Does It Pay to Switch?
Making the transition to independence can offer financial rewards and opportunities to gain greater control over your practice. This calculator illustrates how your compensation might change based on the various advisory models available. Please contact Pershing for a complimentary consultation to model the details of your practice.
Thinking of starting your own firm? Contact us today to learn more about our broker-dealer and RIA solutions.
- Results: Year One
- Results: Year Five
Year One Results |
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Wirehouse or
Regional Firm |
Does It Pay to Switch? |
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Total Net Income
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Tax
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After Tax Net Income
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Practice Value
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Tax
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After Tax Practice Value
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Year One Detail |
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Wirehouse or
Regional Firm |
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Assets Under Management ($MM)
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Revenue (Production in Wirehouse)
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Professional Salaries
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Gross Income
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Broker Dealer Override
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Overhead
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Profit
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Total Net Income (Professional Salaries + Profit)
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Cash Flow
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Valuation Multiple
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Year Five Results |
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Wirehouse or
Regional Firm |
Does It Pay to Switch? |
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|---|---|---|---|
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Total Net Income
|
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|
Tax
|
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After Tax Net Income
|
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Practice Value
|
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|
Tax
|
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After Tax Practice Value
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Year Five Detail |
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Wirehouse or
Regional Firm |
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Assets Under Management ($MM)
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Revenue (Production in Wirehouse)
|
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|
Professional Salaries
|
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|
Gross Income
|
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|
Broker Dealer Override
|
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|
Overhead
|
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|
Profit
|
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Total Net Income (Professional Salaries + Profit)
|
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Cash Flow
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Valuation Multiple
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Now, use our Firm Match Tool to find and compare Pershing-affiliated firms that best match your career goals. Thinking of starting your own firm? Contact us today to learn more about our broker-dealer and RIA solutions.
The Pershing Does it Pay to Switch Calculator is intended for Investment Advisor Use Only. For illustrative purposes only. The results generated by the calculator are based on various assumptions and do not guarantee future results. You should conduct your own analysis and due diligence based on your specific situation.
Underlying data and calculations in the calculator were provided by Advisor Growth Strategies. Industry averages were based on the 2008 Moss Adams Financial Performance Study of Advisor Firms. Advisor Growth Strategies and Moss Adams are not affiliated with Pershing. Pershing provides no endorsement or warranty of any third party provider.
The data used in the calculator is intended to provide an overview of the economic impact to an advisor’s practice of making a transition from one advisory model to another. The tool takes into account various assumptions and industry averages to arrive at a modeled result. The tool uses data and formulas provided by third-party vendor and the accuracy or timeliness of that data cannot be guaranteed. Results may vary with each use and change over time.
The information delivered by the “Does It Pay to Switch?” calculator is general in nature and is provided for informational purposes only. Pershing makes no representation or guarantees as a result of this service. Pershing does not render tax or legal advice; you should consult your own legal and tax advisor. Pershing is not responsible for your action or inaction as a result of this service.
