The ROA for a wirehouse is about 50 bp. This is because they do not charge
a fee on all their assets. The more assets under a wrap fee, the higher the
ROA will be. Many of these brokers have large bond accounts that are not
wrapped, nor should they be. Average payout on the production is 40-45%.

704set

"jdadverb" <jdadverb[at]yahoo.com> wrote in message
news:1150694764.804905.233770[at]c74g2000cwc.googlegroups.com...
- quote -

I'm interested in a starting a career in financial advising with a
wirehouse or a firm like Ameriprise, or AXA or Lincoln Financial. I
know what percentage of the revenues I would get at Ameriprise (40-55
initially, as much as 70-80 if I become an independent franchisee), but
I'm getting confused by what I'm reading about more traditional
wirehouses.

For example, I read about some successful advisors in Rep. magazine and
saw these stats:

AG Edwards example: AUM = $260 million, Production = $1.4 million
UBS example: AUM = $737 million, Production = $1.7 million
Raymond James example: AUM = $145 million, Production = $1.244 million

So these seem all over the board from 53 to 23 to 86 basis points. I'm
assuming that the gross fee is something like 1% to the client and
"Production" is the advisors' share. Is that right? Can anybody
demystify this and tell me is there a pretty standard range for
wirehouses and what it is?

Thanks!