AUM move, $ to expect up front?

3 replies [Last post]
EdJehovah's picture
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Joined: 2007-02-01

  Say you have 100m AUM you think you can move.  What will a wirehouse pay per Million in AUM  in .25 trail in A share annuities, and mutual funds?
  Per Million transfered what would you expect them to pay for them delivered?  Any other assets: stocks, bonds, cd's etc...  that are in taxable accounts?   IRA's different?
  Gonna move, just want to know.
  Thank you in advance,
  ED

FreeFromJones's picture
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Joined: 2006-11-29

Edjo,
When are you going to leave man??  You said a few months ago that you had enough and it's time to go.  Well, go already.  It must have been the awards ceremony at the Summer regional meeting.  That's where you figure out that it takes 9-10 years to net $100K.  Was that it man?  Don't jump from the frying pan into the fire, go indy or somewhere you can get the 80-95% payout.  Don't settle on moving from one barber to another.

troll's picture
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Joined: 2004-11-29

EdJehovah wrote:
  Say you have 100m AUM you think you can move.  What will a wirehouse pay per Million in AUM  in .25 trail in A share annuities, and mutual funds?
  Per Million transfered what would you expect them to pay for them delivered?  Any other assets: stocks, bonds, cd's etc...  that are in taxable accounts?   IRA's different?
  Gonna move, just want to know.
  Thank you in advance,
  ED

I assume that you think "m" means "million" and not "thousand", like it really means. How is it that a guy builds a book that large and doesn't even know how upfront bonuses are determined?

Cowboy93's picture
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Joined: 2005-05-10

They are based on production, NOT AUM. They just use AUM to make sure
it is reasonable compared to the production....for example, if you got every
$ of production in your first year from stuff that pays 5%, you'd have a very
high return on AUM (basically 5%). However, if everything is recurring fees
paying around 1%/yr, they love it because it is likely repeatable at their place
when you move.

Bobby does have a point--you should probably have an idea how this works.
If you don't and you are eligible for a deal, many firms will be eager to
explain it to you in person.

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