Wire to EDJ

12 replies [Last post]
Anonymous's picture
Anonymous

Call me crazy, burin at a wire now and I'm above my hurdles (around $4mm after my 1st year), but my manager is a real a--hole. I really like the single branch setup at EDJ. I realize that every firm has a decent amount off BS that has to be dealt with, but being in my own office seems like it would make it much better. My 5 year plan is to get to $40mm and then go indie, so I'm really looking for a good stepping stone.

At my current wire I have 2 years of salary left, and that salary is about twice what EDJ pays. The only way I could afford to move to EDJ is if I were given an office with at least $15mm in place. Do they ever give a transferring rookie FA an office with some assets in place on day 1 of the transition?

Roxie's picture
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Joined: 2009-10-19

If you are earning 80k a year, start living on less and save.  Money saved = freedom.If the 4mm a yr is transactional then that continued plus the base at Jones would give you yr 1 of 88k.  Reach out to the local recruiter at Jones or RL and ask to be on the short list for when an office opens and then it is luck of the draw.  They might also know someone looking for a GK but then you would be in that office for a year or so before going out solo.Lastly some bad environments right now are a function of the market and changing times.  The BOM might not normally be a jerk. 

B24's picture
B24
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Joined: 2008-07-08

Actually, they LIKE to give open offices to transfer brokers with assets, because they know they will make it.  As Roxie said, there might be a Goodknight out there somewhre as well.  Timing will have a big bearing on things - finding an open office when you are ready to move.However, Jones does not consider $4mm to be a "producing transfer broker", they consider you "New" but licensed.  To get the "transfer" package, you need like minimum $20mm AUM, 150K T-12, and 3 years experience.  If you hit those numbers, the transfer broker package isn't too bad.  But you can still talk to them about an open office and/or a Goodknight Plan.

Conrad Dobler's picture
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Joined: 2009-01-11

OS2 wrote:Call me crazy, ..... With that plan calling you crazy is being too kind. There are plenty of reasons to leave, but branch management issues? What makes you think there aren't management issues everywhere? Why not gut it out where you are, don't interrupt your progress and jump to indy when you have the assets? If you find yourself sounding like a teenaged girl, “my boss sucks”, think twice before you act on it. 

chief123's picture
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Joined: 2008-10-28

OS2 wrote:Call me crazy, burin at a wire now and I'm above my hurdles (around $4mm after my 1st year), but my manager is a real a--hole. I really like the single branch setup at EDJ. I realize that every firm has a decent amount off BS that has to be dealt with, but being in my own office seems like it would make it much better. My 5 year plan is to get to $40mm and then go indie, so I'm really looking for a good stepping stone. At my current wire I have 2 years of salary left, and that salary is about twice what EDJ pays. The only way I could afford to move to EDJ is if I were given an office with at least $15mm in place. Do they ever give a transferring rookie FA an office with some assets in place on day 1 of the transition?You are crazy... If you're goal is to go indy, go to a bank, similar platform to indy(compared to jones, some actually use Pershing).You are going to deal with BS everywhere(RLs are full of themselves(not all but most) and don't forget Jones compliance and stupid meetings(well documented here)... I would say the advantage a wire has over Jones in YOUR case, is that it will push you to build bigger faster(Jones' goal are so simple you will slack off) thus achieving your goal of indy sooner..A couple issue with your post1.you have $4mm after 1 year, but want to average $8MM/year the next 4?2. You only brought in $4mm at a wire?3. you are looking to inherit assets, meaning I think you suck at prospecting(or don't prospect) so a bank would be a better fit..4. Concerned about salary, bank will give you more of that$4MM in first year at a wire?? Those are way below expectations(i think you are getting canned) 

SometimesNowhere's picture
Joined: 2008-12-22

The fact that you seem like a piker not withstanding...If you want to go Indy in 4 years, gut it out where you are. It will be better for you and your clients. I know a very good broker that made 2 moves in 3-4 years (large wire type firm-to-Jones-to-another large firm), and it tarnished his credibility a bit. He pulled it off, but only because he's the man, has a ton of experience, and has the total allegiance of his clients. If, as it seems, you are newbie or a piker you will have a much harder time making that transition with your assets. It will look like you are just chasing paychecks. It's bad for the clients, bad for your reputation, and not really all that great for you.  That is assuming you have a choice and that you are not being fired, which, as alluded to above, would not be a safe assumption.

Indyone's picture
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Joined: 2005-05-31

A few adds to some good commentary thus far...1.  I don't see $4mil aum after a year in a very turbulent market so terrible.  As many have acknowledged, it's sometimes tough to get people back in the market when they've been torched twice in ths past ten years.  I don't know what your market produces as far as prospects, but in my market, $4 mil from scratch in a year would be OK.  Not superstar performance, but not getting fired either.  Of course, I'll caveat this with the obvious facts that I've never worked in a wire setting and really don't have a feel for what expectations are or how realistic they are (I should just defer to chief as he appears to have better information).  I don't have the exact numbers handy, but I'm sure I brought more than $4 million in my first year, but that was at a bank and it was back in the roaring 90's.2.  Multiple moves in the first 5 years do damage your credibility.  I couldn't agree more with that statement.  I'm sorry your boss is an a-hole, but if you keep your head down, work hard and make all your goals, and avoid the sob as much as possible, you should be able to coexist.  Otherwise, see #6 below.3.  Bank vs. Edward Jones...yes, much easier to book assets, but probably a lot harder to take assets from.  I left a bank after 6-7 years building the book and five years later, I figure I took a little less than 60% of the book.  For the most part, I got the best part of the book, the most profitable part of the book, and certainly the more loyal part of the book, but I'm guessing that if you are at Jones 6-7 years, you'll take a higher percentage of your book.  Bank assets just tend to be more sticky.  Partly because of the convenience of one-stop shopping, partly because of most banks' aggressive efforts to keep what they view as theirs, and partly because of the perception of safety.  Most of the bank brokers I've talked to took less than half of their assets, although I'm sure there are plenty of exceptions.4.  The early advice to save as much of your paycheck as you can is sage advice that I always give people who are unhappy with their job.  It does two things; first, it gives you a war chest of cash to help you through any lean times and secondly, it gets you used to spending less, which is always good for someone trying to establish themselves in this field.5.  If you do decide to jump, you need to service the hell out of the clients you want to take with you.  You've probably realized that some of the clients you brought in during your first year are mistakes.  These are the ones you want to leave behind...the ones that call daily, question every fee, are nervous as a whore in church, and/or just not enjoyable to work with.  These clients get the minimum in service needed to keep you out of arbitration.6.  If you know you are going to get fired (making many assumptions here), accelerate your exit plan.  Either Jones or a bank will give you a better chance of success than a wirehouse, simply because their expectations are generally lower and/or they will usually offer more assistance booking assets.  Getting fired looks bad on your resume.  If it is imminent, quit before it happens, but try to quit with another job in hand.Good luck.  It's a tough field to get established in, but once you are, I can't think of a better career choice.

chief123's picture
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Joined: 2008-10-28

Last time I checked minimum in assets at a wire in first 12 months was $3-4mm(but you know when they say minimum they mean unacceptable). I think they are looking for $7-9mm in first year as average.. Above $10MM great.. But that was MSSB last year

squash2's picture
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Joined: 2010-03-09

Ok i am confused you do 85% fee based and want to move to jones?????No region is going to give a wire 3rd tier a $15MM+ office with less than 1 yr production(you wouldn't even be at standard at jones)Better take the offer at ML or WFA(aren't those guys going to be bank brokers soon)...

Gman7979's picture
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Joined: 2010-02-13

I was in a similar situation with a wire where everything has changed in the past two years.  Agreed that no matter where you go there will be B.S. issues.  I am bringing in a great deal of new assets, and that is all I focus on.  The B.S, the payout, the bad coffee, the assistants that don't answer your calls by the fourth ring.   They are all excuses.  Build your book as quickly and efficiently as you can, you will have your choice of firms, and dictate your deal.  I am moving this week and had over 10 offers to choose from.  Showed them my numbers, my plan moving forward, and that was enough.Good luck,G

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