Scenario: Upon completing training program, experienced advisors will be transitioned from a salary and incentive compensation structure to full fee based compensation. As a guideline, new advisors in program will need to bring in average of $4 million a year in assets and liabilities with an average of 10 new households each year. Keep this in mind as you work through following scenario.

Scenario: By way of example, lets assume financial advisors charge on average 100 basis points or 1% for advice on fee-based assets under management and the approximate payout is 40% to you, the advisor. Using this information as a starting point, address this question: 1) Assuming you charge an average of 1% for advice on your fee-based assets under management, how do you plan to replace your salary structure upon graduating from the program? What level of assets under management would that require for you upon completion of the program?