Financial Advisors

I've been working for a "discount broker" helping 400 clients with $300M AUM. $150k total comp Avg. CFP and motivated. Feeling under appreciated lately. Is the grass greener on the other side?

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Oh, the schwabbie days. You are asking a question that is tough. I did exactly that. Here is what you need to know. The grass isn’t even the same color. Hell its not even grass. Moving from your role at Schwab or whichever one you are at, is not what an Indy does. It is almost a different career. Most Indy don’t start with million dollar clients. They start at 100k clients. You will be very lucky to take 20 of those clients, not 20%. That will be a big shock to you and the way you have managed money. Then you have the whole “running a business”. Buying a printer, getting letter head, business cards, tech, internet, et al. You are in charge of your CE. I’m saying this but, it was the best decision I ever did. I would recommend having a year of an “emergency” fund in savings because that first year was scary.

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Short answer, Yes it is. Understand there is NO WAY you will bring over $300M if you were to go INDY. Those folks are at a discount broker for a reason. However, if you could retain 20%=60M that might be 600,000 of revenue and with carefully managed overhead, an income to you and your family of maybe $500,000 So, is that green enough?

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Only u can answer that but remember the “old adage” hindsight is always 20/20 ... follow your gut, bones, and jump either way. The best advice I can give is leap (which ever direction u feel is right for u) and then roll with it. Either way, I promise u, u will learn lessons that will make u stronger. Good luck

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FA2 AL

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Well do you want to be responsible for new business acquisition? You can make a lot more than that if you can bring in the clients. You're going to be charging more as well

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I worked at 4 large consultancies in my twenties - they are all the same. I would have stayed put if I did it all over again - if it weren’t for the 20% comp increase I took with every move. Starting all over again, building new relationships, office politics, etc is a lot. They say the most stressful things in life are moving, changing jobs, and loss (breakups, death)

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So you’re essentially making 5bps on your clients? The grass is likely greener anywhere. What city are you based out of?

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^ it's greener if you had 300 mil of fee based clients but that's not the case here. You'll likely be charging 1% on 10 mil or so at first then paying expenses out of that

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FA1 - 300m of any type of asset - 401k plans, Fee Based, annuity based, life insurance based, A/C share mutual fund based... all would lead to more than $150k. Where do you think the math doesn’t add up? Also, with an avg ($300m/400 clients =$750k avg) that falls below $1m per client - could be 1% or .5% per account...? All of these should lead to any higher comp figure than $150k. $150k is 5bps for $300m. VERY low comp anyway you slice it.

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FC OP - more detail about your setup - bank attached, etc? Happy to help if I can...

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