Jones tops with HNW? Say it ain't so

Ummm yeah. That’s it.

“But oddly enough, among full-service brokerages, the firm was the one least used by survey respondents.”

I don't think they are jealous.  Jones pissed them off for a variety of reasons and they come here to make themselves feel good by bad mouthing their former employer. 

My personal opinion is that if the mucky mucks at the home office would ever loosen up and let us really compete for the big dollars out there Jones would start to climb in the list as far as HNW people using our services.  I think we're a great fit for the $0-$1 mil crowd.  Lot's of $500K accounts would be well served at a Jones office.  With the lack of true fee based, broker run platform we are not going to attract a lot of HNW clients away from ML.  At least I've not had much luck with it. 

With that said, I don't think anyone does service better than a Jones FA.  That's why you keep seeing the reports and the Jones name show up in the magazines. 

[

[quote=Spaceman Spiff]

I don't think anyone does service better than a Jones FA.  [/quote]

Except a SUCCESSFUL Jones FA that went independent.

Yeah i kinda thought that was funny when I read it…and no I never worked at Jones

Jones is an excellent place to start a career in the financial services industry.  Great training, solid no-nonsense compliance and supervision, and excellent office support. 

The research and literature show that the biggest reason people leave a sales organization is compensation.  The first year I left my income was four times my best year at Jones.  There were two reasons:

1.  My cut went from 38% to 90%*

2.  I had a greater range of products available to offer my clients (No, I don't offer EIAs)

There is a lot of complaining about Jones on this site.  I can understand why.  For me the time spent with Edward Jones was as close as I've ever come to Indentured Servitude and I think the emotion Jones Vets feel about their experience there is driven by how good it feels to be free at last.

*Yes, I now spend about $30,000 per year for overhead

[quote=GoldCaddy]

[/quote]

How on earth do you keep total overhead at 30k?  1 good assistant alone would be 35-50k, inclusive of taxes and benefits you'd have to provide.  With decent office space, equipment, insurance, utilities, advertising, etc I can't see how you can get by for under 75k.  You counting self employment tax in that 90% or 30k? or any 401k contributions your former employer made? or bonuses? or other benefits which you now have to foot the bill on?

I bet you meant 130k and 30k was a mistype?  SE tax alone is about 7k a year on 90k income.

You don’t know how indies work around SE taxes?!! You need to do some more homework…

[quote=Omirp222][quote=GoldCaddy]

[/quote]

How on earth do you keep total overhead at 30k?  1 good assistant alone would be 35-50k, inclusive of taxes and benefits you'd have to provide.  With decent office space, equipment, insurance, utilities, advertising, etc I can't see how you can get by for under 75k.  You counting self employment tax in that 90% or 30k? or any 401k contributions your former employer made? or bonuses? or other benefits which you now have to foot the bill on?

I bet you meant 130k and 30k was a mistype?  SE tax alone is about 7k a year on 90k income.

[/quote]

That crap sounds an awful lot like the argument I used to hear against indies at every Jones meeting I attended.  I love the comments about how the se taxes would kill an indy.  With all of the write offs a business owner is entitled to, I pay far less in taxes now than I did at Jones (and my income is substantially higher).  Omirp, if you don't know taxes any better than this please don't post on the topic!

Jones uses anti-indy propaganda?  Say it ain’t so.

[quote=BigPayDay]Could this be right?

http://registeredrep.com/wealthmanagement/Wealthy_Like_Ed_Jo nes_Schwab/

I'm beginning to think all these people that complain about Edward Jones and how bad they are, are just jealous. Or maybe they were not good enough to make it with them. [/quote]

But if the above is true why does the SAME article state,

"Edward Jones outranked its peers in each of the three “pillar” categories with ratings above eight, and it came out on top among both customers with net worth of under $1 million and those with over $1 million. But oddly enough, among full-service brokerages, the firm was the one least used by survey respondents."

BPD could you explain why this is?

[quote=compliancejerk]

BPD could you explain why this is?

[quote=Indyone]You don't know how indies work around SE taxes?!! You need to do some more homework...[/quote]

Tax evasion?  It's the ONLY way to get around it LOL.  In order to avoid most SE tax, an owner would have to expense everything out, thus having FAR more then 30k/year overhead/expenses.  Could form a corporation and call it "employee taxes" instead of SE tax as well, if it make you feel better.  But it still has to be paid.

But if you're only pulling in 75-100k you're small potatoes and could easily hide almost all your income.  But you can't "avoid" SE tax.

And I've owned a business for 11 years now, I'm quite versed in all the "tax benefits" of business ownership.  If that's what you want to call it.

[quote=Gone Indy][quote=Omirp222][quote=GoldCaddy]

[/quote]

How on earth do you keep total overhead at 30k?  1 good assistant alone would be 35-50k, inclusive of taxes and benefits you'd have to provide.  With decent office space, equipment, insurance, utilities, advertising, etc I can't see how you can get by for under 75k.  You counting self employment tax in that 90% or 30k? or any 401k contributions your former employer made? or bonuses? or other benefits which you now have to foot the bill on?

I bet you meant 130k and 30k was a mistype?  SE tax alone is about 7k a year on 90k income.

[/quote]

That crap sounds an awful lot like the argument I used to hear against indies at every Jones meeting I attended.  I love the comments about how the se taxes would kill an indy.  With all of the write offs a business owner is entitled to, I pay far less in taxes now than I did at Jones (and my income is substantially higher).  Omirp, if you don't know taxes any better than this please don't post on the topic!

[/quote]

SE tax is only 7k max, how is that going to kill anyone? lol  And I'll post where I damn well please.  You're the idiot who worked for Jones, don't take it out on me.

[quote=Indyone]You don’t know how indies work around SE taxes?!! You need to do some more homework…

Tax evasion?  It's the ONLY way to get around it LOL.  In order to avoid most SE tax, an owner would have to expense everything out, thus having FAR more then 30k/year overhead/expenses.  Could form a corporation and call it "employee taxes" instead of SE tax as well, if it make you feel better.  But it still has to be paid.

But if you're only pulling in 75-100k you're small potatoes and could easily hide almost all your income.  But you can't "avoid" SE tax.

And I've owned a business for 11 years now, I'm quite versed in all the "tax benefits" of business ownership.  If that's what you want to call it.[/quote]

You're a clueless idiot is what you are.  Keep posting...you're looking dumber by the minute.

...and you might want to look for a different tax advisor...sounds like yours is committing malpractice.

Indyone knows what he is talking about, as do I.  MY accountant as well, and you obviously need to get yourself one that has a CLUE!!!! 

I’d be interested to know what a sum total of $30k in overhead gets you. Sounds very, very low to me.

[quote=mikebutler222]I'd be interested to know what a sum total of $30k in overhead gets you. Sounds very, very low to me.[/quote]

New rims, gas, maintenance, and insurance for the Gold Caddy that doubles as his rolling office is my guess. 

spinner rims with a lime green interior. this impresses certain customers.

[quote=Omirp222][quote=Indyone]You don’t know how indies work around SE taxes?!! You need to do some more homework…

Tax evasion?  It's the ONLY way to get around it LOL.  In order to avoid most SE tax, an owner would have to expense everything out, thus having FAR more then 30k/year overhead/expenses.  Could form a corporation and call it "employee taxes" instead of SE tax as well, if it make you feel better.  But it still has to be paid.

But if you're only pulling in 75-100k you're small potatoes and could easily hide almost all your income.  But you can't "avoid" SE tax.

And I've owned a business for 11 years now, I'm quite versed in all the "tax benefits" of business ownership.  If that's what you want to call it.[/quote]

You're a clueless idiot is what you are.  Keep posting...you're looking dumber by the minute.

...and you might want to look for a different tax advisor...sounds like yours is committing malpractice.

[/quote]

Please enlighten me how I "get around" self-employment tax, legally? LOL

This ought to be good.

[quote=mikebutler222]I'd be interested to know what a sum total of $30k in overhead gets you. Sounds very, very low to me.[/quote]

I don't think half these people on this board have ever made enough to even fill out anything but a 1040ez, let alone be in the securities biz or own their own biz.

A $10/hour employee costs over 23k a year with no benefits and no overtime, 30k with some bene's and overtime.  Lease on class A office is $1k/month for a hole in the wall in anything but a cowpoke town.  Biz insurance, utilities (phone, power, water for all you EZ filers), no to mention office supplies, office maintenance, advertising, auto expenses, etc.

I could buy 30k a year with no employees and no real office.  But that really isn't a business, you're a traveling salesman.  To each his own I guess.

[quote=Indyone][quote=Omirp222][quote=Indyone]You don’t know how indies work around SE taxes?!! You need to do some more homework…

Tax evasion?  It's the ONLY way to get around it LOL.  In order to avoid most SE tax, an owner would have to expense everything out, thus having FAR more then 30k/year overhead/expenses.  Could form a corporation and call it "employee taxes" instead of SE tax as well, if it make you feel better.  But it still has to be paid.

But if you're only pulling in 75-100k you're small potatoes and could easily hide almost all your income.  But you can't "avoid" SE tax.

And I've owned a business for 11 years now, I'm quite versed in all the "tax benefits" of business ownership.  If that's what you want to call it.[/quote]

You're a clueless idiot is what you are.  Keep posting...you're looking dumber by the minute.

...and you might want to look for a different tax advisor...sounds like yours is committing malpractice.

[/quote]Please enlighten me how I "get around" self-employment tax, legally? LOL

This ought to be good.[/quote]

I'm not interested in passing out free tax advice in a public forum.  Just know that it's common practice done all the time and has been discussed on these boards many times.  Will the tax law remain the same forever regarding this issue?  Who knows.  All I will say is that I pay much less in SE taxes every year as a business owner than I ever did as an employee and yet I'm making more money.

If your tax advisor doesn't know how I'm doing it, you should find a new one.

You can prob figure it out on Google in 10 minutes.  Which is what it would take for me to write you up an explanation.  It is VERY common.  INDYONE is DEAD on, if your CPA doesn't know about this, fire him/her today. 

If you don't find it on Google, call a different CPA you know and have them explain it to you. 

PS here is a clue.  You dont’ “Get around” it completely.  You lower the amount of salary you are paying it on.  If you lower it to zero you may get audited and fined.  You have to keep it reasonable.

FYI, I'm not an accountant, and my tax advice is worth what you would expect to pay for anonymous advice over the internet.  If you rely on it and get yourself in trouble, then it was your stupidity for listening to me.

Just set up a subchapter S corp, and pay yourself a modest salary.  Take out your profits as dividends.  There may be a little more to it than that, but I am part owner of a non-related business and that's what we do.  Everyone takes a very small salary, and then we pay out dividends every month.  We have an accountant who blessed this plan, so I assume it is kosher.  I don't know why a financial planner would have to do it differently than any other business owner.

At first I thought there was something extra I was missing, but this is all we are talking about, right?

It's not a real secret, and it's not even illegal or unethical. Every business has to decide how much each employee is worth in terms of salary.  That's why many large firms claim their Exec's make small salaries - because they own half the company. 

As long as the salary is reasonable, the IRS can't have a problem with it. 

Jones tops with HNW…They must have surveyed only HNW GP in St Louis.

Seriously…The big wires and no-loaders have MUCH higher balances than Eddie.

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another spammer. admin?

This article says Edward Jones is Tops In High Net Worth customer satisfaction:



http://registeredrep.com/wealthmanagement/Wealthy_Like_Ed_Jo nes_Schwab/



Maybe the Jones complainers on this board just didn’t have what it takes to be successful in this business and just happened to get there opportunity to get into this industry with Edward Jones. From what I’ve seen Jones seems to do a pretty good job of teaching new advisors how to grow a business and market themselves. As a matter of fact the advisors in my office are always complaining about how Jones: Markets to their CPAs and Attorneys, runs ads in the local paper, holds investment classes, how each advisor has there own assistant, etc, etc, etc.

…you’ll fit right in on this board…

Like many of you I too come the planet of EDJ. Today I saw my American Legacy wholesaler for the first time. I love the way when you talk to anyone from American Funds they think of Jones fondly, and start making refrences to your former employer and how great they are. If they were so great why would anyone leave? I saw more attrition at Jones every meeting it was where is that person? I can’t believe anyone would defend them. Indy is so much better. Try it you will like it.

[quote=BigPayDay]This article says Edward Jones is Tops In High Net Worth customer satisfaction:

http://registeredrep.com/wealthmanagement/Wealthy_Like_Ed_Jo nes_Schwab/

Maybe the Jones complainers on this board just didn't have what it takes to be successful in this business and just happened to get there opportunity to get into this industry with Edward Jones. From what I've seen Jones seems to do a pretty good job of teaching new advisors how to grow a business and market themselves. As a matter of fact the advisors in my office are always complaining about how Jones: Markets to their CPAs and Attorneys, runs ads in the local paper, holds investment classes, how each advisor has there own assistant, etc, etc, etc.[/quote]

Please learn the difference between "there" and "their".