Edward Jones Performance Exception

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brokergirl's picture
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Joined: 2009-02-19

What is the "other site", I am interested in learning as well.

phever's picture
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Joined: 2010-08-12

I just left Jones after 7 yrs and wish I had done it sooner. They have a very expensive model that will only get more expensive as headquarters continues to grow. The new regs will have a very profound effect on their revenues and changing their age old business model will be a monumental task. I never saw  the son or daughter of a $100M plus office holder fail but I saw lots of scratch starters, that were good people fail? New news in this economy have very steep odds. If you can go independent, I would suggest that. You'll find the situation much better.

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

Can you tell us more about your situation?

phever's picture
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Joined: 2010-08-12

What do you want to know?

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

phever wrote:I just left Jones after 7 yrs and wish I had done it sooner. They have a very expensive model that will only get more expensive as headquarters continues to grow. The new regs will have a very profound effect on their revenues and changing their age old business model will be a monumental task. I never saw  the son or daughter of a $100M plus office holder fail but I saw lots of scratch starters, that were good people fail? New news in this economy have very steep odds. If you can go independent, I would suggest that. You'll find the situation much better. I hope these are just off the cuff remarks and not thought through opiniions.So you think by adding to the home office space and people, that adds expense?  At which firm or industry is this not the case?You think the new regs are going to have a profound effect on EDJ?  No kidding?  I guess they won't apply to the other firms... or your new shop.Scratch starters at Jones fail more often than those handed assets?  You are really blowing my mind here.   FYI, new news have very steep odds in any economy, again regardless of firm.And surely you don't thin that new news have better odds starting independent?I thought only the smart brokers left EDJ.... 

phever's picture
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Joined: 2010-08-12

Wow, who rained on your parade? I bet your customer service ratings are through the roof. Take a chill pill and drink some more kool aid.

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

phever wrote:What do you want to know?Just curious how long you were at Jones, assets, production, where you went, how the transition went, the typical stuff.

phever's picture
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Joined: 2010-08-12

I don't want to give out too much info because it is still a competitive situation and I know a lot of my former colleagues frequent this site. I would be glad to discuss at a later date. I don't want to bash Jones because they gave me the opportunity. I just never drank the kool aid and now know that there are a lot of other good firms out there that can be a much better fit if you want the independence that Jones touts. I opened an office very close to my old office.

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

Hulk wasn't spewing kool aid.  He was commenting on your assessment of EDJ.  To further question your brilliant commentary:The only time the HQ grows is when the FA number goes up.  There's a ratio they try to maintain between HQ and the field.  So, while you are technically correct that expenses will grow as HQ does, so will revenues as we add new FAs. Let's say the new regs do have an impact on the Jones business model.  The general consesus right now is that they won't, but that's another discussion.  If it does, it would more than likely force clients to use more Advisory Solutions or UMA type of accounts.  That would be a tremendous boost to the bottom line.  I have seen sons and daughters of big brokers fail.  Some of them grew up with a silver spoon in their mouth and don't really know how to work.  The come in and try to take over a part of Daddy's book, and they fall flat on their face.  I've even seen it happen to GP's kids.   If you think this economy has been harder on new/news than any other economy, then you haven't been paying much attention to the new/news in your region.  It sucks to be new in any economy.  When the market is going great, nobody wants to mess up a good thing, so they don't ACAT.  When it's bad, they're afraid to sell something in case that investment might come back up 1-2%.  People are dumb no matter what the environment.  Generally speaking, new/news haven't come to that realization yet.  Independance is great.  From what I hear.  It comes with additional baggage that may or may not make it worth while for everyone.  I can see both sides of the coin.  Going independant is not the answer for everyone.

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

As far asthe "GP's kid" thing, the only experince I have with that is the son of a former GP in my region.  He got Goodknighted a very large book (I think he got around 40mm - his Dad still has his own book).  Yes, that can pretty much guarantee you success, but I must say that he is a great guy (he is in his late 30's, used to work for a major consulting firm), smart, modest, and a very hard worker.  Would he have succeeded without those assets? Who knows - his dad started from scratch 18 years ago (first FA in his state). But the point is, I have no real problem with it.  If I was the Dad, I would certainly want to hand off some/all of my book to my kids.  I assume he will get another big chunk of it when his dad retires eventually.

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

phever wrote:I don't want to give out too much info because it is still a competitive situation and I know a lot of my former colleagues frequent this site. I would be glad to discuss at a later date. I don't want to bash Jones because they gave me the opportunity. I just never drank the kool aid and now know that there are a lot of other good firms out there that can be a much better fit if you want the independence that Jones touts. I opened an office very close to my old office.So that means you're NOT going to tell us your name?

spamfilter's picture
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Joined: 2010-05-22

Spaceman Spiff wrote:Independance is great.  From what I hear.  It comes with additional baggage that may or may not make it worth while for everyone.  I can see both sides of the coin.  Going independant is not the answer for everyone. I believe that you should not go independent.....unless you know how to spell it.I-N-D-E-P-E-N-D-E-N-T 

Greenbacks2's picture
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Joined: 2010-03-03

phever, Congratulations on going indie! You will like it. It is nice of you to thank EJ for the opportunity but they got paid very well for your time. Now go get your clients! 

yo paulie's picture
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Joined: 2009-01-20

Phever,Good luck with going independent, keep us informed about how many clients followed you to the new shop. I think more and more Jones people like yourself will see the light by going independent or the RIA route. This also applies to the other wirehouses. I am sure Jones has a Newbie in your office trying to keep existing clients from leaving.

LockEDJ's picture
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Joined: 2009-07-06

Phever:Congratulations making your own way. You are right to bide your tongue; nothing gets gained by being here.Sounds like Jones did right by you, Jones did right by me, and hopefully I did right by them in the manner I left them and while I was there. At least, that's my impression of what transpired. They made some "post-Jones" points to me, I tried to abide and play by the rules and they have given me absolutely no problems since. Work your butt off, and in six months or a year I hope you'll have the time to let us know how you've done.

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