Leaving Jones

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Hank Newbie's picture
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Joined: 2009-02-12

Borker Boy wrote:chief123 wrote:Edward Jones's strategy is to be precisely the opposite. In particular, the company: Does not have any in-house mutual funds or any other proprietary products. Except the pay to be listed on the preferred funds. Does not sell options or commodities, So they lack investment options?? does not pay its brokers for trades of over-the-counter stocks with prices below $4. But will recommend WORLDCOM, ENRON and others as part of their buy and hold philosophy Has no pressure to meet earnings expectations since it's a private partnership, not a public company. Tell that to the FAs who are suppose to be getting profitability bonuses Encourages its clients to have realistic expectations, focus on the long-run and ignore the short-term vagaries of the market. Or last ten years if your American Funds were waited to heavily in international and only did well because of the decreasing dollar. As a result, its clients hold their mutual funds an average of 20 years, far more than the 3-5 year average for other brokerages. Until the rep has a bad month and needs to “diversify” into another preferred fund company
 
 
Several folks in my region are making their months right now by moving funds into VAs.
 
To end this thread, I like EDJ's philosophy.  It was what was taught in college (finance degree).  I liked Motley Fool as an individual investor (for the same reasons), but alas, in the last 2 market crashes I let my 2 lagging 401K's languish in Index Funds.  Not enough time with a busy schedule/home life to put much thought into it.  BTW, what is the problem with American Funds on this website???

voltmoie's picture
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Joined: 2008-11-05

American Funds are the greatest!  Just give them a chance.I do think they have nice marketing pieces but their funds appear to be more asset allocation funds to me.  Not very style pure.  Plus, they make you wait a year on 12b1 fees ... screw thaFranklin seems to be good and well respected in my region.  Plus their IRAs are only 15.00 per year. 

Borker Boy's picture
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Joined: 2006-12-09

I don't believe there's anything necessarily wrong American, but during tough times like these, those 12b1's can't hold a candle to a fresh new commission from a Hartford VA.

Crooks.

noggin's picture
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Joined: 2004-11-30

Borker Boy wrote:
I don't believe there's anything necessarily wrong American, but during tough times like these, those 12b1's can't hold a candle to a fresh new commission from a Hartford VA.

Crooks.
Dude, in all seriousness let it go.
Make a change and let go of this baggage. Not everything that Jones does is bad and conversely not everything they do is good. Find a place that you can believe in and go for it. This self loathing and bitterness is a sickness that will take down your soul. You are better than that.

Borker Boy's picture
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Joined: 2006-12-09

I appreciate your candor.

Spaceman Spiff's picture
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Joined: 2006-08-08

Borker Boy wrote:
I don't believe there's anything necessarily wrong American, but during tough times like these, those 12b1's can't hold a candle to a fresh new commission from a Hartford VA.

Crooks.
 
I've been one of those guys who moved assets from American, et al to a Hartford VA or something like it.  There were a few months in there that I moved a couple big chunks and it did make my month.  The only ones I've ever moved have been for the folks who are looking for income in retirement.  Guaranteed income.  If  you don't understand the difference between a 4-5% systematic withdrawal from American Funds and a guaranteed 5% or more withdrawal from Hartford or the others, then buddy, you're in the wrong business.  Those folks are some of my happiest clients.  I get to sit across the desk from them and grin when I tell them that their income stream hasn't been affected by this downturn in the least.  I look like a genius.  And if you didn't at least offer that scenario to your clients, then you are a fool.  
 
I think of it the same way I do LTC.  If I don't offer it to them and let them make a decision on whether or not they want it, then it's my fault when their kids decide to take me to arbitration for not offering it to them. 
 

Squash1's picture
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Joined: 2008-11-19

Borker Boy wrote: chief123 wrote:Edward Jones's strategy is to be precisely the opposite. In particular, the company: Does not have any in-house mutual funds or any other proprietary products. Except the pay to be listed on the preferred funds. Does not sell options or commodities, So they lack investment options?? does not pay its brokers for trades of over-the-counter stocks with prices below $4. But will recommend WORLDCOM, ENRON and others as part of their buy and hold philosophy Has no pressure to meet earnings expectations since it's a private partnership, not a public company. Tell that to the FAs who are suppose to be getting profitability bonuses Encourages its clients to have realistic expectations, focus on the long-run and ignore the short-term vagaries of the market. Or last ten years if your American Funds were waited to heavily in international and only did well because of the decreasing dollar. As a result, its clients hold their mutual funds an average of 20 years, far more than the 3-5 year average for other brokerages. Until the rep has a bad month and needs to “diversify” into another preferred fund company
 
 
Several folks in my region are making their months right now by moving funds into VAs.

That is just dumb. That is like buying long term fixed annuities for people because they want "safety"... problem is when inflation hits or the market rebounds that 3% guaranteed is going to look terrible and feel terrible on their spending habits.

VAs aren't bad, but putting people in them because of a terrible market crash and so you don't go on goals this month is borderline criminal.

troll's picture
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Joined: 2004-11-29

Spaceman Spiff wrote:Borker Boy wrote:
I don't believe there's anything necessarily wrong American, but during tough times like these, those 12b1's can't hold a candle to a fresh new commission from a Hartford VA.

Crooks.
 
I've been one of those guys who moved assets from American, et al to a Hartford VA or something like it.  There were a few months in there that I moved a couple big chunks and it did make my month.  The only ones I've ever moved have been for the folks who are looking for income in retirement.  Guaranteed income.  If  you don't understand the difference between a 4-5% systematic withdrawal from American Funds and a guaranteed 5% or more withdrawal from Hartford or the others, then buddy, you're in the wrong business.  Those folks are some of my happiest clients.  I get to sit across the desk from them and grin when I tell them that their income stream hasn't been affected by this downturn in the least.  I look like a genius.  And if you didn't at least offer that scenario to your clients, then you are a fool.  
 
I think of it the same way I do LTC.  If I don't offer it to them and let them make a decision on whether or not they want it, then it's my fault when their kids decide to take me to arbitration for not offering it to them. 
  What would you look like if the economy didn't have a downturn? I would hope the same. If that was the best option for them at that time. Looking back, I would agree.

3rdyrp2's picture
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Joined: 2008-11-13

iceco1d wrote:Spiff,
 
Do you really get concerned that you'll be taken to arbitration, and/or found liable, if you fail to offer a particular insurance policy to your clients? 
 
I could be wrong, but that sounds over the top.

 
Its what they tell him in training to help him sell it.  The script goes like this:
 
Client: "I'm not sure I need this right now.  I don't think I'll need LTC at any point."
Advisor: "Thats fine.  Some people find it hard to grasp the fact that they aren't Superman.  This type of insurance isn't something many people see value in until they actually NEED it.  What I'll have to do then is have you sign this release verifying that I provided you your options and if you need this at some point, I can't be held liable."
Client: "Wait, I need to sign this?  Is this typical?"
Advisor: "No, its not typical.  Most clients that have a need for LTC understand the risk and decide to take action on this.  I'd say about 1 out of every 10 clients I go over this with actually decide not to purchase the protection."
Client: "Man, if its something that serious, I guess I probably need it.  Where do I sign?"
 
Never, ever, ever will it actually go this way.  But the kool-aid drinkers take what their trainers say and the rockstar advisors who speak at their conferences as 24 karat gold.  Hey, if it works great.  If not, then take that script and make it your own and add your own lines.

Spaceman Spiff's picture
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Joined: 2006-08-08

Am I particularly worried that a client who may not have been offered LTC or a VA with an income rider on it will take me to arbitration?  Not really.  But this business at some level is about protecting your clients AND yourself.  There are enough arbitration horror stories floating around out there to make me keep copious notes and make sure that I offer certain items.  I'm not as much concerned about my clients suing me as I am their kids.  I've dealt with enough of those folks sitting across the table from me to know that common sense gets thrown out the window when it comes to inheriting money.  And if they think you've screwed up in your duties, some of them will want to get their inheritance from your pocket. 
 
Now, if you're not insurance licensed, then you're off the hook for LTC or LI arbitration.  You can't get sued for not offering something you can't sell anyway.  3rdyrp2 is correct that we've been told to make notes when we offer LTCi to clients and they deny.  We've even got a new program that allows us to check off things in relation to our clients accounts when we offer and they deny.  LTC is one of them.  Jones has always been a little paranoid about compliance/arbitration so I guess it's just in my blood.   

Incredible Hulk's picture
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Joined: 2006-03-24

3rdyrp2 wrote: Client: "I'm not sure I need this right now.  I don't think I'll need LTC at any point."
Advisor: "Thats fine.  Some people find it hard to grasp the fact that they aren't Superman.  This type of insurance isn't something many people see value in until they actually NEED it.  What I'll have to do then is have you sign this release verifying that I provided you your options and if you need this at some point, I can't be held liable."
Client: "Wait, I need to sign this?  Is this typical?"
Advisor: "No, its not typical.  Most clients that have a need for LTC understand the risk and decide to take action on this.  I'd say about 1 out of every 10 clients I go over this with actually decide not to purchase the protection."
Client: "Man, if its something that serious, I guess I probably need it.  Where do I sign?"

You don't mind if I use this?

cyaEDJ's picture
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Joined: 2009-06-17

Just to catch everyone up.  I left Jones.  Best decision I ever made.  CYAJONES!

ACometAppears's picture
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Joined: 2009-11-18

which firm offered you the position?

Still@jones's picture
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Joined: 2009-03-22

cyaEDJ wrote:Just to catch everyone up.  I left Jones.  Best decision I ever made.  CYAJONES!
Awesome, congratulations! Isn't it nice to be in an office.

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