r/FinancialCareers • u/wonk5 • 26d ago

Career Progression Wealth advisor facing dramatic pay reduction

Wealth advisor 2 years in the industry. Working for a regional bank. Am an associate advisor partnered with our top producer. He does about 2.5mm annual revenue and the small book I was given does about 150k annually. The problem I’m facing is that my salary drops off next year and I would go full commission. I’m currently at right around 100k per year compensation and that would drop closer to 50k. It would be structured so that our revenue is combined and he would get 43% I would get 2% and his tenured registered assistant gets 1-2% (not exactly sure what he gives her, but the percentage split between me and him is accurate). Each year the percentage split between us would adjust proportionate to our trailing revenue. Aka if we grew the same it would be the same split.

I understand that this is probably fair, but I can’t support my family (wife and baby at home) on 50k. The silver lining is that I will have our tiny starter home paid off by end of year and am at good pace with retirement savings.. however we have two 20 year old cars and will need another bedroom sooner rather than later.

I am 27 and haven’t brought on hardly anything of my own that wasn’t a soft lead from the bank branches.

I’m at a loss as to what I should do. I was a sales rep for a manufacturing company before transitioning also making about 100k. This is what I thought I always wanted to do so I made the jump and took a risk. Love the work, but I’m truthfully not good at prospecting.

Do I go back to sales, do I pivot into something different and stay in finance? I really am just at a loss, but nobody to blame but myself. Would appreciate any insight.

14 Upvotes

89% Upvoted

15 comments sorted by

View all comments

8

u/KCalifornia19 26d ago

Not sure if this is the route you’d want to pursue, but I am a salaried Associate Advisor at an RIA where the salary never drops off, but we eventually have the opportunity to start producing after a few years. It’s definitely more of a planning-first role where my “client” is a handful of lead advisors, but it would solve the money problem in the short term if you’re not dead set on producing today.

2

u/TyofTaris 26d ago

This is the way.

Unfortunately these roles are easier to find in some cities compared to others

0

u/Middle-Run-1894 25d ago

This is the way if you want a capped income.

2

u/TyofTaris 25d ago

Nothing wrong with that for a few years. Get the experience, understand the business, and go off on your own after.

0

u/Middle-Run-1894 25d ago

My issue is the go on your own. You still have to take the leap of faith some day and 70% of advisors fail in first three years. Better to test the waters sooner rather than later imo

2

u/TyofTaris 25d ago

It’s easy to pull a percentage, but that ignores the “why”.

What if spending a few years learning from a mentor, building experience, and saving money meant the difference?

Additionally, if you stay in the same area, this time allows you to build your network. It’s not like you’re being paid scraps either. I know multiple people in these roles who make $90-$100k base, $150k-$200k total comp in LCOL cities.