Thanks HAC, nice summary. I always have enjoyed your fair and...

Thanks HAC, nice summary. I always have enjoyed your fair and balanced opinion, even though you cop flak at times.

Agree with nearly everything here, except maybe cost of couple local paraplanners slightly higher factoring in Super and additional costs. Definite cost savings here, as long as the quality is up to scratch, and not requiring local staff to "fix" the plans when they come back.

So can IAM make money?

Was running some different numbers earlier, but I'll factor yours in, as very similar to mine.

You estimated revenue per IAM PP at between $1,350 and $1,650 revenue per week, based on 2-2.5 x $660. I estimated at $1,500 - so directly in the middle. Very similar.

Margin wise, what does a local OS earn per week, from memory about $150 per week?

Here's where it starts to add up. Assuming demand is where we have been told it is - and staff are working (or soon will be) at full capacity.

We have just hired 50 staff, and I believe off the top of my head we already had 50 (please correct me if I'm wrong). 100 staff generating $1,500 per week = Revenue of $150,000 per week, or $7.8M per annum, at great margin.

Now that is only a bit over 200 SoA per week, not a lot considering there are 25,000 Financial Planners in operation.

So they don't even need to grab a large chunk of the market, maybe the repetitive, simpler ones, and leave the complex strategies with modelling to the inhouse PP.

IMO