EJ - Taking over an office
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[quote=Potential]If I could interrupt this soap opera for a moment, I have a question about, of all things, taking over an EJ office.
How can a new guy take over an office with few assets? How do the bills get paid if he's struggling just to pay himself? Wouldn't that set him waaay back at the start of every month?[/quote]He gets a salary his first year. He gets commissions on what he does. He gets milestone bonuses.
Yeah but to hear the tale told here, we're all doomed to slowly starve to death over our first 3 years, then quit. The "salary" is minimum wage and disappears right as we're entering the second year, which is when you get an office. So how do new guys, 16 months in the business and barely pulling down maybe $50k a year, afford to pay office expenses? I'm just praying that the unending tales of misery I read on this board are not representative of the average experience. But just yesterday, Jones revamped its rules because so many new FAs are failing -- and then I got a letter from corporate saying that if I wasn't prepared to work 60 hours a week and make next to nothing for a couple of years, I should consider another line of work (it was a form letter, I'm in my second week of training). And then I read in this thread about a guy taking over an office, he's the sixth FA to man it. Not exactly encouraging. So my point is that maybe a new FA can't afford to feed himseld and pay for a Jones office.[quote=Potential]He gets a salary his first year. He gets commissions on what he does. He gets milestone bonuses.
Potential, what office expenses are you referring to? I have some postage, some seminar expenses (if you choose to), some office supplies that are fairly immaterial. We don’t pay for rent, utilities, BOA wages, etc.
The letter is probably sent to give people the brutal reality of the world we are living in for right now. Wouldn't you rather get that letter BEFORE you start, rather than 2 years in?Listen to B24 from everything I’ve heard from him he’s a pretty sensible person. Move on before you go into debt to try and make it work find something else. Go back office somewhere for a while. Even go to St. Louis if they offer it to you. It’s a job!
[quote=B24]Potential, what office expenses are you referring to? I have some postage, some seminar expenses (if you choose to), some office supplies that are fairly immaterial. We don’t pay for rent, utilities, BOA wages, etc.
The letter is probably sent to give people the brutal reality of the world we are living in for right now. Wouldn't you rather get that letter BEFORE you start, rather than 2 years in? [/quote] lol...the letter is actually from John Bachman...I've been out a couple of years but when I got it I laughed so hard...I thought ..."wow...they really don't want people to stay"...then after a while I mentioned it at a regional meeting to my Area Leader and he wanted to see it but I couldn't find mine. I think its basically the last time when someone in the firm is up front and says "hey..this isn't for everyone...here's what to expect..and if you don't think it's for you, there is no shame in realizing it up front before a ton of time, effort & money is lost by all parties!I still have mine PM me with a fax number if you need a copy. Some excerpts:
"As you begin, your work will not be easy. It will, in fact, be much harder than what you imangined when it was described to you. You will be learning new things, doing new things and feeling both the financial and emotional pressures anyone experiences when building a new business. It is very hard work. Most financial advisors will, in retrospect, describe it as the hardest thing they have ever done...." "Some individuals are not prepared for the hard work. This is not an 8-to-5 job. In addition to the workweek, you should expect to spend one evening each week and at least three Saturday mornings each month contacting clients and prospects..." "Financial advisors run out of money. Many leave high-paying careers to become financial advisors, so existing lifestyle expectations often exceed what is realistic when starting a business. To maintain a pre-Edward Jones lifestyle requires substantial savings..." "Financial advisors sometimes lack family or spousal support. In all likelihood, you left a successful carreer to start from scratch in a new field. You're away from home alot. When you are home, you're often tired, cranky or both. You're consumed with you - how you are doing and what you should be doing. Meanwhile, your loved ones watch, more or less helplessly....Others wonder why you would leave a good career with good pay to take a position that pays so poorly and unpredictably in early months and years..." It closes "A career in the investment business can be a great one. A carreer at Edward Jones has much to offer. However, it is not for everyone. If you have carefully thought through the places one can stumble and believe you have the financial and emotional resources, the discipline and the energy to do this very hard work, you are on your way. If not, there is no dishonor in reconsidering and saying, "It's a great career for someone, but it's not right for me." In either case, I wish you only the best as you look forward."Yeah, that's the one. Paragraph after paragraph about why this job will suck and nothing other than the quoted sentence as way of justification. It kinda got me down. I mean, it's one thing to see relentless negativism on this board, it's another to have it mailed directly to you by the company."A career in the investment business can be a great one.
Start planning Potential - it’s not the business… it’s the firm. Unless you have the green stuff running through your veins… you’re not going to make it.
[quote=B24]Potential, what office expenses are you referring to? I have some postage, some seminar expenses (if you choose to), some office supplies that are fairly immaterial. We don’t pay for rent, utilities, BOA wages, etc.
The letter is probably sent to give people the brutal reality of the world we are living in for right now. Wouldn't you rather get that letter BEFORE you start, rather than 2 years in? [/quote] Well, I guess I'm not sure what the expenses are ... but I recall a thread with a guy asking how many times they were gonna make him pay for his computer monitor; and another with FAs talking about starting every month in the hole, as it were, due to office expenses. As to the letter, it just came as a surprise. This board is my only link to the community and it's one thread after another affirming what a stupid, awful, horrible mistake it is to be getting into this business. Seeing corporate essentially say the same thing was disheartening.If I didn't think I could make it, I wouldn't be doing it. While I appreciate your contribution, you're not exactly an unbiased opinion when it comes to Jones.Start planning Potential - it’s not the business… it’s the firm. Unless you have the green stuff running through your veins… you’re not going to make it.
Good for you!
I wasn’t saying you weren’t going to make it production-wise. What I was saying is that you seem to have an objective head on your shoulders and are likely going to make the jump anyway. I’m positive that you can make it production-wise, especially with your positive attitude.
I made it production-wise, but couldn’t stand being there.
Just remember, when your philosophy is not longer the same as the firms…
I got the same letter a couple of weeks ago, and I just started with Jones. I didn't really see anything negative or "gut-checking" about it. It really just reiterates the same stuff that is all over EJ's careers website and all over their recruiting materials. Really nothing new in the letter...just minus all the fluff and more pointed. I think it's more or less a "go all in or fold" letter.
Personally, I weighed the information on those materials, the commentary from Jones reps (both positive and negative), and the commentary from everyone on this and other forums (both positive and negative). Then I put it all through my bullsh t processor and what came out the other end was a decision to accept the position. Time will tell if it was the right decision. And, Moraen...I am truly impressed with the level of diplomacy in which you handled that last post, but still got your message across.Potential,
I'm a fairly new Jones FA and just inherited an office. At first it's hard to wrap your head around the expenses of the office. Jones basically told me to focus on prospecting and making money and not to worry about profits/losses until later. It is hard work, especially for a newnew, but Jones lowers the bar for new brokers for THREE YEARS. So even after you get an office, you don't have the same production standards as veteran advisors. I'm lucky that I got an office, but even if I hadn't I believe that Jones is a great company to work for. I worked for the government before this, and it was really lame. If you really want it, you can do it! Good luck.Yeah, that's the one. Paragraph after paragraph about why this job will suck and nothing other than the quoted sentence as way of justification. It kinda got me down. I mean, it's one thing to see relentless negativism on this board, it's another to have it mailed directly to you by the company. [/quote] The "relentless negativism" on this board is from the same 4 or 5 posters over and over. If you read their posts you will see they are giving speechs not presenting unbiased facts. They are bitter. Make up your mind to either do the work or not. Once you decide go all in 100%. It takes atleast 100% to succeed but it is worth it.[quote=Hank Newbie]"A career in the investment business can be a great one.
[quote=Hank Newbie] I still have mine PM me with a fax number if you need a copy. Some excerpts:
“As you begin, your work will not be easy. It will, in fact, be much harder than what you imangined when it was described to you. You will be learning new things, doing new things and feeling both the financial and emotional pressures anyone experiences when building a new business. It is very hard work. Most financial advisors will, in retrospect, describe it as the hardest thing they have ever done…”
“Some individuals are not prepared for the hard work. This is not an 8-to-5 job. In addition to the workweek, you should expect to spend one evening each week and at least three Saturday mornings each month contacting clients and prospects…”
“Financial advisors run out of money. Many leave high-paying careers to become financial advisors, so existing lifestyle expectations often exceed what is realistic when starting a business. To maintain a pre-Edward Jones lifestyle requires substantial savings…”
“Financial advisors sometimes lack family or spousal support. In all likelihood, you left a successful carreer to start from scratch in a new field. You’re away from home alot. When you are home, you’re often tired, cranky or both. You’re consumed with you - how you are doing and what you should be doing. Meanwhile, your loved ones watch, more or less helplessly…Others wonder why you would leave a good career with good pay to take a position that pays so poorly and unpredictably in early months and years…”
It closes
“A career in the investment business can be a great one. A carreer at Edward Jones has much to offer. However, it is not for everyone. If you have carefully thought through the places one can stumble and believe you have the financial and emotional resources, the discipline and the energy to do this very hard work, you are on your way. If not, there is no dishonor in reconsidering and saying, “It’s a great career for someone, but it’s not right for me.” In either case, I wish you only the best as you look forward.”[/quote]
How many times have I heard people cry “Jones never told me it would be this haaaard!” or "all the stuff they tell you is buuuullsh*t!"
So, Jones writes you a letter, before you start, telling you in black and white how hard it is going to be, and now I see people complaining because it’s a “downer”.
You people all have to get a grip.
Maybe I'm just overly optimistic about my new employer, but like I said before, I didn't really take it as a "this job is gonna suck" letter. It actually got me kind of pumped up. I embrace challenge. I hate easy. The greater the challenge the greater the reward. I know what I'm in for....BRING IT ON MOFO!!!!
I think Indy is much cleaner than STL… and it has double the people…
You guys don't let up about how great being Indy is, do you? I've never thought the EJ guys were dirty or anything.
I would say most of the pros and cons are illustrated in the responses of the people on this forum. At EDJ you will generally be around people brand new to the business, and very unaware of what other firms offer for clients or the adviors themselves. At one regional meeting a wholesaler from Goldman Sachs asked the “region” how they would introduce themselves to someone for the first time, and why they should do business with them instead of someone else. Most of the responses started with selling the company and bashing the competition, to the point where the Goldman WS asked for “a way to do it without just saying your company is better”.
It definately is a midwestern company by an step of the imagination, for better or worse. My question is, what criteria is needed to take over an office of the 10 to 20 million in asset size? From scratch at month 9 I am well above standard. I have industry experience after being out of the industry for a year previously, where I gave up a book at ML. I only ask as my region gives little guidance on this sort of thing, and it gets quite annoying hearing of a new kid taking over offices of that size with very small amounts of experience.
Pray to god the $1mm client leaves before you move in. That will put you under $3mm AUM, which classifies you as new/new for production standards. Anything over $3mm AUM and your standards nearly double.
Also, don’t be afraid to replace the BOA once you’re settled in IF you don’t get along seamlessly. I’ve talked to a lot of FA’s who feel like EDJ is doing them a favor by letting them take over the office. Remember, EDJ MUST put someone in there ASAP and $3mm AUM is NOTHING. This will most likely be your office for your entire stay at EDJ and if you’re not comfortable with the BOA, there are plenty of other offices for her to move to. Also, go with an older BOA. Trust me.