Edward Jones Performance Exception

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buyandhold's picture
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jkl1v1n6 wrote:I remember felling truly sorry at the summer regional awards banquet for the guys that didn't get anything.  They had to sit there with their wives at their sides while everyone else was given something.  It's one thing when it's just the brokers but when you throw in the wives it's just ugly. 
 
If you want bitterness and anger toward Jones, be a fly on the wall when the wives get together at the summer regional. You'd expect fights to break out between the wife whose husband inherited $20 million in a downtown office and the wife who got an empty office next to the Chinese restaurant in the blue collar suburb.
One thing that all Jones recruits should know -- you don't have a lot of leverage, but you have some, and do your best to get started in a good spot. Network like crazy, kiss ass -- do whatever it takes to help yourself.
 
 

Potential's picture
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Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

 
Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight.

buyandhold's picture
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Potential wrote:Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

 
Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight.
 
Prospect might have stocks or mutual funds he wants to hold onto them either because he likes them or for tax reasons, so you convince him to move the assets over in kind, hoping to change his mind at a later date. Or he transfers in a money market balance and buys CDs.
That's a tough situation: you're new, and you want the accounts and the assets, but I think it's better to bring people in who are committed to the investments you believe in.
 
 

Incredible Hulk's picture
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Potential wrote: Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

 
Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight.

I have transferred in mutual fund portfolios and done internal exchanges that didn't generate a dime outside of the .25% 12b1. I have transferred in Vanguard accts just so the guy doesn't have someone else whispering in his ear. Cash is also a great example. Good brokers don't turn investments that don't need it.

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Incredible Hulk wrote: Potential wrote: Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight. I have transferred in mutual fund portfolios and done internal exchanges that didn't generate a dime outside of the .25% 12b1. I have transferred in Vanguard accts just so the guy doesn't have someone else whispering in his ear. Cash is also a great example. Good brokers don't turn investments that don't need it.
 
Herin lies the conflict of interest Jones puts on its advisors by not allowing them to charge an advisory fee on any asset type. If the client holds 500k of american funds, the other guy made $10k (gross), while the EJ guy gets 1250/yr (gross).
 
The next client that walks in with cash and invests 500k puts $10k gross to the advisor, for no more work, and in some cases less because the advisor got to set up the portfolio from the beginning.
 
Wake up Jones.

HymanRoth's picture
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Joined: 2008-08-25

Spaceman Spiff wrote:harris9 wrote:you are an absolute jackass!  The man is working his butt off trying to establish himself in this industry and you have to question his work ethic.  It's morons like you that continue to give this profession a black eye

 
I hate to be the guy who says you're an idiot...wait, looks like HymanRoth already did...anyway, you don't get from exceeding expectations with Jones to going on goals to getting fired while you are working your butt off.  I've never seen anyone who was truly working his butt off at Jones fail like that.  It's darn near impossible.  The Jones goals are so incredibly low that if you can't hit them, you should seriously consider looking for employment elsewhere. 
 
And actually, I'll bet that if you took a poll in whatever town FA17 is in, you'll find it is exactly guys like him that keep investors from thinking that everyone in this biz is a crook.  You don't get to be an RL, much less a GP, without some merit.  And towns don't accept idiots and help them not just survive, but thrive.  Well, evidently there are some out there given some of the comments we see here.  I did.  He is.

HymanRoth's picture
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Spaceman Spiff wrote:Soothsayer wrote:Spaceman Spiff wrote: 
...... my little dot on my performance chart will move up. 
 
 
And there is the essence of Jones in one little phrase.  After more than 6 years at the company, Spiff, you're nothing more than a little performance dot on your RL's and AL's screen.  They couldn't give a shit about you, your kids, your family, your situaton, or the fact that we're in the midst of the most difficult market condtions in 75 years.  Pathetic.

Wow, I've been looking for the essence of Jones for 12 years now.  I'm so glad that you pointed it out to me. 
 
I hate to break it to you, but in this business, whether at Jones or not, the only one who really cares about you, is you.  I don't expect Jones to come running to my rescue if I decide to stop working.  I don't expect my RL to call me and ask me how my family is doing.  Now, he happens to do just that from time to time.  In fact my wife and his wife have become great friends.  But at the end of the day, my family and our friendship doesn't get in the way of a business decision.  It's simply that.  A business decision.  Jones is not a not-for-profit organization. 
 
So, am I to infer from your post that if I were to leave Jones and go indy that suddenly LPL would give a rip about my family or my situation?  I'm going to guess no.  They have pretty much nothing on the line for you or your office.  You could close up shop today and they'd never miss a beat.  They wouldn't care.  Neither would any of the other indy FAs in your area.  Except they'd be circling like vultures at your front door wondering if they could build their book the old fashioned way - by buying it from you. 
 
I think it's funny that you take a phrase completely out of context and put so much meaning into it.  It's also a little pathetic that so many of you continue to harp on the same old song and dance with the I hate Jones crap.  Did you ever notice it's a one way street?  None of the Jones guys talk about how stupid you are for going indy, or for going from one firm to another.  It's always you ex-EDJ guys who still, after many, many years, harbor this resentment towards Jones.  Again, pathetic.  I can't speak for Jones, but I can tell you that there is one diff between LPL and being at a wire, and that is the LPL understands and acknowledges that you can take your business anywhere pretty much at the drop of a hat, and that it is their responsibility to do a good job so that you never want to leave.  That culture pervades the organization, and IMO it makes a tangible difference.The wires never seemed to get that.

B24's picture
B24
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HR, that opinion does NOT exist at Jones.  They believe (or at least act like) anyone that leaves ends up losing half their book because none of the clients could bear to leave Edward Jones.
 
In one sense, they might be right in many instances.  Jones does a great job (as they should) of getting FA's to "sell Jones".  I think the FA's do this a lot to their detriment.  I, for one, do not use Jones's name as a big advantage.  Although I do use the current debacle in the industry to our advantage.  But I want to be sure that if I ever leave, my clients barely remember the name of the B/D I work for.  You will notice I have very little "Jones" crap around my office.  That's for a reason.  Don't get me wrong, I like our firm, I just have to protect my future.

now_indy's picture
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HymanRoth wrote: Spaceman Spiff wrote:Soothsayer wrote:Spaceman Spiff wrote: 
...... my little dot on my performance chart will move up. 
 
 
And there is the essence of Jones in one little phrase.  After more than 6 years at the company, Spiff, you're nothing more than a little performance dot on your RL's and AL's screen.  They couldn't give a shit about you, your kids, your family, your situaton, or the fact that we're in the midst of the most difficult market condtions in 75 years.  Pathetic.

Wow, I've been looking for the essence of Jones for 12 years now.  I'm so glad that you pointed it out to me. 
 
I hate to break it to you, but in this business, whether at Jones or not, the only one who really cares about you, is you.  I don't expect Jones to come running to my rescue if I decide to stop working.  I don't expect my RL to call me and ask me how my family is doing.  Now, he happens to do just that from time to time.  In fact my wife and his wife have become great friends.  But at the end of the day, my family and our friendship doesn't get in the way of a business decision.  It's simply that.  A business decision.  Jones is not a not-for-profit organization. 
 
So, am I to infer from your post that if I were to leave Jones and go indy that suddenly LPL would give a rip about my family or my situation?  I'm going to guess no.  They have pretty much nothing on the line for you or your office.  You could close up shop today and they'd never miss a beat.  They wouldn't care.  Neither would any of the other indy FAs in your area.  Except they'd be circling like vultures at your front door wondering if they could build their book the old fashioned way - by buying it from you. 
 
I think it's funny that you take a phrase completely out of context and put so much meaning into it.  It's also a little pathetic that so many of you continue to harp on the same old song and dance with the I hate Jones crap.  Did you ever notice it's a one way street?  None of the Jones guys talk about how stupid you are for going indy, or for going from one firm to another.  It's always you ex-EDJ guys who still, after many, many years, harbor this resentment towards Jones.  Again, pathetic.  I can't speak for Jones, but I can tell you that there is one diff between LPL and being at a wire, and that is the LPL understands and acknowledges that you can take your business anywhere pretty much at the drop of a hat, and that it is their responsibility to do a good job so that you never want to leave.  That culture pervades the organization, and IMO it makes a tangible difference.The wires never seemed to get that.
 
I second that. That's a HUGE difference. LPL works for me, not the other way around.

ytrewq's picture
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LuvIndy wrote:Incredible Hulk wrote: Potential wrote: Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight. I have transferred in mutual fund portfolios and done internal exchanges that didn't generate a dime outside of the .25% 12b1. I have transferred in Vanguard accts just so the guy doesn't have someone else whispering in his ear. Cash is also a great example. Good brokers don't turn investments that don't need it.
 
Herin lies the conflict of interest Jones puts on its advisors by not allowing them to charge an advisory fee on any asset type. If the client holds 500k of american funds, the other guy made $10k (gross), while the EJ guy gets 1250/yr (gross).
 
The next client that walks in with cash and invests 500k puts $10k gross to the advisor, for no more work, and in some cases less because the advisor got to set up the portfolio from the beginning.
 
Wake up Jones.
 
Not exactly sure how this is a "conflict of interest" but I will bite anyway.
MAP  Individual Stocks and Bonds
Advisory Solutions   Mutual Funds
 
Both fee based.
 
Wake up LuvIndy.....We have.

CDO Squared's picture
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rankstock

why dont u STFU u tool.

u put ur loser pix in this place?

KMA u jerk

i wish u were here.   id like to just kick ur a^&

rankstocks's picture
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If you can't handle the heat.....well, you know the rest.
 
I understand I'm being harsh here.  But if you can't handle a little heat in a forum like this, you shouldn't be in here.  I have seen 50+ brokers fail over the last 15 years I've been around, and there is a reaccuring theme. 
                 "It's (fill in the firm name here) fault.  I didn't get a fair chance.  Why is (fill in office manager's or regional leaders name here) picking on me?  When are they going to realize I am so great even though I didn't do any work?" 
 
Over the years I have become jaded.  I wish all the new people all the best in the world, but don't go bitching about how it isn't fair.  Life isn't fair.  Either work your ass off and succeed or fail and move to a bank or credit union.
 
CDO, you don't like my photo?

HymanRoth's picture
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B24 wrote:HR, that opinion does NOT exist at Jones.  They believe (or at least act like) anyone that leaves ends up losing half their book because none of the clients could bear to leave Edward Jones.
 
In one sense, they might be right in many instances.  Jones does a great job (as they should) of getting FA's to "sell Jones".  I think the FA's do this a lot to their detriment.  I, for one, do not use Jones's name as a big advantage.  Although I do use the current debacle in the industry to our advantage.  But I want to be sure that if I ever leave, my clients barely remember the name of the B/D I work for.  You will notice I have very little "Jones" crap around my office.  That's for a reason.  Don't get me wrong, I like our firm, I just have to protect my future.Smart man.

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ytrewq wrote:LuvIndy wrote:Incredible Hulk wrote: Potential wrote: Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight. I have transferred in mutual fund portfolios and done internal exchanges that didn't generate a dime outside of the .25% 12b1. I have transferred in Vanguard accts just so the guy doesn't have someone else whispering in his ear. Cash is also a great example. Good brokers don't turn investments that don't need it.
 
Herin lies the conflict of interest Jones puts on its advisors by not allowing them to charge an advisory fee on any asset type. If the client holds 500k of american funds, the other guy made $10k (gross), while the EJ guy gets 1250/yr (gross).
 
The next client that walks in with cash and invests 500k puts $10k gross to the advisor, for no more work, and in some cases less because the advisor got to set up the portfolio from the beginning.
 
Wake up Jones.
 
Not exactly sure how this is a "conflict of interest" but I will bite anyway.
MAP  Individual Stocks and Bonds
Advisory Solutions   Mutual Funds
 
Both fee based.
 
Wake up LuvIndy.....We have.Tell me how you can transition an existing portfolio into either of those platforms without selling existing positions to make the deal happen and I'll kiss your ass.

ytrewq's picture
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Joined: 2008-08-02

Although it sounds enticing, I think I will pass on you kissing my ass.  Frankly, I am not sure why you even offered.  I sure did not ask you to kiss my ass.  Okay.  Enough on my ass and on to what I think was your point (You did not make it clear).
 
Since Jones now has fee based you are critical of Jones not allowing us to just slap a fee on existing assets.  Call me crazy but it seems there should be something in it for the client.  No selling of existing positions whatsoever?  Just keep what you already had?  No conflict.  Client should not pay a fee for nothing.
 
On second thought, I will take that ass kissing.

ytrewq's picture
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Iceco1d,
I agree with everything you said.  The difference is LuvIndy framed his question (or statement) so that it is unrealistic, not practical, and involves no advice.  Keep everything.  Pay me.  End of story.  Your response involves advice and responsibility to the client.
His (or Hers?) closing of   "Wake up Jones" added nothing to his post except confirmation the he is a bitter, childish, idiot.

Spaceman Spiff's picture
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LuvIndy wrote: ytrewq wrote:LuvIndy wrote:Incredible Hulk wrote: Potential wrote: Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight. I have transferred in mutual fund portfolios and done internal exchanges that didn't generate a dime outside of the .25% 12b1. I have transferred in Vanguard accts just so the guy doesn't have someone else whispering in his ear. Cash is also a great example. Good brokers don't turn investments that don't need it.
 
Herin lies the conflict of interest Jones puts on its advisors by not allowing them to charge an advisory fee on any asset type. If the client holds 500k of american funds, the other guy made $10k (gross), while the EJ guy gets 1250/yr (gross).
 
The next client that walks in with cash and invests 500k puts $10k gross to the advisor, for no more work, and in some cases less because the advisor got to set up the portfolio from the beginning.
 
Wake up Jones.
 
Not exactly sure how this is a "conflict of interest" but I will bite anyway.
MAP  Individual Stocks and Bonds
Advisory Solutions   Mutual Funds
 
Both fee based.
 
Wake up LuvIndy.....We have.Tell me how you can transition an existing portfolio into either of those platforms without selling existing positions to make the deal happen and I'll kiss your ass.
 
OK, let's say that the client currently owns mutual funds that for some strange reason, probobaly just pure dumb luck, all happen to be funds that are a part of the Advisory Solutions platform.  Or maybe 90% of them are and he just holds a couple that aren't, but that do the same thing as the ones currenlty in AS.  I can petition the AS folks to let me use his fund XYZ in lieu of their fund ABC.  All the funds move in in kind.  He sells zippo.  Now, we may rebalance the portfolio, but he doesn't completely liquidate any of his positions.  BTW, I can use a custom model that he and I put together ourselves that includes all of his exisiting funds.  I may only have to rebalance the portfolio slightly to get it into the right paramaters.   
 
I'm now exposing my right butt cheek to my computer monitor.  Good thing it's Saturday and I'm in the office by myself.  I'll consider it kissed by your chapped, crusty lips.  

LuvIndy's picture
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ytrewq wrote:Iceco1d,
I agree with everything you said.  The difference is LuvIndy framed his question (or statement) so that it is unrealistic, not practical, and involves no advice.  Keep everything.  Pay me.  End of story.  Your response involves advice and responsibility to the client.
His (or Hers?) closing of   "Wake up Jones" added nothing to his post except confirmation the he is a bitter, childish, idiot.Ice covered it for me. It's important on highly appreciated stock, quality bond positions, existing funds that the advisor already uses, the list goes on. The point is you can't tell the client "I'm only making an investment change because it's in your interest. It's up to you to take my advice, but my livelihood does not depend on you taking my advice, it's on me giving it to you and communicating with you on a regular basis."I feel quite secure in my offer not needing fulfillment. Truth is Jones people (which used to include me) do not fully understand the alternative because they don't have it available to them. Jones is living in the past and probably even in many ways management doesn't realize it (though they're getting closer).

LuvIndy's picture
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Spaceman Spiff wrote:LuvIndy wrote: ytrewq wrote:LuvIndy wrote:Incredible Hulk wrote: Potential wrote: Borker Boy wrote:Is gross production 1% of new assets brought in that month? Bringing in new assets doesn't mean squat. You've gotta sell them something.  

Doesn't one necessarily imply the other?  How can I bring in assets and not sell them something?
 
Thanks for your insight. I have transferred in mutual fund portfolios and done internal exchanges that didn't generate a dime outside of the .25% 12b1. I have transferred in Vanguard accts just so the guy doesn't have someone else whispering in his ear. Cash is also a great example. Good brokers don't turn investments that don't need it.
 
Herin lies the conflict of interest Jones puts on its advisors by not allowing them to charge an advisory fee on any asset type. If the client holds 500k of american funds, the other guy made $10k (gross), while the EJ guy gets 1250/yr (gross).
 
The next client that walks in with cash and invests 500k puts $10k gross to the advisor, for no more work, and in some cases less because the advisor got to set up the portfolio from the beginning.
 
Wake up Jones.
 
Not exactly sure how this is a "conflict of interest" but I will bite anyway.
MAP  Individual Stocks and Bonds
Advisory Solutions   Mutual Funds
 
Both fee based.
 
Wake up LuvIndy.....We have.Tell me how you can transition an existing portfolio into either of those platforms without selling existing positions to make the deal happen and I'll kiss your ass.
 
OK, let's say that the client currently owns mutual funds that for some strange reason, probobaly just pure dumb luck, all happen to be funds that are a part of the Advisory Solutions platform.  Or maybe 90% of them are and he just holds a couple that aren't, but that do the same thing as the ones currenlty in AS.  I can petition the AS folks to let me use his fund XYZ in lieu of their fund ABC.  All the funds move in in kind.  He sells zippo.  Now, we may rebalance the portfolio, but he doesn't completely liquidate any of his positions.  BTW, I can use a custom model that he and I put together ourselves that includes all of his exisiting funds.  I may only have to rebalance the portfolio slightly to get it into the right paramaters.   
 
I'm now exposing my right butt cheek to my computer monitor.  Good thing it's Saturday and I'm in the office by myself.  I'll consider it kissed by your chapped, crusty lips.   Spiff, if this is reality it's a step in the right direction. It shows who is in charge though if you have to "petition" to give the advice you want to give.

Spaceman Spiff's picture
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You're right.  Jones does control what goes into Advisory Solutions.  The SMA managers control what happens with their money too. 
I can't see Jones ever giving us a full fee only practice option.  It would be a great option to have so that I could compete fully with everyone else, but they're way too conservative for that.  Even though they'd make a ton more money and their revenue streams would be much more predictable, it'll never happen.  Of course John Bachmann sat on the stage at South Campus one day and vowed that Jones would never do fee based business and if anyone wanted to do it, they'd have to leave the company.  Maybe I'll be proven wrong some day. 
 
I think some of us do understand the alternatives out there.  I'd love to be able to tell people that no matter what form of investments they want to use the fee is still the same.  Sit in cash if you want, my family still gets to eat.  But, since I'm not willing to go indy or RIA at this point in my life, I'll work with what I've got.
 
And I think I fulfilled the statement : Tell me how you can transition an existing portfolio into either of those platforms without selling existing positions to make the deal happen and I'll kiss your ass.
However, being the nice guy I am, I won't hold you to it.  Anyway, it's not Thursday and I'm not into that kind of thing any day but Thursday. 

LuvIndy's picture
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Spiff, as has already been said, you are one of the most reasonable Jones dudes around. Keep a level head like you are and you will be in good shape.We'll agree to disagree on who owes you what in the ass-kissing department.

indythankgod's picture
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Jones will never have a full fee only platform b/c it would scare them to death that the client would have a deeper relationship w/ the broker than the firm. This would hurt Jones when brokers come and go.

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I tend to think it would be because of the compliance issues associated with a full fee only platform.  A company like RJ or LPL knows that they are simply the back office and not truly responsible for their advisors.  They don't have compliance officers on staff like non-indy B/Ds do. 
 
I don't think Jones is under any misconceptions that our clients are loyal to us, not specifically to Jones.  I have very few clients in my office that got to me because they were looking specifically for EDJ and I just happened to be the guy closest to them.  Now, there are some, but not that many.  Those are the folks that if I ever left Jones would more than likely stay behind. 
 
Luv - thanks for the kind words. 

bcvankyle's picture
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Joined: 2007-05-30

Hey , Me,too, I might follow you as well, coz they would probably put me into on-go basis.

Spaceman Spiff's picture
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Um...what?  Perhaps the Canadian to American translation didn't come across so well.  Try again. 

noggin's picture
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Spaceman Spiff wrote:I tend to think it would be because of the compliance issues associated with a full fee only platform.  A company like RJ or LPL knows that they are simply the back office and not truly responsible for their advisors.  They don't have compliance officers on staff like non-indy B/Ds do. 
 
I don't think Jones is under any misconceptions that our clients are loyal to us, not specifically to Jones.  I have very few clients in my office that got to me because they were looking specifically for EDJ and I just happened to be the guy closest to them.  Now, there are some, but not that many.  Those are the folks that if I ever left Jones would more than likely stay behind. 
 
Luv - thanks for the kind words.  Bzzzz, wrong answer my friend.....Do you really think that because you are independent that compliance gets a pass????

Soothsayer's picture
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More Jones fables that the followers take as gospel.  Spiff (and other Jonsies who read this forum), let me say it one more time: "You don't know what you don't know!" 

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noggin wrote:Spaceman Spiff wrote:I tend to think it would be because of the compliance issues associated with a full fee only platform.  A company like RJ or LPL knows that they are simply the back office and not truly responsible for their advisors.  They don't have compliance officers on staff like non-indy B/Ds do. 
 
I don't think Jones is under any misconceptions that our clients are loyal to us, not specifically to Jones.  I have very few clients in my office that got to me because they were looking specifically for EDJ and I just happened to be the guy closest to them.  Now, there are some, but not that many.  Those are the folks that if I ever left Jones would more than likely stay behind. 
 
Luv - thanks for the kind words.  Bzzzz, wrong answer my friend.....Do you really think that because you are independent that compliance gets a pass????Just had my annual audit today.  No passes here....

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Sorry, my bad.  My assumption, which was just that, not something Jones has ever told anyone, was that because you folks had to have your own person responsible for compliance in your office that there wasn't the huge field supervision team at LPL like we have at Jones.
Sooth - let me say this back to you:  You're not as smart as you think you are.    

HymanRoth's picture
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Spaceman Spiff wrote:Sorry, my bad.  My assumption, which was just that, not something Jones has ever told anyone, was that because you folks had to have your own person responsible for compliance in your office that there wasn't the huge field supervision team at LPL like we have at Jones.
Sooth - let me say this back to you:  You're not as smart as you think you are.     Put it this way...compared to my experience with wirehouse compliance, LPL compliance is generally far less adversarial because they tend to tread you more like an adult, and there is a series 24 on-site at each branch or supervising from a branch nearby.Having said that, I have a home office principal who screens my email and supervises my trades because under the newer FINRA rules I cannot 'supervise myself'.  And...the audits are quite thorough.

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RJ is the same way. Every annuity exchange is approved by someone in Compliance, often times after asking two or three followup questions. Mutual fund switches are often times questioned if the client signed form is different. If you are not OSJ, the difference is that compliance asks the OSJ, who then asks you. If you are OSJ, Hyman is correct that the firms need to supervise the supervisors.

Fud Box's picture
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B24 wrote:HR, that opinion does NOT exist at Jones.  They believe (or at least act like) anyone that leaves ends up losing half their book because none of the clients could bear to leave Edward Jones.
 
In one sense, they might be right in many instances.  Jones does a great job (as they should) of getting FA's to "sell Jones".  I think the FA's do this a lot to their detriment.  I, for one, do not use Jones's name as a big advantage.  Although I do use the current debacle in the industry to our advantage.  But I want to be sure that if I ever leave, my clients barely remember the name of the B/D I work for.  You will notice I have very little "Jones" crap around my office.  That's for a reason.  Don't get me wrong, I like our firm, I just have to protect my future.
By "protecting your future" I assume you mean your book of clients. I just started with Jones, so I still have that employment contract fresh in my mind. My understanding is that you are prohibited from suggesting that clients leave the firm while you are an employee, and you are also required to refrain from any solicitation of your clients for a duration of one year. They even go so far as to specify that you not solicit by any means directly or indirectly (with a whole list of possible methods). They consider any records of clients whether hand written, copied, or memorized (yeah, really) the property of EJ. Seems pretty air tight to me.
 
Anyway...what in the world could you do to "protect your future" given those stips? Or am I just misinterpreting the whole thing?

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B24
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Clients may come and go as they please.  If I leave Jones, they will be saying WTF did he go?  I have to go with MY GUY, not some "replacement".  I don't want clients to think they are investing with JONES, I want them to think they are working with ME. 
 
And FYI, I know for a fact that the non-compete is negotiable, along with the 3-year reimbursement.  Just have a good attorney.

Broker7's picture
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sounds like B24 has been doing some research.  Good for you.

Soothsayer's picture
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Spaceman Spiff wrote:
Sooth - let me say this back to you:  You're not as smart as you think you are.    
 
Maybe, maybe not.  Just plenty smarter than you and most of the GPs that I knew of during my time there.  How's your dot going to look after the system updates over the weekend? 

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B24, If a Jones (seg 2)  is put on goals and is let go..does the non-compete go away? Two from my class are going to go on goals this month. We where talking yesterday and they wondered if the non-compete goes away if they are "let go". They are both in the last year of the non-compete. About 28K? thanks

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I don't know specifically.  All I know is, with a good attorney writing a letter to Jones ( as a response to their TRO), I don't think "they" will have a problem.  It seems to me that a firm can't fire you for underperformance, and then say, oh by the way, you can't work anywhere else, either.

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If they are let go then the non-compete does not apply.  Just what B24 said, Jones can't have it every which way.

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Soothsayer wrote:Spaceman Spiff wrote:
Sooth - let me say this back to you:  You're not as smart as you think you are.    
 
Maybe, maybe not.  Just plenty smarter than you and most of the GPs that I knew of during my time there.  How's your dot going to look after the system updates over the weekend? 
 

You could very well be smarter than me.  It has happened once or twice before. 
 
My dot is going to look pretty good this month.  Better next month.  Thanks for asking. 

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Spaceman Spiff wrote:Soothsayer wrote:Spaceman Spiff wrote:
Sooth - let me say this back to you:  You're not as smart as you think you are.    
 
Maybe, maybe not.  Just plenty smarter than you and most of the GPs that I knew of during my time there.  How's your dot going to look after the system updates over the weekend? 
 

You could very well be smarter than me.  It has happened once or twice before. 
 
My dot is going to look pretty good this month.  Better next month.  Thanks for asking.  What are you, an Indian (7 Eleven, not casino) woman?

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Soothsayer wrote:If they are let go then the non-compete does not apply.  Just what B24 said, Jones can't have it every which way.
I had my lawyer look over this agreement prior to accepting the position. There is  a standard non-solicit...you'll find this in several industries. Basically, "don't try to get any of your old clients to leave by any means whatsoever".
 
The second is the reimbursement of training costs. It doesn't specify whether you quit or get fired, it just says that your employment is terminated. I checked with EJ's legal department to get clarification b/c I thought it didn't apply if you got fired. Not the case. No matter whether termination was voluntary or involuntary, the statement applies. This was done on purpose to prevent people from abusing the system by "trying to get fired".
 
The cost of training decreases every full quarter following your 13'th month of employment, so if you only have one year left of the 3 year agreement, then the liability is for less than $75K.
 
Take particular note that neither agreement is a "non-compete". However, the second agreement does effectively create a non-compete based on the fact that $75K is a lot of money to most of us, and would make remaining in the industry cost prohibitive barring other circumstances.
 
That's what I meant when I said it was air tight. Legally, it's perfectly air tight and actionable if they so chose. Real experiences may be a different story.
 
Personally, I didn't apply for this job intending to quit, and I figured that if I got fired in under three years then this line of work probably wasn't for me.

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I can tell you for a fact, Jones negotiates, jsut like all the other firms.  I know of specific cases where they actually negotiated a smaller settlement (a SMALL % of the original amount) as well as voiding the non-compete language.
I doubt that they would be ahrd on someone they canned for lack of production.  I mean, it's not like the guy would have $50mm in assets.  He likely has less than 10.  The production on that wouldn't add up to the amount of the settlement.  So they could really care less.

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I'm not doubting you at all. Frankly, when it comes to what they HAVE done vs. what they CAN do...I simply have no idea. Hell, I don't even start till Monday, but I'm not going to have to worry about it cuz I'm gonna be a rock star!!!!

SometimesNowhere's picture
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Fud Box wrote:I'm not doubting you at all. Frankly, when it comes to what they HAVE done vs. what they CAN do...I simply have no idea. Hell, I don't even start till Monday, but I'm not going to have to worry about it cuz I'm gonna be a rock star!!!!
 
That's a great attitiude! Good luck with the journey...

footsoldier's picture
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I wonder if he realizes this is life not a video game.

monopolybet's picture
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All of the new people are "rock stars". Just like all the rock stars that are trying out for american idol!!! good luck to you!! I hope you have a lot of supplemental income and very little expenses.............that will make it much easier to stay a rock star!! Having to feed a family of three on one paycheck of 2k for 4 weeks can be a challenge if your transmissions goes out!! Once the salary goes away.....and it is all commision, it can be a challenge to be a rock star!!

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I've worked for 100% commision most of my adult life, so I'm very comfortable with a fluctuating income. I've got a wife that makes decent money and no kids (just 3 dogs). Financially, I can weather the storm. 
 
Besides, no rock star got to the top without spending years learning the craft, more years working their @ss off for crap money, a heluva lot of sacrifice, and a little luck.
 
I'm gonna be a rock star!!!
 

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That's good. Too many are not really prepared to deal with the first years. If you can focus on your business growing, and have a plan it will be easier to be a rock star. I know a lot of very good men who have struggle with having a young family and a stay home mom...best of luck to you rockstar!!

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Fud Box wrote: Hell, I don't even start till Monday, but I'm not going to have to worry about it cuz I'm gonna be a rock star!!!!

Fud Box's picture
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Morphius wrote: Fud Box wrote: Hell, I don't even start till Monday, but I'm not going to have to worry about it cuz I'm gonna be a rock star!!!!
Wow.........................just wow.
 
 
And thanks for the vote of confidence, monopolybet.

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