There are a lot of "nice guys" who have come into the business.....and then failed out. Most of the succcessful brokers in my office are actually miserable pricks! Go figure?

Door knocking, I have done a ton of it,...I can count on one hand the number of people who were nasty to me, it's not that!!  It just takes forever to build a relationship this way, before you actually turn a door knock prospect into a client!!!

Spetropo - If Jones was offering you a Goodnight, or you had a potentially profitable future arrangement in the investment business,....I would say doit!!, but as a scratch broker...to build your own book?.....It takes a long time.

It is also the money now, I have enough cash and with the EDJ 1st year salary to hold us at around my current take home salary.  Originally from talking to EDJ and thinking I can make 150 in the second year, 90 would even be good, I figured I was golden.  Howeve, Thankfully to some of the post here I can 't see the promised salary possible in such a short time.

One of the things you need to know is how the payout structure of Jones actually works.  Sure, you might be able to gross 150K in your second year, but the key word here is gross.  Net is a different story.  Your payout of the gross will be something like 35% and from that you will also be responsible for some of the ordinary office expenses such as postage, advertising, office supplies, toner. Then there is the fact that your health insurance is not subsidized in any way by Jones. Given the size of your family expect to spend at least $600.00 a month. You will be paying full boat on that.  Subtract the payroll taxes and other expenses, your net net is going to be more like 15 - 20%.   That 150K begins to look more like at best 30K.  Please do the math for yourself!!!

The other thing you need to know is, that although they say you will get bonuses after a profitable office, the cards are severely stacked against you in becoming profitable.  Deducted from your p/l is not only the cost of your BOA (assistant) salary and benefits, your benefits and payout are also deducted from profit. The more you make the more they deduct. I have never seen such a screwy system and I was a commercial lending officer for years before switching careers so I have seen some screwed up bookkeepping systems in my time. There are other charges on the p/l such as sattelite, rent, donations for national advertising and the list goes on.  You have no control over these expenses as you would if you were truely running the office as you see fit. 

Door knocking is their way of getting you launched.  Throw you into the pool, so to speak, and see if you can sink or swim. I know many Jones people who do not door knock after their initial years.  They really don't care how you make the money as long as you make it. So, that really  isn't much of an issue.

If you have a good cushion of reserves to last you for several years and you can make a go of it, then as many can attest, Jones can be a good starting point for a longer career.  Many ex Jonesers, like myself, have gone on to independent offices with firms like LPL, Raymond James, and other smaller idependent companies.  There are hundreds of them out there.

One last word of advice.  In the beginning, this career will just eat up your time. All of it.  Family time is going to take a hit and if your wife and kids aren't able to cope with this, the stress can be very bad for your marriage.

BL makes a good point about Gross vs. Net. I think the bottom line for you, is to BE CAREFUL. Especially when you have a family, and you are leaving a good paying job. i'm not crazy about the idea of you relying on back up resources to supplement your first few years (I sold a company when I started, and have exhausted my savings).

 I would  decide A) Do you want to be an investment professional, or are you choosing this career for its lucrative nature. B) What income level would you be satisfied at, if you never made more. Finally, this really is a great career, and the service we provide is greatly needed (and always will be), it's just extremely tough in the beginning. Sometimes it seems like Everbody is a financial Advisor. Everyone you talk to pretty much will be already working with someone, or their sister works for the bank, or they do it themselves........People don't know you or trust you.

Hello,



Everyone, I have been getting calls from my recruiter asking me if I
set up my face to face.  It looks as if I will probably end the
process today.  Taking a huge cut in salary to a very iffy
increase even with a 2 year outlook would be a significant strain on my
family life.  Combine this with the given, that quality family
time would be very limited already with a change into this career.



I will keep looking and would still like to get into the financial
service business.  I also do not think I can do the residential
door 2 door knocking that EDJ requires.  I had attended a David
Lerner seminar and they were giving 75k a year during the first year
training, unfortunatly I lacked sales experience so they did not
consider me as workable candidate.



I really want to thank everyone here that helped and offered
advice.  I feel it was a blessing to come across these boards and
especially you folks before I had made a very big mistake.  I will
keep on plugging away so do not be suprised if I come back with more
questions soon.



Thank you all very very much

Spetropo

Spetropo -

I truly think you are making a good decision. If the circumstance were different, and you were going to inherit a book of business, I would say you had some opportunity. But, to start from scratch....I would not do it. Good luck!!

[quote=spetropo]Hello,

Everyone, I have been getting calls from my recruiter asking me if I set up my face to face.  It looks as if I will probably end the process today.  Taking a huge cut in salary to a very iffy increase even with a 2 year outlook would be a significant strain on my family life.  Combine this with the given, that quality family time would be very limited already with a change into this career.

I will keep looking and would still like to get into the financial service business.  I also do not think I can do the residential door 2 door knocking that EDJ requires.  I had attended a David Lerner seminar and they were giving 75k a year during the first year training, unfortunatly I lacked sales experience so they did not consider me as workable candidate.

I really want to thank everyone here that helped and offered advice.  I feel it was a blessing to come across these boards and especially you folks before I had made a very big mistake.  I will keep on plugging away so do not be suprised if I come back with more questions soon.

Thank you all very very much
Spetropo

[/quote]

Lerner sucks more than EdJones.  You're better off staying away from them....

Why are you not looking at the reputable houses like RayJay?  Go to their website and submit your resume.

Maybeeeee-

no matter where this guy goes, he is going to have a battle on his hands for the next 5 years. He is 40 w/ 2 kids making a decent living. I guess if he just absolutely loved this business (which most new people think they love stocks and bonds, and hate prospecting - that's why so many fail miserably, It's not that they can't manage money, it's that they can't bring in accounts, and produce), he could get licensed and do a part-time gig on the side, maybe as a fee based planner. Unless his dad is giving up his 100 million dollar book at a B/D I would pass on this opportunity. If you were single and 25......different story.

Regardless of the firm you are with, the ONLY guys I have ever seen, or heard of making a good amount of money quick ($125,000 + in 2 years or so) have a unique situation. I am not talking about chop shop, product pitchers either. I am sure there are a few 18 year old kids working for JT Moran, out in Long Island, slinging crap. I don't think Spetero is interested in that.

Spetropo,

Leaving a 90k job to get in this business in this bear market. You like inflicting Pain on yourself and more importantly your family???

HEED EVERY WORD MONEYADVISOR HAS SAID.

The emotional anguish I have put myself and my family thru has been terrible for the last two years since I have been in this business.



It’s a Very Low Probability business. Wife and two kids, I beg you to stay out until a roaring bull market.

Not a question of Who can do it or You can do it. Just a matter of how long your savings and fortitude will last.

Sonny

[quote=SonnyTheBull]Spetropo,
Leaving a 90k job to get in this business in this bear market. You like inflicting Pain on yourself and more importantly your family???
HEED EVERY WORD MONEYADVISOR HAS SAID.
The emotional anguish I have put myself and my family thru has been terrible for the last two years since I have been in this business.

It's a Very Low Probability business. Wife and two kids, I beg you to stay out until a roaring bull market.
Not a question of Who can do it or You can do it. Just a matter of how long your savings and fortitude will last.
Sonny[/quote]

This thread is very disconcerting for me.  So I'll pretend I didn't read it.

Yesterday I got an offer at ML that I am just about to accept.  I'll be leaving a $90K job, trying to support a wife and 2 kids and the office manager set a $30M AUM bogie in 2 years.

I think I'll grab a beer, go read the positive posts again, and reread Nick Murray's "The Excellent Investment Advisor".

No, don't do that.

Sit down and REALISTICALLY plan how you could bring in that amount of assets in two years.  At RJ it is 4M your first year and 10M your second.  Even we have a high fall out rate.

It is because people don't PROSPECT or that they prospect little fish.

If you have a plan, and lots of good prospects you will make it.

What kind of salary are they giving you?  What kind of payout will you get as a trainee?

Salary and bonus will be close enough to my past salary to keep the lights on.  Payout is standard ML trainee payout.  100% commission based at 19th month following go-live.

Rainmaker, I am just about to graduate from the Merill poa program. It's a great firm! first, be prepared.......if they are paying you close to 90K - You will be under the microscope! 30 million in 2 years......Unless you are rolling in the family trust account of 20 million, it's very unlikely.

It's hard to comprehend if you have not been in this business before. But,......sometimes, it does not matter how hard you work, or how optimistic you are, or how motivated........you can only accelerate the trust factor so much, before a prospect will hire you to manage their money. The dumbest people will resist you because they don't use rationale, and they don't trust you. The smart wealthy people (first of all have been prospected to death), and those that will talk to you, will wait 12 months to do anything. Of course, you will get some accounts, but 30 million is highly unlikely.......read some of the other posts, this subject has been discussed.

Again, I am thanking all here for the advice and opinions.  The
EDJ recruiter told me that they will close my file and no hard
feelings.  I guess maybe somewhere deep inside I had hoped for the
"hey Steve, we have an office with X amount of business already we
wanted you to take over".  But, I am back almost where I started
but not disappointed thanks to you guys.



I truly think I made the right decision with the help of the folks here
and wish you all the best.  I will be back should maybe another
offer comes down the pike.  I am curious though now to see how
long the EDJ guy in my area sticks it out since from what he told me
had been in the same boat.



Thanks all