Leaving Jones
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From what I remember it boils down to the fiduciary question, which is what is all over the industry headlines right now. You can guide your clients, give good advice, but not actually tell them which investment is better than the other. They ultimately have to choose between options…
I think that’s crap Hank. We can charge a 5.75% fee on mutual funds but can’t tell them which one to buy, which one is the best for their current needs? Crap - It’s EDJ compliance going over the top. Same reason we can’t sell Indexed Annuities.
Ummm… I could be wrong I think its “our” interpretation of what the gov’t says which if we follow the rules makes us look stupid.
Our risk as advisors is large, if we don’t follow this crazy policy and someone complains St. Louis can simply claim they told us. We are nailed. If we do follow them we again look silly.
Also, how the hell can we get away with doing advisory solutions within an IRA if this is a gov’t rule?
Jesus guys. You are blowing this thing way out of proportion. Jones’ position is in order to comply with the regulations (which DID come down from the IRS, not the SEC or FINRA - it’s a 30+ year-old ERISA policy), simply offer the client two choices in retirement accounts. That’s it. You guys are making a bigger deal out of it than Jones is. And that’s saying a lot.
Are you sure it isn’t 3 choices? Not that it probably matters, 95% of us probably provide the recs anyways, just not in writing I’m sure.
If you search this forum, you will find posts claiming $0 to over $75k(if accts were solicited). There is no standard or usual amount. If you do not transfer your license nor solicit accounts you will not have to worry about it. If you do then EJ will asses your value to another firm and determine that amount. If you suck it will be low, if you "blew it out of the water" then it will be more. So since you are doing so well you will need to pay up or stay were you chose to start through your required time. I would highly recommend you seek legal counsel before making any decisions. If you are doing as well as you say you are, you will need it.I realize this topic has probably been covered dozens of times but hopefully you’ll forgive me and give me some ideas.
Here is the basics of my situation. I’ve had my can sell date for about 12 weeks and am blowing it out of the water (know it means nothing but know I can do this job at least). I’m not unhappy at Jones but never took the job knowing I would be here forever. I also have no mentor and no real training so I’m not loyal to them at this point.
I’ve had another firm approach me and offer me a position. The payout is much better. Get an office. Warm leads (not that I will stop prospecting). No book but to be honest I’ll only leave around 1mm AUM.
I know I made a commitment but what is my risk here? Jones will come after me but how much do people usually settle for? Any help and I’d appreciate it.
Thanks for the feedback. When I make my decision guess I’ll press forward in high gear with Jones or kick back for a few weeks and let my numbers slip a bit.
I do like my job but was so new when i took it didn’t realize the downside.
Easy. It is one of several options that we explain and offer. They pick it. This wasn’t a serious question, was it?
Hmmm. This was in reply to volt....Guess I need to bone up on my posting skills.And the great thing about being a Jones FA is that although we can't guarantee our clients any return for them, we can IMMEDIATELY guarantee as much as a 5.75% return for US---------on THEIR money. Is that awesome or what ?!?!I think that’s crap Hank. We can charge a 5.75% fee on mutual funds but can’t tell them which one to buy, which one is the best for their current needs? Crap - It’s EDJ compliance going over the top. Same reason we can’t sell Indexed Annuities.
And an RIA can guarantee 1%+ per year. What’s the point? Do you want to give away your work for free?
You know one thing that irks me about the "5.75% commission" comments....how many people are actually charging their clients that much? I mean seriously, I have very few clients that don't qualify for a breakpoint, and the one's that are very small clients are in C-shares, and will be switched to A shares if they ever manage to reach a meaningful breakpoint.And the great thing about being a Jones FA is that although we can't guarantee our clients any return for them, we can IMMEDIATELY guarantee as much as a 5.75% return for US---------on THEIR money. Is that awesome or what ?!?![/quote] You're a real tool, you know it. If you're of the opinion that Jones sucks as bad as it does, why don't you leave? How do you get out of bed every morning and come to represent a company whom you obviously don't like? That would depress me to no end.[quote=voltmoie]I think that’s crap Hank. We can charge a 5.75% fee on mutual funds but can’t tell them which one to buy, which one is the best for their current needs? Crap - It’s EDJ compliance going over the top. Same reason we can’t sell Indexed Annuities.
[quote=Borker Boy][quote=voltmoie]I think that’s crap Hank. We can charge a 5.75% fee on mutual funds but can’t tell them which one to buy, which one is the best for their current needs? Crap - It’s EDJ compliance going over the top. Same reason we can’t sell Indexed Annuities.
And the great thing about being a Jones FA is that although we can’t guarantee our clients any return for them, we can IMMEDIATELY guarantee as much as a 5.75% return for US---------on THEIR money.
Is that awesome or what ?!?![/quote]
You’re a real tool, you know it.
If you’re of the opinion that Jones sucks as bad as it does, why don’t you leave? How do you get out of bed every morning and come to represent a company whom you obviously don’t like? That would depress me to no end. [/quote]
He reminds me of that one client that gives me a bad score on this CSE thing. If my service is that bad, then PLEASE take your money elsewhere. Borker, if Jones is that bad, PLEASE take your clients elsewhere. It’s better for you, your clients and EDJ too.
For all you Jones haters out there check out this article. I used to use this site before the career change and they are diametrically oposed to the full-service model. For the most part, they LOATH people like us. A little dated, but to those of us in the know, nothing much has changed since then. Given the source, I can’t think of a better compliment and wish I could hang it on my wall:
http://www.fool.com/news/foth/2001/foth011211.htm?terms=Edward+Jones&vstest=search_042607_linkdefaultIt astounds me people pump an article that is 8 years old. It’s time to move one…
I have no problem charging people for my service. I don’t work for free, Borker. I make the best decision I can based on the market and what my client tells me … and don’t feel sorry for it. I simply wish I could offer one solution for retirement accounts rather than asking the client to pick one of the two.
…become the seventh largest securities firm in the United States based on number of brokers (approximately 8,400 at latest count, growing by four a day, with plans to hit 25,000 by the end of the decade).
How close are they to the 25,000 mark?[quote=Wet_Blanket]…become the seventh largest securities firm in the United States based on number of brokers (approximately 8,400 at latest count, growing by four a day, with plans to hit 25,000 by the end of the decade).
How close are they to the 25,000 mark?[/quote] Hind sight is always 20/20. Jones stands somewhere around 13,000 FAs now. What has the growth looked like at the other firms? Wait, most of them got absorbed into banks. As of 2007-08 we were #3 in the number of brokers. With what has happened since, well, you get the idea. As far as I know, we are the only major firm with an ambitious broker growth strategy, and the capital to back it up.Yeah, I don't pay much attention to articles that old. But there is SOME truth to the article. And it is interesting that it was written by the Managing Partner of an investment management firm.
I agree that culture is important to the overall direction of a firm. But I think the skill and integrity of the individual advisor is more important. No single firm has the corner on that market (nor the market for bad advisors).
[quote=Hank Newbie][quote=Wet_Blanket]…become the seventh largest securities firm in the United States based on number of brokers (approximately 8,400 at latest count, growing by four a day, with plans to hit 25,000 by the end of the decade).
How close are they to the 25,000 mark?[/quote] Hind sight is always 20/20. Jones stands somewhere around 13,000 FAs now. What has the growth looked like at the other firms? Wait, most of them got absorbed into banks. As of 2007-08 we were #3 in the number of brokers. With what has happened since, well, you get the idea. As far as I know, we are the only major firm with an ambitious broker growth strategy, and the capital to back it up.[/quote] Newb, be careful about the assumptions you make. Growth for growth's sake is not always good. And growing organically is painful at best. Every firm is trying to grow. Some grow through attrition of underperforming prodcuers and trying to raise the AUM/production per broker, some try to grow via acquisition. And few, like us, grow organically. But don't be fooled into thinking that growing organically is somehow more virtuous than growing via other methods. It's like saying that starting from scratch versus inheriting a book or joining a team is more virtuous.