spiked,

Not one of the kool aiders here (check the name) but you are certainly entitled to your opinion on the use of bf’s as am I. I have strong feelings about the performance of say LA bond deb which you made reference to. If you had put 100M in 1996 took divs in cash, you have 81,405 today. That given a falling interest rate environment (corps were 7.50 goveys 6.69 and junk 9.89% in 96) for most of the last 10 yrs. I’ll give you the muni funds have held up much better and the VK you mention is one of the best.

I’ve used bond ladders most of my career because it is my preference for my clients. Not using many of those 3 pt bonds either as most of my ladders are short and intermediate term.

Toss the KoolAid—Jones IR’s don’t use bond ladders because they don’t want to sell a bond that does not have 2.75 to 3 pts in them.  If they put Intermediate term bonds in the inventory they would sit there like an old seersucker at the Goodwill.  They can only put 1 pt into the short tem bonds so no one sells them.

I agree with Zacko...this is all true. It's sad to read it in print.

From someone who knows.

CIB

[quote=spikedkoolaid]Toss the KoolAid---Jones IR's don't use bond ladders because they don't want to sell a bond that does not have 2.75 to 3 pts in them.  If they put Intermediate term bonds in the inventory they would sit there like an old seersucker at the Goodwill.  They can only put 1 pt into the short tem bonds so no one sells them.[/quote]

Its hard to find 5-10 year paper at Jones, it is however very easy to find 1-5 year cd's for a short term ladder that pays almost ZIPPO but in many cases is the right thing for the client.  I could have made TONS more dough from my 100 million if I was selling 3 pt 40 yr bonds and 4% bond funds.

Once I flee the mother ship, I'll be using fee based for equities and ladders for fixed income rather than fee based.

[quote=RecordGuy]Why then do the brokers give the company such high marks?  Every broker I've talked to on and off the record has positive things to say, and they are making serious bank.  I have done some detective work, and the Jones reps in my area have accumulated plenty of assets.  It is strange that this company is bashed so badly and so often here.  Kinda reminds me of how hated WalMart, Microsoft, and McDonalds are.  [/quote]

Drones are happy because they dont know any better.  Besides filling out L&T forms beats hauling beer out of a truck if you are good at selling.

BTW, I too was told by my mentor to use the liquidate and transfer form as a way to avoid field supervision inquiries.  I believe this to be an unwritten but widespread practice at Jones.  I would like to know how IR’s are justifying 20yr plus bonds to get 3pts when we are in a flat rate environment.  The difference in yield between a 5yr cd and a 20yr AAA bond is maybe half a percent, hardly worth the loss of value when rates rise.  I wonder how many fee based advisors are recommending long term fixed income right now. My guess is not many. Funny how making compensation for all products the same does affect recommendations.

Of course all Jones brokers are taught to sell everything with a 20yr time horizon, when the average career of an IR at Jones is maybe 5yrs. 

With all this being said, Jones (at least when I started there) was a great place to start my business.  I made money, went on trips, got a ton of fake wood awards, and established some relationships that I still maintain today. 

Granted, they made alot more from me than I ever made from them--and the more my business grew, the more I became disenchanted with they way they interfered with the way I ran my business.  Ridiculous firm policy, limited product selection, poor payout, high expenses, poor benefits, etc..etc finally caught up with the puke green kool aid in my veins. 

While I am very happy I am no longer there & no matter what any of you at Jones say--being indy is SO MUCH BETTER THAN JONES IN EVERY WAY, I am still glad I got my start at Jones. 

Zacko- That’s a very fair and balanced view. I appreciate it. BTW, I’m serious.

zacko,

You are so correct!

[quote=zacko]

With all this being said, Jones (at least when I started there) was a great place to start my business.  I made money, went on trips, got a ton of fake wood awards, and established some relationships that I still maintain today. 

Granted, they made alot more from me than I ever made from them--and the more my business grew, the more I became disenchanted with they way they interfered with the way I ran my business.  Ridiculous firm policy, limited product selection, poor payout, high expenses, poor benefits, etc..etc finally caught up with the puke green kool aid in my veins. 

While I am very happy I am no longer there & no matter what any of you at Jones say--being indy is SO MUCH BETTER THAN JONES IN EVERY WAY, I am still glad I got my start at Jones. 

[/quote]

I agree with everything said here completely as I ponder my own exit.

CIB

Planning & preparation are the keys to a successful move.  The battle is won before it is ever even fought…(I think that is from the Art of War)

[quote=zacko]Planning & preparation are the keys to a successful move.  The battle is won before it is ever even fought...(I think that is from the Art of War)[/quote]

Agreed oh wise one that hath walked the battle ground before me.

Get Robert Fragasso's book "Starting Your Own Practice" and read it cover to cover before you get too far in the planning stages...

http://www.fragassogroup.com/

I was on a conference call with him on this subject and man, did I wish I had that information BEFORE the move!

Zacko,

I agree with you I will always be greatful for the start I was provided at Jones.  I continue to have great friendships with other IR's.  It is more the home office that I really have a bad taste about.  When I left I went into my old branch office, introduced my self to my replacement and told him about clients who should stay at Jones.  I tried to help him with some landlord issues and several other items.  He was very greatful and has done a good job with clients who stayed at Jones.  The home office however was a different story.  They called clients and sold them out of good investments and did everything possible to make it sound as if I had been let go.  I had clients tell me that they were told I was fired for cause.  That I won't forget and for anyone who is thinking about leaving Jones just make sure your prep work with your clients is done before you leave.  That was the biggest mistake I made.  I think most of the IR's out there are good people and put the clients needs first.  The home offiice not only will lie to the IR while the work at the firm the will lie about them when they leave. 

They did the same thing to me when I left on many different levels.  For them fortunately, it was an exercise in futility.

While you are essentially competing for your own clients with a corporate entity who doesn't know them at all, it still was kinda fun.  In my own way, I treated it like going to battle.  Biggest surprise to me was how loyal my clients were.  I expected success--but nowhere to the level I ultimately achieved. 

If you plan properly and remain organized--Jones doesn't have a chance in hell.

Is this the “most ethical thing to do?” Only jones in my opinion are such s**ts.

The sooner you recognize the doublespeak for what it is, the sooner you start your transition. If any IR took the time to really read the 10K, glancing past the highly compensated to the fine print. You like me would be looking for a new home.

Privacy has its priveliges. You can mislead the troops by not telling the whole truth. For instance, "Their is only one profit center." They are partially correct. There is only one profit center at EDJ brokerage. But there are many companies within  EDJ Holdings that generated 85M last year. Who knows what they do. The former managing partner is President of a securities firm owned by EDJ Holdings according to the Missouri Secretary of State website. Tossthekoolaid and others should look a little deeper. Stay tuned.

"Tossthekoolaid and others should look a little deeper. Stay tuned."

I'm one foot out the door so I doubt I need to look a little deeper.

I love this.  I was a jones guy for the shortest period possible.  I got my training, some clients, gave them 10 cents on the dollar for training and said, nice knowing you.  buh-bye.   These guys who are partners, do not give a damn about anyone but themselves.   We had a general partner for a regional leader that was so arrogant and cliquee you could feel the hate he generated when he walked into a room.   In my case, I was promised an office after 8 accounts were opened.  I did that in a week.   18 mo. later, I'm still working out of a van and my living room.   Then, when they finally were shamed into doing something, they found an office that no reasonable person would EVER start a business at.   I told the alpha broker, who at the time appeared to be on my side, that I would quit first before I went into that office.   It was his call, mostly because the Regional Leader was too lazy to drive 35 miles.  He recommended that they rent the office for me.   I later found out that he was so threatened by me that he wanted me to quit so he could get my accounts and remain on top of the heap locally.    Edward Jones lied, went through almost unbelievable lengths to "gather assetts" and then when you finally give up trying to make it work, they sue you.   I was lured out of a very good business by nothing more than empty promises by dishonest people.   I am upset that I allowed myself to believe their lies.  "A GREAT OPPORTUNITY"  NOT.  Stay away from these bastards if you can.   A final note:   The "top"  broker locally took people out of their VA's he sold them at the bottom of the market, while still in surrender, then put them into FA's at the lowest interest rates in 30 yrs.  just to keep the money  coming.  Disgusting.   He should be in Jail.