finally did it....

[RichardRambone]

I just signed up for the GMAT. I'm not comfortable with where this industry might be headed so I decided that I may just put off flying for a couple years, study abroad, get my MBA in Entrepeunership and be my own boss. If things aren't working out then I can always fly airplanes. Should be fun. Anyone else in the same boat?

 

[Almerick07]

take the series 7 in 2 weeks....the pressure is starting to build a little. I thought checkrides were tough; this is like taking private, instrument, commercial, multi, cfi's and top it off with an ATP all at once.

 

[nonstop]

Congrats on the move Almerick, I've considered the same move myself.

I went and talked to a friend of a friend whose a Financial Adviser at Smith Barney... she said base first year was around 35k but with commissions 70k was a reasonable expectation if you're willing to put in 50-60 hrs a week. Is that similar to what you expect to make?

This commute is killing me but 75k a year 9% 401k match and 3 weeks of vacation that turn into 8 at my airline is not easy to give up.

 

[Almerick07]

at my place a first year broker averages 7-11k a month including bonuses, thats not including 2 all expenses paid vacations averaging around 5k in value per year. first 2-3 years its 50-60 hours a week but pay increases a pretty varying amount typically you can expect at 10-15% pay raise each year....but its all on commissions and productivity so it really depends on you. After a few years with the firm if your numbers are good you get offered a limited partnership which averages 20-25% return a year and they give you a 0% interest loan to invest into the firm. Everyone out here thats been in the business for atleast 10 years is making over 200k per year and works around 35-40 hours per week including dinners and promos. After a while it gets easier and you make more money. Youre pretty much guaranteed to retire as very very rich person if you follow your own advice and stick with the firm for the long haul. My firm is pretty unique as to you have your own branch and assistant and there isnt anyone telling you what to sell or when to be there. Guys take vacations when they want leave early to pick up the kids and live in the communities their offices are in. PM me if youre interested...5th largest firm and growing like crazy. Bottom line is you could make a million in your first year....not likely but possible. Thats why I left aviation, something about getting the same paycheck as the guy who shouldnt be touching the controls of a RC airplane nevermind a passenger carrying airliner makes as much as i do.

 

[F16fixer]

O.K. since your new to the game, and have not had a chance to do it professionally yet, what do you think could be some major drawbacks to your new job? My neighbor is a CFA, CPA and makes a lot of money, but I have also met people in this career field that go nowhere. Lots of cold calling, stress, just to be turned down and not build up a good client base.

Don't get me wrong, It's very interesting to here about your new path in life and I'm kind of jealous, but it was starting to sound like a TV infomercial.

On a different note, how do you get paid? The guy I know never really talks about it. I know people that have lost money with him and will never go back and just the opposite with other folks that love him. If I bring you $1000 a month to invest, how much do you keep right off the bat and do you feel confident since this is your job that you can make me that money back plus more? If an advisor makes me 10% and keeps 3-4% wouldn't I be better off on my own by reading booyaa jim cramers book like you recommended and giving it a go on my own?

What say you?

 

[Swass]

Have you looked at AXA Equitable? They are #1 and have the same promises.

90% wash out in most financial gigs. If your good and make it, I can throw more biz your way than you can imagine.

 

[Almerick07]

ok here is the update, i took the series 7 this past wednesday...scored an 80%!!!!! So I am officially a licensed investment broker!

The job is of what you make it. There is lots of cold calling when you first start because you dont have the client base to live off of referrals and whatnot. Like your CPA friend we get paid a lot because we work hard, its nothing easy. Being a pilot has no comparisons as to how hard we all work (the success stories).

there is a 66% failure rate just on the licensing exam, which at most firms if you fail youre done and then another 88% washout rate for those who pass but fail within the first 18 months of selling.

How we get paid...there really are too many ways to go into detail but here is a hypothetical:
you invest 1000 with me, you pay about a 5% sales charge and we get 40% of that. That is 1/10th of how we get paid, add in trails, partnerships, bonuses, new account bonuses, trips...there are a lot of ways of going about getting your paycheck.

trails come out to be $1000 per year per 1 mil under management
after some time in the business with say easily $50,000,000 under mutual fund management you make $50,000 per year before unlocking the door to your office.

Of course Im an advocate of professional money management but it really is worth the 5% up front sales charge you pay. There is actually a technical analysis called the odd lot theory that goes: an odd lot is an even order of 100, 200, 10000 shares. an odd lot is an order of 60, 125, 35 etc number of shares. the odd lot theory states look at the what the odd lots are buying and do the opposite, with the idea that they will pick wrong.

Anyways im kind of in a hurry and this post might not make sense and ill look it over later and add to it but thats the jist of it!

www.edwardjones.com

 

[Almerick07]

correction...odd lot = 34, 225, 105 number of shares and a ROUND lot is 100,200,10000 etc number of shares.

 

[Alamanach]

Of course Im an advocate of professional money management but it really is worth the 5% up front sales charge you pay. There is actually a technical analysis called the odd lot theory that goes: an odd lot is an even order of 100, 200, 10000 shares. an odd lot is an order of 60, 125, 35 etc number of shares. the odd lot theory states look at the what the odd lots are buying and do the opposite, with the idea that they will pick wrong.

I'm with F16fixer; demonstrate to me why I shouldn't just do this on my own and save the commission cost. The example you gave here isn't a persuasive one; that round-lot stock analysis is based only on some other guy's lack of analysis. Maybe the guys buying the odd lots didn't read Jim Cramer's book, and so if I do my homework, I'm ahead of the game.

(Actually, I wouldn't touch Jim Cramer, especially after this latest revelation of his. When I started studying this stuff myself, I realized right away I wanted to stay far from any author remotely resembling a celebrity. Those guys are selling themselves first, and actual information about the stock market comes second. Right now I've got an article from a 1952 issue of Journal of Finance I'm reading. It's a little dry, but it's valuable.)

If you could take a second crack at F16fixer's question, I'd appreciate it. Thanks.

 

[F16fixer]

I here ya. I wasn't to impressed with that "said a lot, yet said nothing at all answer" I got back. Why is it that these wanna be professionals never want to help anyone else out. If kids in my area want to get their private license, I will tell them exactly which books to buy, where to go to get the best deal out of the few airports that our in the area, and give them some timeline advice. I understand that this guy doesn't owe any explanation to you or me, but come on! If your going to post your current life situation in front of 33,000 people you should expect a few questions from genuinely curious people like myself. I guess we will just have to keep waiting.

 

[Alamanach]

I'm a little more charitable; I thought his numbers on the washout rates were illuminating, and his answers about pay reasonably sufficient. For the rest of it, I'm willing to give Almerick07 the benefit of the doubt and assume he was too pressed for time to give as good an answer as was needed.

 

[Almerick07]

ok here goes....why you should pay 5% up front costs to have your money managed by a professional. First off, do you have enough money to be properly diversified? Actually did you know you cant be completely diversified with a portfolio of just stocks? What about the 2010 traditional to roth IRA conversion...Jim Cramer doesnt teach about that. Or say if you did have the money to be diversified in an equity portfolio of at a minimum 5-10 stocks would you even know when to buy and sell them or maybe even to just hold onto them? What if I could give you the peace of mind that your money is properly diversified with as little as $100 per month with atleast a dozen professional mutual fund money managers showing up to work with their jobs on the line. Better yet what if I could show you ways to minimize tax consequences on the returns I make you. Top it all off with you can rest easy at night and not have to loose sleep over what the market is doing...thats a mutual fund managers job (im a financial advisor, not mutual fund manager). Do you know how youre going to pay for little Billys college, or where your income is going to be coming from when you hang up your headset? Despite popular belief, we are not out to screw the individual investor. Individual investors just happen to be at the bottom of the food chain; does that mean you cant make money, not at all. It just means you have to be that much more precise and mistake free with the advice you furnish to yourself. The list goes on and on, the bottom line is youre paying for a service. 5% on a $10000 investment twenty years ago thats worth $287,000 today seems pretty insignificant right? Could you consistently turn 10% a year being a stock jockey while holding down your day job? Do you even have enough money to make the work it takes to turn 10% worth the headaches and the late nights listening to conference calls making sure the management you know nothing about isnt running a company youve invested in to hell?

Those series EE govt bonds for billys college fund arent cutting it, but who is going to tell you that? The savings account for a rainy day youve got at the local wells fargo is actually depreciating in value as we speak. You just inherited $1 million dollars, lets put it to work in a tax conscience way and make enough to never have to work again. 5% not worth it? $500 not worth that to you? Not only will you have me on retainer for life, but youve got my entire back office taking care of you. Most importantly; with your 5% INVESTMENT in me youre going to have a relationship with someone who cares more about you than making money....after all I did this because it is something I am passionate about...a lot like why you fly airplanes.

Why is it that these wanna be professionals never want to help anyone else out.

Wanna be? I wont get started on that but anyways....Ive listed the website of my company where very detailed information can be found out about my new career. Also Ive answered more than a few PM's about my new gig so dont put me in that boat.

You want help with your finances? Here is my advice, educate yourself (I recommend Jim Cramers book, Sane Investing In An Insane World) and visit with a professional armed with more knowledge than "just make me money". You might tell people the books to buy, but would you sacrifice your paycheck to watch them at very best solo? Not likely...

 

[F16fixer]

See now that wasn't so hard. I figured if I rubbed you the wrong way a little bit, I would get some detailed information out of you I've been checking this post everyday waiting! What you said does make a lot of sense and helps make things clearer. I guess the hardest part is trying to find someone like yourself that is passionate about the job. Don't you get paid every time you buy and sell too? I wonder if there iare shady guys out there that will just buy and sell to make commision?

Well, I guess if your that serious about Cramers book, I might have to read it. Your not getting some kind of kick back on his book sales are you?

Good luck and Godspeed too you

 

[Almerick07]

The first post was pretty piss poor sales job, no hard feeling by the way. Most guys doing this job are very passionate about what they do, my commissions work in weird and mysterious ways sometimes. I basically get paid when your money is being managed or a I sell a product ie a bond. There are some shady brokers out there but we are regulated about as much as the airlines. We have compliance departments breathing down our necks day in and day out watching for churning (buying and selling just to profit off of commissions). I cant testiy to other firms first hand but you will not run across someone doing anything to rip you off at my firm, guaranteed.

No kick back on cramers book....wish I was getting one though. His book is good, teaches you the nuts and bolts of the securities industry. It is about stocks but can be applied to a lot of different things as well. If you go buy his book make sure to get the Sane Investing In An Insane World....not his new on. Its a red book, his new one is mostly white.

 

[PimpJuice]

Mba

I decided to pass on the airlines when i left the military last summer. instead, i chose business school. I would highly reccomend it as a long term route. You can make 200+ your first year as a trader at at a top firm. I was lucky enough to get into a top school, Columbia which is key. In the long run, if you have the time, don't mind the debt and are willing to move, i think it's a great option. I'll make more my first year out than I would as a senior captain at SWA.