Edward Jones' Incentive Trips

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bspears's picture
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I'm glad I'm not the only voice on here as more and more and more and more Jones people open their eyes....makes me feel good.  Magician, I thought my wife and I took some great trips..but woooww.......WAGES WILL MAKE YOU A LIVING....PROFITS WILL MAKE YOU A FORTUNE....GO INDY....

Spaceman Spiff's picture
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Funny that all of you people who are mouthing off about "pushing" credit cards and "pushing" aggressive to 70 year old clients had to worry about things like that.  If you just simply DO YOUR JOB you don't really have to worry about the categories that much.  
 
The way it works in my office is pretty simple.  Clients have 3 basic parts to their portfolio - Income, Growth and Income, Growth (which may or may not mean aggressive growth).  Just by doing what I normally do I'll qualify for 3 categories without even thinking about it.  I usually hit the non taxable income pretty easily too.  Munis, fixed annuities (a rare thing for me), some balanced funds, portions of my VA business all hit that category.  If you are doing any LTC or LI biz that category is pretty easy to hit too.  So, you never really have to worry about pushing credit cards or the CFO or even hiring someone to fill the categories.  Just do what  you are supposed to. 
 
Spears, what's the fundamental difference between the LPL trips (gotta do $450K to qualify) and the Jones trips?  What makes the Jones trips a bogus incentive and not the LPL trips?  Perhaps I'm missing something that I need clarification on.

bspears's picture
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Joined: 2006-11-08

When you force someone to sell something (category) to win something(trip), it causes conflict.  Hey, get off my ass...this thread has been hijacked by Jones people...

Spaceman Spiff's picture
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Sorry.  You made the comment.  I've never felt forced to sell anything at Jones, but maybe that's just me. 
 
And CIB hijacked the thread.  Not Jones people.  

CIBforeveryone's picture
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He's right.

IsOldSpiceRightForMe's picture
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bspears wrote:this thread has been hijacked by Jones people...
 
The thread was a question directed at Jones people, if it's been hijacked by anybody it's been hijacked by the "Jone's haters."

bspears's picture
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Joined: 2006-11-08

Okay...you're right...damn the jones hater's...You never did answer my question about telling your clients about the investments you sell them filling a category for the trip...well...don't you think they should know...just like revenue sharing...that this particular investment not only pays you in the rears...it also qualifies me in winning a trip for my family and I to go on...that you, dear client, get to pay for....and, of course, this doesn't persuade me in anyway to my recommendations...cause see..I have this wonderful bar chart that shows you need some of this anyways....

IsOldSpiceRightForMe's picture
Joined: 2008-04-14

I see what you're saying, but unless a FA puts a client into something just to qualify for a trip when there's a better option for the client available, I don't think there's any issue. 
Would it really be any different than you saying, "Client, thank you for your business, a fraction of the money you've given me is going to be used to pay my mortgage, take my wife out to dinner, and by tickets to the game next week."

Broker24's picture
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Joined: 2006-10-12

I would wager to guess that the vast majority of advisors make no consideration of "categories" when investing money.  Yes, there are the knuckleheads out there (as there are at every firm that do knucklehead things for other reasons) that base decisions on trips or whatever.  But I have never actually heard a discussion about it among people I have talked to at Jones.  Again, I know it happens, but you guys seem to paint with a rather broad brush.
 
And although I think the CC category is a little lame, we are a financial services firm.  We are a for-profit business, that is in the business of providing financial services.  As such, like a bank or other B/D, it is our job to sell financial services and products.  Incenting us to do it should not be seen as unethical.  That's how the industry works.  All of us are "incented" to sell investments.  Is that any less "ethical" than providing a financial service??  I for one never "sell" credit cards.  I have about 10 cards in my branch - I always mention it, but most of my clients already have credit cards that suit their needs, thus don't need another.  I do utilize CFO accounts for several people, as they can be cost effective and take the "pain" out of charging for various services.  But to me it only makes sense if they have a real need for multiple services (IRA's, bill pay, div reinvest, etc.).
 
So I guess the categories leave a little to be desired for the contests.  But I think Jones' intentions are in the right place.  If they weren't, they would just base it on production and be done with it.  It is just one small way of encouraging diversification.
 
I also don't think the trips should be listed as "compensation", but rather as a "benefit".  I think the perception would improve.  But nobody can argue that theay are great trips that you basically go on for a discount (the cost of taxes).  But Jones certainly doesn't try to "hide" the taxes anywhere.  Everyone is fully aware if it.
 
And........that's all I have to say about that.

bspears's picture
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Joined: 2006-11-08

Not that I have a mortgage, but I seriously can't see the comparison, spicey.  Whenever you have something (preferred funds, categories) tied to a gift (revenue sharing, trip) you cause an uneeded conflict.  Yes, you can all say..."we don't look at the trip categories...if I win great..if I don't oh well...I only use the best funds and if they happen to be in the preferreds,,,great...but THEY (management) have these for a reason...and its not about financial planning for the client...

WestH's picture
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Broker24:  Actually, Jones does consider this as "Compensation", says so right on Jones website:
http://careers.edwardjones.com/ca/fa/StartingYourFinancialSalesCareer/TheOpportunity/Compensation/index.html
"Compensation
4.  Incentive travel opportunitiesSuperior performance is rewarded in many ways, one of which is through incentive trips. Trips are awarded when you succeed in meeting the long-term goals of your clients through diversification of their assets. There are two opportunities to earn trips each year. You also may combine the two into one “Super Trip.” Destinations include top-notch resorts in places such as Hawaii, Switzerland, the Caribbean, Africa and Paris, to name just a few. All trips include spouses and many welcome families, too.All Financial Advisors who meet the criteria earn a trip. There is no limit on the number of Financial Advisors who can participate. We’re proud to say that, typically, more than half of our Advisors qualify for each trip. Trip value typically ranges from $4,500 to $6,000 for two people or $10,000 for a “Super Trip.” Please note that all trips are taxable. To qualify, all you have to do is gross $135,000 in six months."
 
Now it's an "Incentive travel trip"
 
It's also a recruiting tool:
http://careers.edwardjones.com/us/fa/ExperiencedFinancialAdvisors/AreWeRightForYou/MeetOurPeople/jWEB_004061.html
"Believe it or not, one of the vets used to send my husband diversification trip brochures to show him where we could be going if I worked at Edward Jones."
 
Check out SEC's view:
http://www.sec.gov/litigation/admin/33-8520.ht
15. Edward Jones further offers "diversification contest" trips to its IRs two times each year. During these contests, the IRs can qualify for a trip by earning points based on, among other things, their sales of mutual funds. Once an IR earns a specific number of points, the IR "wins" a trip. Although the IRs generally can earn contest points for selling any mutual funds or other investment product, for a ninety-day period in the fall of 2002, Edward Jones only gave mutual fund contest points for the sale of a subset of mutual funds from the Preferred Families. One or more of the Preferred Families always participate in the sponsorship of the diversification trips and make one short training presentation for the IRs during each trip. Sponsorship of these trips and other meetings provide the Preferred Families with exclusive access to and visibility with the IRs.
 
Can you say: Pay to Play?

Broker24's picture
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WestH-
 
I agree with 100%.  You mis-read my post.  I said (or meant to say), that I think they SHOULD consider them benefits, not compensation.  My point was that I don't like how they position them as part of our compensation.

footsoldier's picture
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It does make one wonder why Jones hasn't changed it to a revenue only contest. At least then, it would remove any appearance of conflict. I have to agree with Spears on this issue.
 
Spiff- You are smarter than the average Jones rep. (That's why some of us think your headed out.)
 
You remind me of me. I was a staunch supporter of the firm until something inside caused me to question management. Soon I was conflicted representing a firm because I did not believe in their ethics. Ultimately the pain of staying was worse than going through the pain of transition.
 
Please, please don't label this response as another disgruntled FA who offers frequent diatribes about how great indy is and how crappy working for Jones was. Jones is a great place to start, learn the biz, and how to run a biz. I am sure if it weren't for the training I received at Jones, the transition would have been much more challenging when I left to go indy.
 
Your time is coming. It's just a matter of when not if...
 
 

Spaceman Spiff's picture
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Jones hasn't changed it because they want to encourage diversification.  It's a reward for doing what is right. 
WestH - I love the SEC example.  Way to pull something so far out of Jones history that it's not even relevant anymore.  Jones did something for half of a diversification contest period and changed it.  Quickly.  
You've been gone from Jones so long that most of your examples of things you don't like about Jones aren't relevant anymore.  I've told others that if you haven't been at Jones in the last 2 years, you really don't know what you are talking about anymore. 
foot - I love working for Jones.  If management changes or goes a direction that I'm not comfortable, I'm going to see if Joe has an empty room in his new office.  But until then I'm sticking.  If I were a cowboy they'd say I was loyal to the brand. 

WestH's picture
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Spiff: 
You're exactly right.  I have left Jones a long time ago, exactly 9 yrs ago in 2 wks.  My Independence day was June 4th.  Spent 7 yrs w/ Jones, & would like to thank them for the all they've done to get my career off the ground.
 
I also spent 4 yrs in college &  also served 9 yrs as a military officer before Jones.  Although none of those org are perfect in any way, I still love the fact that they all have a profound impact on my daily life today.  That I still live the high standards & morals they instill in me.  But that doesn't mean I don't have an opinion either way, good or bad, just because I've left them more than 2 yrs ago.  Still very involved in those collegiate & veteran organizations locally.  I can see the massive amount of change that our educational system &  the military are going through over the years. 
 
But besides adding the fee-based platform, how/what has really changed at Jones in the past 2 yrs? 
& Is it change for the better or worse?
 
Let's see, I was the very first Jones IR to move over to LPL Independent channel in our city 9 yrs ago.  Today there's over 30 ex-Jones guys over at LPL just inside our city limits. 
How many LPL reps left to join Jones?  Zero.

Borker Boy's picture
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WestH wrote:Spiff:  
...Let's see, I was the very first Jones IR to move over to LPL Independent channel in our city 9 yrs ago.  Today there's over 30 ex-Jones guys over at LPL just inside our city limits. 
How many LPL reps left to join Jones?  Zero.
 
It's just a matter of time. They'll see the light one of these days.

Spaceman Spiff's picture
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Technology, management, mindset, investment options - you name it, it has changed.  For the better.  Still not perfect, but then what firm or situation is?
 
I wouldn't expect anyone from LPL or RJ to leave that setup and go back to being a w-2 employee.  The change in thinking would probably make your head explode. 
 
You have a right to your opinion, but you have formed that opinion based on information that was valid in 1999.  It's like talking about the Rams and saying they're a great football team since they won the Super Bowl in 2000.  Sure, football is basically the same game, but the Rams/Sheep sucked last year.     
 

Dark Knight's picture
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Don't kid yourselves, there are tons of IR's who when the contest period is nearing an end sell certain categories to get their trip.  This is a FACT.
It is a conflict of interest however you look at it, and it affects some clients portfolios.  

jwcopper's picture
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Joined: 2008-05-14

Still wondering, does EDJ still offer sales incentives in the form of a higher commission for selling certain bonds at the end of the commission cycle?  I remember seeing low rated bonds with higher than normal commission in the last 2 or 3 days of the cycle, they would sell really fast.  Amazingly they were the same bonds in inventory all month at a lower commission, and nobody would sell it.  Can anyone comment on whether or not this is still a practice followed at Jones?

freeman12's picture
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About the bonds, been gone for 18 months so could be different:
New brokers got access to a NEWIR inventory back then that had a higher payout and they would reserve a pile of them for the rookies for call nights, can sell dates etc. Otherwise there really wasnt much of a variance. Jones had a basic chart that said this much markup for this size and or this maturity date.
The biggest mistake about the bond inventory is the markup and selling the new issue bond. When you sell they price you first to their own internal inventory with a markup and they will price outside of Jones if you request it. If you are a Joneser you are better off calling the bond desk and asking them to do some lite shopping for you. The bond you sold last quarter with a 3 point markup as a new issue can be had for a lot less. Your GP's wont like it because its unconventional and they want to move their own bonds they helped underwrite and/or participated in first to maximize profits that you really dont see to your P&L but do see as a partner.
One side note, if you sell a lot of bonds as a Joneser you will be eating your lunch when rates rise a few years from now and you have to explain those lower auction values. But if you are a good joneser you will take advantage of that to sell them and make 1 and then put them into your new mutual fund fee platform.

WestH's picture
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Spiff:
At least we both have a warped sense of humor.
 
But what has really changed about Jones' incentive, oops I mean diversification, trip over the past 2 yrs vs. 10 yrs ago?  (besides trip location choices)

rankstocks's picture
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WestH,
    Need I remind you only 1/2 of LPL brokers even GROSS 100k?  Your comparing apples and oranges.  Also, your previous post mentioned a taxable amount for a trip of $8000, where did you go to get a Jones taxable equivalent that high?  Most of mine are from $4500-5500.  Your cost for a flight to Costa Rica was $500, mine would be twice that.  Don't forget about the free dinners, coctails, happy hours, and cash they usually kick in as well.  There is no way you could set up the same trip for the same price they tax you on.  Sorry, you are wrong on this one.
   Of the 30 brokers that switched to LPL, I would venture a guess that all but one or two were either fired or below Seg 4 when they switched.  There is a reason the median production at LPL is 100k, the same amount I did my second year at Jones.  After you pay boh sides of FICA, E&O insurance, an office assistant and her and your family's health insurance, 10% ticket charges, 10% affilliation fee, office rent, postage, software, telephone, marketing, utilities, publications, annual state security dues, insurance CE, and other expenses.....somehow I just don't see a 90% payout.

Magician's picture
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Rank,

That's what I've always heard from the region. But you know, we've got quite a few guys who were below Segment 4 numbers, who left, and are now grossing 400-500k.

Do you really think people are leaving for the higher payout? It's unlikely. They are leaving because they are tired of people blowing smoke up their butts and tired of having to explain to clients why they can't handle certain transaction/types of accounts.

The same people at LPL grossing 100k are the same people at Jones that have been stuck in Seg 3 for 12 years. Their are at least 10 brokers like that in my region. Some have been in Segment 2 for 5 years and the firm hasn't fired them. Let's get real. You're going to succeed wherever you are, or you are going to fail where ever you are.

And let's not forget... there are Jones people on Jones trips. I think you have to ask yourself is it worth it? Let's talk about opportunity cost. While you are at a Jones trip at a Jones dinner, drinking jones cocktails with Jones people, think of the opportunities that you are missing in Bejing, or London, or on the Galapagos Islands.

Also, let's talk about the encouragement to "do the right thing".

Scenario 1: Jones broker who needs the tax free income category. He needs $2000 gross to get there. He is out of luck. Client does NOT need tax-free income. He's got an IRA with the Jones guy. He just inherited some money. He is in a low tax bracket. What does the Jones guy do?

Scenario 2: Broker needs $2000 gross to go on a trip. Same scenario.

Which one has a conflict of interest?

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WestH's picture
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rankstocks wrote:WestH,
    Need I remind you only 1/2 of LPL brokers even GROSS 100k?  Your comparing apples and oranges.  Also, your previous post mentioned a taxable amount for a trip of $8000, where did you go to get a Jones taxable equivalent that high?  Most of mine are from $4500-5500.  Your cost for a flight to Costa Rica was $500, mine would be twice that.  Don't forget about the free dinners, coctails, happy hours, and cash they usually kick in as well.  There is no way you could set up the same trip for the same price they tax you on.  Sorry, you are wrong on this one.
   Of the 30 brokers that switched to LPL, I would venture a guess that all but one or two were either fired or below Seg 4 when they switched.  There is a reason the median production at LPL is 100k, the same amount I did my second year at Jones.  After you pay boh sides of FICA, E&O insurance, an office assistant and her and your family's health insurance, 10% ticket charges, 10% affilliation fee, office rent, postage, software, telephone, marketing, utilities, publications, annual state security dues, insur?ance CE, and other expenses.....somehow I just don't see a 90% payout.
 
Rank:
Where/how did you get the figures that 1/2 the LPL reps make under 100k?
Can you verify that fact?  or it the same Kool-Aid lies that feed you at Jones?
 
From an earlier post, one of you Jones guys stated that they taxed you 30% of the trip's value.  So if you get taxed $800 a month for 3 month, you paid a total of $2400 total, well, that's 30% of an $8000 trip.
So if your trips are only $4500 - $5500, then your taxes are just $450 - $550 a month for the next 3 months?  I was paying more than that 10 - 15 yrs ago.  So where's the HUGE economy of scale discount on the taxes?
 

WestH's picture
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And, Rank,  Of course you don't "see the 90% payout"....Because you're at Jones!!!!
 
Only us special people in the Independent world see those 90% payouts...
 
BTW, what's your net payout after you subtract: your family's health insurance, 1/2 postage, 1/2 phone, marketing, pubs, & other expenses from 38% payout?

ezmoney's picture
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about29-31%. I know Iv'e been there.

Borker Boy's picture
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I was on a div. trip a couple months ago, and one of the GPs showed a PowerPoint that alleged that nearly every other firm in the country is losing advisors.
 
Of course, Jones is the only firm, according to him, that's growing.
 
I got back and went to the websites of a few of the firms he'd mentioned (the ones I could remember), and they ALL showed growth in the number of advisors, year after year.
 
Someone needs to get their facts straight. 

Magician's picture
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Postage is now 100%, so is long distance. A pain for me, with overseas clients.

I will say this, even the LPL recruiter doesn't say it's 90%. But 65-70% is still almost double.

WestH's picture
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LPL grew from approx 8,000 to over 12,000 reps over the past 2 yrs.  They acquired a few smaller B/D's.   Not sure if they surpassed Jones in # of reps in the US yet.
 
Not sure about the #'s of sub $100K producers, but their are over 1000 of $450K+ producers at LPL.  The top LPL rep, http://www.joinpeak.com/aboutus.aspx, grossed over $10 Million last yr, & payout of 98%, minus his expenses in Omaha Nebraska, is still pretty decent, at least over 90% NET.
 
Rank:  My gross is only $600K+ last yr, 93% payout, & net 89.4% after all LPL fees & ticket charges (less than 1% stock business, ticket charges are miniscule, not sure where you got the 10% figure from, guess you must be a stock jockey at Jones).  After office lease, assistant salary, & other office expenses, my NET NET is 78.3%.
 
BTW, I had a few $100+K NET months (not gross, NET) over the yrs here at LPL, that never happened at Jones...

rankstocks's picture
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WestH,
   Just pulled up my pay for April, tax was $510 for the trip for the month, for a total of $1530.  The value of the trip I just finished was $5100.  Not quite the $8000 you mentioned.
   Take a look at the Investment News 2008 broker survey:
   
LPL 2008:
     Number of reps at year end = 11089
     Number of reps producing greater than 100k = 5729
     Percent of reps producing less than 100k = 48.3%
     Median Rep production = $103,265
 
     Average Rep production = $186,900
 
     WestH's defense of LPL = priceless

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Eyetattoo's picture
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Its funny how every time someone starts a topic about anything on Jones the non Jones guys jack the thread talking about how the company is such a fraud.  Doesn't it get old?

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joedabrkr wrote: rankstocks wrote:WestH,
   Just pulled up my pay for April, tax was $510 for the trip for the month, for a total of $1530.  The value of the trip I just finished was $5100.  Not quite the $8000 you mentioned.
   Take a look at the Investment News 2008 broker survey:
   
LPL 2008:
     Number of reps at year end = 11089
     Number of reps producing greater than 100k = 5729
     Percent of reps producing less than 100k = 48.3%
     Median Rep production = $103,265
 
     Average Rep production = $186,900
 
     WestH's defense of LPL = pricelessWhen you are done beating your chest, please let me know how this should matter to my business, ok?
 
It doesn't.  Get back to work!!  You have an office to feed.

WestH's picture
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Spiff:  You're right, Let's get back to work.
 
Rank:  It's actually not Priceless, at 93% payout, Independence's exact price is 38% More Net than Jones...

spikedkoolaid's picture
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I just registered for the National Conference for LPL and I noticed that Maritz was doinng the registration.  GMI, Inc had done it in the past.  I'm a little scared.  Maritz always seemed to go low cost.
 
BTW...LPL pays for everything for me and my wife.  We are going to be staying at the Penninsula in Chicago and seeing Sheryl Crow in a private concert just for the entertainment of the advisors.  Not as good as paying taxes on a cruise to the Greek Islands, but it's nice that i don't have to pay for anything!

Spaceman Spiff's picture
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Maritz will do as good a job as LPL will let them. 
Sounds like summer regional meetings to me.  I don't have to pay for those for my wife and I either.   Sheryl Crow?  Jones would have at least been able to land Hootie and the Blowfish.

footsoldier's picture
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Ah Spiffy the memories of summer regionals....
 
Let's see there is the first hand experience of a rep heaving all over the wall (after leaving his breakfast in his chair) within spittin distance of the firm GP and in full view of everyone in the room during the business meeting...
 
Or there is the real life experience of a regional leader forgetting to tell the advisors that they would be sharing common areas of suites inlcuding bathrooms! Man, that was a delicate sell to spouses...
 
Or how about the introduction where we were supposed to tell something about no one would know. One IR got up an said in his youth he was a woman. Another veteran IR got up and immediately responded that he dated her...
 
Close region in Jones speak....
 
I am sure Spiffy would tell you anything happens at meetings, including Jones meetings.  I can tell you I haven't seen anything remotely close at LPL events.

Spaceman Spiff's picture
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foot - you should really learn how to hold it together at meetings better than that.  Heaving your breakfast that close to a GP?  Wow.  That must have not been a good conversation for you afterwards. 
 
What kind of place was it that you guys shared common areas?  I've never been in anything other than a hotel with Jones on any trip.  Did you at least get to pick who you shared the bathrooms with?  There are some wives in our region that wouldn't be so bad to stumble in on, but some...
 
I guess the joke was lost on you with the woman/man comment. 
 
Sounds like the LPL events must be pretty boring then.  Too bad for you. 

footsoldier's picture
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Spiff-
 
I would come clean if it was me. I have nothin to hide. I will admit it was comical to see the RL and the GP try and figure out how to spin it.... And it was very embarassing for the IR who is still at Jones and by the way doing well and a limited partner. He probably won't be in line for GP before you!!!
 
The place was a tennis camp/summer resort in Lake Tahoe. It was a one time only experience. I ended up paying for my own room....
 
Still trying to figure out your wit on the man/woman comment...but I was a witness to all of it... And yes LPL events are pretty boring in comparison, so far. I will say that the vendors don't close down the bar after 30 minutes like they did at Jones regional events. So more than likely somewhere in the world is a drunk independent! And they don't have American Idol sing a longs like the Jones events. LPL had Chicago last year and Sheryl Crow this, so definitely a step up from an IR's singing akapelllllllla.

Spaceman Spiff's picture
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That sing along thing reminds me of my mentor and my first regional meeting.  I'm not a guy who drinks.  At least not often enough to say I do.  My first mentor was THE GUY in the region who would get drunk quicker than anyone else.  Well, evidently at that meeting he was way past drunk and got up and did a song that evidently shook the rafters.  5 years later I still hear about his karaoke escapade that night. 
Jones has a hospitality room at all of the regional meetings.  You can get more than enough alcohol in your system to make yourself look stupid if you want.  Typically there is one new FA who misses a big part of the Saturday morning meeting because he and some of the vets stayed too long in the hospitality suite.  Nothing like the RL pointing our your lateness as you stroll in with bloodshot eyes at your first regional meeting. 
 
At those big LPL meetings, are they the national sales meeting that everyone from everywhere gets to go to?  If so, that's probably why the budget is big enough for Chicago or Sheryl Crow.  If Jones did one big annual sales meeting for all 10K of us I'd bet they'd do something like that too.  It might be more along the lines of George Strait or Billy Ray Cyrus though.  Gotta know your audience. 

doberman's picture
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What, no weird Al Yankovic to sing parodies?
 
Geesh, you guys are a bunch of minor leaguers!

ednomore's picture
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I remember  our area leader used to come to the regional meetings, and mini regionals and play the harmonica, and tell the same sad story about one of his former clients over and over.(meaning at more than one meeting) Now that was motivational! Of course he also made some motivational decisons in our region. I think this clown is still the area leader.

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rankstocks wrote:WestH,
   Just pulled up my pay for April, tax was $510 for the trip for the month, for a total of $1530.  The value of the trip I just finished was $5100.  Not quite the $8000 you mentioned.
   Take a look at the Investment News 2008 broker survey:
   
LPL 2008:
     Number of reps at year end = 11089
     Number of reps producing greater than 100k = 5729
     Percent of reps producing less than 100k = 48.3%
     Median Rep production = $103,265
 
     Average Rep production = $186,900
 
     WestH's defense of LPL = priceless
 
Reconciling your numbers with the ones Icecold posted, it looks like your numbers include about 4,000 non-producing reps (perhaps like my licensed assistant), which would necessarily skew the median far below the average.  If LPL has about 7,000 producing reps, most of them are well over $100K production, with the top 20% well over $700K production.  All this proves is that LPL has the ability to serve reps from less than $100K production to over $10 million in production.  I'd say that's the mark of a successul firm, but it's irrelevant to how LPL supports me and my business.  One positive from your post is that I feel better being above average (about $300K last year) with LPL in only my third year out.
 
I could get into a juvenile tug of war with you...change my signature line to something like "Edward Jones - working from your car, next to Subway or the dry cleaners, or out of a converted gas station - four of your five great office locations.", and although it would be a true statement (I've seen them all), it would be a silly waste of time for both of us.  The bulk of the fomer Jones reps I meet at the national are very successful...far from the near washouts you are painting.  If you want to resent LPL for, say, taking a lot of Jones reps from Jones, fine, but let's honestly label the source of your animosity.  Maybe you've lost some nice accounts to a local LPL rep?  It's fine to be angry, but be honest about why you don't like the firm.  It can't be based on freedom, technology, product availability or payout as no objective person can realistically argue that Jones is superior in any of these areas. Come on, Rankstocks...tell us the real reason you don't like LPL.

now_indy's picture
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Joined: 2006-07-28

ednomore wrote:
I remember  our area leader used to come to the regional meetings, and mini regionals and play the harmonica, and tell the same sad story about one of his former clients over and over.(meaning at more than one meeting) Now that was motivational! Of course he also made some motivational decisons in our region. I think this clown is still the area leader.
 
You've got to be talking about Jordy!  I faxed my resignation in to him .

WestH's picture
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Joined: 2008-03-29

Spiked:
Hey, I just booked for 4 nights at the Peninsula on the Mag Mile Chicago too!  We stayed at the Four Seasons & Ritz Carlton Chicago already so trying to "diversify" our experience there.  How can Maritz swing for those Peninsula rooms that normally goes for $700+ a night in Aug.  Well, to have Sheryl Crow to open Mon night, Bonnie Raitt to close Thurs night, with Ted Koppel & Neil Cavuto (Fox News anchor) as featured speakers in between, I might even show up & go a meeting or two this yr.  At least at LPL, there's no Jones RL or GP taking roll call attendance...

Effay's picture
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Joined: 2008-04-11

EJ's diversification trips are a stroke of brilliance. They are a huge motivator and allow travel literally all over the world. Additionally, Maritz travel has a team of advisors that handle every detail for you from your air tickets to on site problems to optioanl activities. Travelling without these guys is a drag! Since it takes only 107500 in aggregate gross seperated into 5 of 8 or 9 categories you must , ie growth, growth and income, tax free income, etc. anyone who is in the business 3 + years should qualify at least once a year.
The downside? You pay taxes on the trip because it is income, and Jones values the trips at close to 6k, taken over the next three months pay.
Credit where credit is due on this one.

Effay's picture
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Joined: 2008-04-11

Yes, CCs are lame as hell. A GP on a recent trip was gloating that fee income at EJ had finally met expenses, so now the FAs were "overhead!"
It seems that the firm wants 20,000 thirty somethings who feel that making 100 or 125k a year is big money and are happy to push credit cards, mortgages, etc., which have very little to do IMHO with financial planning. 
The dependance on fee income is very real, and that is, I think, the biggest reason EJ came out with a mutual fund fee platform...PLUS, it helps recruit experienced tarnsfers to EJ. I cant tell you how many prospective transfers lost interest over the last few years due to the lack of a fee based platform. Oh, and remember, its only for funds; there is no wrap account in the works. ..

ednomore's picture
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Joined: 2007-08-29

NOW_INDY
You are correct, it was Jordy.

CashMonger9000's picture
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Joined: 2012-04-06

I read Spaceman's list and had a happy seizure just thinking about it. Can someone give me the latest list of places where one might be able to go if they qualify? :)

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