Financial Advisors

I made the mistake of doing math today. In my 1st 2 years I brought in 7mm in new assets to my fee-based firm. Good thing im on salary or we'd be broke. If this wad 1988 and that was commission...

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My understanding, is that mutual fund commissions were closer to 8% In the 70’s/80’s.

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Financial Advisor 1. . ."A" shares still are

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Yes but in 1988 you wouldn’t have brought I. That much, you would have to present value the 7m to 1988 and would be more like 1.5m and you would have grossed 75k

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7mm x 5% = $350k. Even at 50% payout I'd be sitting pretty instead of feeling like a failure.

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You can still do a share business and charge 4-5%. It seems almost impossible to start new just trying to do fee based business. For small accounts you should do a-share and do fee for larger accounts. Make sure your clients insurance needs are meet. You should be able to make a good living.

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Wow was comm really that much then? Somebody please build me a time machine!

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But also think how far $75k would get you back then!

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Nw1, the point wasn't that I'd have done that then, its that if we were still in a commission dominated world it would be much easier to make it from scratch.

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Exactly what NM1 said. Go sell an indexed annuity and you can make 7% and lots of people close to retirement love it for its safety and guarantee of income. Do some A share mutual fund business and get paid 5% with American funds and a bunch of others. Save the fee based management for your larger accounts.

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I brought in $6.5m my first two years. I was broke. I’m sitting on $50m now. Sure glad I’m not salary.

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I'm salary until I my payout eclipses my salary. I'm also 40 with kids. Poverty isn't an option. Motivation and drive are not an issue. Getting close. Closed $1.2 last month. 2 more of those and I'm off salary.

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