I've had a lot of ups and downs in the industry as an IAR for the the past 6 years. I'm currently at Fidelity, but I started out at a small Investment Advisory firm. Ask me anything..
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hi there, I was wondering if you have any insights for equity product management roles for AM firms, like GSAM. I came from accounting background and would like to know what to expect from the interviews and what would be the possible exit opportunities? Appreciate it!
He's an Investment Advisor Representative. How would he know that?
Gentlemen, for anyone who doesn't know, this "field" is really two, there is the wealth management field, where you advise wealthier boomers or other people with a few million to their name where to put their money. There is also the asset management field where you design or sell funds for the likes of BlackRock, with essentially zero interaction with the end client (the boomers) unless they are a large pension who submitted a RFP.
GWillis, 1) Why Fidelity, instead of setting yourself up as an RIA?
2) Do you think this is it as a career, or is another move in your future? I know a lot of ML/MS/UBS guys end up as lifers. No clue about Fidelity.
3) why the IAR title instead of a full FA?
Yeah, as Whatever1984 has already said I don't have any insight into GSAM. In fact I actually recently applied for GS Wealth Management's division so your guess is as good as mine with them.
Thanks for the AMA! I'm not familiar with AM so these might be basic questions but here goes 1.) What type of clients do you advise? Retail? Institutional? Do you like where you are career wise or is there something down the road you are working towards? 2.) How does your role interact with the research analysts, portfolio analysts, and sales people at fidelity?
Sorry, just realized I missed this one.
As for do I like where I am career wise? Yeah, overall I have no real complaints, but I am looking to change firms just from a boredom perspective to be honest. I've looked into GS WMD mainly because I know they have the client base of institutional clients and I'd like to get my hands on a few of them! haha
Best part of your job? Worst part of your job?
Best part is the ability to help people and some institutions reach their financial goals, the freedom and ability to work without people always over my shoulder, and the unlimited earnings potential. Every year I've done better than I have the previous year.
Worst part, tough to say, but I suppose early on it was prospecting. It can be draining and demoralizing at times. Currently, I would say the worst part is just trying to keep in touch with all my clients equally. That's really not a bad problem to have though, you can see how I'm fishing to find something that sucks about the job, there isn't much to not like.
Hey thanks for the AMA, couple of questions:
I used to work for a GS/MS/UBS firm as an FA and noticed that Fidelity was taking a lot of retail business by having the retirement plan relationship. Have you found this to be true from your own practice?
What does your comp structure look like? Presumably your base is non-existent at this point, but do new Fidelity FAs have a base and then you're parsed off a % of revenue?
Do you have a niche market you to service or would you consider yourself more of a generalist?
Thanks!
Yes, absolutely, Fidelity has definitely made a concentrated effort to build the retail side of wealth management. It's funny you mention MS because I think they're taking a page out of their book on that one.
So I personally have a traditional AUM fee, but that was negotiated when I came over.
I have some institutional clients, but the majority are retail, so in that sense I guess I was say I'm a "generalist". Truth is if someone has a decent amount to invest I'll at least give them the time of day to see if we can be a good fit.
how would somebody in their 40's, but no experience in the role become a FA? Is there demand for career changers like this. What is the comp ladder like?
Personally, i'm a prop day trader...i trade US interest rates (mostly CBOT bond futures)..and i suppose i have an interesting story when it comes to the near future path of interest rates (i advise friends and family when to refinance their mortgages).
Is this relevant at all to the FA business, or their clients? Or are they more interested in tax and estate planning...where i have zero experience, but i suppose i could learn if there was a training program?
Being an FA is actually more suitable for someone in their like late 20s and onwards. Reason I feel that way is because kids fresh out of college have a hard time reeling in prospects because who really wants to trust a 21 year old with their money? Not many people..
Most firms have a traditional AUM structure in which you make 1% of what you manage. if you manage institutions then you can also charge performance fees, can't do that with retail really. So that's the positives of the job, unlimited earnings potential.
I mean any type of expertise or insight you have on market trends or economic trends can be useful for sure yeah.
Whats your payout?
Last year pre-tax right around 275K. This year with the markets performance and a couple new clients on board it'll probably end up being around 310-320K.
Payout is x% of total revenue generated by the practice. I'm at an RIA and ours is just north of 91%, but we had to go through quite a bit of negotiation to get that high.. Curious what Fidelity lets their advisors keep.
Thanks for the AMA. Just a few questions
Do you have any analysts on your personal staff? If so, how do you determine their comp?
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