Edward Jones History

95 replies [Last post]
now_indy's picture
Offline
Joined: 2006-07-28

Spiffy, come on.  I don't expect Jones to send me the cost basis from SB if they don't have it. However, if the client transfers over 1000 shares, and 100 are from dividend/cap gains reinvestments WHILE at Jones, I would like to know the cost basis of THOSE shares. That is cost basis.
 
I do find it funny that you think I may be confused about cost basis vs. amount invested.  When I was at Jones, THAT'S when I was confused.  When I got to LPL, that's when I realized that Jones does not put cost basis on their "standard" statements, they only put "amount invested". That's helpful, but a little misleading.  LPL statements show true cost basis, which is WAY more helpful to clients.
 
Basically, Jones could be nice and participate in industry wide cost basis sharing , but for some unknown reason, they have decided not to.  Maybe it's because they can't actually talk to other firms, or attend functions with non-Jones people there. Oh wait, that's just the IRs!

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

I figured you did, I just wanted to rattle your chain a bit. 
 
I don't know why they don't participate.   It seems like it would be a requirement from FINRA, but I guess not.  I've heard it's an expense issue, but that seems pretty lame as an excuse. 
 
I don't know when you left, but they now put cost basis/unrealized g/l on our portfolio screens.  That's been a nice addition. 
 
 
 

American Flag's picture
Offline
Joined: 2010-05-03

Spaceman Spiff wrote:First, let me say thank you foot for giving me something to do today rather than make calls.   According to Jonesnet, CIP is a business development company that was formed in the 1990's.  The majority of the investments the partnerships made were in the medical field.  All of the CIP dollars are currently invested, so no additional investments are being made.   I have no idea how they affect or if they detract from the Jones Financial Companies bottom line.  I found a document that listed CIP along with some other STL based companies as a Venture Capitalist organization.  The gist was, STL companies, ie AGE or Stifel or Enterprise Leasing, investing in STL startup medical companies.   There is a guy at HQ that Jonesnet says you can call if you have questions about CIP.   Be sure to give him your branch id number when you call.

American Flag's picture
Offline
Joined: 2010-05-03

Spaceman Spiff wrote:Yes, I was at the home office then, but had zero contact with the bond desk.    That's a sad attempt at a conspiracy theory.  A good one would be that John Bachman is a member of Skull and Bones.   PS - to my knowledge, there was no directed trading desk.   Bachman can not be in Skull and Bones. He didn't go to Yale. Remember he went to that Wabash College that we always had to hear about.  Skull and Bones is East Coast old money intelligentsia. Jones is Mid-West red neck anti-New York.Need a different metaphor.

CIBforeveryone's picture
Offline
Joined: 2005-07-12

What I think is funny is that Ted (or was it Ed sr.?) left the firm he was with to start Jones because he didn't feel he was being compensated properly for his work. That piece of Jones history is forgotten when someone leaves Jones because they don't feel they're being compensated properly for his/her work...   

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

"Holy Old-Thread Batman!"

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

CIBforeveryone wrote:What I think is funny is that Ted (or was it Ed sr.?) left the firm he was with to start Jones because he didn't feel he was being compensated properly for his work. That piece of Jones history is forgotten when someone leaves Jones because they don't feel they're being compensated properly for his/her work...While you are technically correct, you're missing the moral of the story.  Ed Jones, Sr.  didn't get any kudos or finders fee for getting a large bond underwriting for his company.  He did sell some of the bonds.  He did get paid for that part of the work. So, today, if you are the FA instrumental in finding a getting a bond issue to go through our underwriting, Jones pays you a finders fee of 75bps per $1000.  At 100% payout.  Plus you are going to be able to sell the bonds as you normally would.  And I think you get some special award at Summer Regionals.  Not sure on that one.  Nice try, though.   

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

American Flag wrote:[ Bachman can not be in Skull and Bones. He didn't go to Yale. Remember he went to that Wabash College that we always had to hear about.  Skull and Bones is East Coast old money intelligentsia. Jones is Mid-West red neck anti-New York.Need a different metaphor. How about Scientology?Wow, your brilliance is overwhelming.

N.D.'s picture
Offline
Joined: 2009-07-13

Spaceman Spiff wrote:CIBforeveryone wrote:What I think is funny is that Ted (or was it Ed sr.?) left the firm he was with to start Jones because he didn't feel he was being compensated properly for his work. That piece of Jones history is forgotten when someone leaves Jones because they don't feel they're being compensated properly for his/her work...While you are technically correct, you're missing the moral of the story.  Ed Jones, Sr.  didn't get any kudos or finders fee for getting a large bond underwriting for his company.  He did sell some of the bonds.  He did get paid for that part of the work. So, today, if you are the FA instrumental in finding a getting a bond issue to go through our underwriting, Jones pays you a finders fee of 75bps per $1000.  At 100% payout.  Plus you are going to be able to sell the bonds as you normally would.  And I think you get some special award at Summer Regionals.  Not sure on that one.  Nice try, though.    So CIB's opinion of undercompensation must be the exact same method as Fred Sr's? Otherwise it is just a nice try?

CIBforeveryone's picture
Offline
Joined: 2005-07-12

Spiff, I'll grant you recall the facts better than I did. ND is right...it's a question of how you determine what's fair, and Ed disagreed with his employer, so he left, which is viewed as the "right" decision by Jones historians.I'm trying to stay factual based on the original post rather than drudge up the same old talking points. This is a talking point that doesn't seem to get airtime, but I think is valid. 

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

I think we're talking apples to oranges here.  The facts are that Ed Jones, Sr.  got to sell the bonds, got paid on them and evidently didn't have an issue with his payout.  His beef was that he additionally got zero recognition or compensation for getting the deal going in the first place.  He thought he should have received something for those efforts.    What you're talking about is purely a payout discussion.  Just because you can get an indy firm to give you a 90% payout, doesn't mean you are undercompensated at Jones.  It's a completely different business arrangement, therefore a completely different compensation level.  I think some folks leave Jones, or any other wirehouse or regional firm, because they see the bigger payout.  Some don't really realize that all the indy firms are doing is pushing off a lot of the work of starting and running a financial advisor office onto  your back and compensating you for it.  If you're willing to take on those responsibilities, great, you'll make more money. 

I am legend's picture
Offline
Joined: 2010-03-04

Spaceman Spiff wrote:now_indy wrote:onetimeuser wrote:The only time finding a cost basis becomes an issue is when the "other decent firms" did not send the information when an account from transferred into Jones.  If we made the original sale we can find the cost basis in a matter of seconds.  I don't think that you're grasping the issue. Let's use an example: A client is with Smith Barney in 1995 and buys American Funds, in 1999 he transfers his mutual funds to Edward Jones.  In 2004 he transfers his American Funds to LPL (Jones does NOT forward costs basis data with the ACAT).  He then needs to buy a house and sells all of his American Funds in 2008.   In this example, I would not expect Jones to give me the cost basis of the funds when they were held at Smith Barney. But, it would be nice to get cost basis for when they were at Jones.  However, Jones will simply throw up their hands because it has been over 2 years (or 18 months, or whatever) since the account left Jones.  VERY frustrating. It would have been even nicer if the cost basis had simply come over with the funds at time of ACAT.   If SB didn't send that info to Jones in 1999, then how is Jones supposed to send it to LPL in 2004?   Are you sure you're not confusing amount invested with cost basis?  In your example, Jones would be able to tell you about dividends and cap gains that had been reinvested, but not the cost basis of funds purchased at SB.  At some point we have to put the client's responsibilty to keep track of their own financial affairs in question.  The fact that brokerage firms keep track of cost basis is a convenience for clients, but according to the IRS, not a requirement.        See highlighted area.....This is going to be a requirement beginning in 2011.

American Flag's picture
Offline
Joined: 2010-05-03

I think in a lot of ways, Edward Jones was the first independent brokerage firm. Long before Linsco was a glimmer in Private Ledger's eye, Ted Jones hit upon the idea of the one broker office. One broker, one assistant, no branch manager, individual autonomy as long as the broker is hitting their numbers... no propriatary products. Ted Jones used to famously tell the home office folks - the broker is our customer. That sounds a like the independent brokerage philosophy of today.And back in the mid-seventies when Ted was kicking Edward D Jones into high gear, there were less brokers in America. Less than 4% of the population owned mutual funds at that time. So Jones couldn't fill its ranks by doing what LPL and the other independents do today, and wait for good advisors to get washed out of Edward  Jones and the wirehouses. There wasn't a ready made supply of pre-screened, pre-trained brokers complete with their own books ready to do a turnkey startup.So they had to hire and train their own brokers. Jack Phelan headed the sales side of the company and he was another great man from everything i have read. And Jones became a superb selling organization, pioneering the door-door approach and introducing middle class America to mutual funds and investing.Just my perspective on early Jones history. Jones was in many ways the first independent brokerage.

ClarenceBeeks's picture
Offline
Joined: 2011-07-26

Wow what a good read...yawn. Spiff, how big of an office did you take over after smooching so much hiney in the home office all those years ago? Let me guess, 50million aum? Make a few service calls each day, and that frees you up to post 5 good ones daily. A supreme time waster. Funny thing is, the gp's are probably trying like hell to find out which branch in the stl metro area you took over so they can ixne your web browsing and get you to sell sell sell more more more.Funniest thing is, it sounds like deep down, you want to go indy... but can't because you were given a big gift and also enjoy sipping on kool aid. Really, what does Conestoga do?

DoggieDaddy's picture
Offline
Joined: 2011-02-11

Doug Hil was someone who was easy to talk with and comfortable to be around while Jim Weddle is someone I'd never even want to have a conversation with. He tries to say the right things but I always felt  like every word in public and private was scripted and he has always seemed to me to be a fraud.  I wish I had left Jones sooner.

Who do you know's picture
Offline
Joined: 2010-12-08

Is Jones really that bad? Other than for the fact that they put new guys that took over $20mil on a pedestel, what is that bad about it?  And what makes being indy that much better? 

Donedrinkin's picture
Offline
Joined: 2011-03-02

@who...first off you have to understand the EJ does a great job of making new 'advisors' feel that they are the only firm doing the right thing for the clients, only ethical firm, yada, yada, yada.  There comes a point when you realize that all the effort YOU have put into prospecting and building a book (realize I didn't say YOUR book) has not been rewarded compensation-wise as well as it could be as an independent (or maybe even at one of the wire houses, I don't know since I haven't worked at a wire..just ej and indy).  Yeah sure the couple trips a year to Europe or Hawaii are nice..but nothing you couldn't do yourself as an indy and get the tax write off as well if you mix in some business.  Besides, who wants to be surrounded by 50 other people sucking up to the GP parroting 'what a great firm we work for!'Some other things to consider:The product offerings are pretty limited as Jones brings in A BUNCH of brand new people in every year.  I have access to mutual funds and outside investments that have low corrolation to the market..they can make sense for some investors.If you look at your P&L (or whatever they call it..I've blocked much of this from my memory in the last couple years), you will see that you pay a huge overhead to St. Louis before you even become bonus eligible.  In my practice, if I manage my costs effectively..alot more $ drops down to the bottom line.I don't have to open a bunch of dink accounts just to hit some number that the region or St. Louis wants to see.  As an indy, I determine the type of clients I want to deal with.  My average account size is much larger as an indy.  Don't get me wrong, if someone come in with a 25k rollover check and want to invest, I'll open the account.  But I am not out actively seeking anyone with $100 and a heartbeat just to get an account open. TrailsWhen it comes to retirement..MY book of business is a marketable commodity.  It is worth something out there in the marketplace.  If I want to sell it..I can price it to move, or high-ball it.  If I want to give it to someone and 'consult' part-time for a few years in transition I can do that.  The bottom line here is I have the control in what happens with my clients..not a regional leader or some gp in s.l.As an indy, (and again maybe the wires too) I have access to alternative investments that allow me to successfully go after endowments and charitable accounts.I have access to many platforms AND outside money managers for fee based accounts..I also can set up my own investment mix inside a fee based account with or without discretion.  Here again, I don't have to settle a handfull of  cookie cutter allocations from a gang of in st. louis.   Here's a big difference..if you like the idea of being a business owner..(with all of its ups and downs) go indy.  Yes, you will be doing alot more than just prospecting and taking care of your clients..but that is part of the challenge.  If you like just going in..not having to worry about paying bills, hiring, quarterly tax reporting, etc, etc..stay at EJ..all of it is done for you, but at a cost.  For me, the cost was a bit too high... 

inlandTX's picture
Offline
Joined: 2008-08-25

@ Done - great summation. When you crunch the numbers, you leave a lot on the table at Jones. For me, ultimately the fact that I would never own my efforts, even after 20-25 years of hard work, was never something I could accept.

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

I don't think it's that great a summation.... Sounds pretty one sided to me.

LoveInvesting's picture
Offline
Joined: 2011-07-07

OK Hulk, let's hear your side...btw still laughing at the original post, lambda must have been very bored at home, with no cable tv.  just picture it, he's holding up that red 'edj history' book and typing verbatim.

RealWorld's picture
Offline
Joined: 2009-07-13

Spaceman Spiff wrote:I think we're talking apples to oranges here.  The facts are that Ed Jones, Sr.  got to sell the bonds, got paid on them and evidently didn't have an issue with his payout.  His beef was that he additionally got zero recognition or compensation for getting the deal going in the first place.  He thought he should have received something for those efforts.    What you're talking about is purely a payout discussion.  Just because you can get an indy firm to give you a 90% payout, doesn't mean you are undercompensated at Jones.  It's a completely different business arrangement, therefore a completely different compensation level.  I think some folks leave Jones, or any other wirehouse or regional firm, because they see the bigger payout.  Some don't really realize that all the indy firms are doing is pushing off a lot of the work of starting and running a financial advisor office onto  your back and compensating you for it.  If you're willing to take on those responsibilities, great, you'll make more money.   Spiff- You actually have no idea that anything that you wrote is correct. Zero idea, You never spoke to Mr. Jones. I think this is the reason that people don't take your posts seriously. As far as the situation with Mr Jones, he started Edward Jones on the principle that the financial advisor should be the most important member of the organization. That is what we know. As far as our firm today, that certainly isnt the case. Hey I still work for Ejones as angry as they make me sometimes I am still here. Why? It is a good deal for me and my family RIGHT NOW. I do agree with Doggie Daddy about Doug Hill, he is a great guy. Sincerely a nice gentleman. As far as Jim Weddle goes, he is just like Barack Obama. I mean that as funny as it is, they are two in the same. Since he took over our clients pay much more in fees, our financial advisors get a lower payout and the minimum commission amount has changed and is 22% higher. I am pretty sure Ted would fire him. But I understand why he makes the decisions that he does.

LoveInvesting's picture
Offline
Joined: 2011-07-07

Real World, you hit the nail on the head, the FA used to be the customer, sort of like the independent firms.  Now the FA is a second class citizen, and the gradual evolution toward this has not gone unnoticed.  FA's are not dumb, at least the ones who can still think for themselves aren't. 

inlandTX's picture
Offline
Joined: 2008-08-25

Incredible Hulk wrote:I don't think it's that great a summation.... Sounds pretty one sided to me. I didn't figure YOU would. You hate everything I post. Still have a warm fuzzy for you, though. :)

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

Donedrinkin wrote:@who...first off you have to understand the EJ does a great job of making new 'advisors' feel that they are the only firm doing the right thing for the clients, only ethical firm, yada, yada, yada.  What firm in what industry doesn't spouse the greatness of the company to their new hires?  There comes a point when you realize that all the effort YOU have put into prospecting and building a book (realize I didn't say YOUR book) has not been rewarded compensation-wise as well as it could be as an independent (or maybe even at one of the wire houses, I don't know since I haven't worked at a wire..just ej and indy).  How many of us could have built their business from scratch at an indepedent with no brand to stand behind?  Yeah sure the couple trips a year to Europe or Hawaii are nice..but nothing you couldn't do yourself as an indy and get the tax write off as well if you mix in some business.  Besides, who wants to be surrounded by 50 other people sucking up to the GP parroting 'what a great firm we work for!'  I've been on roughly a dozen trips, including Hawaii and Europe.  Outside of the 2-3 hour business meeting, I don't hear any of this sucking up to GPs, now talking about how good the firm is, probably happens.  I would think it rude not to be thankful to the firm that provided my family vacation (even if taxable) again.Some other things to consider:The product offerings are pretty limited as Jones brings in A BUNCH of brand new people in every year.  I have access to mutual funds and outside investments that have low corrolation to the market..they can make sense for some investors.  You may be able to offer more products, which I admittedly don't like, but at least I can talk to my clients with confidence about the correlation of investments in their accounts, knowing what it means and also how to spell it.  --->  Spelling is a cheap shot, I know, but it's all I got.If you look at your P&L (or whatever they call it..I've blocked much of this from my memory in the last couple years), you will see that you pay a huge overhead to St. Louis before you even become bonus eligible.  In my practice, if I manage my costs effectively..alot more $ drops down to the bottom line.  B24 had some great points several months or years ago about the p&l overhead.  It's irrelevant.  They could lower the overhead number to zero and lower the % payout.  I hope you didn't leave Jones because of the $5750 overhead charge. I don't have to open a bunch of dink accounts just to hit some number that the region or St. Louis wants to see.  As an indy, I determine the type of clients I want to deal with. This business is all about production, if you are hitting your production bogey, then the account bogey is irrelevant. My average account size is much larger as an indy.I would hope that it would be, you left the small stuff behind, we call that a Goodknight here.   Don't get me wrong, if someone come in with a 25k rollover check and want to invest, I'll open the account.  But I am not out actively seeking anyone with $100 and a heartbeat just to get an account open. Me too.Trails  I like to run on them.When it comes to retirement..MY book of business is a marketable commodity.  It is worth something out there in the marketplace.  If I want to sell it..I can price it to move, or high-ball it.  If I want to give it to someone and 'consult' part-time for a few years in transition I can do that.  The bottom line here is I have the control in what happens with my clients..not a regional leader or some gp in s.l.   Yes you do have these options.  We have a very competitive Sunset plan.  north of 100% payout over a 3 year period with lots of guarantees.As an indy, (and again maybe the wires too) I have access to alternative investments that allow me to successfully go after endowments and charitable accounts.  I didn't realize these were required...   Obviously a huge part of my business...I have access to many platforms AND outside money managers for fee based accounts..I also can set up my own investment mix inside a fee based account with or without discretion.  Here again, I don't have to settle a handfull of  cookie cutter allocations from a gang of in st. louis.   I have at least a dozen hand crafted advisory accounts that I've put together from a list of a couple hundred funds/ets.  Believe it or not, the cookie cutter allocations work great for a lot of people. Here's a big difference..if you like the idea of being a business owner..(with all of its ups and downs) go indy.  Yes, you will be doing alot more than just prospecting and taking care of your clients..but that is part of the challenge.  If you like just going in..not having to worry about paying bills, hiring, quarterly tax reporting, etc, etc..stay at EJ..all of it is done for you, but at a cost.  For me, the cost was a bit too high...    Feel free to tell me how naive and ignorant I am.  I'm used to it....I'm married.

LoveInvesting's picture
Offline
Joined: 2011-07-07

Hulk, that was pretty well reasoned. I think all 11,000+ of us have been naive, to fall for the premise of getting to have our own businesses and be business owners. I know I feel very naive, because I fell for that one big time seven years ago. Then I woke up one day in the past year and realized that the firm owns my clients and I am just an employee. (and lp is not real ownership, it's just another way to get compensated a little bit, on money you invest yourself. they make you feel like they are giving it to you).

RealWorld's picture
Offline
Joined: 2009-07-13

i feel like a business owner. sure edward jones offers a product for a price but if i walk my non goodknight book is coming with me. that is what is great about the industry we service.

ClarenceBeeks's picture
Offline
Joined: 2011-07-26

Well Real, this may not be what you or LoveInv want to hear but why do you two stay, if it has changed so much, and with all the changes that keep coming what would it take to make you finally walk? Rocky Balboa sure took a lot of punches too...

A real business owner would fire half of the GP's, increase payout to the salesforce, and eliminate all the g@y azz programs i.e. client svc excellence, etc.

JohnEdwardJones's picture
Offline
Joined: 2011-08-22

The firm does not send us on trips. Its counted as compensation so therefore we send ourselves.

inlandTX's picture
Offline
Joined: 2008-08-25

JohnEdwardJones wrote:The firm does not send us on trips. Its counted as compensation so therefore we send ourselves. ...And the business meeting that goes with them are for the firm to be able to deduct its portion of the cost of the trip, and then pass on the rest to the employee, who gets to pay the top tax rate (bonus income) for it. How in the world anyone could compare a div trip to a tax-deductible "business" trip as an indy is beyond me.

inlandTX's picture
Offline
Joined: 2008-08-25

RealWorld wrote:i feel like a business owner. sure edward jones offers a product for a price but if i walk my non goodknight book is coming with me. that is what is great about the industry we service.Recently in my region a guy who started new/new 5 years ago and built a 30+ million office was let go by Jones. They flew in a TR that walked in the branch and took it over while the FA was on the phone being fired. Jones then marked up his U4 so he can't find a new place to work. This guy was a hero in our region - a great guy, winner of a bunch of awards the weekend before they fired him - and worked his tail off for over 5 years. And in the blink of an eye, and at the whim of the firm, he had it taken away from him.That was the final straw that pushed me to go indy. Don't kid yourself - you are not in business for yourself, and they are not your clients. You will never own your work. Even if you do leave, their attorneys will make sure you won't have an easy time moving much business. It's not a big happy family, it's a business.

mobile2's picture
Offline
Joined: 2011-08-31

inlandTX wrote:Recently in my region a guy who started new/new 5 years ago and built a 30+ million office was let go by Jones. They flew in a TR that walked in the branch and took it over while the FA was on the phone being fired. Jones then marked up his U4 so he can't find a new place to work. This guy was a hero in our region - a great guy, winner of a bunch of awards the weekend before they fired him - and worked his tail off for over 5 years. And in the blink of an eye, and at the whim of the firm, he had it taken away from him.That was the final straw that pushed me to go indy. Don't kid yourself - you are not in business for yourself, and they are not your clients. You will never own your work. Even if you do leave, their attorneys will make sure you won't have an easy time moving much business. It's not a big happy family, it's a business. A pretty ruthless one that hides behind a thick green veneer of Culture & Kudos articles, div trips, and Kumbaya. At least other firms have the temerity to go ahead and announce how cut-throat they are in the beginning. Jones does the group hug thing and proclaims how different they are. They're not different.You know what they say...PIP'n aint easy (performance improvement plan).

Who do you know's picture
Offline
Joined: 2010-12-08

that's messed up.  What was the reason for getting the ax, was it the idiotic 3 strikes and your out PIP deal?  It's pretty damn hard to not go on the Pip program at least once being a new/new even if you are killing it.

RealWorld's picture
Offline
Joined: 2009-07-13

I know Jones has a lot of bad aspects to it. Some of you UBS people may know who the X ecex is that was on MSNBC the other day said something like "There are many many great ethical people in our industry working as FAs but there is no great ethical firm in the industry." I agree with that. I have always worried that any independent place would make my life hell as well. maybe someone can enlighten me but it seems there are always going to be worries in this industry. As far as Edward Jones is concerned, it has the makeup to be a GREAT company... It just has it heart in the wrong place currently.

ClarenceBeeks's picture
Offline
Joined: 2011-07-26

How would an independent firm "make your life hell as well"?Also, curious to know why the rockstar fa got canned by big green, right after receiving all the crappy i mean totally awesome awards...did he have to return his jack phelan blue blazer?

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

ClarenceBeeks wrote:How would an independent firm "make your life hell as well"?Also, curious to know why the rockstar fa got canned by big green, right after receiving all the crappy i mean totally awesome awards...did he have to return his jack phelan blue blazer? I'll give you 3 choices.LegalEthicalProfitable

ClarenceBeeks's picture
Offline
Joined: 2011-07-26

@Hulk:  BAAAAAHAAAAHAAAAAHAAAA...you still believe that cliche?

mobile2's picture
Offline
Joined: 2011-08-31

Out of those 3 choices the third one is the only one that Jones cares about.There was a seg 3 guy cut loose last week in our region and possibly another one gone soon. It does make you realize that your book really isn't your book...just Jones'. And they will let the next warm body in your office add to it if they can and maybe the third or fourth schlub that moves in will be able to last more than 3 years after he churns the old clients and gets them to move to AS.Wonderful system.

LoveInvesting's picture
Offline
Joined: 2011-07-07

Ted would never approve of firing a hard working newer fa and replacing him with some newb who didn't do the work.  Heck, he wouldn't even let his sisters become partners since they weren't doing the work.  Funny, seems like we forgot our history and culture.

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

Someone would have to be incredibly ignorant of our business to think that Jones or any firm in would fire a broker running a profitable business that wasn't breaking any laws or breaching ethical standards.  What sense does it make?  The industry fail rate runs north of 75% and we're going to fire that one in four that makes it?  I guess one doesn't have to have common sense to post on an anonymous internet forum.

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

And mobile2, you really think that running a legal and ethical branch is not a top priority?  I guess the GPs enjoy paying out settlements when an advisor has broken the law or industry standards....   

mobile2's picture
Offline
Joined: 2011-08-31

Easy there Hulk. I'm positive that Jones wants FA's to run legal & ethical businesses and every FA I've ever met would have it no other way. Perhaps my wording was a bit provocative but the point remains: regardless of how long you've slogged it out any given FA can get the hook. Now, if the profitability isn't there then it makes sense to move out an FA that isn't willing or able to get up to snuff. But seeing that played out in reality is much more harsh than written out as an obvious point.

RealWorld's picture
Offline
Joined: 2009-07-13

First off, I agree with Hulk. Jones doesn't want to fire anyone who can produce even 150K gross. They certainly don't want to lose anyone over 250K and they get really pissed if they were to loss anyone above 500K. I don't agree that ALL edward Jones advisors run a legal and ethical business. In fact, one of the key complaints I have is the focus on PROFIT, PROFIT, PROFIT instead of ETHICS, ETHICS, ETHICS... It is a key piece that we are missing from the top down. I use the analogy of when Bush was president and wanted to "make America safe" by killing all the terrorists in the world. While he was doing that he allowed Barney, Dodd, Frank to push Fannie and Freddie into buying up CRAP mortgages, he allowed our debt to spiral out of control, he allowed our schools and infastructure to begin to fail. He had one goal in mind and although many would say it is a admirable goal. It put blinders on him that caused HAVOC in America.That IMHO is EJones' problem. We were so concerned in 2008 with profitability as a firm and with bonus levels being high to keep big producers that we pushed for more money(raised expectations not just on old slackers but on newbies 1-5 yrs out me included at the time), and we started filling offices with anyone who could/would move to the town where the office was now open. We began to award these "take over branches" advisors with Fast Start awards, and showed them the only thing of importance is their gross production. Now in my region we have numerous people with Very Little professional/financial experience managing books well over $50,000,000. And worst of all, we have rewarded their lack of knowledge and professionalism with trips, plaques and "Look what so and so did in only 9 months".... IMO these people will not be loyal to Edward Jones, will never know what it is like to struggle in this business, money is their GOD, and have no knowledge or experience in the products and services they are providing.... When a crisis happens at this firm and it will again one day the people we have in these offices will really shit the bed and we will look a lot like America looked after Bush stepped down (stepping off of soapbox).

Donedrinkin's picture
Offline
Joined: 2011-03-02

to many ex jonesers it simply came down to the simple fact that you can 'run your own business' and build a book of business that is YOURS.  There are going to be crumb bums at any firm, wire house, or indy shop.  I just like the ability to decide for myself how much I need to produce..(of course my wife has some input in that as well..) 

American Flag's picture
Offline
Joined: 2010-05-03

RealWorld wrote:First off, I agree with Hulk. Jones doesn't want to fire anyone who can produce even 150K gross. They certainly don't want to lose anyone over 250K and they get really pissed if they were to loss anyone above 500K. This sounds like a kinder - gentler policy than I have heard is there now,  given the move to 10 segments and the increased production standards... Where are you getting these numbers?

LoveInvesting's picture
Offline
Joined: 2011-07-07

It's definitely not a kinder/gentler Army. If you fall below 18k/mth, it's kind of like don't ask/don't tell...

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×