@ EDJ, AUM ~=~ annual income
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There is always someone who negates EVERYTHING…I usually ignore them…can’t imagine what the people who ask for their advice think! Not to mention in my post i blatently stated it was a good way to get in the business, and a seasoned veteran should take a look elsewhere if they did not agree with it.
I’m glad they took a chance on me also. I then figured I payed them $122,000 over 17 mths for their cut and also figured that was enough. Left for BAc and I’m now indy w/ LPL. Making more money than I ever thought possible.
ezmoney,
So you went EJ-Bank-Indy. That may be the best trifecta out there because you get training-then assets-then freedom. At the 17 month mark what did EJ come after you for in terms of $?The original thread asked about "turn ratio" or "spin" on a seasoned advisors book. At 100 million, most advisors turn ratio is around 0.5% to 0.65%. That number may go up depending on SMA or wrap business added.
As far as payout at Jones, last year my net was 52% after health insurance, postage, disability insurance, life insurance, etc was taken out. That includes net on gross, 2 trips (equal to around 6-8k), profit sharing (5% of net), 3 bonuses, and limited partnership. When I first started, I think my net starting out was in the low 30's. When you crack the 400k mark, your net increases significantly.it's really quite a stupid tagline. not even funny, but working for ej is very funny.
Actually that's not true. Very few EDJ reps start from their home/garage/car. For the last couple of years Jones has been working with a no new/new goal. They may study at home, but usually end up working from another advisor's office from day one.It’s ironic…since almost every EDJ rep starts out of their home/garage/car.
[quote=iceco1d]
Well, last I checked, EDJ pays you for studying? So then, "studying at home" = you are a) employed, and b) you start out working from your home, garage, car, etc....exactly what I said? [/quote] Is this a Freudian slip that reveals you've been doing a little research on ol' EDJ, ice? It's okay. You can tell me.Im in a metro area so it may be a tad more for me, but you cant do it for less than 500 a month. This doesnt include advertising, which is real expensive if you do it on your own. Most guys in my area like to run an ad with 15 head pictures of FA’s all in the same ad. I refuse to do that because that is embarrassing.
In all honesty, if you're dropping $500 to $700 a month in out of pocket expenses, I would give your mentor/buddy/RL a call and have them walk through your expenses with you. I'm at $1050 YTD per my earnings screen (the only thing that doesn't cover is my TP, office cleaner and office candy). That does include the $80/month for "regional advertising". One of the biggest mistakes I see new brokers make is spending money that doesn't bring a DIRECT return of income to them personally.
FYI: I'm 7 years out.
For a local newspaper ad in my area (4x6) it is $125 a week. $500 isn’t a big surprise. He didnt include Chamber fees, expo fees, lions, rotary, all those memberships. He is just following orders, the “3 legged stool” of advertising, community involvement, door knocking. And now i just found out we have to pay for toner. Sweet !
I was wondering what a decent equation for AUM to income would be for Jones FA's. I have searched and saw that industry wide it is appprox. .5% AUM -or- 30 to 50% of production, throughout one's career, do these still hold true for Jones FA's as well?
Thanks, DC[/quote] As someone stated earlier, it really depends on what phase you are at in the business. My net commissions at Jones last year was around $145,000. This would be very high, relative to my AUM, because I am fairly new in the business. I am only a couple of years into the business. My AUM at the start of last year was around 16million. At the end of the year it was around 26 million. So, if one is rapidly and successfully building their business, their production is going to be high relative to their AUM.I know a guy at Jones that has 85 AUM and made $200k last yr. He discounts everything and doesn’t have too much in trails and hates insurance. Take it as is.
[quote=iceco1d]ESPECIALLY if you sell A shares of American funds to EVERYONE!
(Sorry Spiff/Borker/B24/Miss Jones) - You know my comments are only in jest! [/quote] We know. Actually, selling American A shares to everyone typically means taking money out of our own pocket. That pesky little $25K breakpoint can be kind of annoying.Thanks for the responses everyone, I just wanted an idea of what to expect and realistic goals to set.
DC