[quote=noggin][quote=B24]

I heard LPL just built a new FA training center in St. Louis. 

[/quote]   I am trying hard to be balanced, B24.....[/quote]   Agreed. It just seems like EDJ is the training ground for LPL.  I bet the Execs at LPL laugh about it all the time.  They probably have a very formal Jones recruiting strategy.

[quote=B24][quote=noggin][quote=B24]

I heard LPL just built a new FA training center in St. Louis. 

[/quote]   I am trying hard to be balanced, B24.....[/quote]   Agreed. It just seems like EDJ is the training ground for LPL.  I bet the Execs at LPL laugh about it all the time.  They probably have a very formal Jones recruiting strategy.[/quote]   I'll agree 100% with what you just said.  My recruiter indicated that Edward Jones advisors were his #1 source of recruits and #2 wasn't even in the same area code.  Even a formal Jones recruiting strategy would not surprise me.  There's a reason your GP's and RL's talk so negatively about LPL.

noggin:

[quote=Spaceman Spiff]Great.  I’m happy for you.  You should throw yourself a big party. 

  The simple fact remains: most of the LPL people that I come across are former Jones people. The size of LPL is now actually larger than Jones in number of advisors although the revenues that Jones produces is much higher. These are the facts. Why did this happen.....there are multiple ways to help clients meet their retirement goals that are legal, ethical and profitable. Jones is one way, LPL is another as is RJ. We must each find which way is best for them.[/quote]   According to that article that foot linked LPL now has around 12,500 advisors.  Jones is just over 12,000.  I wouldn't call that much larger.  How many of those 12,500 advisors are just CPAs who happen to do some investments on the side and would be considered part time?  Probably a few thousand.  I don't disagree that the LPL force is big, but those numbers are misleading.  Kind of like EDJ saying that we are the number one brokerage firm if you count the number of offices we have.  While technically that's true, it's not a meaningful stat.    That article referenced the "culture" of LPL.  The guy they quoted talked about Todd Robinson thanking advisors for their business.  He said that there is a "Commitment Creed" which is in every office, and was erected on an 18 foot high pavilion at the national convention this year.  When it comes from Jones, we're a cult.  So what is it at LPL?  The maintenance man on the Segway was classic.    I don't have any problem with LPL.  Or Raymond James or any other firm out there.  I simply don't care.  If what noggin says is true, that this is about finding what's best for my clients, then I don't think I'll ever have a reason to leave EDJ.  But these conversations are not about what is best for my clients.  They are almost always about what is best for me and my paycheck.

Spiffy,

  You mention the CPA's, etc...how many of the Jones offices are new guys with not clients or assets...hmmm...2400 new brokers added to the Jones roster every year...   The discussion is about both what good for the client and for your family.  EJ has a limited menu, and that's ok but Indy offices can offer more.  If you go Indy, you'll most likely do what the rest of us old EJ folks do...Run and EJ office for the 1st year or longer.  You are not required to change your approach...if you think EJ's limited menu is great...keep using it in your Indy office...and you'll net 30% more with no more risk to you or your clients.  At this stage in your career...what is Jones doing for you to get the huge cut of your production? 

When it comes from Jones, we’re a cult.  So what is it at LPL

Spiff-     What is LPL? I think the last word in the dictionary I would reference would be a cult. They don't tell me what is appropriate for my clients. At Jones you have to fit your clients into a compliance approved product or model of some kind. You can't step outside the box even if your client requests it.   What is LPL?   A company that considers its customers us. This is a major diffference than your firm who shouts from the rafters that their clients come first. BS. The GP's come first, then the clients, and at the end of the day if there are any remnants left...the poor FA.   What is LPL? A changeable part. Just like you. If we don't like them for one reason or another we can go to RayJay or Commonwealth etc., and our clients come with us. If you leave you will really understand who are YOUR clients vs Jones clients.   What is LPL? A force to be reckoned with. And the likely recipient of good Jones folks who ultimately see that the benefits of staying at Jones diminishes as you produce more. Once you attain those production levels, my guess is you will start to change your perspective. I did.    

foot - You did a wonderful job spouting the same old rhetoric, Mr. One Trick Pony, but you didn’t answer the question.  Putting up a big banner that repeats the company’s mantra at the national convention is LPL’s way of trying to create a culture.  I get it.  Kumbaya and all that.  Your leader stands up at the mic and gets all of you to recite the Commitment Creed with him.  Warm fuzzies all around.  You can all go back to your offices and feel good about the company you are affiliated with.  After all, they are the best in the independant business.  They just said so at the big meeting right after the James Taylor concert.  Just the thought of it gives me goosebumps.  I’m just sayin you should be careful spouting stuff in the future about the cult side of EDJ if your company acts in the same way. 

  BTW, you did a great job outlining some of the differences between the two business models, just like you always do.      Sidebar question - that article implies that LPL is going to go public.  What happens to you, the customer, when the board needs to make sure the EBITDA looks good and is headed in positive territory?  Do they cut costs at HQ?  Do service issues become a problem?  Do they lower your payout?  The article said they raised the payout for top producers recently from 92% to 98%, I believe.  Why wouldn't they do that for everyone?  That doesn't seem quite fair, now does it.  Do they drop it back to 92% if things get rocky and they're worried about their share price?  I'm just curious how going IPO would help/hurt LPL in the long run.   

Spiff-

  Thanks for reminding me that I am spouting the same old rhetoric. Pot calling kettle big time...LPL is going public at some point. They already have a skeleton support crew...not sure they could cut more.   If they stop serving me, then I can change. It would be a pain in the aarse, but at least its an option. As for the payout issue, they are rewarding the top producers. They are making sure that everyone isn't treated the same. (Remember your cult reference?)

Hey Spiff-

  One trick pony? Dude thanks for the reference....Any sarcasm in your losing battle to defend Jones?   Maybe some of the outsiders to our discussion might want to give their wisdom. BTW...when I linked that article, did I have any sarcasm associated with it? Hell yes. I don't believe any of the crap, probably LPL paid for the article. I don't think the firm is superior, just the best of the indies right now.   Sounds balanced to me, but maybe Spiff you can twist is like you accuse me of regularly. Was that your intent? I am a little slow for a one trick pony.

[quote=uwec1986]Spiffy,

  You mention the CPA's, etc...how many of the Jones offices are new guys with not clients or assets...hmmm...2400 new brokers added to the Jones roster every year...   The discussion is about both what good for the client and for your family.  EJ has a limited menu, and that's ok but Indy offices can offer more.  If you go Indy, you'll most likely do what the rest of us old EJ folks do...Run and EJ office for the 1st year or longer.  You are not required to change your approach...if you think EJ's limited menu is great...keep using it in your Indy office...and you'll net 30% more with no more risk to you or your clients.  At this stage in your career...what is Jones doing for you to get the huge cut of your production?  [/quote]   I understand that indy offices CAN offer more.  But for the most part, it's just a variation on a theme.  Stocks vs bonds in some form or fashion.  Whatever fancy title you put on it, it is what it is.  With the exception of a rare client or two who asked about options, there hasn't been anything from an investment standpoint that ANY client or prospect has asked me about that I can't handle.  Most people don't even know things like private REITS exist.  They think they're pretty fancy when they buy a preferred stock or a closed ended fund.    As to what Jones is providing:   Office  Office furniture Painting services Carpeting Light bulbs Utilities Computer workstations X 2 Printer Internet service Fax machine Check scanner Phone system Integrated on hold music for said phone system Software:        Contact Management System        Email        Financial Planning        Trading systems        Morningstar        Quote System        Ad/Flier marketing building system        Fax Management Software        Check Scanning software        Online client document imaging and storage software Business Cards Various Monthly client mailers (IP) BOA BOA benefits BOA tuition reimbursement Profit sharing for BOA and FA 401k Matching for BOA Bonuses for BOA Bonuses for FA Matching bonus for BOA if FA shares his bonus Marketing Materials National Marketing radio and TV spots Spring/Summer (family included)/Fall regional meetings Ongoing training CE Regulatory exams Adoption remibursement CFP/AAMS tuition reimbursement Tuition Reimbursement Seminar Reimbursement Mileage reimbursement Diversification Trips Regional support and meetings HQ support - training  HQ Service - operational Research - stocks/bonds/funds/Advisory/ETF, etc Compliance Product Review Legal Assistance if necessary Artwork in office Preapproved Seminar Scripts/Powerpoints/Materials     I'm sure I've missed some things, but that's a pretty good start.  When I stop and think about all the things that go on here in my office without me even having to think about them or write a check to make sure they get done, your "what's Jones done for you lately" seems a little trite.  Could I make more money if I were with LPL or RJ?  Yep.  Absolutely.  No doubt about it.  Do I want to even worry or have to make decisions about the things above?  Nope.  Thus the reason Jones works for me right now.  10 years from now when I'm a $1MM producer?  We'll see.                           

[quote=Spaceman Spiff][quote=uwec1986]Spiffy,

  You mention the CPA's, etc...how many of the Jones offices are new guys with not clients or assets...hmmm...2400 new brokers added to the Jones roster every year...   The discussion is about both what good for the client and for your family.  EJ has a limited menu, and that's ok but Indy offices can offer more.  If you go Indy, you'll most likely do what the rest of us old EJ folks do...Run and EJ office for the 1st year or longer.  You are not required to change your approach...if you think EJ's limited menu is great...keep using it in your Indy office...and you'll net 30% more with no more risk to you or your clients.  At this stage in your career...what is Jones doing for you to get the huge cut of your production?  [/quote]   I understand that indy offices CAN offer more.  But for the most part, it's just a variation on a theme.  Stocks vs bonds in some form or fashion.  Whatever fancy title you put on it, it is what it is.  With the exception of a rare client or two who asked about options, there hasn't been anything from an investment standpoint that ANY client or prospect has asked me about that I can't handle.  Most people don't even know things like private REITS exist.  They think they're pretty fancy when they buy a preferred stock or a closed ended fund.    As to what Jones is providing:   Office  Office furniture Painting services Carpeting Light bulbs Utilities Computer workstations X 2 Printer Internet service Fax machine Check scanner Phone system Integrated on hold music for said phone system Software:        Contact Management System        Email        Financial Planning        Trading systems        Morningstar        Quote System        Ad/Flier marketing building system        Fax Management Software        Check Scanning software        Online client document imaging and storage software Business Cards Various Monthly client mailers (IP) BOA BOA benefits BOA tuition reimbursement Profit sharing for BOA and FA 401k Matching for BOA Bonuses for BOA Bonuses for FA Matching bonus for BOA if FA shares his bonus Marketing Materials National Marketing radio and TV spots Spring/Summer (family included)/Fall regional meetings Ongoing training CE Regulatory exams Adoption remibursement CFP/AAMS tuition reimbursement Tuition Reimbursement Seminar Reimbursement Mileage reimbursement Diversification Trips Regional support and meetings HQ support - training  HQ Service - operational Research - stocks/bonds/funds/Advisory/ETF, etc Compliance Product Review Legal Assistance if necessary Artwork in office Preapproved Seminar Scripts/Powerpoints/Materials     I'm sure I've missed some things, but that's a pretty good start.  When I stop and think about all the things that go on here in my office without me even having to think about them or write a check to make sure they get done, your "what's Jones done for you lately" seems a little trite.  Could I make more money if I were with LPL or RJ?  Yep.  Absolutely.  No doubt about it.  Do I want to even worry or have to make decisions about the things above?  Nope.  Thus the reason Jones works for me right now.  10 years from now when I'm a $1MM producer?  We'll see.                            [/quote] Wow, its the HR handbook in one post.

B24:

If you want to earn commissions.

Not worth it. You can structure your RIA so that you can earn fees similar to commissions.

Left Jones October 2004  Gross $437,000.  Last year $1,000,000.  Jones net about $150.  My next last year about $500K.  80% of revenue is reoccurring. 

  More control, unbiased advice, true wealth management.  So glad I did it and I believe any Jones rep should at least look into it.    The RIA idea makes a lot of sense as well. 

Pre Tax Net  paid about $100K in Federal Taxes.

Also paid my car expenses, $20K to SIMPLE, $6K to HSA and other expenses out of company.  Definately some tax benefits as well.  Went to Commonwealth although I am considering going RIA Only

Yes I have an S Corp

  Still miss the trips and the people.  EDJ folks are down to earth

[quote=indyboy]

Yes I have an S Corp

  Still miss the trips and the people.  EDJ folks are down to earth[/quote]

Down to earth, or dumbed down?

[quote=Moraen] [quote=indyboy]

Yes I have an S Corp

  Still miss the trips and the people.  EDJ folks are down to earth[/quote]

Down to earth, or dumbed down?


[/quote]    - It's like asking someone of they've "lost some weight". Translation - "boy, you were fat before, way to take care of that".

[quote=Moraen] [quote=indyboy]

Yes I have an S Corp

  Still miss the trips and the people.  EDJ folks are down to earth[/quote]

Down to earth, or dumbed down?


[/quote]   Many of the people I am friends with at Jones would continue to be friends if I left.  There are a lot of good people here....IQ aside. And I can say that without reservation, as I have a good friend that left Jones late last year, and we continue to include him in non-Jones get-togethers and people still speak well of him at Jones gatherings.