7yr,

First, in reference to higher payout as an independant, you said,

If I leave 10-15% (according to Zacko,that is about the number)on the table, in my puny mathematical mind, its worth it.

then in reference to transitioning out of the business, you siad

Bottom line, if more vets who produce leave because of it, we'll see more changes. If I did not have time, I would be more inclined to worry about this issue. Your point has merit. We should be rewarded for decades of hard work.

At only 200k of gross production, which is pretty low for a 7yr vet, you are leaving 20-30k on the table every year.  That's using the numbers you have already agreed to.

Now. Lets move forward 5yrs. Assuming you continue to "scrape" by at 200k/yr giving away 20k/yr, that is 100k.  Are they going to "let" you even BUY 100k of LP over that 5yrs?

My point to all this is: They have you right where they want you!

You will continue this way until Jones figures out how to buy a business from you that they think they already own.

Unless YOU make a change, you will continue this way for your whole career.

Inevitably, at this point in these threads some Jones Loyalist says something like.

It isn't just about money.

Ok, here's the preemtive response:

You can serve clients better away from Jones!

How about a mutual fund research department, instead of a phony product review that did nothing to warn IR's of the high tech exposure in some Putnam funds.  And isn't that the same dept that let the frim get overweighted in GM bonds while chasing yield. 

Or how about being able to sell all the funds from some of your own Preferred Fund Families.  What is so "evil" about a floating rate fund.

My point: It isn't just about the money.  It's also about serving clients by recommending the best investments avail with objective advice.  And by the way excessive rev sharing agreements prohibit objectivity. Ya, lots of firms have rev sharing, but few were fined for their practices to the extent Jones was. 

The truth is being told, sometimes you just have to listen.  Read between the lines and always follow the money.

At Jones the money flows to the GP's.

7yr,

Im guessing you are about 30 yrs old having been in the biz 7 yrs....

By the time you are 40, you'll have left over $200M on the table, by 50 that number is 400M, thats using palty production numbers.

In addition, when you want to leave the biz at some point, you get to stick around 4 more years and have your payout reduced each yr.  Sound good?

7yrvet & Guest1,

Do the MATH.......................

extrone & Jonzed nailed it.................

Haven't heard from 7yr in 2 weeks. 

He must have found a calculator.

You know I've been wondering lately on the bad timing of Doug Hill.  The poor fellow was in charge of EDJ for how long prior to all the fines etc. unfolding due to the fund issues?  I know in the short time that he ran that firm, these deals weren't created yet he is the one that pays for it.  Makes you wonder if John Bachman saw it coming?  He's the guy who ran the firm for a number of years and I am sure solidified a number of the lush pay to play deals that they were fined for.  Oh Douglas, such poor timing on your part.

Oh Jonzed, does the LP make up for that 400m they'll leave on the table - after all it's paying them over 20% returns?

Exdrone - great stuff, they beat me up on the "It isn't about the money" deal all the time.  Here's a good question to that comment too:

If it isn't about the money, how much of your assets are in no loads?  How much pro bono work do you do?

[quote=csmelnix]

If it isn't about the money, how much of your assets are in no loads?  How much pro bono work do you do?

[/quote]

AMEN!

Who ever said that to be ethical you had to be the cheapest thing in town....And your right, Jones isn't the cheapest.  How many referrals did Jones IR's send to Vanguard and Fidelity in the last year!

BTW both those companies have funds that kick the cr@p out of the Jones preferreds.  And under my platform my clients can own them.

Roger that!

I guess some of the new "darkside posters"  are too young to know that at a long long time ago, EJ used to sell Fidelity products.

That realtionship went sour VERY quickly and that was simply about money.

CP, Hmmm, I guess you don’t recall when Fidelity went from Load to no-load- and now a mix of the two. THAT is why the relationship fizzled. Also, recall when Franklin CHARGED to reinvest dividends? We stopped using them until they fiqured that one out. 

[quote=Guest1]CP, Hmmm, I guess you don't recall when Fidelity went from Load to no-load- and now a mix of the two. THAT is why the relationship fizzled. Also, recall when Franklin CHARGED to reinvest dividends? We stopped using them until they figured that one out. [/quote]

Guest1, you have selective memory, but I doubt you were at Edward Jones when they broke off the relationship with Fidelity,I was there 10years and it was many years before I got there.

FYI, Guest1, and fellow DRONES and CLONES, once I left Edward Jones and started talking to Wholesalers, I heard a totally different story about how Doug "3 Mil"Hill squeezed and squeezed Mutual Funds and Annuity Companies for sweet heart deals, and it wasn't for commission to the individual IR, but for revenue to the FIRM....

The FACT is I now receive the COMMISSIONS Edward Jones the FIRM was getting, not what the IR was getting told they were, and it is a much higher payout!  Also figure I know get 90% to 95% not 38%from what the BD gets, only this actually shows up, when at Jones I had know idea what the REAL COMMISSION to the BD was, and neither do you now?  How much does an IR at Jones really leave on the TABLE........YOU HAVE TO DO THE MATH TO BELIEVE IT

When you finally figure out the whole TRUTH, you will leave or ask for a higher payout, and then leave.................

Yawn, who woke up Morris ?

Give it a rest, Player.

Everyone already knows what you think about Jones.

Guest1 & Starka

Neither of you has any balls at all, lets see you state some FACTS on what I just posted above?

If I lied prove it......YOU CAN'T,  so like a POLITICIAN you just try to throw rocks, you just keep dodging the TRUTH.........everyone on here knows how lame you two are, you never discuss anything with FACTS, you slam and run, no BALLS at all.......................... 

Try just once discussing FACTS..............

[quote=Guest1]CP, Hmmm, I guess you don't recall when Fidelity went from Load to no-load- and now a mix of the two. THAT is why the relationship fizzled. Also, recall when Franklin CHARGED to reinvest dividends? We stopped using them until they fiqured that one out. [/quote]

Guest1

You were not even at Edward Jones when they left Fidelity, were you?

So here we go again you making comments about something you truly know nothing about, except for what some lame GP told you over a drink...

Guest1 & BigPayDay

THIS IS FOR YOU TWO:

TOP 10 REASONS MY CLIENTS ARE GLAD I LEFT EDWARD JONES:

10. My clients also like the FACT my FIRM wasn't hit for 75 million in fines and facing close to 1 Billion in CA settlement.........

  9. FEE BASED BUSINESS (NO I WON'T EDUCATE YOU ON WHY IT'S BETTER THAN A SHARES) MY CLIENTS LOVE IT

  8. WHEN MY CLIENTS COME IN IT IS FOR SERVICE, NOT SELLING THEM THE "FLAVOR" OF THE MONTH LIKE YOU STILL DO...........DO THEY STILL HAVE THOSE SATURDAY PROMOTIONS, LIKE SELLING A "STOCK" or  'BOND" or A PARTICULAR "MUTUAL FUND"  OH, YEA BFD, THAT'S REALLY TAKEN CARE OF YOUR CLIENT ISN'T IT? Do you think they don't know it?

   7. BY THE WAY MY CLIENTS DO READ THE "WSJ" SO THEY ARE VERY PLEASED I LEFT..........They relate to the articles.

    6.  The don't have a newbie that Edward Jones put in my old Office, that's still wet behind the ears

   5.  They really love our customer statements, it really smokes Edward Jones statements

   4.  They love our financial plan, that is reinforced every quarter when we have our review

    3. They love that we don't bug them with unnecessary crap that is mailed in their Quarterly statement.

     2. They LOVE NOT PAYING HIGH COMMISSIONS........

     1. THEY LOVE THE FACT THERE IS MORE THAN ON IR IN OUR OFFICE, AND ALL OF OUR STAFF IS LICENSED SO THEY DON'T HAVE TO CALL SOME DIM WIT IN ST. LOUIS TO GET AN ANSWER...... 

 HAPPY THANKSGIVING

Bench Warmer,

A couple of definitions for you:<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

envy
Pronunciation: 'en-vE
Function: noun

Painful or resentful awareness of an advantage enjoyed by another joined with a desire to possess the same advantage.

jealous
Pronunciation: 'je-l&s
Function: adjective

Hostile toward a rival or one believed to enjoy an advantage.

Webster