Goldman Private Wealth Management Associates
A few questions about Goldman Sach’s PWM Associates:
Goldman Sachs Private Wealth Advisor Program
User @merkhet was able to answer some of their own questions. Please see their findings below:
- What is the average salary and bonus for Investment Professionals (Associates)?
I've been told that the compensation breakdown for the first two to three years is as follows:- Salary: $95,000
- Bonus: $55,000
User @SoccerDude3498, an Investment Advisor, elaborates:
That sounds somewhat reasonable for an associate, however you get that pay for two years, after that if you don't bring in your sales quota, you get fired. And if you do stick around, the firm doesn't pay you anything anymore, they take 65% to 70% of what you make, until you clear some number like $1,000,000 in fees then, they'll probably only take about 60%. All in all, it’s difficult to get clients. If you are at Goldman, they are a specialty shop in that they really only cater to clients making 10 Million and above, there is a lot of competition in that field.
(1a) I'm assuming that this is a compensation break down for Financial Analysts as opposed to Investment Professionals. Also, it seems to be a standard breakdown and not particular to Goldman Sachs. The fee that Goldman Sachs charges for AUM is from 90 to 100 basis points. The payout for the Investment Professional is around 30%.
- How much of the job is managing assets and how much of the job is based on chasing down high net worth individuals and getting them to sign over their assets? The job is essentially a sales job and at the beginning, you start out with no clients. After getting clients, your focus will shift from asset procurement to asset management based on how much AUM you have.
Watch the following video from Goldman Sachs about their Private Wealth Management program.
(2a) Does Goldman give you any good leads on signing up assets or are you on your own? Goldman does not give any good leads when you start out. You're basically on your own.
- What's the career progression? (Staying within Goldman and/or exit options) The career progression is based on production and revenues generated for the firm.>
- When do Investment Professionals begin to get the authority to make investment decisions? (With client consultation, of course.) Investment Professionals begin to get the authority to make investment decisions (with client consultation) right away.
(4a) How much leeway is given if, say, you want your client to buy something that Goldman's research arm has just downgraded -- or sell something that Goldman's research arm has just upgraded? You can only recommend stocks on Goldman's research list with a hold or higher rating. You cannot recommend a stock with a sell rating though your client can come to you with a stock that has a sell rating on it.
Working As A Wealth Management Associate
Working as a Wealth Management Associate is largely a sales job where you’re responsible for managing accounts and finding your own clients. The plus side, is you’re working on accounts pretty early in your career.
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I obtained some answers to this on my own. The only answer I don't have is what the average salary is for Investment Professionals (Associates) during the first two years. (You live on your commissions for AUM after that.)
(1a) The fee that Goldman Sachs charges for AUM is from 90 to 100 basis points. The payout for the Investment Professional is around 30%.
(2) The job is essentially a sales job and at the beginning you start out with no clients. After getting clients, your focus will shift from asset procurement to asset management based on how much AUM you have.
(2a) Goldman does not give any good leads when you start out. You're basically on your own -- not sure about whether they give you any direction at all -- can someone elaborate on this?
(3) The career progression is based on production and revenues generated for the firm.
(4) Investment Professionals begin to get the authority to make investment decisions (with client consultation) right away.
(4a) You can only recommend stocks on Goldman's research list with a hold or higher rating. You cannot recommend a stock with a sell rating though your client can come to you with a stock that has a sell rating on it. I'm uncertain what happens with those stocks that Goldman does not follow -- can anyone comment on that?
Hope this helps people in the future who are curious about PWM @ GS.
Right now this is a job. If I advance any higher in this company, then this would be my career. And er... Well, if this were my career, I'd have to throw myself in front of a train.
I've been told that the compensation breakdown for the first two (2) to three (3) years is as follows:
Salary: $95,000
Bonus: $55,000
-------- Right now this is a job. If I advance any higher in this company, then this would be my career. And um... Well, if this were my career, I'd have to throw myself in front of a train.
PWM is essentially a sales job meaning lower salaries and more bonus, so I don't understand where you got these payout numbers.... The salary seems to be very high for a first year analyst out of school without any clients
Hi Merkhet, are you currently with GS's PWM group? If so, I would like to talk to you more offline if that's ok. I have a background in private equity and leveraged finance but looking at transitioning to wealth management/financial advisory. Right now, just talking to as many firms as possible to determine where would be the best fit and to do as much due diligence to ensure that this is the career path I want to follow. Thus far, I have spoken to ML, MSSB, Alliance Bernstein, and Wells. I would def be interested in chatting with you to pick your brain on GS. You can reach me via email.
Samir, why do you want to make the switch,
Merkhet, where did you get your payout number from? and where did you get your flat fee from?
Lawm, the reason is because the private equity group I was with downsized and I am now currently job searching. I am passionate about the financial markets and enjoy being in front of customers. Not wanting to be glued to a spreadsheet and the lack of opportunities in private equity are why I am considering wealth management/financial advisory. I am also looking at hedge fund opps and studying for the Level I CAIA.
So you're looking at fa/pm/crm? Strictly sales?
Yes...also keep in mind that I am still interested in hedge fund and private equity opportunities but taking the time to learn more on how I can leverage my sales and finance skill sets and that is why I started researching fin advisory and wealth mgt opportunities. Even though it can take a long time to build up your AUM, the potential for a healthy residual cash flow stream is attractive.
Merkhet said associate compensation...not analyst.
and an analyst out of ug in pwm is not expected to build clients just yet.
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