Compensation Analysis
Client Data Input
| John Jabobs | 52 |
|---|---|
| TOTAL: | $220,300 |
| 401(k) | $25,000 |
| Profit Sharing | $16,800 |
| Cash Balance | $178,500 |
| Ricardo | 49 |
|---|---|
| TOTAL: | $207,900 |
| 401(k) | $19,000 |
| Profit Sharing | $37,000 |
| Cash Balance | $151,900 |
| Jenny W | 44 |
|---|---|
| TOTAL: | $169,400 |
| 401(k) | $19,000 |
| Profit Sharing | $37,000 |
| Cash Balance | $113,400 |
AUM Report
Typical industry averages for advisors compensation on Defined Contribution AUM for 401(k) and Profit-Sharing plans can range between 25 and 60 bps. Contrast, cash balance plans and their assets require active management as advisors seek a rate of return or Interest Credit Rate (ICR) that may range between 2-6%. Due to these additional challenges and the skill level required, Advisors may choose to charge larger management fees of between 75 and 225 bps. Your AUM report conveniently shows a snapshot of your potential future earnings.
| Name | 401(k) / PSP Assets | Comp - 50 BPS | Cash Balance Assets | Comp - 150 BPS | AUM TOTAL | COMP TOTAL |
|---|---|---|---|---|---|---|
| TOTAL: | $209,800 | $1,049 | $579,500 | $8,693 | $789,300 | $9,742 |
| John Jacobs | $41,800 | $209 | $178,500 | $2,678 | $220,300 | $2,887 |
| Ricardo | $56,000 | $280 | $151,900 | $2,279 | $207,900 | $2,559 |
| Jenny W | $56,000 | $280 | $113,400 | $1,701 | $169,400 | $1,981 |
| Jeff M. | $56,000 | $280 | $135,700 | $2,036 | $191,700 | $2,316 |
Insurance / Annuity Report
Alternative asset such as insurance and annuities may be held inside of retirement and cash balance plans. These investments can be a powerful aid to create a complete retirement planning solution for your clients. Typically, tax deductible life insurance purchased inside cash balance plans has a maximum investment of 50% of the cash balance contribution – which is illustrated below. The other 50% could go into an annuity or into the stock market. Below you may edit your compensation as needed.
| Name | Cash Balance Assets | Insurance 50% | Insurance Comp | Annuity 50% | Annuity Comp | COMP TOTAL |
|---|---|---|---|---|---|---|
| TOTAL: | $579,500 | $289,750 | $260,775 | $289,750 | $14,488 | $275,263 |
| John Jacobs | $178,500 | $89,250 | $80,325 | $89,250 | $4,463 | $84,788 |
| Ricardo | $151,900 | $75,950 | $68,355 | $75,950 | $3,798 | $72.153 |
| Jenny W | $113,400 | $56,700 | $51,030 | $56,700 | $2,835 | $53,865 |
| Jeff M. | $135,700 | $67,850 | $61,065 | $67,850 | $3,393 | $64,458 |
