You start out at the very bottom. If you're driven enough, you can make a good living as an advisor. You'll get a shitty salary for the first 18-24 months (25-35k) and after that it's all commissions. When I did my PMW internship, I knew 3-4 guys who were starting out and were making 100-200 calls a day and kept going at it. But once you've built a solid number of AUM, it's a really relaxing job. The guy I worked for worked 9-5, took off whenever he wanted, and was a plain vanilla type guy so all his clients money was in MFs, IG bonds, blue chips, CDs. Once in a while, he'd have a idea or 2 and would call a few clients up recommending it. Other guys would deal with specific assets (options, FX, etc.) and charge transactions fees. Gain the trust of your clients and they'll reccomend you to their friends, charge an annual fee and the money keeps coming in.
If you were fired then you sucked. If you're good, you don't leave.
It depends who you're working for for and what exactly you're doing. From what I hear JPM, CS, GS you're doing more analyst-type work, making presentations, valuing companies, talking to clients etc. Others are going to be cold-calling shops. You just have to research the firms. And you can definitely get clients besides cold-calling. People on here are always talking about networking and it doesn't stop when you leave college. Hit up family, friends, go to upscale bars/country clubs/events and meet people who fit the description of clients your firm is geared at. But if you're at a shop that does a lot of cold calling, expect to be on the phone most of the day...
"You stop being an asshole when it sucks to be you." -IlliniProgrammer
"Your grammar made me wish I'd been aborted." -happypantsmcgee
ok...but for a bank like JP MorganPB the minimum is apparently 25 million. Where r u supposed to meet those people? seems pretty difficult for a person to give u money since you are only 22/23.....
^^^ Yeah, at big BB PBs (JPM, GS, CS) senior people are primarily responsible for bringing in clients.
Now, as an analyst, you may help research prospects or bring ideas to the table on who your senior banker/adviser should prospect, but you certainly are not going out to a initial meeting with a $100M prospect.
^^^ Yeah, at big BB PBs (JPM, GS, CS) senior people are primarily responsible for bringing in clients.
Now, as an analyst, you may help research prospects or bring ideas to the table on who your senior banker/adviser should prospect, but you certainly are not going out to a initial meeting with a $100M prospect.
Does the home office in most BB's Private Banking businesses actually handle clients? For the couple of banks I was speaking with, they have advisors in smaller offices around the country who actually sign and service clients. The home office was mainly there for institutional support to the advisors. Does that hold up across the board or is that unique to a few BBs?
Lloyd Christmas - Usually the "home office" does, as you said, offer support for the regional offices. However, the two are not mutually exclusive. The home office will in most cases have front office advisor teams that work in the same location as support desks (but probably on different floors).
For example, JPM's PB is headquartered in NYC. In NYC sit JPMPB strategy and solutions teams (think equity solutions, investor relations, etc). These teams help regional front office advisor teams. There are also front office advisor teams that work in NYC.
Back to the original question on turnover, for actual advisors at BBs, its close to 80% w/in the first 2 years. Generally, you'll be on salary (100-150k) and then at that point be expected to be self-sustaining from the fees from your AUM.
At 22 or 23 you're never going to bring in the $25MM+ clients. The banks obviously know this which is why you spend almost all of your time supporting the senior "bankers" whose job is to bring in the assets.
Is there a high turnover rate at the banks where you are only supporting senior "bankers"? do they leave by choice or are screwed b/c 80% seems like a pretty big risk
Is there a high turnover rate at the banks where you are only supporting senior "bankers"? do they leave by choice or are screwed b/c 80% seems like a pretty big risk
Even for senior advisers the turnover rate is fairly high. I can't give you an exact number, but I don't have enough finger and toes to count the number of new people / people who left over my 2 year PB stint. And my office wasn't even that big!
Why does this happen? There is tremendous competition between the brokerage firms to buy books of business and those advisors who oblige get paid handsomely. For example, if you are a senior adviser who has a book of business of $500M, you are getting calls from ML / MS / UBS headhunters every day. If an advisor decides to switch firms they receive an upfront bonus based on the percentage of assets they have, but they then pay back some of that bonus depending on the amount of assets they do not bring over. It really is a rat race, especially in today’s environment where the big banks are looking to pick up marginal revenue growth through their wealth management line of business.
Assumenda atque sed est laboriosam pariatur error quia placeat. Aut dolor ipsum natus eos vel est. Ab quam neque aut beatae similique. Quo voluptatem omnis voluptatibus molestiae quod eos corporis. Explicabo tempore minus cupiditate veritatis nihil repellendus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
good questions. anyone?
im interested in the answers as well.
You start out at the very bottom. If you're driven enough, you can make a good living as an advisor. You'll get a shitty salary for the first 18-24 months (25-35k) and after that it's all commissions. When I did my PMW internship, I knew 3-4 guys who were starting out and were making 100-200 calls a day and kept going at it. But once you've built a solid number of AUM, it's a really relaxing job. The guy I worked for worked 9-5, took off whenever he wanted, and was a plain vanilla type guy so all his clients money was in MFs, IG bonds, blue chips, CDs. Once in a while, he'd have a idea or 2 and would call a few clients up recommending it. Other guys would deal with specific assets (options, FX, etc.) and charge transactions fees. Gain the trust of your clients and they'll reccomend you to their friends, charge an annual fee and the money keeps coming in.
If you were fired then you sucked. If you're good, you don't leave.
Depends on the bank, too.
so all you do is cold call as an analyst? is there any other way to get clients besides cold calling?
It depends who you're working for for and what exactly you're doing. From what I hear JPM, CS, GS you're doing more analyst-type work, making presentations, valuing companies, talking to clients etc. Others are going to be cold-calling shops. You just have to research the firms. And you can definitely get clients besides cold-calling. People on here are always talking about networking and it doesn't stop when you leave college. Hit up family, friends, go to upscale bars/country clubs/events and meet people who fit the description of clients your firm is geared at. But if you're at a shop that does a lot of cold calling, expect to be on the phone most of the day...
ok...but for a bank like JP Morgan PB the minimum is apparently 25 million. Where r u supposed to meet those people? seems pretty difficult for a person to give u money since you are only 22/23.....
hmm
^^^ Yeah, at big BB PBs (JPM, GS, CS) senior people are primarily responsible for bringing in clients.
Now, as an analyst, you may help research prospects or bring ideas to the table on who your senior banker/adviser should prospect, but you certainly are not going out to a initial meeting with a $100M prospect.
Does the home office in most BB's Private Banking businesses actually handle clients? For the couple of banks I was speaking with, they have advisors in smaller offices around the country who actually sign and service clients. The home office was mainly there for institutional support to the advisors. Does that hold up across the board or is that unique to a few BBs?
Lloyd Christmas - Usually the "home office" does, as you said, offer support for the regional offices. However, the two are not mutually exclusive. The home office will in most cases have front office advisor teams that work in the same location as support desks (but probably on different floors).
For example, JPM's PB is headquartered in NYC. In NYC sit JPM PB strategy and solutions teams (think equity solutions, investor relations, etc). These teams help regional front office advisor teams. There are also front office advisor teams that work in NYC.
Back to the original question on turnover, for actual advisors at BBs, its close to 80% w/in the first 2 years. Generally, you'll be on salary (100-150k) and then at that point be expected to be self-sustaining from the fees from your AUM.
At 22 or 23 you're never going to bring in the $25MM+ clients. The banks obviously know this which is why you spend almost all of your time supporting the senior "bankers" whose job is to bring in the assets.
also an important distinction - these clients are worth $25million... it doesn't mean that they're sending all of their $ to the same place
Is there a high turnover rate at the banks where you are only supporting senior "bankers"? do they leave by choice or are screwed b/c 80% seems like a pretty big risk
Even for senior advisers the turnover rate is fairly high. I can't give you an exact number, but I don't have enough finger and toes to count the number of new people / people who left over my 2 year PB stint. And my office wasn't even that big!
Why does this happen? There is tremendous competition between the brokerage firms to buy books of business and those advisors who oblige get paid handsomely. For example, if you are a senior adviser who has a book of business of $500M, you are getting calls from ML / MS / UBS headhunters every day. If an advisor decides to switch firms they receive an upfront bonus based on the percentage of assets they have, but they then pay back some of that bonus depending on the amount of assets they do not bring over. It really is a rat race, especially in today’s environment where the big banks are looking to pick up marginal revenue growth through their wealth management line of business.
80% was for post-MBA positions that are client-facing and tasked with bringing in new clients.
Assumenda atque sed est laboriosam pariatur error quia placeat. Aut dolor ipsum natus eos vel est. Ab quam neque aut beatae similique. Quo voluptatem omnis voluptatibus molestiae quod eos corporis. Explicabo tempore minus cupiditate veritatis nihil repellendus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...