H&R BLOCK

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Danboy's picture
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Joined: 2005-11-13

Hi,
Can anyone provide a reason NOT to consider H&R Block?  I recently had an interview with one of their local "Financial Advisors" and have to admit I was surprisingly impressed with the overall operation from the payout right down to the technolgy that they use. To be honest, I couldn't believe what I was seeing or hearing. They also have their leads hand fed to them from their Tax service, what a great way to start your pitch. I have done extensive research on a lot of firms but most did not feel right. I'm basically looking for a reason to move on past HRB, but my gut feeling is telling me to look no further. Thanks in advance for your response. 
Danny    
 

Indyone's picture
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Joined: 2005-05-30

The only negative thing I can offer is that in our area, at least, H&R Block does not work with what I would consider high-end prospects.  Typically, higher-income/more complex clients go to local CPAs and shun H&R Block for tax prep, as our H&R Block offices do not have a good reputation for quality tax advice (no CPAs there).  My guess is that most of your leads would be $4,000 IRA deposits, at best.

Danboy's picture
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Joined: 2005-11-13

Good Point Indy Thanks for your feedback. I am licensed and have about 5 years of industry experience. Looking to start somewhere. I talked to EDJ and I have gotten to the point where they have asked me to start the door knocking and look for a market area but I can't overcome the A OR b shares that they push, or any of their 
proprietary products for that matter. I don't think I would sell that crap to my dog or his fleas! At HRB, they have a managed account platform + you are free to recommend any suitable investment. Could use some sound advice from a pro, like yourself. 
 
Thanks again,
Danny

Indyone's picture
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Joined: 2005-05-30

Well, beyond what I just told you, I know pretty much nothing about the HRB platform or operating structure.  I know a bit more about Jones after taking a look at them a few years back.  I too, didn't see anything appealing about a Jones office...just wasn't a good fit for how I do business at all.  Good to see that Block has a fee-based platform and gives you some freedom in recommending product.
Whether I'm a "pro" is debatable, at least in some minds, but the best advice I can give you is to resist signing any restrictive non-compete contract.  A non-solicit is bad enough, but a non-compete is almost a death sentence in my view.  Assuming you don't have to sign a non-compete, if things end up not being what you imagined, at least you have the opportunity to move on to other (greener?) pastures.
If you're lucky, someone with some H&R Block experience will spy this post and clue you in on the finer points of their business model...good luck...

ezmoney's picture
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Joined: 2004-11-30

Do yourself a favor and stay away form HRB. Demographically it will be a loser for you.

Danboy's picture
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Joined: 2005-11-13

Do yourself a favor and stay away form HRB. Demographically it will be a loser for you.
EZ,
Not to call you out, this is not my intent(seriously). Can you tell me a little how you have come to this conclusion? Have you interviewed with them? What value can you add that would  able me formulate an opinion?
Thanks,
Danny
 

badplaid's picture
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Joined: 2005-09-10

most on here are like ez. ill-informed about HRBFA. he thinks HRB only does business with the eic crowd or people who need their tax refund.  that enough shows how little he knows. what he doesn't know and most advisors don't know is what you have already heard from HRBFA. my advice to you is a. not come here for advice. this place is a mostly a bunch of clowns b. trust your instinct.   Good luck with your decision!!

troll's picture
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Joined: 2004-11-29

HRB took over Olde, a somewhat discount broker, a few years ago.  Now they've been doing some heavy duty recruiting and apparently had some success bringing over some bigger producers.
That being said, I sorta doubt they're going to really help you get to the prospects you want.  I think it'll be like the low-end part of the bank crowd.

blarmston's picture
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Joined: 2005-02-26

"most on here are like ez. ill-informed about HRBFA. he thinks HRB only does business with the eic crowd or people who need their tax refund.  that enough shows how little he knows. what he doesn't know and most advisors don't know is what you have already heard from HRBFA. my advice to you is a. not come here for advice. this place is a mostly a bunch of clowns b. trust your instinct.   Good luck with your decision!"
What an intelligent response. Care to enlighten the clowns on why H&R is so wonderful????

Cowboy93's picture
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Joined: 2005-05-10

I was w/EJ for 3+ years and talked to HRB about 2 years in.  My sense was that you could certainly build a decent income, albeit likely with more of a higher volume business than elsewhere (somewhat true at EJ also).  My feeling is that clients generated on my own were more valuable than those leads handed to me...that system certainly has potential, but I wasn't enough of a risk-taker to be towards the leading edge of exploiting the opportunity.  However, if you're willing to give up some long-term upside, one could argue it's as good a place as any to start out.
I can tell that you EJ would give you good prospecting training, which I don't hear much of anywhere else....I moved to a wirehouse w/a nice transition package, so it worked out well for me (HRB also had/has an incentive of sorts to move).  The beauty of being able to prospect is that if all my clients left me tomorrow, I could get more--that's a nice, secure feeling (although I don't plan to lose all my clients!).  Although I agree you should listen to your instincts, I also think you're wise to try and do some homework before you sign on somewhere.
The main challenge when you're new--wherever you are--is to get enough people to trust you w/their hard earned (or luckily inherited, etc) money so you can survive long enough to be viable...it's a tough road.  Can be done, but requires intestinal fortitude, patience, ideally a second household income (even if modest) for a few years, etc etc.  I believe anyone that tells you otherwise is playing the victim (those that don't make it) or IS a victim of tunnel vision (ex: "I made it at ML, so this MUST be the ONLY place to be!").  Substitue any firm for ML and you get the picture.
There's my ten cents...keep the change!

Cowboy93's picture
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Joined: 2005-05-10

HRB aint a big player at the moment (and may never be), but I contend that doesn't mean much for a newbie....plenty of lazy ex "big name" firm brokers out there who prove it's easy to fail no matter how good the name is.  I think the commoditization of products makes that less of an issue though.  And if you know what you're doing, you can build relationships despite a "lower end" name....yeah, all your $5mil prospects might prefer ML or SB to HRB or a bank branch, but oh well if that's the problem you're facing.  When you actually HAVE some clients, it's a helluva lot easier to explain to them why ML has begged you to come on board (and leave HRB) than it is to develop the relationship in the first place.  To borrow an old phrase, "the first $10m AUM is the hardest"...and by a couple orders of magnitude.

sondaksdaman's picture
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Joined: 2005-05-26

I made a move to HRBFA this past year and can't be happier.
Here, I feel like a member of the growing team and not some
wirehouse schlep. I've been growing my business through
referrals from my tax partners. When I call their clients, they
know why I am calling. Yes, you will find a bunch of smaller
accounts but there are big ones too! So far this year, I've done
two 500k+ rollovers, 2 100k annuities, several life insurance
policies and I'm in the mix on a huuuggggee 1031 real estate
exchange.

noggin's picture
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Joined: 2004-11-30

In a whole year all you have to brag about is 2 500K rollovers and 2 100K VA??? Wow you must be knocking the cover off the ball...... I sure am glad I don't compete with you.

anabuhabkuss's picture
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Joined: 2005-05-02

I also advise you to take what these people say here with a grain of salt. So far there has not been one solid reason given to you as to why HRBFA is a solid place to be. For one, they have a great range of products to offer, non preferred, and highly competitive with the likes of wachovia and morgan stanley.
Second, you get paid on every dollar of your business. None of this " you won't see a dime if the account is lower than 30k". I see people make A LOT of money and HRBFA and in the two eyars I've known them, I've only seen the top producers in wachovia leave to go there as well as MS.
Back office is awesome. Have a problem, there's a direct line there for you. Need to talk to someone on the higher chain of command to share your thoughts ideas etc? Done. You are not another number.
What truly boggles my brain is this generalization that people with money do not have money. Suggestion: read "the millionaire next door" Not everyone in this country flashes their money around and is looking for instant gratification of spending their money when they do not have to. HRBFA FA's have access to w2 forms to know how much money a prospect has. It is important for you to have the manager interviewing you to show you some examples of some of the leads they've worked in their area.
Look, in the end, I can guarantee you there are million dollar teams at HRBFA. I know a lot of them. Call these folks and ask them what it is they're doing. Truly, no matter where you go, it's ultimately up to you how successful your business is. IT is the people that make the company, not vice versa. In my opinion, I don't remember seeing an abundance of negative press the likes of which ML recieve nor have I heard of HRBFA cutting their payouts to their workers (see smith barney).
Any other questions?

anabuhabkuss's picture
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Joined: 2005-05-02

sorry, meant to say: What truly boggles my brain is this generalization that people who ahve their taxes done at hrb offices do not have money.

exdrone's picture
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Joined: 2005-07-01

anabuhabkuss wrote:
 Suggestion: read "the millionaire next door" Not everyone in this country flashes their money around and is looking for instant gratification of spending their money when they do not have to.
Actually the book you reference says that people who have money are usually willing to pay for good advice vs people who go to the cheapest place in town to have their taxes done. It goes into detail about how many educated high income households invest online or with a discount broker, and do their own taxes or pay a chop shop to do them cheaply.
  Second, a W-2 tells you how much money people make, not how much they have. Big difference there.  If anything, the Millionaire Next Door makes a stronger case for staying away from HRB than moving to it.

exdrone's picture
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Joined: 2005-07-01

anabuhabkuss wrote:
.
What truly boggles my brain is this generalization that people with money do not have money. Suggestion: read "the millionaire next door" Not everyone in this country flashes their money around and is looking for instant gratification of spending their money when they do not have to. HRBFA FA's have access to w2 forms to know how much money a prospect has. It is important for you to have the manager interviewing you to show you some examples of some of the leads they've worked in their area.
Any other questions?

Sorry I just had to continue.  I never considered going to my CPA to be flashing my money around.  I just consider it a small price to pay to keep as much of my money as I can.
Millionaire, also says that the largest percentage of millionaires are business owners.  How many business owners have HRB do their taxes?

Indyone's picture
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Joined: 2005-05-30

anabuhabkuss wrote:sorry, meant to say: What truly boggles my brain is this generalization that people who ahve their taxes done at hrb offices do not have money.
Having lived here all my life and being a CPA myself, and knowing pretty much all the successful ones in town, I can say without any hesitation that the local H&R block offices don't do much (if any) in the way of what I would consider high-end returns.  I have yet to com across an A client or prospect that has H&R block for a tax preparer.  It could certainly be different in your community, but that is one thing I would want to know more about before I made a move...

anabuhabkuss's picture
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Joined: 2005-05-02

exdrone, no offense or anything, but stiop analyzing a small point of a bigger topic. The guy was asking about HRBFA, and while you might have brought some of the points made in that book in thto the open, it does not help with the topic on hand.
but to comment:
Your quote: "I never considered going to my CPA to be flashing my money around.  I just consider it a small price to pay to keep as much of my money as I can. "
that's fine. That's you. how does that stay on topic and help this poor guy out?
I know people with so much money that it boggles my mind when they start taking in coupons to eat at McDonald's. What's your point? Not everyone spends money the way You DO. That was mine. And granted, while that is a nice way to look at it, go and tell that to brokers at Morgan Stanley and Wachovia who get hit with penalty fees. Reputation can only go so far, and in this day in age, when people don't trust other people with their hard earned cash, i find it hard to believe (and prove) that ML can do a better job than a HRBFA can.
Here's an idea, how about stop chasing all these old cronies who are about to die (since every fa on the street is chasing them)with huge accounts and start working on their beneficiaries. We can scream "DIVERSIFICATION" to our customers all day until their faces turn blue, yet everyone is chasing these huge accounts. I believe reputation plays an integral role at some point. I also believe in a fine balance in volume and quantity. That's just me. and because of my standpoint, i would say that hrbfa is a decent place to be.
oh well, either way, best of luck to you all.
 

Beagle's picture
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Joined: 2005-03-21

Generalization - H&R Block clients are small fries.  Reality -
to some extent this is true.  I know H&R Block tax preparers
who do some higher end stuff.  H&R Block DOES have some
knowledgeable employees.  Are they all?  HECK NO!  It
would be important to see what sort of operation H&R Block runs in
your area.  It may be they are the joke of tax prep, in some areas
they aren't considered all that bad.  Do your own research. 
There is a major difference between franchises and company owned
locations.

My problem with H&R Block Financial is that they aren't very
profitable as an organization.  Review the company itself and see
if you think they will continue in this area or sell it off.  I
read last year that they were considering closing it down.  This
may have been 100% rumor and false so don't count on it.

I took an H&R Block tax course a few years ago and was asked twice
to interview for an open branch management position.  I took the
EA exam 10 months later and was asked by 2 H&R Block people to
interview for the opening as they were still desperate.  Rather
scary to me that they would be desperate to fill a position for almost
an entire year.

Whatever you chose and wherever you chose to hang up your shingle,
success is your responsibility and not that of your firms.  It's
what you make of it and H&R Block may very well be the perfect fit
for you.

bullbear98444's picture
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Joined: 2005-06-28

A lot of what you’re seeing here about HRBFA is correct.  You will spend a lot of time with low income earners that is 90% of the tax office referrals you will get.  I have a buddy who went there (2 actually) and they regret it, sure they have a higher payout but they lost 25% of their book going over, plus most people you talk to WILL think you prepare taxes, WILL have very small IRA's they are talked into at the tax offices and WILL need to get the money back within the year of investing it due to the economical climate they are in.  Best bet; ask around in person, I was advised strongly NOT to go there.  Bottom line, I was told a lot of up front (as per usual) when I talked to them but when I asked around, found out your nothing but a cash register once you get there.
 
Also, I bet those who are the HRBFA cheerleaders are some of the recruiters for the company.

badplaid's picture
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Joined: 2005-09-10

Let's take the whole "tax leads" out of it.
What you still have is a firm that offers almost everything else on the street.  PMA, WMA, equities, mutual funds, etfs, fixed income, Insurance(on your own or with Capitas) and Annuities, 1031 exchanges if that's your thing, no proprietary stuff, solid in-house research department that you can actually talk to, managed futures, trust services, third party research, technical analysis tools(dorsey wright), tax research department, a program that's sole purpose is to take feedback and suggestions from the reps to help make the firm advisor friendly and easy to do business at, BETA is trading platform, higher payout, not a number, etc....  Their also showing signs of a turnaround from the last couple quarters.  Lot's of this is due to long overdue new leadership overHRBFA. 
To join HRBFA only for the tax leads would be a mistake for a rep. It's the partnering with tax pros that are formed, not the tax leads themselves, that offer a very nice "additional" channel for a rep to prospect and build centers of influence.  You will not spend 90% of the time with low income earners if you go out and partner and tell the tax pros what you're looking for. Also, the "general" tax leads have to meet a certain criteria to even go over to HRBFA. They don't just send over every HRB client.  Bullbear is talking about the Express IRA product that isn't even a part of HRBFA, it's a product on the tax side to help lower income folks start saving.  HRBFA is simply custodian, but no reps are assigned to them and reps don't have to spend any time with them.  I think Bullbears buddies just didn't get. Lost 25% of their book? I think that speaks more about your buddies.
Again, HRBFA is not saying you have to work HRB alone.  It's your business in the end. Build your own business/marketing plan and make it work.  However, the cross servicing with HRB is a very attractive channel for anyone looking to find additional ways to build their book.  Look at the add in November's Register Rep, those guys have a woman who deals with small businesses and it's helping grow their business.  There are tons of relationships like those being formed. The great thing is you have a tax expert who cares just as much about the client as you do.  Client wins by getting solid tax & financial advice.
Lastly, this discussion has only involved HRB Tax. The firm is still young, but let's not forget about the other cross servicing opportunities out there. HRB Small Business Tax (just bought Amex's unit) and RSM McGladery.  There may not be "formal" programs yet like with tax, but there is still lot's of opportunities to build relationships with those folks if you get out and do it.
Did I mention client retention through cross servicing yet???
Oh and perhaps Bullbear is a recruiter for another firm? Me? Not a recruiter, just a cheerleader.
 
 

Beagle's picture
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Joined: 2005-03-21

I would agree in general but the name of the company tells everyone you
are with H&R Block.  If you are wanting to build a client base
of high net worth clients, the H&R Block affiliation is probably
going to be a problem for you.  They generally speaking do not
have the best reputation in the tax world and that reputation will be
placed upon your services by most people.  They have good tax
preparers but 90% have only been doing it 1-3 years and don't have much
training so I'm not sure that's the best public relations.  If you
are looking at the company, you would be a moron not to at least
consider the ramifications of being affiliated with the "cheap" tax
prep service in town.

On the other hand it doesn't make them a poor choice.  H&R
Block is a huge company and a lot of people are already comfortable
using their services.  Some of their tax planners handle 400+ tax
clients each year so the pool of warm prospects is HUGE. 

Indyone's picture
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Joined: 2005-05-30

Dan,
It looks like you are getting some constructive information.  If I were in your shoes based on what I was reading, I would investigate the local reputation of H&R Block...ask some business owners and/or successful locals that you know, what they thing of the local HRB operation.  Also, if you have an opportunity to meet with the tax people that might be providing you leads, that could also be very enlightening...asking them what a typical client looks like income-, portfolio-, and net-worth-wise and who these clients invest with now.
As you can probably see, as with any firm, there is goo and bad.  Just because the firm doesn't hav a stellar reputation in one community doesn't mean that it is bad all over.  Once you get som questions answered aout the quality of the office you would be potentially working in, I think you'll have your answer as to whether or not the opportunity is right for you...good luck!

hrbrep's picture
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Joined: 2005-11-30

I have been w/HRBFA for two years. The clientele I brought to Block was middle to upper middle class. (Avg assets 100k per household) The platform is great. All kinds of products and services. No micro-management. The ability to run your business how you like, fee-based, commission, or both. Since coming over, I have brought my avg assets to 200k/household. I realize this is not affluent wealth mgmt, but you can build a good business with this size of household. The clients aren't giving me more $ because of my relationship with H&R Block, it is because of MY relationship with the client. It doesn't matter if you work for Merrill or HRBFA (for the middle class), it matters if You have a good relationship with your clients.  The tax leads are OK but seem to be getting better. It is tough to build a biz from scratch anywhere but here might be better than a wirehouse.

badplaid's picture
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Joined: 2005-09-10

fwiw, there is an article about HRBFA on the front page of this week's Investment News.

Danboy's picture
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Joined: 2005-11-13

Here's an update: Thank you all who have responded. I have read each and every one of them. Thank you all so much..even the idiots!
Update
I have been dealing with HRB for a few weeks, back and forth, emailing, phone tag..the whole nine. To make a long story short, they did not make me an offer because I currently do not have any trailing revenue. Here's my situation: I'm worked at SCH for about 6 years have 7,63,9 & 10. Good experience, I feel I know my stuff..looking to get back in the business on my OWN. Here are the oppoutunities that I have been working with:
HRB: Pro's:Great Client Platform: Free to make recs,fee or commision based. Cons: Low Client Assets, and of course they shot me down. Oh well, life goes on with out them for now. I love when people tell me "no", it makes "yes" sound so much sweeter. Thank you HRB.
EDJ: looking @ EDJ as my backup. There is one in my neighborhood and a second one is getting ready to open up in a week. Is it possible for me to saturate this market? I live in a small sleepy Florida town, Population 25-30k. Also, I do not like their platform. (Loaded proprietary products. How does this benefit the average investor?) I have been hearing rumors that they are going to a fee based platform. Is there any validity to this?
BAC- They like me and I think an offer is coming: Drawback: It's a bank job. Can the tellers really help me build a book there? How do you prospect working for a bank?  It's also 9-5..can someone say POOPY? 
What would you do? My plan go with EDJ, build a book gain some more experience and who knows from there.  
Other factors to consider and my thoughts:  most important: Married, 32, 2 kids-some savings: Think I should take the risk with EDJ while I'm young before I get stuck in 9-5 gear for the rest of my life!
Well, that's the landscape... all laid out for you to chew and tear at.
Enjoy, and of course Thanks in Advance(Even the idiots) for your responses.
 
Danny 
 
 
 
 

BigPayDay's picture
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Joined: 2005-01-10

In case you havn't been to the Edward Jones recriuiting site, here you go:

http://www.jonesopportunity.com/ir/en_US/index.html

Ask yourself, regardless of platforms, where am I going to get the best training? Platforms may not make or break your success or failure in the early stages of building a business, but training sure will. Good luck.

BPD

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

Danboy. I have been both places. Bank platform and EDJ and now independent.  You might want to reconsider making your decision JUST on a 9-5 hour schedule.  When I was at the bank, I was free to come and go as I wished since I was a salaried and not an hourly employee.  That meant that I was actually working many more hours than just 9-5 and the bank didn't have to pay me any overtime.  As long as you produced they were happy with you no matter how many hours you worked.  We didn't have to punch a time clock.  You might ask them about that option.
The tellers can be very valuable, but you need to work to get their trust and explain to them what you do and how you do it.  They want to be sure you aren't going to take their customers and churn them into oblivion. 
One thing to consider about Jones, besides the fact that you may end up in a saturated market (which can happen in any firm) or that you may have to move to a completely new town to start is the fact that you will use up most if not all of your savings in the first year or two.  Can your family handle this stress?
 

BigPayDay's picture
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Joined: 2005-01-10

BL,

What would DanBoy be spending his money on at Jones that he wouldn't be spending his money on at the bank?

Indyone's picture
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Joined: 2005-05-30

Dan,
I don't see the drawback in the BAC platform...you'll have a broader product array and be spoon-fed leads.  My guess is that the benefits package will be stronger there also.  Frankly, that sounds like a lot easier road to success than knocking on strangers' doors...
I left a bank platform to independently affiliate with a group of CPAs.  That was a step up for me as the CPA referrals are fewer, but the quality is considerably better than average.  My last three referrals from my CPAs were $200K fee-based, $1.5 million fee-based and $1.1 million in a 401(K).

ezmoney's picture
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Joined: 2004-11-30

Danboy,
BAC is not 9-5. I know, I work for them. You can come and go as you like and you'll build your business faster than any place else. If they're offering upfront money, take it. It's a good deal. Not perfect by any means but a good gig, and outstanding benies.

Joe the Broker's picture
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Joined: 2005-03-07

Jones will teach you how to sell, sell, sell, and ask for the order,
but you will pay thru the nose on expenses and medical benefits (brace
yourself if you have not investigated that yet). Also BIG
pressure to produce immediately. I guarantee BAC will give you
outstanding benefits and you will get leads no question about it. If
you already have a 7, 9,10, etc, you shld know how to sell already - I
wld take the bank job for sure in your community of 25k in FL it wld be
easier to get to know everyone. You have a wife and kids, make your
life eaiser and go BAC - good products and research, and you won't have
to pay huge expenses out of your own pocket like you WILL
at Eddy and Co. (and did I mention horrible medical, etc?). You will
build a book in about a 1/3 time you wld at EDJ. Tell your spouse about
the benefits and watch the look on his/her face. Go for it and Good
luck!

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

What would DanBoy be spending his money on at Jones that he wouldn't be spending his money on at the bank?
Things you don't have to pay for at the bank platform: Postage, advertising, pencils, paper, business cards, letterhead, envelopes, toilet paper , office cleaning costs, affiliation fees, dues to clubs like rotary etc., 100% of the cost of medical coverage. It may have changed since I was there, but the cost of seminars and customer appreciation was 100% reimbursed by a combination of Bank and wholesalers cost sharing. Continuing education costs were also covered.
Don't hold me to this since it has been many years since I was at a bank.  Perhaps someone who is there can confirm.

BigPayDay's picture
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Joined: 2005-01-10

BL

Postage: So are you saying that at a bank you can mail as many marketing pieces as you want and the bank pays for it all? Printing and stamps? I doubt this is the case.
Advertising: I can't remember the last time I saw a local bank rep's ad. There is not a company I am aware of that does a better job marketing themselves on a local level than EJ. The opportunity to co-op advertise with other local EJ IRs is huge.
Pencils: 10 for $1.00 at Office Depot.
Business Cards: at EJ first set of 1,000 cards free. Next set $26 at Jones.
Letterhead: Available right of your color printer.
Envelopes: EJ supplies.
Toilet Paper: 10 rolls about $5.00 at Costco. The good stuff too.
Office Cleaning costs: $80 a month is what I pay a service to come in four times a month. Do it yourself for free.
Affiliation fees: Not sure what you mean here.
Rotary Dues: Mine is $100 iniation fee. $50 annual dues.
Medical Coverage: EJ subsidises medical care costs for new IRs. There is a POS plan or a high deductible plan with an HSA.
Seminars: For new IRs Jones covers 75%. Normally you can get a mutual fund wholesaler to pick up the rest.

Does the bank:
Have your name on the door? No.
Provide you with your own dedicated sales assistant? No.
Provide live CE video conferences to bring in CPA and attorneys for networking opportunities? No.
Allow you to keep your services fees? Maybe.
Allow you to work just in one branch? Maybe.
Is the payout 40% at the bank? Bank grids are usually the lowest in the industry.
Are the tellers and new account people becoming series 6 licensed at the bank so they can take business away from the investment reps? Yes.
Does the bank have appless annuity orders. Probably not.

BL, come on you have got to be kidding recommending someone to go to a bank platform.

ezmoney's picture
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Joined: 2004-11-30

Payday,
Technically, your payout is not 40%. Net Jones payout is close to what the bank payout is after you pay all the expenses. I know, I was with Jones. Benefits are better. 10% employer contribution to 401k and pension and very good other benies. Great flexabiliy throughout the day. Yes I have my name on the door. All those msc. expense add up, and you know it.
 

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

BL, come on you have got to be kidding recommending someone to go to a bank platform.
You really must brush up on your reading skills.  I never recommended that he/she go to a bank platform. I recommended that he not make a decision based on the idea that it would be a 9-5  punch the time clock position.
You are the one who asked about costs.  And yes, I did have my name on the door and a dedicated assistant, could invite CPAs and Attorneys to network. And no, the tellers were not licensed, too expensive and too much liability for oversight.  It has been many years, about 7, since I worked in a bank, so I am going from my own experience then, but I doubt much has changed.  Each bank platform is different. Some are owned by the bank and others are subcontracted (so to speak) to independent brokerages.  Even though the payout is low, no argument here, sometimes it is offset by a guaranteed base salary.  Naturally, if the rep doesn't produce, they won't be allowed to coast on that base salary for long.   As to the medical insurance;at Jones it is subsidized for only one year.  At the bank, at least, there was no discrimination between the investment platform and the teller platform.  As EZ says, all those "little" costs add up.
Each investment platform will appeal to different people.  You will take note that I am no longer at a bank or at Jones and am now Independent and very happy. I didn't like the limitations at the Bank, and while I thought I would be running my own office at Jones, I soon found out that that wasn't the case. 
You Jones guys really need to get off of your high horse with the idea that you are the be all- end all of investment platforms.  If it works for you fine. It didn't work for me.

youcanhatemenow's picture
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Joined: 2005-09-20

I can't believe what I'm seeing.  H&R Block and banks touting their firms.  Unbelievable. Let's be honest....both are chop shops.
Let's pretend you work for H&R block or for a bank.  You go to a party and find out there are a ton of brokers there.  People start introducing themselves and they let you know they are from Merrill, Smith Barney, AG Edwards, Ed Jones, or UBS.  Your turn.....are you proud to say where you work?  Probably not....that's the best litmus test there can possibly be.
I have seen two brokers leave for HRBF in the last two years.  Both had production that a monkey could match.  One of the brokers was morbidly obese and I swear he sweated grease.  He looked like a sleaze.  I even met a regional manager on a plane from HRB.  I almost fell out of my seat and laughed when he told me where he was from.  It's like the recruiting phone call I got from Allstate the other day.
HRB and bank brokers, keep looking in the mirror each morning and tell yourself you are the cream of the crop.  Maybe someday you might just believe it.
PS. We call H&R Block by its other name H&R _ock.

bankrep1's picture
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Joined: 2004-12-02

Youcanhatemenow,
Cream of what crop.  Are you more knowledgable?  Do you make more money?  Have a nicer office?  Does your firms reputation give you a woody?
I work for a financial institution and my smile goes ear to ear. I am making myself the cream of the crop, not relying on some firms reputation to try and do it for me.  Merril, SB, UBS all would take me in a heartbeat just based on my credentials (which don't mean jack, but I am educated and they like smart people).
Before you sound off, rookie... What makes anyone the cream of the crop.  Designations? AUM?  Production? You scream inexperience, now get back on the phone, before I ACAT what you've managed to scrape up.

Joe the Broker's picture
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Joined: 2005-03-07

Actually the bank I work for wld be an easy sell at a party. And even
if you were associated with a community bank, you can still name your
B/D (like LPL or RJFS), you'd fit right in at a party. Frankly this
sounds like something a misinformed rookie wld say.

No fool wld license a teller by the way, licensed bankers are a
different story. But this benefits the broker at most places. Also in
most instances, you do not pay for expenses (unless you are doing
something unusual - like huge mailings - then you wld prob chip in).

As with any b/d, bank or not, the success is because of the rep, not
the name. You cld make it at HRB if you stuck with it and worked hard
as well as anywhere else.

troll's picture
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Joined: 2004-11-29

Joe the Broker wrote:Actually the bank I work for wld be an easy sell at a party. And even if you were associated with a community bank, you can still name your B/D (like LPL or RJFS), you'd fit right in at a party. Frankly this sounds like something a misinformed rookie wld say.No fool wld license a teller by the way, licensed bankers are a different story. But this benefits the broker at most places. Also in most instances, you do not pay for expenses (unless you are doing something unusual - like huge mailings - then you wld prob chip in). As with any b/d, bank or not, the success is because of the rep, not the name. You cld make it at HRB if you stuck with it and worked hard as well as anywhere else.
What's up with this guy's name anyway? Tryin' to pimp my rep?

noggin's picture
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Joined: 2004-11-30

Who would want to do that?????

scrim67's picture
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Joined: 2005-04-28

I've been in my bank program and I'm completing my first full year of production.
I would say a bank is a very good place to start and possibly finish someday.
You have a built in audience, low/no overhead, and a chance to cultivate a good referral source in your bank partners.
Everyone's situation is different of course so I would say just find your niche, be nice to your biz partners and clients, and enjoy what you do everyday and success has a very good chance to follow!
scrim

youcanhatemenow's picture
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Joined: 2005-09-20

Bankrep,
     You're nothing more than a poster child for what's wrong with this industry.  Let me fill you in on something.  H&R Block and Banks get their clients primarily from people walking in and handing the business to you.  That's why when you leave or the clients get reassigned to a new broker, their affinity to you as their broker is almost non-existent.  Who do you think will care for the client more....someone that gets a clients business or someone that earns it?
    When you go into a room of advisors and you have a grin ear to ear from working at a bank, the real advisors will think you are an absolute joke.  How on earth can you be proud of working for a third tier firm?  If the real brokers don't laugh in your face, the'll be making references about you and the similarities to Primerica behind your back.
    When we think of quality, do we think about all those that failed as real advisors and ended up at a bank, credit union, or discount broker, or do we think of someone that had to earn their way in the business, develop great relationships, and actually prospect for a living.
    Keep looking in the mirror and telling yourself what you want to hear.

ezmoney's picture
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Joined: 2004-11-30

Youcan,
you're so great. Actually you're an ass for sharing your absolutly idiot remarks.
 

bankrep1's picture
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Joined: 2004-12-02

You can,
You're a complete moron.  If I wanted to spend my time prospecting I would go get a job at Smith Barney or Merrill or worse yet EDJ.  I prefer to spend my time helping people fufill their goals (Not that I don't have repsect for some advisors at those firms because I might). 
I can't count the number of people who tell me thier former advisors harass them for referrals, I say Mr. X If I do a good job for you tell your friends if you'd like if you prefer to keep me a secret I'm ok with that too then I stop and they appreciate that.
I have never failed at anything in my life.  Nowhere is turnover higher than in bank programs even the failed brokers can't make it here.  My third tier firm works just fine for me. Go watch boiler room and beat off you loser.

bankrep1's picture
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Joined: 2004-12-02

YOU CAN Said:
"Bankrep,
     You're nothing more than a poster child for what's wrong with this industry.  Let me fill you in on something."
Please go into to detail.  I have taken the time to educate myself I have a masters, the CFP certification and a handful of other designations.  I create a financial plan with every client, please tell me how I am a poster child for what's wrong.
As far as caring more for a client one who earns the business or gets handed it.  The answer could be either.  I by nature am an ethical person, I try to do whats best because I believe what goes around comes around and that if you do a good job for people you'll be rewarded.  I have seen the worst investments, pure sh*t from people who had attened some seminars or had some guy call them, please elaborate on how earning it makes you more ethical?  I just don't see the connection.  I responded now it's your turn, please explain or do you always make decisions without knowing all the details?  I hope this is not how you invest your clients money.  Are you even an advisor, probably not.

youcanhatemenow's picture
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Joined: 2005-09-20

bankrep,
    Masters Degree?  CFP? why on earth are you at a bank?  Banks can't even manage people's checking account correctly.  What makes a person think they can manage money?  Prioprietary funds, bait and switch annuities, index annuities sold by a broker with a weekend course to be a Senior Advisor Specialist.  You are truly a joke.  I have my masters degree and CFP as well.  What I have that you don't is the ability to take accounts with very little effort from banks, credit unions, H&R Block, and the sort.  The clients I EARN stay with me as well.
     What happens the next time one of your 8 banks gets reasigned to someone else?  How about when regulators go after your bait and switch annuity sales that you put the 80 year old in at 3%.  How about that client that you put that 2% wrap account that you haven't talked to in 4 years?  Let's see where you are in another 10 years after the bank screws you.....and they will.  I'll be laughing at you just like if I met you at a party and you told me where you work.

troll's picture
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Joined: 2004-11-29

youcanhatemenow wrote:
I can't believe what I'm seeing.  H&R Block and banks touting their firms.  Unbelievable. Let's be honest....both are chop shops.
Let's pretend you work for H&R block or for a bank.  You go to a party and find out there are a ton of brokers there.  People start introducing themselves and they let you know they are from Merrill, Smith Barney, AG Edwards, Ed Jones, or UBS.  Your turn.....are you proud to say where you work?  Probably not....that's the best litmus test there can possibly be.
I have seen two brokers leave for HRBF in the last two years.  Both had production that a monkey could match.  One of the brokers was morbidly obese and I swear he sweated grease.  He looked like a sleaze.  I even met a regional manager on a plane from HRB.  I almost fell out of my seat and laughed when he told me where he was from.  It's like the recruiting phone call I got from Allstate the other day.
HRB and bank brokers, keep looking in the mirror each morning and tell yourself you are the cream of the crop.  Maybe someday you might just believe it.
PS. We call H&R Block by its other name H&R _ock.

I have to say I don't like how he puts it, but this guy is 100% right. OTOH, why should you care what the other guys think? If you're happy doing what you're doing, working where you work, have the strength of character to not care what others think.
To me it's like owning a Miata in a parking lot of Porsches. Personally, I'm going to own a Porsche, otoh, I'd like to think I'm a big enough guy not to feel the need to pick on the Miata driver who's happy with this car. 
 

bankrep1's picture
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Joined: 2004-12-02

My client base is 40-65 year old executives, I work for a credit union (no proprietary BS) who is strongly aligned with a fortune 500 company.  I take almost all of my money from Fidelity, Merril, UBS, Smith Barney AMEX etc. rather than from the bank, I use the institution as a means to meet people.  No one is going to reassign my book, take my clients etc. because my clients won't accept that (maybe a few), working for a smaller institution has it's advantages.
I have never switched anything besides a few fixed annuitties whose rate was low.  Can't Merrill screw you in the same way?  Please elaborate on why you think they can't.
Yes I love my job, it is a job.  Not building my own business nor do I have a desire to right now. Like I said if I wanted to work at Merril UBS, etc they would hire me based on my CFP/masters and magnetic personality

scrim67's picture
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Joined: 2005-04-28

I don't know.  Maybe I see everything thru rose tinted bifocals but I believe once my clients have been with me for a few years they would follow me no matter what firm I went to.
I know this is not 100% the case but hopefully my best clients would.
scrim

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