What is the average percent of commission do financial advisors receive?
Question:
Answer:
Most will do a mixed fee and percentage, depending on the services you require. An average advisor earns well over $150 000 per year on an average of 150 clients, so do the math. Of course it is impossible to say any average since advisors provide a wide variety of services. The best way to check is see an advisor that you have heard good reports about and ask them directly, they will break it out for you.
WE CHARGE $150 PER HOUR FOR SERVICE, BUT MOST CLIENTS PREFER TO PAY BY COMMISSION, NOT JUST FOR ADVICE.
BIG ISSUE: VOLUME DETERMINES THE % OF COMMISSION YOU GET. WITH A "WIRE HOUSE", YOU MAY GET LOW PERCENTAGES, MAYBE 30-45% OF GROSS COMMISSION.
BROKER DEALERS THAT CATER TO THE FINANCIAL PLANNER COMMUNITY BASE THEIR PAYOUTS ON VOLUME. THE TOTAL PAYOUT MAY BE SPLIT T THE OFFICE AT AT RATE OF FROM 50% TO 92% IN MY EXPERIENCE. SINCE IT IS BASED ON THE TOTAL OFFICE VOLUME, GET WITH AN OFFICE THAT DOES HIGH VOLUME, SO THEY HELP YOU GET HIGHER SPLITS. I AM OF THE OPINION THAT IT MAKES A HUGE DIFFERENCE WHO YOU ASSOCIATE WITH. MOST PRODUCTS PAY FROM 3 OR 4% TO 7%, SO BASE YOUR PERCENTAGE ON THAT. LIFE INSURANCE IS TOTALLY DIFFERENT; ALSO LONG TERM CARE AND DISABILITY INSURANCE.
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