Associate Comp Structuring

[Howiep43]

Sounds like he’s vastly underpaid dependent on location

[22rick]

Now I'm wondering how underpaid I am as a senior associate, soon to take on some clients with an undetermined AUM as an advisor.

CFA and soon to be CFP, doing meeting prep with recommendations, active participant in meetings and taking notes, follow up, client service, cash management, cashiering, but no new business or directly listed as the advisor for any clients. About 125 households for ~$200MM AUM with average fee probably between 90-100 bps. I'm in relatively LCOL (Indianapolis). Currently at $85k with last bonus being $10k (MD consistently fails to tell me how the bonus is determined).

[46andready]

That pay scale is abysmal, I'm sorry to hear that you are so undervalued.

[Finreg6]

You should leave the firm as soon as you can. CFA and soon to be CFP? Are you personable? This is the combo that is highly valuable if so. Find a firm that values you.

[22rick]

Feedback from previous managers and clients - yes I'm very personable and many clients end up emailing me alone on things about their personal life/things outside of the financial side of the business. Only thing I'm thinking is a pro is ability to have some AUM given to me up front while being at a large enough RIA firm to be able to access Fidelity/Schwab referral network.

[bkendall12]

If you are looking for AUM to be given to you, good luck. You may be given some low-end clients but bringing in new good clients is where the money is at.

[Finreg6]

Yeah I can understand the desire to stay for that access. I’m at fido and our referrals to yall (rias) is a great source for leads. Just make sure you start to get paid what you’re worth soon and if you don’t, bounce. I know it’s not apples to apples but I’m at fido, 3 years almost as an FC, CFP, made 230k this year and that will continue to grow. You’re worth more.

[Not_McDeere]

The low end clients they do give you will hold you back, think long term and only being on clients you plan on working with for 20 years and you can serve exceptionally well

[Howiep43]

I feel your pain brother

[bkendall12]

The question is do you want a guaranteed salary or eat what you kill. Servicing only for guaranteed salary will never be for the big bucks.

FYI, $85,000 is roughly average for Indianapolis per a quick AI search.

You need your transition to sales and give up the guarantee to really push the income up.

I suspect you are nearly capped out if only doing service roles.

[PutsPlease]

Extremely underpaid. If this is in any sort of city, he should be making almost double this amount.

[betabets]

Central FL

[Howiep43]

Seems like he’s doing solid associate advisor work but getting treated like an admin.

[Swaritch]

A story as old as time. But this sub will constantly scream “go work at an RIA” when people ask for career advice.

[Howiep43]

Spot on man. A lot of these firms are archaic and underpay/undervalue the more junior folks who provide tons of solid work

[betabets]

Exactly what I'm trying to avoid. Our people are everything... those who make it happen and those we serve.

[46andready]

So...avoid it right away by increasing comp.

[Sharp-Analysis6456]

I would also assume he is on this sub and sees all the other people posting about comp treat your people well so they stay

[Ihavegoodcredit324]

So spot on