MS vs EDJ - ASAP Please!

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socrates1usa's picture
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Joined: 2006-11-21

Short and sweet. I have two offers and need a little advice.

First a little background. I am series 7 licensed. I have lived in a mid size east coast town for about three years (small natural market). Age 30

I have received an offer from MS and one from EDJ. MS seems to have a great team in place, but I find their target market a bit tough. Do not get paid for accounts under $75K.

EDJ has a decent business model and ok training. I like that you get paid for smaller accounts (appealing for someone starting out)

For someone who has never been an FA before what are the odds. What is the real difference (limited sarcasm please) between making it at EDJ vs MS. I understand the challenges all new financial advisors face and realize both are a big uphill battle.

Any wise words? Thanks!!!

troll's picture
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Joined: 2004-11-29

socrates1usa wrote: MS seems to have a great team in place, but I find their target market a bit tough. Do not get paid for accounts under $75K. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Actually that's households under $75k, not accounts, and the rules about how accounts can be “householded” are pretty loose. Secondly, you're paid a reduced amount on those and nothing on households under $50k unless they're in a couple of types of asset based account types.
socrates1usa wrote:For someone who has never been an FA before what are the odds.
Slim in either setting. If it wasn't, they'd pay you less....
socrates1usa wrote:What is the real difference (limited sarcasm please) between making it at EDJ vs MS.
MS, like ML, SB, etc., is a full service, national brokerage firm. You'd have access to a wide array of tools, services, products and research. You’d be expected to work with clients with $100k and above in investable assets.
The environment you’d face in your particular office can vary greatly depending on the local level management. You might find the other FAs in the office to be very helpful in getting your business rolling, or you might find they have little time they’re willing to share with you.
 

socrates1usa's picture
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Joined: 2006-11-21

Thank you for your response! I appreciate the information.

troll's picture
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Joined: 2004-11-29

socrates1usa wrote:Short and sweet. I have two offers and need a little advice.

First a little background. I am series 7 licensed. I have lived in a mid size east coast town for about three years (small natural market). Age 30

I have received an offer from MS and one from EDJ. MS seems to have a great team in place, but I find their target market a bit tough. Do not get paid for accounts under $75K.

EDJ has a decent business model and ok training. I like that you get paid for smaller accounts (appealing for someone starting out)

For someone who has never been an FA before what are the odds. What is the real difference (limited sarcasm please) between making it at EDJ vs MS. I understand the challenges all new financial advisors face and realize both are a big uphill battle.

Any wise words? Thanks!!!For all the stones I may like to cast at the wirehouses, it's best that you learn the economics of this business right from the start, and that includes learning to NOT spend time pursuing/servicing small accounts.I understand the desire when you're starting out to take 'anything you can get'.  And hey-if a small one falls in your lap, great, but put it in something efficient and low maintenance and good for them(like a solid asset allocation fund) and move on to search for greener pastures.So-to a certain extent, Morgan's doing  you a favor by tilting your comp in that direction.

planrcoach's picture
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Joined: 2006-12-13

Two very different choices.
Consider taking one step back and look at the big picture, what are you trying to accomplish?
Put these is order, what is most important to you?
Making money
Learning the business
Helping clients
Being an employee vs. having your own business
Being analytical with clients vs. persuading people to take action
Making more money now vs. making more money over the long term
Competing against yourself (golf) vs. competing against others (soccer)
Getting your CFP vs. being (more) product oriented
etc.
After you have the list, figure out which firm supports what is important to you. Obviously, they are both good companies - they are still in business.
Take a yellow pad, draw a line down the the middle, one page for each company, do the "Ben Franklin close" on each, listing the pluses on one side and the negatives on the other. Then go develop some different options. Don't have time? This is a big decision. Good luck!
 

Ilovedogs's picture
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Joined: 2005-11-12

As someone who was a very successful IR with EJ and now at ML, choose MS.  Yes, the goals are higher at MS, but you will have something to show for it each year versus being at zero each month (and month after month) with a few trails that EJ lets you have.
 
 

troll's picture
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Joined: 2004-11-29

Ilovedogs wrote:As someone who was a very successful IR with EJ and now at ML, choose MS.  Yes, the goals are higher at MS, but you will have something to show for it each year versus being at zero each month (and month after month) with a few trails that EJ lets you have.

  Hold on now...you were "a very successful IR with EJ" and now you're a sales assistant?  Wow...what does that say about Merrill versus EdJ.

bspears's picture
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Joined: 2006-11-08

Don't get fooled by the bull EDJ's puts out.  The only real way you will make it is if you have a chance to take an office with at least 20mil in  assets.  If you look at the region you will be assigned to ...interview some of the 5-15 year brokers.  The majority took over a substantial amount of assets.  The model works like this...a new new comes in and DK's his or her ass off.  After 4-5 years..they've exhausted their savings, brought in 20-30million and can't seem to make the big bucks EDJ expects.  They get burnt out...they  leave...indy, wirehouse, bank whatever....take some assets with them.  EDJ's brings in a local or someone from the Pass program...15 million in the office...they work their but off for another 4-5 years...up to 35 million...they get burnt out...they leave...next person takes over and gets it to the point where they can survive...Happens all over the place...even some of the 15-20 year vets with 100 million took over the 40 million asset office..very, and I mean very rarely will a new new make a career out of Jones. 

anonymouse55's picture
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Joined: 2006-12-14

bspears wrote:Don't get fooled by the bull EDJ's puts out.  The only real way you will make it is if you have a chance to take an office with at least 20mil in  assets.  If you look at the region you will be assigned to ...interview some of the 5-15 year brokers.  The majority took over a substantial amount of assets.  The model works like this...a new new comes in and DK's his or her ass off.  After 4-5 years..they've exhausted their savings, brought in 20-30million and can't seem to make the big bucks EDJ expects.  They get burnt out...they  leave...indy, wirehouse, bank whatever....take some assets with them.  EDJ's brings in a local or someone from the Pass program...15 million in the office...they work their but off for another 4-5 years...up to 35 million...they get burnt out...they leave...next person takes over and gets it to the point where they can survive...Happens all over the place...even some of the 15-20 year vets with 100 million took over the 40 million asset office..very, and I mean very rarely will a new new make a career out of Jones. 
 
Just because you couldnt hack it at EDj dont claim that there is a very rare chance to be a successful new/new. Your claims are flat out ridiculous. You just lacked the drive and work ethic to be successful. But hey there are winners and losers...At any rate you are not alone this forum is filled with ex EDJ IRS that coudnt make it either.

Ilovedogs's picture
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joedabrkr wrote: Ilovedogs wrote:
As someone who was a very successful IR with EJ and now at ML, choose MS.  Yes, the goals are higher at MS, but you will have something to show for it each year versus being at zero each month (and month after month) with a few trails that EJ lets you have.
 
 
Hold on now...you were "a very successful IR with EJ" and now you're a sales assistant?  Wow...what does that say about Merrill versus EdJ.

 
Its says that I earn a great salary, great benefits, work with a great team and still have a life which I didn't have at EJ.  Some people choose what is best for them.

Ilovedogs's picture
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anonymouse55 wrote:
bspears wrote:Don't get fooled by the bull EDJ's puts out.  The only real way you will make it is if you have a chance to take an office with at least 20mil in  assets.  If you look at the region you will be assigned to ...interview some of the 5-15 year brokers.  The majority took over a substantial amount of assets.  The model works like this...a new new comes in and DK's his or her ass off.  After 4-5 years..they've exhausted their savings, brought in 20-30million and can't seem to make the big bucks EDJ expects.  They get burnt out...they  leave...indy, wirehouse, bank whatever....take some assets with them.  EDJ's brings in a local or someone from the Pass program...15 million in the office...they work their but off for another 4-5 years...up to 35 million...they get burnt out...they leave...next person takes over and gets it to the point where they can survive...Happens all over the place...even some of the 15-20 year vets with 100 million took over the 40 million asset office..very, and I mean very rarely will a new new make a career out of Jones. 
 
Just because you couldnt hack it at EDj dont claim that there is a very rare chance to be a successful new/new. Your claims are flat out ridiculous. You just lacked the drive and work ethic to be successful. But hey there are winners and losers...At any rate you are not alone this forum is filled with ex EDJ IRS that coudnt make it either.

 
Sorry, anonymouse55, but bspears is ABSOLUTELY RIGHT!

iconsult100's picture
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Joined: 2005-09-07

anonymouse55 wrote:
Just because you couldnt hack it at EDj dont claim that there is a very rare chance to be a successful new/new. Your claims are flat out ridiculous. You just lacked the drive and work ethic to be successful. But hey there are winners and losers...At any rate you are not alone this forum is filled with ex EDJ IRS that coudnt make it either.

Do you actually believe the BS you post?  I'll say this... Jones is great if you want to peddle products to a bunch of small investors.  If you want to work with serious money and complex issues that wealthy people have, then go with MS.
Either way, you must work extremely hard because the odds are not in your favor.  Good Luck.

socrates1usa's picture
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Joined: 2006-11-21

Thanks for all of the input and advice. Great comments.

Registered Rep's picture
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Joined: 2006-07-18

This first year fish washes out of our training program 6 months ago after putting up pathetic numbers (he brought in $1 million after 1 year).  He walks into EDJ & he lands in an office with $20 mill in assests. Jones parades him around like he's a god-send and we all just laugh & shake our heads because we all know that this guy couldn't fight his way out of a wet paperbag.  True story.

now_indy's picture
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Joined: 2006-07-28

Ilovedogs wrote:anonymouse55 wrote:
bspears wrote:Don't get fooled by the bull EDJ's puts out.  The only real way you will make it is if you have a chance to take an office with at least 20mil in  assets.  If you look at the region you will be assigned to ...interview some of the 5-15 year brokers.  The majority took over a substantial amount of assets.  The model works like this...a new new comes in and DK's his or her ass off.  After 4-5 years..they've exhausted their savings, brought in 20-30million and can't seem to make the big bucks EDJ expects.  They get burnt out...they  leave...indy, wirehouse, bank whatever....take some assets with them.  EDJ's brings in a local or someone from the Pass program...15 million in the office...they work their but off for another 4-5 years...up to 35 million...they get burnt out...they leave...next person takes over and gets it to the point where they can survive...Happens all over the place...even some of the 15-20 year vets with 100 million took over the 40 million asset office..very, and I mean very rarely will a new new make a career out of Jones. 
 
Just because you couldnt hack it at EDj dont claim that there is a very rare chance to be a successful new/new. Your claims are flat out ridiculous. You just lacked the drive and work ethic to be successful. But hey there are winners and losers...At any rate you are not alone this forum is filled with ex EDJ IRS that coudnt make it either.

 
Sorry, anonymouse55, but bspears is ABSOLUTELY RIGHT!

I'll second that. The vast majority of truly successful new/new IRs I have seen are in a small rural town, and are generally the only broker in town. The success rate of a new/new in a metropolitan area is VERY rare.

bspears's picture
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Joined: 2006-11-08

Glad to get home for lunch and let ann-55 know I'm still with EDJ's...so I haven't failed yet. I just don't drink the kool aid.  But you are on crack if you don't think this happens.  I will grant you the fact there certainly are some new/new's who will make it and be very successful.  They are the exception not the rule.  The thread starter just needs to ask around...maybe in his region all the brokers are new new and the EDJ's system is working there...I highly doubt it.  Lets face it..it will be difficult anywhere you start, if your starting from scratch.  The competition is extreme in this industry..banks, indy's wirehouses, insurance companies...online...you name it...there're several different channels an investor can work through.  I just hate seeing new people join EDJ with out realizing they will have to work hard and I mean bust your but for 7-10 years in the EDJ system before you really feel the effort has paid off...not 5 years..not 3...but 7-10...and some of the 10 year guys will tell you their still out busting but to generate revenue.  If you look at my regions trailing 4 averages...many who have been out 7-15 years are only averaging maybe 15-17 gross...that's gross..you will get to keep 32% of that after expenses...so not a real glamorous money making postition.

The Truth's picture
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Joined: 2004-12-01

Jones has no presence on the east coast. On that alone I would be hesitant
to pick them. No true national advertising to help you. So if you are going
to work your arse off, then pick the firm where you have the best tools to
help your clients and thus increase your business. Morgan Stanley is the
right choice.

Ilovedogs's picture
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Joined: 2005-11-12

bspears wrote:Glad to get home for lunch and let ann-55 know I'm still with EDJ's...so I haven't failed yet. I just don't drink the kool aid.  But you are on crack if you don't think this happens.  I will grant you the fact there certainly are some new/new's who will make it and be very successful.  They are the exception not the rule.  The thread starter just needs to ask around...maybe in his region all the brokers are new new and the EDJ's system is working there...I highly doubt it.  Lets face it..it will be difficult anywhere you start, if your starting from scratch.  The competition is extreme in this industry..banks, indy's wirehouses, insurance companies...online...you name it...there're several different channels an investor can work through.  I just hate seeing new people join EDJ with out realizing they will have to work hard and I mean bust your but for 7-10 years in the EDJ system before you really feel the effort has paid off...not 5 years..not 3...but 7-10...and some of the 10 year guys will tell you their still out busting but to generate revenue.  If you look at my regions trailing 4 averages...many who have been out 7-15 years are only averaging maybe 15-17 gross...that's gross..you will get to keep 32% of that after expenses...so not a real glamorous money making postition.
 This is exactly right.  Jones will spout off that "oh, 3-5 years and you will be coasting."  A bunch of b----.  All the IR's I talked to later said 7-10.  Do you want to be busting your behind for 10 years???

troll's picture
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Joined: 2004-11-29

You might want to consider who you want to work with and the demographics of your town. MS isn't going to let you have a multitude of small households (under $75k), you'll need bigger sized clients. If you're uncomfortable working with that sort of investor or if there aren't any around you, consider being the mom-and-pop guy at EJ.

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