My KYC Class

Nov 7, 2009 2:19 pm

<span =“Apple-style-span” style=“border-collapse: separate; color: rgb0, 0, 0; font-family: ‘Times New Roman’; font-size: medium; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-trans: none; white-space: normal; widows: 2; word-spacing: 0px;”><span =“Apple-style-span” style=“font-family: monospace; font-size: 13px; white-space: pre-wrap;”>For fun I thought I’d chronicle the people that were in my KYC class since another one just vanished.


Me from the south - New/New, still knocking (punk ass mexican guy too dumb to fail)

Young Indian dude from the North East - FAILED (smart kid but he got my vote for most likely to fail, was awful on the phone and probably worse on the door. Made it to eval/grad but not PDP)

Older White Guy from the South - new/new, Still knocking (he missed eval/grad but is still in the system. I thought for sure he’d fail because of this attitude but was proven wrong)

Middle aged white guy from the north east - new/new, still knocking (he’ll fail eventually because he’ll run out of money, I hope I’m wrong but he’s got a huge nut to upkeep and not enough production to make the gap)

20something white guy from the rust belt - new/legacy, FAILED (thought he could make it although he looked awkward in a suit and had weird facial hair. Nice guy but just didn’t bring in the business. Made it to eval/grad but not PDP)

Young black kid from the south - new/legacy, FAILED (nice dude but a bit timid. He missed eval/grad but stay on a bit longer. I think his RL screwed him by limiting his prospecting to a specific area. Too young to tell him to f-off, should have listed to wise volt)

Middle aged South African from north east - new/new, still knocking (Don’t like the guy but know he’s a hard worker and does have some industry experience. His area makes it TOUGH for him so hopefully he’ll overcome that in the long run and keep making it)

20something white male from the north east - new/new, STILL KNOCKING (Did the work, put in the time, got a nice branch with big $$$, he’ll be around for awhile)

20something white male from the rust belt - existing office, STILL BRAGGIN (don’t like the guy but he’s a hell of a worker and would have made it without an office I think. Still makes me mad he got one though (he got it at eval/grad))

20something black male from the north east - new/new, FAILED (super smart but chose to prospect only one area that he felt comfortable in. Soon realized the folks didn’t have any money. Sorry to see him go. He landed on his feet though and will probably make more $$$ in the long run)

10 men
6 still employed
4 failed


My guess is there will be three of us here after 3 years out of 10.

Nov 7, 2009 3:09 pm

You must be in the diversity class or Jones changed their hiring practices.  For my KYC group(not class) there were maybe 8 minorities out of 60-70.

  My class was all white.. 40 something frmr BOA taking over office she was BOA in: Made it with no problem, think the assets were 30-40MM.   20 something male: took over an office in florida with $30MM, was told the guy retired, turns out he walk across the street to Wachovia, and brought all but $5MM with him. The guy in my class, failed on purpose. Went to Morgan Stanley and quit 3 years later(out of business)   50 something male: new/new until 5th day of PDP and took over $20MM non-compete office.. Still going well today.(Retired as CFO from some plastics company had a pension and retirement, so money wasn't a thing) said he won't be around much longer has enough money to live comfortably on forever.   20 something male from kentucky: new/new, wasn't going to make it back for PDP, so he got goodnighted... Was out of the business 1 year after the goodnight.   20 something male from virginia: new/new... never made it back from KYC..   20 something male from alabama: new/new... my hero.. was the one who showed us the way out.. Made it to KYC, qualified for PDP, but then got an offer to take over some assets at Wachovia.. Got EDJ to fire him, and not have to pay back the $75K and left...Does $500K in production now..   20 something male existing office- good guy, qualified for pdp came back, but then transfered an account from another Jones office(client hated the other rep for complete lack of service on a $5MM account, walked into this guys office.. Other rep called RL and RL got in new guys face.. next week new guy transfere to ML, took $5M client and 75% of book he inherited, ML paid jones$15K..   60 year old: new/new... turn down $20MM dollar office "because the drive was too far" I think it was 20 minutes from his house(South Carolina guy... I never did understand these people).. Took leave(was a triple crown winner... shows you that award is crap) for 6 months and came back... still on system no one is really sure why..   There was 3 other younger guys who were new new who never made it back from PDP..
Nov 7, 2009 3:12 pm

[quote=voltmoie]


Me from the south - New/New, still knocking (punk ass mexican guy too dumb to fail)

[/quote]

You are Mexican?

Nov 7, 2009 4:54 pm

Lessee …

  mid 30s salesman. Good guy, could "sell", but money ran out before he could get too far beyond PDP. Wife actually got pregnant during KYC, I believe, and I wouldn't be surprised the loss of income from that killed his shot. Landed a good spot, but out of this biz. (Funny story, he told me a prospect he'd been working on for awhile came in with 7 figures the week he quit!).   late 20s, former WS type analyst. Excellent on the phone, tremendous work ethic. Got through PDP, landed in a hard spot during the crash. Now with an indy, and making a good living I think.   30? guy, former annuity, GK. Knew how to do f2f and overcome objections. Fast start, got office; terminated at about M22 through no fault of own. I think at the time he was already a S3. Now with LPL, an indy and loving life - but not making absolutely huge scratch.   mid 30s, she got a basically empty office. Previously owned own business. Worked hard, had pressures from spouse and difficult environment. Out at M30, trying to land with bank.   early 20s, he got a $10-12MM GK in major metropolitan area. Worked butt off, didn't use GK to help him. Already on div trip, a rising Jones star. Likely S5 in three years.   50? Fast talking guy, some biz experience. Never made it to PDP, out of business I believe.   35, former IBMer. Has a grinder-mentality, gonna do what it takes and realizes it's time in the biz. He'll ultimately be your Seg 4 guy, leaving early on Fridays. Has support of good earning spouse.   Late 50s guy, AXA. Terrible. Never made it back to E/G.   Mid 40s guy, AA. Not polished at all, former military I believe. Left Jones (didn't have to pay them any penalties) and promptly opened up an RIA firm. Still in biz? I think so.   Late 20s, transfered in his 7. Past PDP, but to my knowledge out of the biz. Not sure he was 100% committed to the whole Jones experience.   Early 30s guy. After PDP got a GK ($10MM), wasn't doing well and put on goals. While  he was on goals, a $30MM office came open and they gave it to him (apparently a GK got his nose above water just in time).  Naturally, he's doing fine. Luck favors some.   And me. Very late 40s, white guy, no experience. Looks to have an ok career ahead of him, but destination unknown. Got some GK assets (actually they found a way to give me $4.5MM) which helped and hurt.   So, of 12, 8 of the people either had a license/signficant experience, or got assets/office. Four still with Jones. First day, the trainer's exact words: "look to your left, look to your right. Only one of you will be with us in three years."
Nov 8, 2009 4:56 pm

[quote=BerkshireBull]

[quote=voltmoie]


Me from the south - New/New, still knocking (punk ass mexican guy too dumb to fail)

[/quote]

You are Mexican?
[/quote]

He’s MA

Nov 9, 2009 4:07 pm

As I was reading about your KYC classes, I was reminded of the hundreds of people that came through my classes at one time.  I keep track only a handful of them.  MANY of them have ultimately bailed on Jones or the business altogether.  The few that have made it, here or otherwise, are generally doing well.  It’s been over 7 years since I trained anyone, so most of my former trainees are out 7-10 years now and loving their lives at Jones. 

  It's interesting to me to see that things don't change.  There are some folks, just like in your classes, that I would have thought would crash and burn quickly, but then some who I thought couldn't sell anything to save their lives who are now on track to top producer or who hit it already.  This business is fickle that way.  Fortune favors the lucky.
Nov 9, 2009 4:10 pm

There is now one left from my old class.  She is doing quite well at Jones.

Nov 9, 2009 4:40 pm

Out of my original class of 12, there are 2 left with Jones and I am with LPL. Of the people that left (9) they had all failed by the end of the first year.

Nov 9, 2009 4:58 pm

I had a different experience. There was 15 people in my KYC class and 12 came back to PDP. Everyone except for 1 has an office (opened or given). Not to say noone will quit, but so far it’s not the average class.

Nov 9, 2009 5:39 pm

Only one in my KYC didn’t make it back to PDP.  PDP isn’t the issue.  It’s when the salary runs out for most.

Nov 9, 2009 5:51 pm

How many were given goodknights or exisiting offices, Windy?  I think that is the difference maker in many cases.

Nov 9, 2009 6:59 pm

I think there was 5 who got an existing office. One of that 5 was a lady doing a succession plan with her mom (100M). That’s gotta suck.

Nov 9, 2009 7:01 pm
voltmoie:

How many were given goodknights or exisiting offices, Windy?  I think that is the difference maker in many cases.

  It can't be good for morale at Jones when mangers get to pick the winners and losers.  Guys like B24 and Wind get the world given to them (no offense to them, I was selected to join a team last year while other new guys at my company were on their own and failed out) and guys like Ron, Volt, and Still@Jones are given no support.   Wouldn't Jones be more successful with their orphans if rather than giving away an office they divided the assets up amongst everyone doing the work?  If I'm given 200 households and a $10mil office how hard will I work the smaller accounts?  I probably won't even call half the people on my list.  How many new people will I see if I have 200 warm leads to sell?  I probably won't be working very hard and I probably won't be seeing many new people, and I won't be cold-prospecting much anymore.   Now if 4 guys are given 50 households and $2.5mil each, they're probably going to run to go out and see each of those households within the next quarter.  They're going to service the hell out of them and they're going to be excited and pumped up to be working at Jones.
Nov 9, 2009 7:02 pm

Precisely.  Of the people in my class that got an existing office or did a Goodknight, 100% are still with the firm (over 4 years).  There are a couple of new-new’s still with the firm, but msot left very early on.  The only one’s that left before PDP were new/new’s.

Nov 9, 2009 7:09 pm

What is the PASS program? Was talking to a EDJ rep in my area and said they are dividing an office with $80MM to two guys, an legacy and a Pass program guy…

Nov 9, 2009 7:11 pm
BerkshireBull:

[quote=voltmoie]How many were given goodknights or exisiting offices, Windy?  I think that is the difference maker in many cases.

  It can't be good for morale at Jones when mangers get to pick the winners and losers.  Guys like B24 and Wind get the world given to them (no offense to them, I was selected to join a team last year while other new guys at my company were on their own and failed out) and guys like Ron, Volt, and Still@Jones are given no support.   Wouldn't Jones be more successful with their orphans if rather than giving away an office they divided the assets up amongst everyone doing the work?  If I'm given 200 households and a $10mil office how hard will I work the smaller accounts?  I probably won't even call half the people on my list.  How many new people will I see if I have 200 warm leads to sell?  I probably won't be working very hard and I probably won't be seeing many new people, and I won't be cold-prospecting much anymore.   Now if 4 guys are given 50 households and $2.5mil each, they're probably going to run to go out and see each of those households within the next quarter.  They're going to service the hell out of them and they're going to be excited and pumped up to be working at Jones.[/quote]

In Jones' defense they tried this in my region.  Split a $30 million competitive office 6 ways.  Guess what happened?  One guy is still at Jones.  The rep who left got $28 million.
Nov 9, 2009 7:13 pm

How did the rep who left get 28mm if they split a 30mm 6 ways?

Nov 9, 2009 7:19 pm

I just checked for kicks.  Out of 71 total people in my KYC “Graduating Class”, 31 are still with the firm (43%).  KYC was about 4.5 years ago for me.  For PDP,  out of 57 total people, 40 are still with the firm (70%), which was about 4 years ago.  I have no idea the breakdown of GK/New-new.  But I would guess there is natural “survivorship” bias, and many of the people that made it did so because they got Goodknights or took over offices.  Which would lead me to believe that the success rate of Goodknights is extremely high.

Nov 9, 2009 7:24 pm
BerkshireBull:

[quote=voltmoie]How many were given goodknights or exisiting offices, Windy?  I think that is the difference maker in many cases.

  It can't be good for morale at Jones when mangers get to pick the winners and losers.  Guys like B24 and Wind get the world given to them (no offense to them, I was selected to join a team last year while other new guys at my company were on their own and failed out) and guys like Ron, Volt, and Still@Jones are given no support.  [/quote]   Thats a pretty bold and un-informed statement considering I haven't really been given anything except an office with very little assets and I was 4 months past PDP when I got that. All my production has come from my hard work. So thats a little unfair to say.
Nov 9, 2009 7:26 pm
BerkshireBull:

[quote=voltmoie]How many were given goodknights or exisiting offices, Windy?  I think that is the difference maker in many cases.

  It can't be good for morale at Jones when mangers get to pick the winners and losers.  Guys like B24 and Wind get the world given to them (no offense to them, I was selected to join a team last year while other new guys at my company were on their own and failed out) and guys like Ron, Volt, and Still@Jones are given no support.   Wouldn't Jones be more successful with their orphans if rather than giving away an office they divided the assets up amongst everyone doing the work?  If I'm given 200 households and a $10mil office how hard will I work the smaller accounts?  I probably won't even call half the people on my list.  How many new people will I see if I have 200 warm leads to sell?  I probably won't be working very hard and I probably won't be seeing many new people, and I won't be cold-prospecting much anymore.   Now if 4 guys are given 50 households and $2.5mil each, they're probably going to run to go out and see each of those households within the next quarter.  They're going to service the hell out of them and they're going to be excited and pumped up to be working at Jones.[/quote]   OK, let's define "given the world".  I got about $4.5mm.  Three households, which were 100% stock, amounted to over $4mm (which is why my veteran was able to do the Goodknight).  Of those, one is left (the other two died), and he basically does an occasional stock trade.  The other 150+ accounts are now mostly gone.  I have exactly 4 clients left from my Goodknight - I gave some away to a "Legacy" guy in my office, and the rest I closed, transferred to offices locally (local to them), or they left.  And I was not "chosen" by my RL.  I was asked by my mentor to do the GK because he was impressed with my work ethic, attitude, and my approach to the business.   And i think you're wrong about your assertion.  You give someone $2.5mm, it just prolongs the agony if they end up failing, and it leads to some really unhappy clients.  You give someone $10-15mm, and they will probably "make it", and end up having happy clients (that didn't get shuffled to yet another broker).  $2.5mm will do NOTHING for a new FA.
Nov 9, 2009 7:31 pm

I think “given the world” means a leg up in his definition. Calm down ladies.    Also, 2.5mm does alot for a new person in my opinion.  It gives them someone to meet with and hopefully get some referrals out of.  Starting with zero clients. Zero trails. Zero appointments is tough.  Every person in my class that got an office or GK clients are still with the firm.  Of course my runway is super short.

  Windy, I know you brought most of your AUM in yourself but didn't your branch have 6mm? That's not chump change.  More than most guys will do in a year, easy.
Nov 9, 2009 7:32 pm

[quote=voltmoie]How did the rep who left get 28mm if they split a 30mm 6 ways?[/quote]

Easy.  They were his clients.

Nov 9, 2009 7:38 pm
Moraen:

[quote=voltmoie]How did the rep who left get 28mm if they split a 30mm 6 ways?[/quote]

Easy.  They were his clients.

  I don't follow the math though.  Did they split the 30mm six ways evenly or did he get a bigger piece of the pie?  I know get how he took the clients with him .. just not how he landed them.
Nov 9, 2009 7:45 pm

Volt it was 6 million before a few left. The office was open a week before I was offered it and a few left because of the “Home Office” guy that called. It ended up about the same as B24 somewhere around 4.5M or so. The only step up I got, was the office and like I said, that was 4 months after PDP. My business was brought in before I got the office. And Volt - $169 in gross trails is not much different than $0.

Nov 9, 2009 8:13 pm
voltmoie:

[quote=Moraen] [quote=voltmoie]How did the rep who left get 28mm if they split a 30mm 6 ways?[/quote]

Easy.  They were his clients.

  I don't follow the math though.  Did they split the 30mm six ways evenly or did he get a bigger piece of the pie?  I know get how he took the clients with him .. just not how he landed them.[/quote]

Volt.  I'm sorry I'm not explaining this right.  Here you go.

1)  Guy with a $30 million office leaves Jones
2)  Jones decides they are going to split it up 6 ways. 
3)  Each person gets $5 million. 
4)  Guy who originally left, transfers $28 million of it.
5)  Leaves $2 million to the six guys who got a share ($2 million total).
Nov 9, 2009 8:20 pm

I think you're going to hear some negative comments from B24.  I'm going to bet he's going to disagree with your astute assessment of his $5 million being "the world".  And Wind wasn't actually given "the world" either. 

I think your scenario of being given 50 households from a failing broker causing excitement is incorrect also.  Out of those 50 households you might find a few diamonds in the rough, but most likely not.  Most people that I know who have taken really small books like that did it primarily for the office space.    As for being more successful with their orphans, not so much.  People don't like change.  If their previous broker leaves, the clients have a few choices.  One, go find a new firm/advisor to work with.  Two, move with the departing FA.  Three, stick with the office and the new FA.  I'm not so sure we'd have a better success rate if we both gave them a new FA (which they're going to get anyway if they stay with Jones) AND make them move offices and BOAs.  In many cases, the BOA relationship is more important than the new FA. 
Nov 9, 2009 8:23 pm

[quote=Spaceman Spiff]

I think you’re going to hear some negative comments from B24.  I’m going to bet he’s going to disagree with your astute assessment of his $5 million being “the world”.  And Wind wasn’t actually given “the world” either. 

I think your scenario of being given 50 households from a failing broker causing excitement is incorrect also.  Out of those 50 households you might find a few diamonds in the rough, but most likely not.  Most people that I know who have taken really small books like that did it primarily for the office space.    As for being more successful with their orphans, not so much.  People don't like change.  If their previous broker leaves, the clients have a few choices.  One, go find a new firm/advisor to work with.  Two, move with the departing FA.  Three, stick with the office and the new FA.  I'm not so sure we'd have a better success rate if we both gave them a new FA (which they're going to get anyway if they stay with Jones) AND make them move offices and BOAs.  In many cases, the BOA relationship is more important than the new FA.  [/quote]

This is why it is important to leave early, if you are going to leave.

Nov 9, 2009 8:29 pm

Someone actually took $28MM of a $30MM branch?  That's amazing.  That may be the highest percentage I've ever heard. 

Nov 9, 2009 8:30 pm

I started KYC with 12 People.

  11 White Men   1Woman/Child/You've Gotta Be Kidding Me, How'd She Get Hired?   Woman and 8 Men crashed and burned before PDP.   3 of us are still standing.        
Nov 9, 2009 8:51 pm

As to my original KYC group, only 20 of the 60 are currently still around.  One guy is now in the corporate office.  He was given a small office, but didn’t survive.  I know nothing about the rest of my class.  I do know that my VV was about to do a Sunset plan with someone and take over a $100MM book.  So, he went from a $50MM book to a $100MM book overnight.  Not a bad deal.

Nov 9, 2009 8:56 pm

[quote=Spaceman Spiff]

Someone actually took $28MM of a $30MM branch?  That’s amazing.  That may be the highest percentage I’ve ever heard. 

[/quote]

Yeah.  It was ridiculous.  But this guy had his client’s tight.  Zero thought that they wouldn’t go with him.

I thought it was high too, until those guys started complaining that they didn’t have anything left. 
Nov 9, 2009 9:36 pm

Are these people taking over offices normally PASS programers, luck of the draw, or did they bust their balls grinding it out new/new?



It seems like people never get their head up from underwater without some sort of “gift.” I read another thread where someone said morale at Jones must be low due to the way they divvy assets. Seems like PASS people get their choice, then luck/ass kissing takes the rest.



No?

Nov 9, 2009 9:38 pm

Most PASS people end up with taking over crummy offices - a few million maybe.  Yes, there will be those that take over good-sized offices, but the majority of big offices are not taken by PASS people.

Nov 9, 2009 9:49 pm
dreamingFA:

Are these people taking over offices normally PASS programers, luck of the draw, or did they bust their balls grinding it out new/new?

It seems like people never get their head up from underwater without some sort of “gift.” I read another thread where someone said morale at Jones must be low due to the way they divvy assets. Seems like PASS people get their choice, then luck/ass kissing takes the rest.

No?

The open office/assets thing has been going on for decades, so it's not a new phenomenon.  Some of us question the rationale behind giving a brand new FA a $20MM+ office, but in a smaller town that won't support two or three new FAs, it just makes sense.    The reality is that there isn't an equitable way to split the assets of an FA who is leaving.  If you give it to the vets, one vet will complain that another vet got something he didn't and the RL isn't being fair.  If you give it to a new FA, then the vets and the other new FAs with complain that they haven't been given anything and that they have been working as hard as the other guy.  If you split to assets between a bunch of people, unless the book is huge, you don't really do much for anyone's business and you end up pissing off some clients in the process.    Doesn't this conversation translate to wirehouse offices too?  Doesn't the BOM just divvy up the assets of the departing FA as he sees fit?  I can't imagine this is a Jones only issue. 
Nov 9, 2009 10:22 pm

3/12 of us were left at PDP

Nov 9, 2009 10:48 pm

Only guys that got offices / assets think it sucks to get them.  haha this is pure comedy.

Nov 9, 2009 10:53 pm

[quote=Spaceman Spiff]As to my original KYC group, only 20 of the 60 are currently still around.  One guy is now in the corporate office.  He was given a small office, but didn’t survive.  I know nothing about the rest of my class.  I do know that my VV was about to do a Sunset plan with someone and take over a $100MM book.  So, he went from a $50MM book to a $100MM book overnight.  Not a bad deal. [/quote]

Spiff, can you tell me a bit more about how a Sunset plan works?  I’m speaking more logistically.  Do they combine offices?  What happens to the extra FA if so?

Nov 10, 2009 1:14 am
voltmoie:

Only guys that got offices / assets think it sucks to get them.  haha this is pure comedy.

  I did't say it sucked. I said it didn't give me the world or make or break me. It just gave me an office.
Nov 10, 2009 1:26 am

64 people in KYC earlier this year…by July, half were gone.
The rest are holding strong, except for one or two…

Nov 10, 2009 1:32 am

My class

50yr old dude, took over 20mil, still there 25yr old dude, new/new, left for UBS 3 months in and is on fire Me-Handing out suckers 28 yr old dude, got office of 10mil and his dad is a GP with a 250mil office, still there 28 yr old dude, GK 2, dad is home office GP, still there 35 yr old dude, dumbest guy I ever met, took over 15mil office, will be fired for ethics eventually but hasnt been yet 30yr old dude, transfer broker from Schaub, no clue his story but still around 40yr old chick, was spread eagle with a different guy at KYC and PDP, ugly as hell, no clue about her   There were 2 PASS guys also that I have no clue about   So 5 of 7 are still there almost 4 years later, 3 unknown
Nov 10, 2009 2:25 am

[quote=Ron 14]

My class

50yr old dude, took over 20mil, still there 25yr old dude, new/new, left for UBS 3 months in and is on fire Me-Handing out suckers 28 yr old dude, got office of 10mil and his dad is a GP with a 250mil office, still there 28 yr old dude, GK 2, dad is home office GP, still there 35 yr old dude, dumbest guy I ever met, took over 15mil office, will be fired for ethics eventually but hasnt been yet 30yr old dude, transfer broker from Schaub, no clue his story but still around 40yr old chick, was spread eagle with a different guy at KYC and PDP, ugly as hell, no clue about her   There were 2 PASS guys also that I have no clue about   So 5 of 7 are still there almost 4 years later, 3 unknown[/quote]   How much of that would you have received had you kept your nose to the grindstone?
Nov 10, 2009 2:37 am

Those guys were given those offices right off the bat. It had nothing to do with work.

Nov 10, 2009 3:20 am

volt check your PM’s

Nov 10, 2009 2:30 pm
Ron 14:

Those guys were given those offices right off the bat. It had nothing to do with work.

  Ron, you're starting to piss me off. Change your signature.
Nov 10, 2009 2:42 pm

[quote=Gaddock][quote=Ron 14]

My class

50yr old dude, took over 20mil, still there 25yr old dude, new/new, left for UBS 3 months in and is on fire Me-Handing out suckers 28 yr old dude, got office of 10mil and his dad is a GP with a 250mil office, still there 28 yr old dude, GK 2, dad is home office GP, still there 35 yr old dude, dumbest guy I ever met, took over 15mil office, will be fired for ethics eventually but hasnt been yet 30yr old dude, transfer broker from Schaub, no clue his story but still around 40yr old chick, was spread eagle with a different guy at KYC and PDP, ugly as hell, no clue about her   There were 2 PASS guys also that I have no clue about   So 5 of 7 are still there almost 4 years later, 3 unknown[/quote]   How much of that would you have received had you kept your nose to the grindstone?[/quote]   Which part, the took over assets part or the spread eagle chick?
Nov 10, 2009 2:49 pm
voltmoie:

[quote=Spaceman Spiff]As to my original KYC group, only 20 of the 60 are currently still around.  One guy is now in the corporate office.  He was given a small office, but didn’t survive.  I know nothing about the rest of my class.  I do know that my VV was about to do a Sunset plan with someone and take over a $100MM book.  So, he went from a $50MM book to a $100MM book overnight.  Not a bad deal. [/quote]

Spiff, can you tell me a bit more about how a Sunset plan works?  I’m speaking more logistically.  Do they combine offices?  What happens to the extra FA if so?

  Basic idea is similar to a Legacy office.  FAs share the space.  It lasts for 3 years, I believe. During the time they are sharing the office, the retiring FA continues to work with the clients, but slowly transitions the clients to working with the new FA.  New FA of course has to keep his head above water while it's happening, kind of like a GKN plan.  At the end of the timeframe the original FA is mostly acting like a consultant while the new FA runs the office day to day.  The retiring FA gets some perks for doing the plan, I think, like some trips after he retires.  He may get some increased payout too, but I don't remember for sure.  I'm sure there are some things I'm missing, but you get the idea. 
Nov 10, 2009 2:54 pm

A girl in my KYC class was her dad’s sunset… payout goes 75/25 50/50 25/75… older advisor not required to show up really, it’s Jones version of buying your book.

Nov 10, 2009 3:52 pm

Yeah, they have to set it up “officially” so that the veteran must work “in proportion to their split of the commissions” so that he can continue to be licensed and get benefits, etc asd an employee.  In reality, the retiring FA mostly just smoothes over his best clients for a while, then visits periodically.  In addition to the three year split, in the 4th year he gets a 10% “non-employee consultant fee”. 

So basically, for a modest $350K producer, you would receive like $225K net over 4 years, plus benefits, plus office profit, and profit sharing (because you are still employed).  With all the benefits and profit stuff thrown in, you end up with around 100% of T-12 paid over 4 years.  I think this was about the same as Merrill Lynch (my friend retired from ML about 5 years ago and sunseted an $85mm book to his son, and this was pretty much his deal).
Nov 10, 2009 4:26 pm

Thanks for the info.  - The office I legacy out of has an older guy in it.  His BOA hinted around at it the other day.  I don’t expect anything to happen but can always dream.

Nov 10, 2009 5:04 pm
SometimesNowhere:

[quote=Ron 14]Those guys were given those offices right off the bat. It had nothing to do with work.

  Ron, you're starting to piss me off. Change your signature.[/quote]  
Nov 10, 2009 5:29 pm
Ron 14:

[quote=SometimesNowhere][quote=Ron 14]Those guys were given those offices right off the bat. It had nothing to do with work.

  Ron, you're starting to piss me off. Change your signature.[/quote]   [/quote]     I love it. Thank you.
Nov 10, 2009 10:14 pm

Out of the 12 in my KYC we dropped two by eval/grad and only 4 made it to PDP.

  mid 40s chick. She was a BOA and her husband is an FA. So she was just going thru the motions.   mid 40s ex-pharm guy. Smooth talker. Had a 50/50 split on a 80mm sunset before KYC. He had to move his family out of state to do it.   late 20s chick from HO.   mid 40s guy about 2hrs from me. He made it to PDP a month later.   All four still doing well.   It was funny in KYC cause the "guy" you knew would knock the cover of the ball quit in week two cause his frat buddies made fun of him. The home office girl, in a town with like 1000 EJ offices, is still there. We were thinking she would go back in the box.   As far as I know only me and one other guy that left are still in the industry.   For you all still at Jones, I asked #2 what it took to get a sunset. He said first you have to know it exists, second be willing to move anywhere, last ask for it. If you show promise and are willing to move they will find an opportunity for you. Most newbs don't show promise hence the failure rate.
Nov 11, 2009 3:56 pm

What was the HQ girl’s name?  If she went to a town of 1000 people it had to be someplace like metro STL.  I’m curious if I know her.

Nov 12, 2009 12:26 am
Spaceman Spiff:

What was the HQ girl’s name?  If she went to a town of 1000 people it had to be someplace like metro STL.  I’m curious if I know her.

  Nice try company man!! Tell me who you are and I will have her call you.
Nov 12, 2009 12:45 am

Sorry, didn't mean to come across as trying to figure out your "secret identity."  Now that I read my post a little closer, and with a suspicious mind, I can see where you're coming from. 

Nov 12, 2009 12:59 am

No problem. I didn’t think you were but you never know on here.