How is Jones' Technology?

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Philo Kvetch's picture
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Stan, judging by the thorough knowledge in evidence, quality and intellectual content of the posts submitted here by Edward Jones people, I'm not sure that they have opposable thumbs over there.  And you want to give them technology????

xej1984's picture
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candy bar,
I heard EJ Canada branches still used Burrough's (sorry about the spellin) machines up to around 1996 or 97 and thermal paper fax machines until 2002. Is this part of that "leading edge" technology?
candy bar could you also explain what a "wire" is at your firm?    
Could you also describe what programs your firm provides for asset allocation reviews?

BigPayDay's picture
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Joined: 2005-01-10

Starka wrote: Ted Jones was a good and just man.
Please don't associate those other two pikers in with him.

These two "pikers" have grown the firm from 541 offices in 1982 to more than 9500 today. Ted pretty much was out of the business in 1982, he passed away in early '90s.

Take a look:

http://www.edwardjones.com/pdf/COM-101D.pdf#search='edward%2 %200jones%20hawaii'

BPD

Starka's picture
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I know when Ted died.
Bachman is everything that Ted was not.
Hill is nothing but a fall guy...a cipher and nothing more.
Pikers.  Both of them.

BigPayDay's picture
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Imagaine how strong Jones would be with some good leaders? Huh?

Starka's picture
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YES!!!  FINALLY YOU GET IT!!!!!
Edward Jones could be a leader in the industry with the right leadership!!!

BigPayDay's picture
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Starka,

It's a shame you left. You could have been our saviour?

Not!

Just think, if you stayed with Jones you wouldn't spend so much time on this board. Just think how much stronger the relationships with your spouse and children would be if you spent all the time on this booard insted with them!

No, that wouldn't be worth it, would it?

Dude, get a life.

xej1984's picture
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xej1984 wrote:
candy bar,
I heard EJ Canada branches still used Burrough's (sorry about the spellin) machines up to around 1996 or 97 and thermal paper fax machines until 2002. Is this part of that "leading edge" technology?
candy bar could you also explain what a "wire" is at your firm?    
Could you also describe what programs your firm provides for asset allocation reviews?

bpd,
why you ducking my questions?

BigPayDay's picture
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Joined: 2005-01-10

So I guess Jones isn't going to fail because of the revenue sharing settlement so its back to bashing our technology? At top producers last month a vote was taken and of the reps that were there 80% said they did NOT want email for client use. Wonder why? We don't want to be bothered. Our technology is just fine. We have had internal email before there was an internet. It's called an intranet. And we've had it since the early 90's.

BPD

noggin's picture
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Joined: 2004-11-30

Why is everyone so bothered about our technology anyway? I personally am excited that next week I get an indoor bathroom and a tin can with a string on it to make calls. BTW, that's called sarcasm. I point that out for the benefit of one person Stanwbrown.

Bubba Gump's picture
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Joined: 2005-05-11

Of course I wouldn't want to email clients. I'd rather send client correspondence through the Pony Express.

Those damn other firms can email their clients, but we shouldn't, since other firms are evil and Jones isn't.

Sorry, gotta go. I have to watch a Mandatory CE broadcast, the Gospel According to Doug.........

Philo Kvetch's picture
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Joined: 2005-05-17

In all honesty, I agree about the e-mail thing.  With the regualtory environment being what it is, the record keeping on e-mail is going to become a boondoggle.  I'd just as soon not have it.

eddjones654's picture
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Joined: 2004-12-03

bpd,
Most firms had intranets, I had use of it in 1987. Unfortunately your firm was still using teletypes not too long ago.
As far as revenue sharing being closed issue, that swirling blue water in your toilet is not only effecting your comprehension but your memory as well. There is the matter of the $300 million that the California AG has filed, not to mention the Class Action suits are still pending.  Oh by the way have you heard the NASD is investigating the sales of VAs .... something about revenue sharing concerns
bpd, you better concentrate on the blue water while you flush as it doesn't look as your pristine firm (you know the one that always does what's in the client's best interest) is out of the regulatory woods just yet!

stanwbrown's picture
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noggin wrote:Why is everyone so bothered about our technology anyway? I personally am excited that next week I get an indoor bathroom and a tin can with a string on it to make calls. BTW, that's called sarcasm. I point that out for the benefit of one person Stanwbrown.
Why, tahnks, Noggin, for filling me in...
Just two questions for you; are you with Jones,  and is it fact or sarcasm on the issue of Jones not having email?

stanwbrown's picture
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Joined: 2004-12-01

Since I would never have guessed how far behind Jones is on other tech issues, so I have to ask; does Jones have cost basis on client statements?

BigPayDay's picture
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Joined: 2005-01-10

Yes we've had cost basis for many years. For securities bought at Jones it's automatic, for transferred in positions you can manually add cost basis. One of my two full time Jones' paid BOAs usually enters in the data for transferred in securities. Thanks for asking.

The debate must be close to coming to an end. The Jones Bashers have resorted to bashing Jones technology.

BigPayDay's picture
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Joined: 2005-01-10

Philo Kvetch wrote: In all honesty, I agree about the e-mail thing.  With the regualtory environment being what it is, the record keeping on e-mail is going to become a boondoggle.  I'd just as soon not have it.

Philatio,

I agree. Even after three Goodknights, my assets are still over $155 million, the last thing I want is to be returning emails from clients all day.

BPD

Phlyin' Phule's picture
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Joined: 2005-05-01

What a crock.

jkup's picture
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Joined: 2005-05-21

I am ex-jones... but it is a good firm.  I chose to go independent, and have no regrets, but jones provided a great start for me personally.  As far as technology, yea there is room for improvement, but if you think that e-mail is going to make or break your business you've got a problem.
to bash the leaders of jones is wrong too... well maybe you can bash Hill, but other than that Ed, Ted, and John B. were all good leaders and grew the business, and created a great opportunity for many of us.
Jones tends to be on the leading edge of technology (really) for 2-3 years then they are obselete for 7-8, and it's a cycle.  They invest alot in tech. just not often.
for what its worth

AnotherView's picture
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Joined: 2005-01-24

Well said.
 
 

compliancejerk's picture
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Joined: 2004-12-03

the big reason ej doesn't use email is that it crash its "leading edge technology" down loads from satellite communications systems are fast but it's the uploads that are killers. Thats why the UK and Canada head offices are connected to STL via high speed land lines. The UK is strictly email between office and Canary Wharf.
If email is not necessary or to difficult to control why do all the wire houses have it and are able to cope?????

noggin's picture
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Joined: 2004-11-30

Stan- To answer your questions.
1. yes
2. no

JohnAndMary's picture
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Joined: 2005-03-12

If there's one thing you can count on Edward Jones to do, it's make the worst possible telechnological decisions, and pay the most money to do it!
They hire people who specialize in making good decisions in these areas, and spend tons of money on "user reseach", focus groups, survery, and usability testing.  Unfortunately, the "powers-that-be" (GPs) completely ignore the people they've hired to advise them and the data they collect, and pretty much design by whim.  Expensive, hard-to-use, long-time-to-rollout whims, but whims, nonetheless.
Of course, this is the company where at the Division Meeting for all IS associates, the key message last year was "it doesn't need to be perfect, it just has to be good enough".  Deciding what is "good enough" has been somewhat problematical.

gpwanabe's picture
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Joined: 2005-06-07

One thing that confuses me is the amount Jones charges on the P&L for technology and the level we actually receive. Last time I looked it was close to $1500 per month LPL charges about $200 a month for more than we have at Jones. Add to that the cost of a high speed internet connection at $80 and it is still 1/5 the cost of jones.
I guess those vacuum tubes are pretty spendy these days.

troll's picture
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Joined: 2004-11-29

gpwanabe wrote:One
thing that confuses me is the amount Jones charges on the P&L for
technology and the level we actually receive. Last time I looked it was
close to $1500 per month LPL charges about $200 a month for more than
we have at Jones. Add to that the cost of a high speed internet
connection at $80 and it is still 1/5 the cost of jones.
I guess those vacuum tubes are pretty spendy these days.

I don't have my paperwork in front of me, and I'm new w/LPL, but I seem
to recall my total monthly costs to LPL are about 1000/mo.  This
includes my monthly contract fee, technology subscriptions including a
financial planning program, and access to S&P & CS First Boston
research.  So....it's still less than EJ, and with access to
substantially more information, plus a much higher payout!  This,
and I get to pick and choose what I pay for.....

noggin's picture
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Joined: 2004-11-30

Not to belabor a point Joe but that is an apples vs oranges type discussion.

troll's picture
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Joined: 2004-11-29

noggin wrote:Not to belabor a point Joe but that is an apples vs oranges type discussion.

yah apples and oranges in that my lowest payout is 76% versus what....around 40% at EDJ...?

compliancejerk's picture
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Joined: 2004-12-03

7yrvet wrote:
Jones technology was purported to be the leader in '98 when I started with the firm. Lost our communication entirely for a few days due to our never to be found, satelite. We had to be repointed to a new satelite which was a monumental effort to accomplish firmwide. We were told to go to the firm website for instructions. The problem was we did not have alternate web access at the office (DSL or dialup). That was December of last year.
When the highest paid executive in the firm is the MIS manager (4.3M),you would hope it would be based on merit, not tenure. Still waiting for remote access and email. The RTA in our region says this summer. Hopefully the next managing partner will take on this challenge. It is pitiful.

gpwanabe, candybar et al.
There is no comparison to EJ technology, most everybody on this forum has newer, faster technology on their kids PCs at home. Most Crackberries are more versatile/robust than what you have access to!
To claim your firm's technology is the best please explain why "prey" tell is your firm converting to what every other firm currently has???  DSL is what most if not all sub branches have while branches have T3 or even faster.  Has St.L finally converted to MS Office components or are they still on Applix (you know that phenominal robust UNIX office package?)
What about the trips that Maritz books for you? Ever wonder why you can book yourself cheaper flights & better accommodations ..... can you say kick-backs not to mention EJ GP(s)on the BOD of Maritz???

gpwanabe's picture
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Joined: 2005-06-07

joedabrkr wrote:
I don't have my paperwork in front of me, and I'm new w/LPL, but I seem to recall my total monthly costs to LPL are about 1000/mo.  This includes my monthly contract fee, technology subscriptions including a financial planning program, and access to S&P & CS First Boston research.  So....it's still less than EJ, and with access to substantially more information, plus a much higher payout!  This, and I get to pick and choose what I pay for.....

I was specifically referring to tech fees. Jones itemizes licensing fees in another place on. Jones does not have CS First research avail, just S&P. So I only included that in my very rough estimate of LPL tech fees. Of course if you have a website it is an extra 100 bucks or so.
Hey bpd, could you run me an annuity hypo on your Jones terminal.
Nevermind.....one of the GP's didn't pay the bill for that.  I guess they will have to sqeeze more money out of Putnam to cover the cost.

noggin's picture
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Joined: 2004-11-30

Joe- You missed my point. You are dead wrong on the annuity hypo quip btw. My point was that the technology question is not simply a matter of comparing what do I pay each month to see who gets the best deal. Then you always go back to payout, the real reason that you are at LPL is that the payout is higher not that the technology is better.....

eddjones654's picture
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Joined: 2004-12-03

noggin,
And your point is what, that you have the more antiquiated technology in the branch system (Head Office is a different matter) of most firms????

babbling looney's picture
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My point was that the technology question is not simply a matter of comparing what do I pay each month to see who gets the best deal. Then you always go back to payout, the real reason that you are at LPL is that the payout is higher not that the technology is better.....
I think the point is that the technology at Jones, as compared to that available to an independent, makes it much harder to do a comprable job.  In addition the fees that Jones charged (as I remember it was a sattelite connection fee of $1200 a month) were exorbitant compared to the value received.   And yes, I know those fees were not directly taken out of my pocket, but they were charged against the profit and loss* of the office, making it that much more difficult to achieve profitablility.  
I can't speak for Joe, or anyone else, but for me it was a combination of both factors that helped me decide to become indy.  First the payout is much much, did I mention much, higher. Second "I" can control my expenses by deciding what technology platforms and other expenditures I want to subscribe to....or not.  And last; I can actually figure out what my profit and loss is. Whereas at Jones the P&L was a joke. 
 *  I  was a commercial lending officer for some years and I have NEVER seen such a farcical way of determining a P&L of an office.  After the first few months of trying to figure it out: I did.  The P&L is structured in a way to make it most difficult to actually achieve profit in the first few years and to minimize the profit in future years at the branch level.  The company as a whole makes profit, but the mathematical formulas used at the branch level are a joke.....on the IR.

SA_Jim's picture
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Babbling looney,
I have to agree with you on your last post, I just had a 20k gross month, and my P&L said I was profitable by $183.00. I do find that a little hard to belive. The more you make the more they take!

gpwanabe's picture
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SA_Jim wrote:
I have to agree with you on your last post, I just had a 20k gross month, and my P&L said I was profitable by $183.00. I do find that a little hard to belive. The more you make the more they take!

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SA_Jim,
You are missing the point.  You get to keep Part of that 183 bucks as your bonus.  Idependant reps dont get a bonus.

SA_Jim's picture
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gonna be a GP,
I just didn't like the fact that if I grossed 8k my direct expenses were 10K, but if I grossed 20k then my direct expenses were 14k. And the direct expense also included my pay. Like I said the more you make the more they take. Total to run my office is only $2788 plus what I pay my BOA and her benefits.

Philo Kvetch's picture
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Joined: 2005-05-17

If I grossed $20K and my profit was $183, you can bet I'd be looking around to see what I could get rid of.  And if the elephant on my back was my B/D, they'd be gone in a heartbeat.
What is there to think about?

SA_Jim's picture
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Philo,
The $183 was above all the P&L (expesis) and would have gone for bonis. I was paid about 39% of gross (pretax).

SA_Jim's picture
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typo "expenses"  

babbling looney's picture
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You are missing the point.  You get to keep Part of that 183 bucks as your bonus.  Idependant reps dont get a bonus
YOU are missing the point.  Independent reps don't need to get a bonus.   On my 20K gross month it works like this.  BTW I just had a 32K month
20,000 less 20% override to B/D =$16,000 to me pre tax
Less monthly deductible expenses of lease $500 (I know really cheap ), E&O insurance $200, Phone and DSL $140, Utlitiies $50, Liability Insurance $45, Advertising budget $150, Affiliation fee and software production subscriptions Morningstar etc $220 = $1305 bare bones base overhead.  No assistant as yet as I don't need one so far. So ok lets round it up to $1500 so I can buy sodas, pens, toilet paper and take clients to lunch.   Remember this is bare bones, I can choose to spend more on advertising, software, what have you.
16,000 - 1500 = $14,500 net/gross pre tax.   Compare to SA_Jim's 39%  or $7,800 pre tax     From which he also gets to pay for the sodas, pens, toilet paper, advertising and lunches and a really really expensive health insurance plan.    So why would I give a rat's behind about a crappy $183 going into a bonus?
I figured out that the P&L was a racket or catch 22 trick.  As Jim says the more you make the more they take out.  It made no sense.

babbling looney's picture
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Joined: 2004-12-02

Update to my previous post.  The B/D deducts the ticket costs before the 80% pay out.  Ticket costs are minimal on most trades and for those clients who are doing small mutual fund buys, we go directly to the fund family to avoid ticket costs of any kind.  When I do insurance, long term care, health insurance or fixed annuity business, the payout is 100%.    Believe me, after being hosed by EDJ I made sure to crunch the numbers and get all the costs of doing business up front before deciding to make a move.  
(Never mess with a prior loan officer when it comes to checking the numbers  )

gpwanabe's picture
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Joined: 2005-06-07

My comment was a little tounge and cheek.
But to add to you comment on the P&L being a racket. It gets even better on the bonus payout system.  They talk about the 40% bunus bracket, but it is graduated. In Jims case, he would keep $14.00 of his profit. The impact on his payout would be noteworthy.
7800+14=7814
7814/20000=.3907 or a payout of 39.07%
Take that to the bank baby!
 

Philo Kvetch's picture
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Joined: 2005-05-17

Do I understand that the referenced payout is 39% before incidental office expenses and and then rent, salaries, utilities, etc. are folded back in and charged to your personal P&L?  So that means that your personal cut is added to your expense, and is weighted against you to the tune of 61%?  Then your tech charges ($1400????) are on a sliding scale, increasing as your gross goes up????  Then you ultimately get your head above water after that and they want to take a portion of the amount that you make over that larceny???
Who are you with????  I'd run from those bandits at the speed of light!

babbling looney's picture
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Joined: 2004-12-02

My comment was a little tounge and cheek.
But to add to you comment on the P&L being a racket. It gets even better on the bonus payout system.  They talk about the 40% bunus bracket, but it is graduated. In Jims case, he would keep $14.00 of his profit. The impact on his payout would be noteworthy.
7800+14=7814
7814/20000=.3907 or a payout of 39.07%
Take that to the bank baby!
  My mistake. I thought you were serious. Many of the current EDJ posters on this board are so deluded that they would think this is a good deal.

Philo Kvetch's picture
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This is about Edward Jones?
No wonder there's so much anger generated towards the firm.
That's thievery, bordering on being a Ponzi scheme.

noggin's picture
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Joined: 2004-11-30

And to think I thought this thread was about Jones technology. Why is it every Jones thread comes down to payout no matter what subject it starts on?

troll's picture
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Joined: 2004-11-29

noggin wrote:And to think I thought this thread was about Jones
technology. Why is it every Jones thread comes down to payout no matter
what subject it starts on?

hmmmmm....maybe becoz their payout REALLY REALLY SUCKS!  And when
folks stop and do the math they realize they're getting screwed?

noggin's picture
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Joined: 2004-11-30

Joe- After being courted by AGE lately, I got to tell you that all payouts outside of independents is far less than what the independent's are. AGE's isn't a great improvement on Jones and as a matter of fact depending where you are on production could be higher at Jones. You build your business with the help of a name and THEN you transition to an independent....

Starka's picture
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Joined: 2004-11-30

The underlying truth on technology is that although it does make life easier, it's no substitute for knowing our craft, which is meeting people and asking for an order.  One can spend all day every day looking a computer screen and accomplishing nothing with a great deal of efficiency.  People have been raging successes in our business with nothing more than a pencil and paper. 

Player's picture
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Joined: 2004-12-08

Long, long, long time ago in a far away Galaxy called Jonesville, self proclaimed Leaders named  J.B  & Doug "3" Mil Hill decided that Edward Jones should forget about the INTERNET, and go to a satellite system!  Wow, it was a no brainier, wasn't it!
It worked fine until one day the satellite fell from the sky....Then "3" Mil Hill said, we are going to Hardwire all of our offices!
We want to keep or identity as being different.....and guess who has paid for all of this changes, and bad decisions?  Could it be the Drones and the Clones, yes it was!  But they still love their Truthful leaders.......
And even now Edward Jones is still not on the net, still can't communicate on the net......yes Doug "3" Mil Hill it is time to forget about the string and your empty can of beans, it just doesn't cut it anymore....you need to get into the 21st century and get on the net .....
While all this was going on they forgot about full disclosure for their beloved clients in fact they still haven't told them about the 75 Million, mostly paid by the Drones & the Clones and since they all love Doug "3" Mil Hill who had to pay 3 Million in SEC Fines or go to jail for FRAUD, but the Drones  and the Clones still defend him..........could they really be that stupid..read their postings and you will know it's true........some say it's the Kool Aid, some say it's the brainwashing....who knows for sure?
That is the story of Edward Jones Technology Saga, by the Player
Signing off on the net.....................

gpwanabe's picture
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Joined: 2005-06-07

Communications charges agains P&L: $1425
Quote from guy in region in charge of disseminating the latest technology propoganda:
"The firm wants to increase the number of offices so we can spread our tech costs over a wider base"
For that much money I should be able to place trades via voice command in my car while driving past the regional meeting to a real resort for some R&R.
I repeat,
"Communications charges agains P&L: $1425 "
10,000 offices and shrinking every day.... how's that bigger base coming Dougy.  Do you think the tech charges will go up or down from here.  How about PDA support and those tablet PC's I heard about. Sh*t how about DSL.
Out.
 

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