How much do Wealth Managers make? Wealth Managers make from $22,985 to $623,124. You do have the occasional Bobby Axelrod (shout out to billions) or Gordon Gekko (Only OGs know this one). With a median salary of $111,963. According to Comparably the middle 57% of Wealth Managers make between $111,963 and $282,357, with the top 86% making $623,194.
That’s a pretty impressive range of income, don’t you think? But how do Wealth Managers earn so much money? And what exactly do they do? Well, in this blog post, I’m going to answer these questions and more. I’ll also give you some tips on how to become a Wealth Manager yourself if you’re interested in this lucrative career path. So buckle up and get ready to learn all about the world of Wealth Management!
Who Are They? How Much Do Wealth Managers Make?
Firstly, Wealth Managers are financial professionals who help high-net-worth individuals and families manage their assets, investments, taxes, estate planning, and other financial matters. They provide personalized advice and services that are tailored to the specific needs and goals of their clients. Wealth Managers often work for banks, brokerage firms, or independent wealth management companies. Some Wealth Managers also start their own businesses or work as consultants.
Secondly, Wealth Managers have a lot of responsibilities and skills. They need to have a deep knowledge of financial markets, products, and strategies. They need to be able to analyze complex data and make sound recommendations. Wealth Managers need to have excellent communication and interpersonal skills, as they have to build trust and rapport with their clients. They also need to have a high level of ethics and integrity, as they deal with sensitive and confidential information.
Wealth Managers are rewarded well for their hard work and expertise. As we saw earlier, they can make anywhere from $22,985 to $623,124 per year, depending on their experience, location, employer, and performance. The average Wealth Manager in the US makes $111,963 per year, which is more than twice the national average salary of $51,168. That’s not too shabby, right?
After watching The Big Short for the 8th time I wondered: how do you become a Wealth Manager? What kind of education and training do you need? And what are the challenges and opportunities in this field? Stay tuned for the next part of this blog post, where I’ll answer these questions and more. You don’t want to miss it! Trust me, it’s going to be awesome!
From Salary To Commission Ladder
Imagine you are starting a career in wealth management. It doesn’t matter if you work for a small boutique or a big investment bank – you will get a salary at first.
But… there’s always a catch, right? Your salary won’t last forever, let me tell you why. Wealth management firms have a sneaky strategy: they will reduce your salary every year until it’s almost nothing and your income will depend entirely on the commission you earn from the assets under management (AUM) you oversee or assist with.
The idea is that your salary will go down slowly while your commissions will go up fast enough to keep your total compensation stable (or even better, make it grow thanks to the increasing amount of money you are managing or co-managing)
Commission Structure: Gross Revenue And Grid Payouts
Salary is just the beginning of your wealth management journey. What really makes you rich (and lets you fly first class) is commission. Think of Matthew McConaughey in The Wolf of Wall Street… but only when he talks about commission, not the other illegal stuff he does in that movie.
Your commission as a Wealth Manager depends on how much money you manage for your clients. The more money you manage, the more money you make from the commission. For instance, a common management fee is 50 to 100 basis points (100 basis points = 1%) So if you manage $100M and charge 50bps, you make $500K that year.
But, as I said before, there’s always a catch… The $500K is not yours to keep. It goes to the firm. What you get is called “grid payout”. The higher your rank, the bigger your share of the grid payout.
When you’re a newbie, you usually get a 20-30% grid payout. That means you only make $100K-$150K in commission. But when you’re a pro, you can get 50-60% grid payout. That means you can make $250K-$300K in commission.
Before You Go – How Much Do Wealth Managers Make?
Movies often show us the cream of the crop of Wealth Managers. But it’s not easy to get there. You need to have a lot of Assets Under Management (AUM) to make a lot of money. You also need to be good at your job and climb the ladder of seniority to make more money.
Wealth Managers make an insane amount of money, but you know who makes more on average? Hedge Fund Managers! That’s right, so click here to see why and how!