AllREIT - I really think you're off base with this arguement.  Probably, similar to me, because you've had to convince yourself that your way of doing things is better than everyone else's because you have to sell it that way.  Maybe it is, maybe it isn't. 

Are you seriously saying that because I am the only FA in my office that I CAN'T do a "deep" job with my clients?  Really?  So all those guys out there that are in one man shops aren't doing a good job with their clients?  Or is it just EDJ FAs who can't do a good job?  Maybe you should explain to me what your version of deep is.  This may get back into the financial planning vs. investment management. 

I wouldn't call the Jones model set and forget.  We do hold our investments longer than the average company,  but it's not set and forget.  They're normally mutual fund based portfolios, so rebalancing to keep them within the asset allocation plan is important.  We take profits on stocks, we sell them when necessary.  Just like you and  your REITs. 

I don't have a big issue with fee based accounts.  But I don't think the industry as a whole has figured out exactly what the right way to use them is.  I seem to run across two different scenarios with fee based accounts.  First is the actively traded version.  20 stock trades a month, constant changes from one sector to another, or one fund to another, without any rhyme or reason.  Seems to be trading to justify the fee, because the performance doesn't normally justify the trading or the expense.  Second is the "I'm getting paid the fee whether I do anything or not" account.  No trades, no planning, no contact.  Just the fee arrangement.  Usually this is better for the broker, not the clients.  

I wonder if you've ever sat down with a good Jones FA to see what they do with their clients or how they run their practice?  I'm not talking about the new guy, but the one who has made it and is successful.  The Seg 4 or 5 guy.  I'd bet you'd be suprised at how good a job they do with their clients.

[quote=Spaceman Spiff][quote=skippy]

I get the sense that the local economies of each city that has a one-man EJ shop would improve - just by collecting sales taxes.

Think about it.  Open up that RETAIL office/store space and let some yogurt shop occupy it.  Put all the brokers into an (heaven forbid) an office building to SHARE.

Lots more activity and money to go in there than with EJ.

Okay, that was a Low Blow, but I still think it would help EJ's bottom line and improve the local economies by moving all EJ brokers into 1 floor of a nice office building.

[/quote]

You are absolutely right.  It would help the bottom line.  It's a business decision to be different than anyone else.  The only place it would really matter is in larger cities.  In my area we could put three large offices together and get the job done.  But noone would know about us.  It's interesting that when I talk to someone who says they're with Merrill, they never say the local office.  They say they're with the on over in West St. Louis County.  I don't even know if they know there is a local Merrill office.  But when I talk with someone who is with Jones, 70% of the time it's someone within a mile or two of that house or business. 

We put the offices where they are convenient to people.  Close to the other businesses they frequent.  Name recognition, branding, whatever you want to call it, it works.  

[/quote]

Are you talking about Eddie Jones or Walmart.  I go to Walmart because it is in the area.  I have clients in 15 states and they come to be because of what I give to them, I make my rounds once a year in person and quarterly over the phone.  They don't care that I am no with in a morning's walk to my office.

[quote=Edward Pwns]How could it not make sense for Jones, but make sense for the GPs? They
ARE Jones.

Is there any other business that puts an office on every corner? I thought
McDonalds, but they actually limit their expansion. Subway.....no they limit
too.

Why do they put an office on every corner? No other business does that. [/quote]

Starbucks!!

[quote=Spaceman Spiff]

you seriously saying that because I am the only FA in my office that I CAN'T do a "deep" job with my clients? 

[/quote]

I have worked for Jones for 16 years before going to a wirehouse then indy with RJ.  I have noticed that many wirehouse brokers do not understand the EDJ model and how it is very effective in the real world.  The best EDJ brokers would be good at ANY wirehouse out there, ML included.

The strengths are one support staff to each broker, and the local EDJ office.  The weakeness is their lack of research and the communication systems. All of those are well documented.

Next time someone blasts Jones from the wirehouse, ask them how many dedicated support staffers they have to service their clients and how long their commute is.  Mine at Wachovia was 1/8 of an SA and a 140 mile commute.  It shuts them up pretty quick. 

IndyEDJ

I run a novel concept at my office… I let the client determine the level of contact. Some clients want monthly calls, others bimonthly , some quarterly others twice a year. It’s all about what the CLIENT wants… Besides at Jones our service model is built to outservice a wirehouse office.