Jones will sue if you leave for a competing position within 3 years. Had a conversation a few months back with a Jones newbie who couldn't make it. He left broke and was later served a lawsuit. He couldn't make it at Jones, was in pretty bad shape financially and was in panic mode when we had our conversation. Not trying to spook you or anything; just be sure you go into this prepared to end your career if it doesn't work out. 

Hi Johnnyreb,

Thanks for the reply, but I'm curious about whether I will be sued if I get a job at something like a Bank Teller or Risk Analyst or Investment Banker which is unrelated to the financial advisor position. Can you clarify if you know whether this would be true?

Drama, I'm certainly not recommending you close the door on Jones. What you need to do in your negotiations is get this issue out in the open, ask the manager directly then get Jone's contracting docs and review them in advance. if you feel you need to, have an attorney friend look them over. In other words don't just take the manager's word at face value, review the docs and then make a decision. And take the Bank Teller or Risk Analyst or Investment Banker questions you asked above directly to the head cheese manager. When ever one is at a point of making a significant move in one's career and or business, the best policy is to get all the details in writing on the table; "full-disclosure" gets rid of the ambiguity.  

I recently left Jones while under contract and in my second year of selling.  Overall as I have seen every situation is unique.  It was my understanding most firms will not go after you if you change careers like you have mentioned.  I was told by EJ and WF if I opted to leave the business and go back to banking they would not pursue me unless I tried to sell investments prior to expiration of my contract.  However because I left EJ and moved my business to Wells Fargo I made sure they resolved the contract situation prior to me joining their firm, I have learned from this site to get everything in writing.  In regards to consulting with attorneys your wasting your time and money because these firms are smart by calling the contract amount training cost they are more likely to win in court as compared to noncompete agreements.  My recommendation is look at all the firms EJ's is a good place to start, however if you understand the business I would seriously encourage you to look elsewhere, after I realized EJ's was not the place for me it sucked. 

The clause applies only you use your series 7 and 66 licenses, which basically means if you go be an advisor somewhere else or a wholesaler.  Hope this helps!

The contract will state that if you leave and engage in work as a registered representative they can sue you for training costs. Most tellers/risk analysts are not labeled as registered reps. Honestly though, if you have a plan B, the likelihood of failing is extremely high.

Old Eddie Jones throws people against their slipper walls with reckless abandonment.  If you get sucked off, you might stick.  Otherwise, you will be screaming with personal debt up to your eyeballs as they ask why you can't turn in number like the guy that did get sucked off.  As for being sued, if you quit, and try to keep your securities license (regardless of your who your new employer is and your position title), they will come after you.  Most people who find themselves unable to keep up just quit working and participating and get fired and this should let you out of their draconian contract.  Just remember this guy, there is an old saying at Edward Jones Investments: some get sucked, and some get f**ked.  Good luck to you guy.  You are going to need it.

My damn feet hurt,

ED

Welcome back ED. 

There are people who make it at Jones because they took over a big office.  There are also people who made it at Jones and weren't handed a big office.  On the other hand, there have been people who were handed $30 mil offices that didn't make it.  Getting handed assets is a plus, but it's not the deciding factor of success.  It's not quite as black and white as you make it sound.  

I think Whitewater hit the nail on the head.  Each situation is going to be different. 

I wouldn't suggest starting a career with EDJ unless you are willing to give the job, the company, and yourself a fair shot.  They're abundantly clear about the job and what you'll be doing before you start, so if you get in and find that it's not for you, then you either didn't ask enough questions at the get go, or you didn't do enough research on your own to make a well informed decision.  $75K is a lot of money to come up with because you didn't catch on that you have to doorknock at EDJ. 

Spiff - How many new/news in your region have made it since 2006? Taking over and office or assets is the #1 factor for success at ED Jones and that is really really really hard to dispute.

I've seen a few make it in my region but its less than 10%. 

I have an EDJ contract somewhere and read it to a friend just 2 weeks ago.  It goes something like this:

$65,000 in training costs from your Can Sell Date if you go competitive in the first 12 months.

Then for every 3 months you work at Jones after the first year, the $65,000 decreases by $8,000 increments per quarter....

[quote=RealWorld]

Spiff - How many new/news in your region have made it since 2006? Taking over and office or assets is the #1 factor for success at ED Jones and that is really really really hard to dispute.

[/quote]

In my region, other than some veterans (over 10-15 years LOS), there are like a total of 5 FA's that have made it from scratch.  Even many of the Goodknights failed out.  Other than that, everyone else either took over an office or did a Goodknight.  Over the past 2 years, we churned through so many new/new's, I couldn't keep track of them any more.  The pace of failures really picked up since 2007/2008.  Part of the problem is that we have a very mediocre region.  Not enough veterans with big books willing to do Goodknights, so most start from scratch and fail out in our region.

So leave them and join a bd where you are truly independent,own your book and 

Your own business. It is far easier when you hAve no assigned territories. I started as independent in 1990

After being at major wirehouses. It was the easiest thing i ever did.

I now have my own bd with 120 reps and registered in all 50 states.

Throw off the shackles and build a business dor  yourself and your family.

There should be a "like" button for the above comment.  Well done! 

I've known 2 guys that left The Big Green Kool Aid within 1 year of their can-sell date, 1 a non-competing business and 1 a competing business, and EJ didn't do a thing to either one.

And I know one other advisor that quit and went to another competitor  within 2 years, months ago, and heard nothing from EJ.

Now, all of these dudes were in PIP and didn't chase down old Jones clients. Could be cases where Jones figured they werent worth the expense to chase down and abuse. I'm sure if they were profitable FA's and taking clients then Jim Weddle would be dropping the contract bomb on them fo' sho'.

So leave them and join a bd where you are truly independent,own your book and 

Your own business. It is far easier when you hAve no assigned territories. I started as independent in 1990

After being at major wirehouses. It was the easiest thing i ever did.

I now have my own bd with 120 reps and registered in all 50 states.

Throw off the shackles and build a business dor  yourself and your family.