jase12
Senior Member
- Joined
- Sep 25, 2008
- Messages
- 160
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I certainly appreciate your optimism, but you are being a little bit absurd about the prospects for financial advisors.
Financial advisors are purely service providers, and do the legwork themselves. The only reason partners in other service industries earn these sorts of salaries is that they get leverage from the underlings they employ. Financial advisors do not have this same leverage.
Assuming you earn an annual fee of 1% and have no expenses, you would need to manage $40MM in assets to generate that kind of revenue. While not impossible, this is certainly pushing toward the high end of what is possible. How many clients can you manage? 10? 20? 30?
to be fair i think some here are overestimating the earning capacity of financial advisers and some are underestimating. $40m under management is great but not really not that unachievable. I am a financial planner for a small dealer group in australia (granted it is not exactly comparable but from what i have read there is not a huge difference between the structure of investments and fee systems from the US to AUS), and we recently passed $1b fum for around 60 advisers australia wide. thats an average of around $16m per adviser or $160,000 per year based on 1%. over a 15 year period that is 5 new clients per year with $200,000 to invest. if you include retirement funds, insurance commissions and all other areas of their finances it adds up quickly.
what you also have to remember is that very few advisers work on $0 salary and 100% commission and that they often work on clients 'owned' by the principal of their office.
you also not going to earn 400k before your 30 unless your donald trump jnr!