FFJ,

First, I think JOne is a great firm..  perfect? no.  However, we all know that the client comes first.  Period.  Having said that meeting the needs of clients means different things, especially fee structures.  Maybe I dont want to pay you 1.5% to give me your advice.  You operate on the exact same public info. as we all do.  Its how you interpret that data.  If you think you can build a stock/MF portfolio better than anyone else, more power to you.  I'll say you cant!!  Its ALL about putting your clients in the best investment possible to meet their needs at the cheapest cost.  All this BS about I am a professional, i should be paid like.  blah blah blah.  I agree we are professionals, but giving good advice should NOT come at the highest expense to your client.  Its easy to pick stocks and investments in up markets.  Lets go through another 50% decline and see how many of you are left!!!!!!!

Success,

 Edward Jones is a good firm..for a select person.   It is a good employed platform that allows you to feel somewhat independant from home office, but the platform has been set up for low net worth prospecting.   EDJ is rolling out FA's and managed money this spring/summer. Trying to catch up with the times.  YOU will be asking your clients to pay you 1-2% for your advice.  I hope you are ready to do that.

[quote=EdJehovah]

 Everyone of you out there knows in your heart of hearts that paying an up-front sales charge, and 25bp thereafter, is an effective, cost-effective way to build long-term wealth for your clients.  However, most of you like the 125bp AUM to sit and you move little around.  But isn't putting the client first most important? [/quote]

I used to beleive this too when I was at Jones. They do an excellent job of brain-washing.

The costs of investing at Jones:

3.5% A-share load over 10yrs (b/c IR is not going to manage or change ANYTHING!) = .35%

Annual expense ratio (avg.) = .80%

Avg. turnover cost in funds = .35%

So that total is 1.5% EVERY year to "sit" on a mutual fund portfolio.

Compared to paying me 1.25% per year. If you have some money available I'd recommend you buy some today!

[quote=success]

FFJ,

First, I think JOne is a great firm..  perfect? no.  However, we all know that the client comes first.  Period.  Having said that meeting the needs of clients means different things, especially fee structures.  Maybe I dont want to pay you 1.5% to give me your advice.  You operate on the exact same public info. as we all do.  Its how you interpret that data.  If you think you can build a stock/MF portfolio better than anyone else, more power to you.  I'll say you cant!!  Its ALL about putting your clients in the best investment possible to meet their needs at the cheapest cost.  All this BS about I am a professional, i should be paid like.  blah blah blah.  I agree we are professionals, but giving good advice should NOT come at the highest expense to your client.  Its easy to pick stocks and investments in up markets.  Lets go through another 50% decline and see how many of you are left!!!!!!!

[/quote]

Wow, I had to stop "interpreting data"(whatever that is) for a moment to respond to this.  It is interesting how the fees Jones reps accuse others of charging creep up over the course of a thread like this.  You cant make your point at 1% so someone takes it to 1.25% and now this guy assumes 1.5%. 

All that aside, how many different fund families do you own in your Jones 401(k)?  You probably dont realize this, but the choices you have are hardly the best ones out there.  They're just the ones willing to pay blood money to the GP's.

If I left the business tomorrow, I would gladly pay a professional 1% for access to the best managers available. Those hired for their core competancy rather than their willingness to provide kickbacks.  I would also expect an asset allocation model with more than four asset classes and quarterly reviews with my advisor.  If you can do that for all your clients on 25pbs more power to you, but I happen to know better.

BTW, how many Vangard funds have you sold today.  Gotta do it he cheapes way possible......right?

Can I just say...?

When I see a kid who is thinking about joining the military, I do everything I can to dissuade this kid from doing something that might get him killed!

But when I see the same kid or another kid IN the military, I tell him/her "Atta boy!" "Good on ya son!" I'm not about to make the guy feel bad, he's already in the mess, I want him to do his best there.

So yeah, when Edjehovah is now saying that jones is a good place to be. I'll say "There ya go! Go get'em killer!" The guy's in a word of hurt and he's trying to work his way through! Telling him that he's being deluded doesn't help anybody but Jones (because when you've destroyed the guy and he leaves, he's leaving his book behind for Jones to snare the next rabbit. If he's successful, he'll eventually leave and take his book with him!

Beat up on Spiff? Sure, have at it. He's up and running. But have some compassion for these noobs! If they make it, they deserved your respect. If they die, it's sad , and you beating on them didn't make it happier!

Meanwhile, Noobs. Don't get up in our face!

[quote=Whomitmayconcer]

Can I just say...?

When I see a kid who is thinking about joining the military, I do everything I can to dissuade this kid from doing something that might get him killed!

But when I see the same kid or another kid IN the military, I tell him/her "Atta boy!" "Good on ya son!"

[/quote]

I agree to some degree but but if I join the Marines and get a $5000 signing bonus and then some ignorant kid is giving me crap cause he got $50 and a meal at Dennys for signing-up with the National Guard, and telling me how much better he is to boot, well I'm gonna let him know exactly where he stands on the food chain.  Same goes for EDJ.

[quote=Whomitmayconcer]

Beat up on Spiff? Sure, have at it. He's up and running. But have some compassion for these noobs! If they make it, they deserved your respect. If they die, it's sad , and you beating on them didn't make it happier!

[/quote]

Go ahead, take your shots.  Water off a duck's back. 

[quote=Spaceman Spiff][quote=Whomitmayconcer]

Beat up on Spiff? Sure, have at it. He's up and running. But have some compassion for these noobs! If they make it, they deserved your respect. If they die, it's sad , and you beating on them didn't make it happier!

[/quote]

Go ahead, take your shots.  Water off a duck's back. 

[/quote]

Fortunately Spiff even though you may "fit" with EDJ, thankfully you are not the typical kool-aid guzzler, I rather enjoy your postings.  If all the Jonesers used your common sense there would be alot less EDJ bashi. 

OK I bite; I DESPISE all of the talk about Edward Jones (pro or con) bit I do have 2 questions for any EDJ's:

- Do they require door knocking? Or do you have your choice of prospecting methods (cold calling, networking, mailings, etc)?

- What is this term/analogy about a "hamburger" relating to investments? I have my hunch but please fill me in.

Oh Kathleen (the original Joneser on this board back in 1997) where have you gone?

Yes…I too would like to have the mystery of “the hamburger” unraveled.  I guess if no one coughs up here, I’ll have to break down and ask one of my Jonsie friends…

[quote=The Judge]

OK I bite; I DESPISE all of the talk about Edward Jones (pro or con) bit I do have 2 questions for any EDJ's:

- Do they require door knocking? Or do you have your choice of prospecting methods (cold calling, networking, mailings, etc)?

- What is this term/analogy about a "hamburger" relating to investments? I have my hunch but please fill me in.

Oh Kathleen (the original Joneser on this board back in 1997) where have you gone?

[/quote]

Soon to be ex Joneser here.  Doorknocking is required for your first few months as they monitor you somewhat closely.  (Although no one really watches you except for an hour or so when your mentor goes with you, so I guess you could just lie about it.)  After that you are pretty much left alone and TOLD that door knocking is the best.  i.e. Mentor calls and says have you been door knocking this week?  But there is no ongoing requirement to door knock.  I quit seriously door knocking about 6 months in and have done fine. 

As far as the hamburger, it's some stupid selling techinque they teach at training that I never really paid attention to and don't really know.  I THINK it's like this.  You make a sales call and the intro, is the bottom bun, the info on the bond/stock is the meat, and the close is the top bun (i.e buy some today) and bingo there is your hamburger.

Go figure.

Yes, you are required to DK early on.  You can't do anything other than get name, address and phone number.  When I went to KFC or KYC,,,many in my class (all long gone) didn't do any dking, while the guillable(sp) bspears did as I was told!  I lasted and moved on, while all but 1 is still in the system.  He is struggling, and will never make the 18k requirement for segment 3. He'll soon be shown the door.  I actually like to get out and see people.  But, I don't go door to door, I see people at rotary, lions club, 4h meetings, softball games etc...Just being seen, and I love talking about MY new business. 

Ex,

I never said I was against fee based and I dont are if we use 1% for examples.  My point is that there is nothing wrong with A share funds.  Also, dont fool yourself that you are any smarter or better at picking stocks and funds just b/c you charge an advisory fee.  Whether its fee based or load funds, we are all in the same boat with information.  You may think you can do it better now that you can charge these assets fees, but you are still the same as you were before - trying to do the right thing.  Both models have there purpose.

Success wrote, "Its ALL about putting your clients in the best investment possible to meet their needs at the cheapest cost."

Wouldn't it be cheaper for the client to go to a $100/hour fee only planner who could recommend no-load funds?  Their $500,000 investment would cost $100 instead of $10,000.

It's not about being the cheapest.  It is about doing what is best for the client.  Cheapest is not what's best for the client.  Investor performance is what counts, not investment performance.  Forget about my fee-only example.  For a buy and hold investor, "A" shares are much cheaper than being in a fee account.  This does not make it better for the client. 

The major problem with "A" shares is that the interest of the rep and the interest of the client are not alligned.  Success, if you build a decent book using "A" shares, you won't be able to afford to service your clients.   Hell, you will need a $1,000,000 book of business to earn $100,000 before expenses.  This means that you have a choice of giving good service to your existing clients while you struggle financially forever or ignoring your clients to constantly focus on getting new clients. 

The bottom line with "A" share funds, is that you can sell them to customers, but you can't sell them to clients.

[quote=anonymous]

The major problem with "A" shares is that the interest of the rep and the interest of the client are not alligned.  Success, if you build a decent book using "A" shares, you won't be able to afford to service your clients.   Hell, you will need a $1,000,000 book of business to earn $100,000 before expenses.  This means that you have a choice of giving good service to your existing clients while you struggle financially forever or ignoring your clients to constantly focus on getting new clients. 

[/quote]

I think you meant $40,000,000

Actually, I meant $100,000,000.00!  100 million x .25% (trail on an “A” share) x .4% (my guess on a Jones payout to the rep) = $100,000.

Although they “Require” doorknicking in the beginning, if you have

another method (like if you had previous experience or some really good

network), you can do it. As long as you have prospects in your system

and start producing, nobody cares. You will only get pressed to

doorknock exclusively if you are not producing. If you produce, they

leave you alone. I know guys that were new/new that didn’t doorknock

one day after their training period and were very successful (one that

comes to mind was a successful business owner previously, and well

tapped in - he got to $90mm AUM in 6 years, new/new, no GK, no daddy

GP, nothing - but he would be the rare exception).



But honestly, most EDJ new/new’s had no previous experience, so they

really have no choice but to DK. However, if you are not REALLY

successful doing it, you need to find other ways to prospect to

supplement DK/cold calling. I see too many Jones guys get lost because

they don’t know how to network, develop referral networks, etc.

[quote=Incredble Hulk]

Wait, I thought Edjones had no big accounts. Jones is not the easiest place to take clients from. We live and breath for the client in their town, go to ther church, and use their Chinese restaurants and drycleaners.

We have a bond with our client.

THE HAMBURGER REFERS TO "ASKING OPEN ENDED QUESTIONS TO OBTAIN FINANCIAL INFO,ETC". IT MEANS SOMETHING LIKE

1. YES, I UNDERSTAND YOUR QUESTION/CONCERN (GET IN STEP)

2. HERE IS THE ANSWER---(THE "MEAT")

3. FOLLOWUP QUESTION SUCH AS "ANYTHING ELSE?"

Answer to your question, Yes you will door knock!  Does it work or help?  Yes, people will remember that you came by at one time.

I have been working in Jonesville for 14 years, close to six figures in AUM and the time has come for me to work directly for my clients and not the pockets of the GP's.  Unlike some of you I am not bitter over my treatment the last 14 years.  I started NEW/NEW as you call it on these posts.

I'm retired from the Military and I'm very proud to read your support for our young men and women that have served and continue to serve this great country.  So as you can add up 22 years in the military and 14 years at Jones = senior (grandfather).

I will be indy in < 45 days.  There is a lot of work going into transferring out a large book from Jonesville.  I know there is a lot of bashing of EDJ and a large amount of it is justified.  I have done the goodknight program and have a large sum in LP.  I agreed  the indy model is the best model for most of us.  But please try and remember that some of these rookies need to start somewhere and Jones is not a bad place to get a book started. 

I would ask that you wish me luck since this is St Patrick's Day, but luck had nothing to do with me making it this far in the business and luck won't have anything to do with me making it as a Indy.  So the countdown is 45 days! 

By the way this is a team event--2 from Jones to start own business!