[quote=B24]

Spiff, I have to sort of agree with Lock on this to a degree.  Not the 7000 new reps and "not needing that level of oversight" thing (although I think what he meant to say was different than how it came out ).  But the investment option thing is not untrue.  You are right Spiff, that we do have access to virtually all funds (non no-load), ETF's and stocks.  And we have acess to plenty of no-loads, etc. through Advisory solutions.  We also have access to SMA managers.  So in theory we have access to just as many investment options as most firms.  But at closer inspection, all is not as it seems.

1. Being forced into A shares (unless you do Advisory Fee business) , eliminates ones ability to use "best in class" investment options.  Obviously, this is a problem at any firm if you choose ot use A shares.  However, above $100,000 most firms would use C shares in order to take this approach.  We are really not able to do that.

2. "Preferred Fund Families", coupled with the firm's "hire new" approach, and research support of the Preferred Fund families generally forces advisors into Preferred Fund families from Day 1.  To me, this creates an overt conflict of interest (above the natural conflicts we all have at any firm, under any fee/commission arrangement).  Yes, we are welcomed to use most fund families, but when you are brand new and know nothing else, you are going to use them.  And due to natural inertia, you will tend to stick with them, at least for a period of years. 

3. Advisory Solutions: Since you get impacted considerably on your production goals for putting new money into Advisory versus commissioned products, newer FA's (like, under 5 years) simply can't afford (from an income OR production perspective) to put new money into ffee-based investments.  Hence, another MAJOR conflict of interest.  Putting production requirements ahead of investment recommendations

4. Advisory Solutions: Yes, there are a couple hundred funds and ETF's we can use.  But they essentially dictate the asset allocation structure and force us into investing EXACTLY how they want us to.  No ability to use World Allocation Funds (First Eagle, Blackrock, Ivy Asset Strat, MFS Global TR, etc.) or employ any investment strategy other than strict style-box buy-and-hold investing.  In fact, getting a client out of harms way during a crash would require them to sign a new IPS.  And even then, the IPS is created through a series of questions that cannot be adjusted.  For example, my REALLY conservative 50 year-old client cannot be any more conservative than Balanced Growth & Income (50/50) if I answer the questions honestly, and answer them the MOST conservative way possible.  In order to be LESS conservative than 50/50, I would need to lie on the risk assesment.  But not lie about their risk tolerance, I would need to lie about their stage in life (i.e. retired, high earnings years, etc.).  I simply won't do that.  So JONES forces me into being MORE aggressive with clients than I want to be.

5. SMA's: The minimum account size is so high, and the manager options so few that it is not a very realistic option for most clients.

Listen, I defend Jones on many things.  But I really feel squeezed on my investment strategy in many ways.  I know they are coming out with a UMA platform next eyar, but we all know what it will encompass....it will be Jones Advisory Funds, coupled with either stocks from the Jones model portfolio only (in their chosen proportions), or SMA managers, as well as bond ladders that Jones creates.  GREAT tool for advisors that are not interested in managing the investment side.  No doubt.  But it will still be very rigid in construction.

[/quote]

Great post.  The part about the firm not allowing you to put your client in a more conservative mix during times of market distress is just reckless in my opinion.  I can see stopping FA's from putting people with conservative I/O's on their acct into an aggressive portfolio, but to stop the FA from protecting the client???!!!  Crazy stuff......

This topic has experienced a little drift

[quote=abrandnewcar]

(If Dairy Queen can't see the opportunity in my town do we really need another Edward Jones office?).

 [/quote]

Not really since the reasons cited are great reasons to leave Jones!!  Mr./Mrs. client I am leaving Jones because they don't give me the tools necessary to properly service your investments.

To abrandnewcar (the orginal poster of this thread)-

Good luck on your transition to independence. What you learned at Jones lays the foundation for a great opportunity for a long and profitable career. It takes hard work and cajones.

Remember others have done it, and if you are like the vast majority, you will look back and be thankful for your time at Jones, and more grateful to be on your own.

[quote=Spaceman Spiff]

You try to blast me for not posting anything but 3000 propaganda posts, but yet when I did a search for BigCheese, 95% of the posts you typed were in something having to do with Jones.  [/quote]

Cheese Doodle, he sort of has you pegged there.

I worked there for 9 years. Would you like me to comment on a firm that I didn't work at? I am not as prophetic as you and Spiff. I am a 16 industry veteran. I was independent prior for my first three years and at Jones for 9 and indy the last 4. I know of what I am speaking. I have always tried to give my perspective objuectively.

I'll say it once again. I think Jones is a great place to learn the business. I liked the people I worked with. After a few years into my Jones career I didn't trust the management at any level. I left in the green. I was a Seg 4 guy, Seg 5 was just being implemented when I left (and I wouldn't have qualified at the time).

Spiff can bait others. 

Done. 

Easy Cheeseburger, point was, for someone gone from Jones for so long, you have an awful lot to say about them.  I recently went to my 20th college reunion.  You sound like my buddies that still talk about stuff that happened at frat parties, when most of us are talking about work, kids, etc.  In other words, we all moved on.

Hell, B24, the frat party stories get better and better with time. At your 40th, you will enjoy them even more.

[quote=B24]

Easy Cheeseburger, point was, for someone gone from Jones for so long, you have an awful lot to say about them.  I recently went to my 20th college reunion.  You sound like my buddies that still talk about stuff that happened at frat parties, when most of us are talking about work, kids, etc.  In other words, we all moved on.

[/quote]

Why would you want to talk about your wife and kids and work instead of the best times of your life?

[quote=LockEDJ]

Space: frankly does it make it sound so much different at 3000 or 4000 than it does at 7000? Edward Jones needs to protect itself from it's advisors, from the fact that each newbie gets an office before he knows enough and so every one of the remainder are restricted.

And really??? You have someone "smarter than yourself" looking over your shoulder? Who is that, Space? Because the people looking over my shoulder at Jones was Field Supervision ( who literally is my branch supervisor), and you'll never hear me admit he was even smarter than sperm. No RL, AL, or StL rep ever looked at my book of business and I bet my experience is hardly the exception.

So I'm good with what I said. Thanks.

[/quote]

Sorry, Lock, I was too busy debating with foot to follow up with this one. 

I wasn't talking about your FSD, RL, or AL when I was referencing those people smarter than me.  I was talking about folks like the IPC, Product Review, Mutual Fund Research, equity analysts, bond analysts, etc.  The only thing FSD does is look at the trades you place for suitability for that particular client.  They don't look at the quality of the investments you use.  But, with folks like the IPC setting portfolio percentages and Product Review giving the yea or nay on different investments, there was someone smarter than you looking over your shoulder.  Not to mention the analysts with CFA tacked behind their names that have the ability to dig a whole lot deeper into a stock or fund or a bond than we ever will. 

[quote=gethardgetraw]

[quote=B24]

Easy Cheeseburger, point was, for someone gone from Jones for so long, you have an awful lot to say about them.  I recently went to my 20th college reunion.  You sound like my buddies that still talk about stuff that happened at frat parties, when most of us are talking about work, kids, etc.  In other words, we all moved on.

[/quote]

Why would you want to talk about your wife and kids and work instead of the best times of your life?

[/quote]

[quote=gethardgetraw]

[quote=B24]

Easy Cheeseburger, point was, for someone gone from Jones for so long, you have an awful lot to say about them.  I recently went to my 20th college reunion.  You sound like my buddies that still talk about stuff that happened at frat parties, when most of us are talking about work, kids, etc.  In other words, we all moved on.

[/quote]

Why would you want to talk about your wife and kids and work instead of the best times of your life?

[/quote]

You all make valid points.

I left Edward Jones because neither you or I fit their business model Mr. Client.  Edward Jones is a great company, for certain people.  The clients I work with need more.  I can´t wait to sit down with you and discuss the new possibilities. 

About those with a CFA charter.  The issue is not whether they are smart (they are), it´s whether their independence is encouraged.  Analysts should be indpendent in their thinking.  Jones has MANY requirements and protocols on how to conduct investment analysis, and those methods must be followed.  Jones analysts are more handcuffed than the advisors.

It looks like the conversation between Lock and Spiff was misinterpreted.  Lock, in his letter to his clients was speaking about FSDs, but Spiff addressed the research team.  Lock likely has a research team as an Indy, so he probably gets the same or better information than Jones reps do.

I still would not say nobody is looking over my shoulder though.  That sounds really bad.

Back to the original question...

Text of letter I sent.  Typed, not handwritten like Jones would have you do.

Hello!  I hope all is well.

I just wanted to take a minute of your time to share some news with you.  As of today, I am no longer with Edward Jones.

While Edward Jones is a good company, I found that my operating philosophy is different than most larger brokerage firms. My philosophy and practice is to objectively serve my clients, mindful always of their interests, first and foremost.

While it is always more difficult to start a new venture, I have chosen this path because I strongly believe it is in the best interest of the people I serve. You have entrusted me with your savings, and I take that very personally and seriously. Thank you for honoring me with your trust.

To that end, I will be starting my own company and accepting fiduciary responsibility for the decisions we make together so that I may continue to help individuals and families with their financial needs while ensuring their interests come first.

I greatly value our relationship and I would be honored to continue serving you and your family. If you are interested in continuing our working partnership, please simply call or email me at your convenience.

 
I am very excited about this decision and hope you are too. Thank you again for allowing me to protect and grow your financial assets.

Followed up with a phone call or a stop out.

So, you went RIA?  The "accepting fiduciary responsibility" comment is what I read that made me think that. 

I don't think there's any need to say any more than you have.  No need to bash your previous firm. no need to go into self-aggrandizing comments about how much of a big boy you are now.  Just plain and simple, I needed to make a change that I believe is better for you and for me. 

Good luck with it. 

Try this;

Mr. Client, I left Edward Jones because they are to investment advice what H&R block is to tax advice.

How about this:  Mr. Prospect, I'd like you to sign these ACAT papers today because your current FA, spamfilter, is a complete tool. 

[quote=Spaceman Spiff]

How about this:  Mr. Prospect, I'd like you to sign these ACAT papers today because your current FA, spamfilter, is a complete tool. 

[/quote]

I am a voracious reader and in one of my recent reads on relationships I read the following.  Although we are not in a relationship I still think the information is applicable. 

If you find yourself inclined to name call, ask yourself:

• “What is my anger about?” “What is the perceived threat to my self-esteem?” “How can I regain control without needing to diminish my partner’s worth?”

• “Has my previous name calling behavior served or hurt my relationship with my partner?”

• “Would I like to be spoken to in the style with which I speak to my partner?” “Why not?”

• “How can I become more accepting of my own failings, so that I would not need to highlight my partner’s to feel better about myself?”

I'm not angry with you.  I was simply making a joke at your expense.  Just like you were with the EDJ/H&R Block commentary. 

What is it about EDJ that makes you think that they are on par with H&R Block?  It's boring around here lately, so feel free to give us a list of things to banter back and forth.

[quote=Spaceman Spiff]

What is it about EDJ that makes you think that they are on par with H&R Block?  It's boring around here lately, so feel free to give us a list of things to banter back and forth.

[/quote]

Here is the list of reasons:

I work for Jones