| Topic Name: |
Internal Competition |
| Message Name: |
Interesting questions |
| Date Posted: |
01/17/2006 |
| In Reply To: |
Thanks. Interesting info. Yea my dad does insurance/annuitys and somtimes does the seminar style thing too--not much fun.
About how much money are you making if you have 12 or 40 million under managment? Just curious?
Have you ever heard of FAs getting involved in the Real Estate market/investments as well as working for ML? Would ML care?
So what happens after the two year program--assuming you dont bring in the required ammount of assets? Would that look good on a bschool application? |
| Message: |
Merrill has internal policies that limit or prohibit many types of outside business activities. Passive real estate investing (I assume you're talking about buying distressed properties or renting houses) is fine though. I actually have some rental property myself. Velocity is the term we use to describe how much money you're earning from you book of business. A sustainable production velocity ranges from 1% to 50 basis points. You get paid about 40% of your production in hard dollars. So, in a simple example, if you had $10 million at a velocity of 1%, your "production" would be about $100k and you'd earn about $40k. You can extrapolate further from there. The velocity number declines, however, with a larger book of business because larger clients demand pricing discounts. Once they get over $50 million in assets, most FA's maintain 50 to 75 basis points in velocity. I'm actually applying to a couple of part time and executive B school programs right now. I'll have more insight on their attitude toward my role as I get my responses (hopefully soon).
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