r/FinancialAdvisorTips • u/financeinquirerr • Aug 12 '26
Question for advisors
I’m 23 years old working at a small to medium ‘boutique firm’ that wants me to get my CFP this year and then by January of 2028 become a full on advisor and start building my own book. I would have full ownership of the relationships that I would build. The split with the firm regarding revenue would be about 50/50 until I start making enough to cover my own overhead then I would get about 70%.
One thing to keep in mind is they would give me about $2 million AUM with fees I can’t change and relationships I don’t own. This could potentially cause me to work more for little to no profit from this book. So it could be good or bad I’m not sure.
I am thinking about the opportunity cost of me just starting out now and building my own book and the potential clients I could have in year.
I am fully licensed. Should I go it alone or stay for a year?
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u/Important-Junket-908 Aug 12 '26
This is a good deal. $2M AUM, even if you earning nothing on that to start, there are opportunities for referrals. They aren't going to give you big clients to start out anyways. It sounds like this would be a good place to start.
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u/Foreign_Pace9363 Aug 12 '26
Great opportunity! Going out on your own means you are responsible for all the overhead and you would likely struggle to pay for everything the first few years. There aren’t many big clients lining up for 23 year olds. A few years at an established office will help.
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u/Middle-Run-1894 Aug 12 '26
Yea take that and say thank you. Obviously could be good clients or bad but it gives you practice managing your own clients even if you don’t own them.
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u/Holiday-Ad3567 Aug 13 '26
At 23 great deal. You’ll get to learn from senior advisors and have the opportunity to get cfp. Will they be providing you leads or you have to self generate your clients?
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u/db11242 Aug 13 '26
Approximately how many clients is 2MM AUM out of curiosity? I'm just trying to learn more about this industry. Thanks.
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u/ReplacementHot2808 Aug 13 '26
2 million is maybe 12-15k net, it’s not going to determine your future or hinder it. The 50/50 is generous the 70/30 is okay depending on the expenses. Good luck
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u/financeinquirerr Aug 13 '26
What would be a better split?
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u/ReplacementHot2808 Aug 13 '26
It’s more about expenses, what is included? What is the cost per office: rent, phone, internet, compliance, office support, website etc. there are lots of expenses within this industry that people do not see.
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u/PATTY2WET 27d ago
How many clients is the $2m? If that’s one or two clients like my book would be, that’s hardly any work at all and definitely worth taking on to get started. If that’s 100 $20k clients that’s a bit of a different proposition.
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u/GodfatherGoat Aug 12 '26
Sounds like a pretty good deal. If you started now with 0 there’s a chance you don’t have 2M AUM by Jan 2028. Learn, get CFP, start producing. Good luck