Hi All,
I'm currently a CPA at a Big 4 firm and have recently been looking into new opportunities. My ideal career path has always been to eventually try to move into a PE or Corporate Strategy role.
Through my network, I was recently offered a position to move into PWM with a large book of business and only one other partner. If all went well, I would be in line to take over the book in 5-10 years.
I'm strongly considering taking this opportunity, even though it is not along the track of what I had originally planned for my career. I think I would enjoy PWM, however I am hesitant as I know if for some reason it's not what I'm expecting, the exit ops will be limited.
Thoughts?
@"thebrofessor" will have some good insights
Thanks bro.
OP what's the role you'd have? What're the expectations? What's the timeline? What's your comp structure?
@thebrofessor,
Not sure of the specific title, but I would be brought into the firm directly underneath the main FA. Once I am licensed, I will be participating in all aspects of the business, including developing relationships with his existing clients but also working to bring in some new clients of my own (he really only takes new business from referrals now). The expectations would be for me to take over the book once the he retires, which would be somewhere around 10 years.
The main FA has been in the business for 20 years, and has great relationships with his clients. He wants to create a succession plan so they are taken care of by an advisor they already know and trust by the time he retires.
We haven't hashed out the initial comp structure as of yet, but from our conversations I know that there is tremendous potential down the road.
Looking for any guidance you can give. I recently read your 3-part blog which has also been very helpful in learning about the industry.
hey man, you have a great opportunity ahead of you but there's a lot of stuff to clear up, otherwise this could end badly. couple of thoughts, PM me if you want more, we could set up a con call.
what are you going to be expected to do, as a % of your time? is it 5% new business, 25%, 95%? clarify this up front, that will feed into things like goals, daily expectations, comp, etc. your role should not be unclear at all, and I mentioned there's really 3 personalities that can fit into a brokerage practice: finder, grinder & minder. finders are the BSDs, out there sourcing & closing business, they will always command the lion's share of the revenue. grinders are analytical people, business analysts, financial planning people, RFP responders, etc., they will be higher than secretaries but will never get super high comp. minders are your support staff, operations, stuff like that, goes without saying you don't want a role like this unless you're just starting out. the amount of time you spend in each of those buckets should be very clear from day 1.
how can you grow your compensation? do you grow like a salaried employee with raises each year, or will you get an increasing piece of the overall book every year/several years assuming goals are met?
often times FAs will not step down at an agreed upon date, so how will you grow into your role while the senior broker is still employed? the worst thing you can have is an offer that balloons when the senior broker retires. if you're 30 and this broker isn't thinking about stepping down for another 10-15 years, that's a long time to wait. some brokers work into their late 60s, 70s, even 80s. have a clear cut path on how you can grow within your role but still being a junior partner.
every firm has sales goals and they're very hard to meet. will the group support you in the event you fall below these goals so that you stay employed? meaning they financially support you until your part of the practice is self sustaining.
learn more about how he runs his business, his investment philosophy, see if it jives. I say this because you can have a GARP guy and a contrarian peacefully coexist, but if someone's a technician who views clients as scum, and you're more of a relationship guy, you will clash and it won't end well.
hope this helps.
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