Broker vs Banker Thread [Split from $100K passive income thread]

Well that is true Spectre but most people who transition from banker to broker find it difficult as the first few years are always tough - and those who can't hack it go back to PAYG.
 
The comment I'll make is simple. Brady I kind of see your comments similar to my old view when I worked in the bank - so I can kind of see both sides.

I did my time at CBA running as one of the top lenders nationally a few years ago. Won rewarding success, qantas points all this kind of stuff.

Years ago the bank and I made the decision to part ways but still keep civil.

Probably the key message I have is this -when you're at the bank, you'll pull your $100k + a year writing loans, get your shares, have a bit of fun but the day that you walk out that door your entire client base isnt yours. The bank owns it, not you (and they let you know it - or at least my old boss did well and truly). And your income stops and you need to get it moving again, find a new job, not contact your old customers to get them to the new bank etc.

The broker side on the other hand - overall the bank cant really tell you to stay away from your client, generally speaking you control their loan which is why the trail component is there. So the broker side you "own" the asset as well as the bank (which is why banks will lend money to you to buy broker books) and with the recurring income you've started to make that Kiyosakian shift from Employee to Business owner (E to B)
You also can write more stuff off on your tax than what you could as an employee.

So people can rant on about service and what you can and cant do - everyone has their wins and losses in the game. War stories are great to tell.

But when the axe falls on you on retirement day - or more likely the day that your employer decides you're no longer needed - every person on this forum knows its about having the assets in the bank to cover you to the end. BTW that date is usually around 57. I'd suggest that might be actually lower.

Now me, If I continued to work for the bank I dont know if I'd achieve this. I wasnt exactly hanging out with Ralph Norris a lot although I did help him get a few million bonus.

But on the broker side, I think I have a bit more control - a bit more skin in the game.

So can you achieve great things on both sides - yes - no argument.

I think theres also an end game here that needs to be looked at.

Thank you for sharing :)

Was meant to go away with 'ultimate success' had a hockey grand final to play in that weekend so couldn't go... to make it worse we lost the game :(

My accountant still does pretty well with my expenses for work, vehicle, phone, laptop etc... obviously all things that are actually used for work, not quiet as much as a broker though im sure :)

You're spot on with keeping the end game in focus. With money in bank and with my employer.
I have been fortunate for the 5+ years that I have been in the bank I've had excellent managers (except one who went to the pub everyday at 1 and didn't return, he was a old school manager... he didn't last long). I'm in the process of enrolling to complete my DFP and will continue other study (which I'm hoping my employer will sponsor)
Whilst I continue to have good managers I will continue to work for my employer, but I'm far from oblivious to what does happen even with good managers, my Father spent 20+years with Westpac before a 'restructure' and 7years with CBA before a 'restructure' now starting with ANZ.

I will continue to work with my current employer whilst they are paying me fairly to do so and whilst I'm able to provide the required service to my clients. When I'm unable to complete either of these I will be gone quick smart :) and hopefully without too big of a lull in-between.

Personally I don't see myself working past 50 years old too heavily, at this stage aim to accumlate property for 15 years til age 40 then reduce debt for 10years then look at options.

Things change but end game is always kept in the back of mind.
 
Well that is true Spectre but most people who transition from banker to broker find it difficult as the first few years are always tough - and those who can't hack it go back to PAYG.

I've seen a bit of a mix

- Teller to banker (in short period), then left to become broker... spent 1 year as broker only to quit to study nursing

- Broker to banker back to broker

- Broker to banker then to draftsman

- Business banker to broker

- Mobile banker to broker


Out of the 5 the 2 that have done well had an extended period in banking first, both were decent bankers first. The other 3 were useless bankers who made even worse brokers.
 
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