. I did waste a few months cold calling homeowners (the limited number that are not on the do not call list), and trying to find people to do public speaking for. Had I gone the COI route right from the start I might have made it. I also had the benefit of an experienced FA helping me which is not always the case. I know people from other branches that felt completely alone in their efforts. This was with MS and I am currently looking for a new position which is what brought me to Indeed.com this morning. I can tell you that ML has a longer ramp, and lower goals...but the salary is significantly lower in my part of the country. I love the Industry and helping people so truly hope to be able to find something that will fit financially with my stage of life. In case I did not specify I am a mid-life career changer that had come from a salary just shy of $100K but doing something I have no desire to go back to.

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Just tring to make it in Freeport, New York

47 months ago

Wealth Manager in Dublin, California,

I will start the interview process at Merrill Lynch, Morgan Stanley next week, my background is i have a BA for a top school, and 2 years of experience from a smaller B/D, no where on the level of Merrill or Morgan, and i feel the tactics taken at my previous firm (i.e. leads-call unsuspecting individuals ask them questions about there finances and if the answer all,call them back in a month and pitch them a stock) where more of the salesman kind of role (pretty much saying the same thing over and over to each potential client over the phone until you open someone) than solution-men. Which when I entered the business i thought i would be, but i took the job just to get some type of training and my licenses. I'm licensed with my series 7 and 63, I am no stranger to long work week hours and I also came up with a clear concise plan to bring in new business. I am 25 years old and I would just like to know, what do you think i should be asking for salary wise, and do you for see any issues i may have going forward. Any criticism is greatly appreciated.

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Closer in Miami, Florida

47 months ago

Hey there... I was recently approached with the idea of interviewing with one of the larger financial institutions to become an FA. While I'm certainly not the most qualified for the position, I am definately excited about the possibility, and ready for the high pressure and the challenge. Perhaps one of the most intriguing parts about being an FA is the constant room for challenge, knowledge, and self-development. I have a BA from a mid-tier school, and have mulitple years of experience in high activity B2B sales organizations. Most of these organizations are far from the financial world, but the challange is no longer there for me, and what I see, I feel I can find as an FA. I've been requested to appear for an interview by the recruiting manager himself, and I most certainly will take the opportunity. My reason for posting here, what advice can anyone give me as to prepare myself for the interview, and what advice would you give someone coming into the position new?

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Andreas in Berkeley, California

47 months ago

Dear Andreas,
Brace yourself. Its a never ending race that you are being put in. im in that rat race myself. I have to say i enjoy the day to day, but the pay isn't really there. at the pace that i am going its going to take me 25 years to earn the amount I should be earning today with the background that i have. Best of luck in your pursuits.

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Andreas in Berkeley, California

47 months ago

Another cynical "top school" MBA in Los Angeles, California said: I think most of you are full of it and just want to brag about your "top school" MBA so you don't feel so bad about wasting the dinero. Look -- we all have them.

No such thing as a free lunch & just wait for them to backtrack on your incentive pay. Don't be a pushover, get it in writing, or this isn't the field for you. Most people it's not. Don't "find your calling" -- work your ass off and learn to manage your hours better. Work sucks, stop trying to take the easy way out.

I have a top mba and the reason why i "complain" about the pay is because together with my wife we are in debt 200K (we both have mbas). My wife is at a point where she would like to have a baby, but with my uncertain income she does not want to. My fellow classmates have jobs that pay them 5 times more than what i get paid. i like my job, but from a procreation perspective its not helping and my wife is not getting younger either.

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sacphillygirl in Elk Grove, California

47 months ago

This is a marathon. I have a completely different background too, although mostly sales. I've been lucky enough to be hired by the biggest and best simply because my manager thinks I can sell. In order to survive you do have to be smart, but most of all you have to know how to be a top producing sales person. You either have it in your personality or you don't. It can't be taught, only the product can be taught. In all honesty, I am a top producer, but the whole reason I went into sales is because I am a mother and I really appreciate being in control of my own schedule. I have always worked smart more then hard and made a better then average living. However now it seems I have to work to exhaustion in order to make the money that I need to make and neglect my children. I know it can be done, but unless you are lucky and pair up with an established group, you had better be prepared to work smarter and harder then ever for the first 2-3 years and I'm taking for granted that you are a top-producing sales person. If you are not a natural talent at sales, forget it. If I wasn't a master at building relationships I wouldn't be staying here. That would just lead to disappointment and a waste of my time and their time. Good Luck!

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Mujican in Lubbock, Texas

46 months ago

I'm about to graduate college in December with a degree in International Economics. I just got my first phone interview appointment with Edward Jones Investments. I realize that this is likely a tough industry to make it in, but I have that kind of drive that it take to succeed, IMO anyway. I've read all of the info websites I could find. My question is, is all of the information concerning pay accurate. Roughly 50+ grand for the first coulpe of years. I have a family that I am concerned about being able to support and honestly base salary isn't much, 21K I believe, plus commission. Are these figures with commission reflecting average agents or the top percentile producers. I have read that top producers can earn as high as 90K their first couple of years which is great if its true. Would really appreciate some feed back on this, especially from those of you who might have less than 5 years experience.

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Mike in NJ

46 months ago

Hi all,

I currently do not work in the financial field but am beginning to enjoy it now that I am studying toward my MBA and working toward investing in my own retirement. I currently work in the science community as a lab geek but do not find it interactive enough for me and am looking into becoming a FA. Without any finance background, othet than what I am currently studying and reading on my own, is this a field I can ultimately get into? Any advice would be greatly appreciated.

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Peter Thompson in Nassau, Bahamas

44 months ago

Hello,
I am a 28 yr old narcotics detective looking to make a major change in terms of my career. I recently used some of my savings to pay for my own securities liscensing course and am about half way through it. Passing this course will not be a problem. My question is, seeing as I have no experience in the financial field how can I better sell myself to a large firm. And as I will be coming with my designation already in hand does it drastically or minimally improve my standings? Thanks.

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AP in New York, New York

44 months ago

Peter Thompson in Nassau, Bahamas said: Hello,
I am a 28 yr old narcotics detective looking to make a major change in terms of my career. I recently used some of my savings to pay for my own securities liscensing course and am about half way through it. Passing this course will not be a problem. My question is, seeing as I have no experience in the financial field how can I better sell myself to a large firm. And as I will be coming with my designation already in hand does it drastically or minimally improve my standings? Thanks.

I think you may be misinformed as you can't actually take the exam without a broker/dealer to sponsor you. With that said, B/Ds want two things: sales experience and evidence you have an established network (a wealthy network at that).

I work in a major metro city for a major public brokerage. It seems to me, it's about who you know as far as landing a job here. Not to discourage you, but if you don't know someone in the business, you'll have to invest in finding a contact. The other route is to get your foot in the door by becoming an advisor's assistant. Not ideal, but if you really want to be in the business, it's a great way to learn before jumping in.

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Peter Thompson in Nassau, Bahamas

44 months ago

AP in New York, New York said: I think you may be misinformed as you can't actually take the exam without a broker/dealer to sponsor you. With that said, B/Ds want two things: sales experience and evidence you have an established network (a wealthy network at that).

I work in a major metro city for a major public brokerage. It seems to me, it's about who you know as far as landing a job here. Not to discourage you, but if you don't know someone in the business, you'll have to invest in finding a contact. The other route is to get your foot in the door by becoming an advisor's assistant. Not ideal, but if you really want to be in the business, it's a great way to learn before jumping in.

Thanks for the response. However, you are right that the "Series" exams do need a B/D to sponser you but the Canadian equivalent, the "CSC" does not. That's the one that I am halfway through. Becoming an assistant may not be an option for me because salary has to be worth it because as I have a family to support. So I can't very well leave the force for less money.
Regarding sales experience and an established wealthy network, I can appreciate that firms may need experienced advisors looking to switch firms to have this but can they honestly expect every advisor to have these things (i.e. what would be the point of brand new advisors). I guess what i'm asking is can firms expect those who choose "Financial Advisor" as a second career to actually come with experience and business books? If so they could be losing out on real diamonds in the rough, that could shine after just a bit of o-t-j training.

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AP in New York, New York

44 months ago

I'll tell you this: I made more money as an assistant for 3 years than as an advisor trainee. Why? Because I got paid salary, overtime, and year-end bonus. Trainees get $40-$80k. Expect $80K if you're mid-career changer with a very established network and sales experience. When I say established network, I don't mean book of business. No one expects you to have a book of business, but big brokerages that will pay you, say, $50k to start (vs. $20k at a small firm) expect you to hit the ground running with your network/contacts. Think about it, how hard will it be to pitch finance to your friends/family who have known you as a narcotics officer? The firm knows that, so expect to be on the lower end of the pay scale.

Not sure what your salary is, but if you're looking to become an advisor, you should expect a cut in pay and not anticipate making more than your base for at least 2 years. You'll hear about the razzle dazzle, but even the firm I'm at, in the location I'm in, it is NOT easy.

When you're meeting with a recruiter/manager, they're going to want to know how someone (you) with ZERO financial background (and you can't count series licenses as background/education, that's like having two feet, everybody in the business has it) is going to be able to get complete strangers to give you money. One indicator is how well you've done in previous sales roles. No sales experience in anything, because make no mistake about it, an FA is 95% sales until you build your book, gives you very little chance to succeed. I'm not being negative, I'm just being realistic. I know how recruiters think.

Now if you don't have very much sales experience, then maybe you have a big network of decently wealthy people. That's another selling point when you meet with the recruiter.

If you don't have those two things, just know, your personal ambition, capabilities, commitment, etc. aside - you'll be at a disadvantage. I know nothing outside of the wirehouse culture.

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AP in New York, New York

44 months ago

Just tring to make it in Freeport, New York said: Wealth Manager in Dublin, California,

I will start the interview process at Merrill Lynch, Morgan Stanley next week, my background is i have a BA for a top school, and 2 years of experience from a smaller B/D, no where on the level of Merrill or Morgan, and i feel the tactics taken at my previous firm (i.e. leads-call unsuspecting individuals ask them questions about there finances and if the answer all,call them back in a month and pitch them a stock) where more of the salesman kind of role (pretty much saying the same thing over and over to each potential client over the phone until you open someone) than solution-men. Which when I entered the business i thought i would be, but i took the job just to get some type of training and my licenses. I'm licensed with my series 7 and 63, I am no stranger to long work week hours and I also came up with a clear concise plan to bring in new business. I am 25 years old and I would just like to know, what do you think i should be asking for salary wise, and do you for see any issues i may have going forward. Any criticism is greatly appreciated.

What did you end up doing?

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Mint in Brooklyn, New York

44 months ago

Interviewing with ML, asked to come up with a business plan any ideas on how long this plan has to be?

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Wealth Manager in Pleasanton, California

44 months ago

What they are looking for is something that defines your target market and the activities that you will use to build your business. Most of the plans I have seen are about two pages. When I wrote my plan back in 2003 it basically stated my target market, the services I planned to offer those clients, my daily, weekly and monthly activities to build and service my business and then some simple projections on the growth of your assets under management (AUM) and gross production.

The most important thing with this is that they want everything defined. Do not say you will make phone calls...say you will call 100 households or spend 2 hours a day cold calling. Do not say you will use networking to bring in clients...say you will join the chamber of commerce, local golf club, etc... They want to see you have a thought out plan.

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Mint in Brooklyn, New York

44 months ago

Thanks wealth manager I appreciate your advice.

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200k advisor in New York, New York

42 months ago

Andreas in San Francisco, California said: Above 60K but still insulting for someone who has an mba from a top school (its not cheap to get this kind of education)

wah wah wah. lol

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KC in Livermore, California

41 months ago

I'm in the mortgage business, started fresh out of college when I was 23 years old. I made 24k base the first year which was 10 years ago. I started as an assistant/processor to learn business. 6 months later I was originating. I made 75k second year, 125k 3rd year, 155k 4th year... And up it went! Biggest year 350k, biggest month 50k, worst year ever in 2008 for mortgage was 90k. I have to tell u, money shouldn't be what's driving your decision. I get that we all have to make ends meet but if you have the passion for the financial business and love what you do or plan on doing, you will make it!! I dont think that people who need or want a "base salary" are good sales people. I would never go back, commission only is the way to go!!! The sky is limit and everything else that goes with it (flexibility in schedule, potential earnings, relationship building), is hard to beat!!! But, again, you have to love what you do and go in there with confidence and the drive to learn, sell, educate, ect! I could go on and on about sales and couldn't imagine working for 60k a year with sales pressure to earn more!

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KC in Livermore, California

41 months ago

I'm in the mortgage business, started fresh out of college when I was 23 years old. I made 24k base the first year which was 10 years ago. I started as an assistant/processor to learn business. 6 months later I was originating. I made 75k second year, 125k 3rd year, 155k 4th year... And up it went! Biggest year 350k, biggest month 50k, worst year ever in 2008 for mortgage was 90k. I have to tell u, money shouldn't be what's driving your decision. I get that we all have to make ends meet but if you have the passion for the financial business and love what you do or plan on doing, you will make it!! I dont think that people who need or want a "base salary" are good sales people. I would never go back, commission only is the way to go!!! The sky is limit and everything else that goes with it (flexibility in schedule, potential earnings, relationship building), is hard to beat!!! But, again, you have to love what you do and go in there with confidence and the drive to learn, sell, educate, ect! I could go on and on about sales and couldn't imagine working for 60k a year with sales pressure to earn more!

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seanfoleno in Philadelphia, Pennsylvania

41 months ago

Going for interview at Morgan Stanley on Thursday for FA position. I have sales experience, am self educated in economics and finance. My question is what starting salary can I expect before my income is based off of commission. Thanks

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Wealth Manager in Dublin, California

41 months ago

50K-70K depending on experience--wm

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Josh in Denver, Colorado

41 months ago

Hi Everyone,

Looking for advice on switching from public accounting to financial advising. Does my CPA license make me more attractive to recruiters and will it impact my starting salary at all? What is a reasonable starting salary to expect with four years accounting experience and a CPA? Would you still recommend starting out with the wirehouse route in my situation?

Thanks in advance for any and all advice. I'm sure you get tired of the "how much money will I make" questions, but I'm trying to calm my wife's fears about this move. I love the financial services industry but am tired of the three straight months of 70 plus hour weeks every year and have always been very interested in the FA field.

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micahp in Nashville, Tennessee

41 months ago

Does anyone have experience with The Practice Management Development (PMD) Associate program at ML/BOA. I've read the job discription, and it's kind of generic. I have my 6&63 as well as Life/Health. So, I would still have some licenses to get. Is the salary for the 43 months flat, or does the salary decrease over time?

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javier in Putnam Valley, New York

40 months ago

KC in Livermore, California said: I'm in the mortgage business, started fresh out of college when I was 23 years old. I made 24k base the first year which was 10 years ago. I started as an assistant/processor to learn business. 6 months later I was originating. I made 75k second year, 125k 3rd year, 155k 4th year... And up it went! Biggest year 350k, biggest month 50k, worst year ever in 2008 for mortgage was 90k. I have to tell u, money shouldn't be what's driving your decision. I get that we all have to make ends meet but if you have the passion for the financial business and love what you do or plan on doing, you will make it!! I dont think that people who need or want a "base salary" are good sales people. I would never go back, commission only is the way to go!!! The sky is limit and everything else that goes with it (flexibility in schedule, potential earnings, relationship building), is hard to beat!!! But, again, you have to love what you do and go in there with confidence and the drive to learn, sell, educate, ect! I could go on and on about sales and couldn't imagine working for 60k a year with sales pressure to earn more!

How did you make that amount of money? as a financial advisor? independent or with a firm.

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Gary in Boca Raton, Florida

39 months ago

Peter Thompson in Nassau, Bahamas said: Hello,
I am a 28 yr old narcotics detective looking to make a major change in terms of my career. I recently used some of my savings to pay for my own securities liscensing course and am about half way through it. Passing this course will not be a problem. My question is, seeing as I have no experience in the financial field how can I better sell myself to a large firm. And as I will be coming with my designation already in hand does it drastically or minimally improve my standings? Thanks.

Hi Peter,
I'm in a similar boat as a firefighter/paramedic who has been flirting with changing careers to become a Financial Advisor for some time now. From what I have found, as far as preparing for the switch education wise, going through the CFP process can be a good idea. I am currently enrolled in a CFP program at a local University. Besides the education, the networking is great! Our instructor is a superstar independent planner here in the area and every week we have guest speakers that are exceptional in their areas of specialization. The class itself is made up of career changers, curious CPA's, and of course already practicing Advisors. Also, I recommend:
- "So You Want to Be a Financial Planner, Your Guide to a New Career 6th Edition" by Nancy Langdon Jones
- "The Million-Dollar Financial Advisor: Powerful Lessons and Proven Strategies from Top Producers" by David J. Mullen Jr.
- "The Brand Called You: Make Your Business Stand Out in a Crowded Marketplace" by Peter Montoya, Tim Vandehey
Best of luck!!!

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Ethan in Pepperell, Massachusetts

37 months ago

I am being pursued by 2 small financial planning firms. They are letting me know they can be flexible with pay structure. I am not familiar with different structures and wondering if anybody could help me. Currently work in relationship management at a money manager and make in the mid 100k's now. I understand I will probably make a little less to start but want to set up a system where as I bring in more money I get paid accordingy. Thanks

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me in San Francisco, California

25 months ago

I would like to know what top earners in Wealth Management make, I'm talking an FA with, I think about $2 billion in assets under management and that generates pretty high revenue too. This person is well set with their clients, i.e. no one will likely be leaving him in the near future and growth is about 2% per year. I'm not asking because I want to become that person, wouldn't we all? I have other reasons for asking but I really need an answer. This person would be working for one of the main top firms that I believe generally pays based on Assets Under Management. Does anybody know?

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Completely Broke and Broken in Cleveland, Ohio

25 months ago

me in San Francisco, California said: I would like to know what top earners in Wealth Management make, I'm talking an FA with, I think about $2 billion in assets under management and that generates pretty high revenue too. This person is well set with their clients, i.e. no one will likely be leaving him in the near future and growth is about 2% per year. I'm not asking because I want to become that person, wouldn't we all? I have other reasons for asking but I really need an answer. This person would be working for one of the main top firms that I believe generally pays based on Assets Under Management. Does anybody know?

It really depends on whether the money is actively/passively managed, encompasses large concentrated holdings (or not), if much of it is fixed income (or not) etc. It could be in the range of $4,000,000-$5,000,000, but you also have to take into account how large the support staff is.

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me in San Francisco, California

25 months ago

Completely Broke and Broken in Cleveland, Ohio said: It really depends on whether the money is actively/passively managed, encompasses large concentrated holdings (or not), if much of it is fixed income (or not) etc. It could be in the range of $4,000,000-$5,000,000, but you also have to take into account how large the support staff is.

The FA's team consists only of the FA, one other person that is sort of like an FA but does not make decisions regarding investment strategy, an Admin, and one other Assistant. They are also a little like Private Bankers, i.e. when their clients need a mortgage, a credit card, etc, these people find the best deal for their wealthy clients in addition to managing their client's very large investment portfolios. If I understand what you are saying regarding actively or passively managed investments, the FA tries to find the best money managers for mutual funds and other products and advises clients on how to balance the portfolio and what to invest in. They would like to be more aggressive and creative in the types of investments they recommend since their clients have the ability and the willingness to take more risk.

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Market Maven in Hinsdale, Illinois

17 months ago

I wouldn't normally be on this website but had to do after-the-fact research to see if my offer to a trainee broker was fair. Of course, I've already canceled the job offer but I thought I'd check to see how far he or me was off base. Apparently not. My offer was $2,000 a month for six months. I provide ALL marketing costs and resources to supply leads and will help the trainee to close prospects. Starting payout was to be 20% of all commission revenues. After six months we would revisit by doing one of the following or both: revise monthly subsidy and/or increase payout percentage. The trainee has a Series 7 but never has had any clients with the previous firm he was with. He was basically a support person to a producing broker. My track record wherein I personally worked with brokers who joined me who had an existent book: Broker ONE made $15,000 a year with a previous firm three years ago. I worked the broker's book and last year he made $410,000 before taxes. Broker TWO made $100,000 a year with a previous firm. Six months after joining me he made a total of $250,000 before taxes. My own production last year? $1.8M. This year's expectation? Probably $3.5M before taxes. My offer is justified because of my personal help in bringing the untried brokers along. This is a very lucrative business. You who are joining the financial world must realize Financial Advisors are essentially owners of their own businesses. They might start off with a major wirehouse and the payouts might be around 40% of gross commissions, but the clients belong to the Financial Advisor. With that book ownership by the Financial Advisor they are their own bosses. To increase payout they just need to move their business to a smaller firm that might pay as high as 90% of gross commissions to the Financial Advisor who brings their own book. Assuming 100% retention of clients, moving from a wirehouse to a smaller firm will result in practically a doubling of commissions before tax.

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Frankenstein in South Holland, Illinois

11 months ago

Will follow soon

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Frankenstein in South Holland, Illinois

11 months ago

Market Maven in Hinsdale, Illinois said: I wouldn't normally be on this website but had to do after-the-fact research to see if my offer to a trainee broker was fair. Of course, I've already canceled the job offer but I thought I'd check to see how far he or me was off base. Apparently not. My offer was $2,000 a month for six months. I provide ALL marketing costs and resources to supply leads and will help the trainee to close prospects. Starting payout was to be 20% of all commission revenues. After six months we would revisit by doing one of the following or both: revise monthly subsidy and/or increase payout percentage. The trainee has a Series 7 but never has had any clients with the previous firm he was with. He was basically a support person to a producing broker. My track record wherein I personally worked with brokers who joined me who had an existent book: Broker ONE made $15,000 a year with a previous firm three years ago. I worked the broker's book and last year he made $410,000 before taxes. Broker TWO made $100,000 a year with a previous firm. Six months after joining me he made a total of $250,000 before taxes. My own production last year? $1.8M. This year's expectation? Probably $3.5M before taxes. My offer is justified because of my personal help in bringing the untried brokers along. This is a very lucrative business .

Sir, these examples you are giving, is it the norm or an exception?. It sounds REALLY lucrative when you put it that way. What changed in case of your hired brokers that they couldn't do before? 15K to 410K jump seems too much to swallow. I am a super hard working guy and I have done very well as well without breaking or bending any rules and staying full compliant; but those numbers you are throwing seems too good to be true. May be you are the genius that I would want to be, those figures are not impossible at all but just improbable. You do make some very good points about ownership etc, so true.

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Market Maven in Hinsdale, Illinois

11 months ago

Frankenstein in South Holland, Illinois said:

Thanks for your reply. Since I entered my first post back about six months ago, and you, Frankenstein in South Holland, saw fit to reply, I'll respond and give updates of what happened over the last six months. The year 2013 ended with me making $1.8M. Year to date for 2014 I'm at $1.2M. End of year is when a big chunk of revenues come in. After I posted the first entry I've decided I don't need brokers working with me. If anybody I'll hire and bring them on as sales assistants, without the ability to be brokers and eventually compete with me. To take up the work the other brokers who are no longer with me I've hired a Wharton School graduate to back up my work, handle all the paper work, etc. Paying her $120,000 a year is a lot cheaper and a lot less aggravating than to deal with brokers who have the potential to threaten me. The trainee contacted me shortly after I withdrew my job offer and asked to be hired under my terms. The broker who made $410,000 the previous year contacted me recently and asked me to reconsider working together again. There were several other non-producing trainees who have not contacted me and will eventually be fired by the firms they work for because they can't produce without my input. Loyalty and credibility are what's required in our business. No loyalty and no credibility doesn't do well for working environments. I'm very thankful these former associates did what they did. It saved me a lot of time and resources that were being wasted for our mutual benefits.

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Frankenstein in South Holland, Illinois

11 months ago

Market Maven in Hinsdale, Illinois said: Thanks for your reply. Since I entered my first post back about six months ago, and you, Frankenstein in South Holland, saw fit to reply, I'll respond and give updates of what happened over the last six months. The year 2013 ended with me making $1.8M. Year to date for 2014 I'm at $1.2M. End of year is when a big chunk of revenues come in. After I posted the first entry I've decided I don't need brokers working with me. If anybody I'll hire and bring them on as sales assistants, without the ability to be brokers and eventually compete with me. To take up the work the other brokers who are no longer with me I've hired a Wharton School graduate to back up my work, handle all the paper work, etc. Paying her $120,000 a year is a lot cheaper and a lot less aggravating than to deal with brokers who have the potential to threaten me. The trainee contacted me shortly after I withdrew my job offer and asked to be hired under my terms. The broker who made $410,000 the previous year contacted me recently and asked me to reconsider working together again. There were several other non-producing trainees who have not contacted me and will eventually be fired by the firms they work for because they can't produce without my input. Loyalty and credibility are what's required in our business . No loyalty and no credibility doesn't do well for working environments. I'm very thankful these former associates did what they did. It saved me a lot of time and resources that were being wasted for our mutual benefits.

Thanks for your reply,Market Maven.
I really would like to visit your office someday, if I could find it. Your most recent post seems a little odd. If all you wrote holds good, I may have a great business proposal for you, one where you would benefit immensely.

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Jack 2 in Arlington, Virginia

10 months ago

I'm at a cross roads. I'm being offered position with Merrill Lynch and Raymond James. My question is does Raymond James shun the idea of hiring entry level FA's that where trained and licensed elsewhere?

About: I understand there's a noncompete for 6 months after ML's PDM program. Obviously I'd love to work for RJ over ML but i'm in unique circumstances where I might have to just take the first offer (or highest) that comes my way. I'm being considered for 3 position with RJ and only the PMD with ML--> but ML PMD is a lock right now. I have a BS in Finance. Living and working at a regional HQ for ML and THE HQ for Raymond James in St. Pete presents benefits on both sides. I'd be working with great teams either way.

I've considered my career track and know that the ML training program is likely to chew me up and spit me out with little left to work with. SO this is why I ask the question of how RJ feels about picking up and dusking off beginning financial advisors.

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