Just for starters, I appreciate everyone's opinions but please don't let this become a Jones bashing thread.
I had my final interview with EDJ last Friday and I should be hearing something back later this week. What is typically the starting salary for a person coming from a job making around $45k/yr. Also, is the salary negotiable?
And lastly, what is the Legacy Program?
I can’t comment on the starting salary because I was in a completely different situation than you when hired. Mine is probably not the same as what you will have. It was not negotiable. They send you a sheet of paper, with the salary printed on it, and if you want the job, you sign the paper agreeing to that amount. Unless you are buddies with a GP or maybe a RL it will not be negotiable. If you are offered a legacy, take it. It’s basically a goodknight without getting any assets. But you are able to work out of the vets office, and you can utilize the BOA and the Vet for assistance. It beats the heck out of working at home or out of your car. Much more credibility.
also, if you aren’t offered a legacy, go around the region meeting FAs and just ask if they know of anyone that would be willing to do a legacy plan. Most FA’s do not go out contacting trainees to offer a legacy, but if they meet a trainee, many will not have a problem doing the program.
How about taking over an existing office? I’ve read some old posts on here that seem to give a mixed opinion on that. Some say it’s most likely a revolving door some some sort of existing problems while others seem to be saying it’s a great opportunity to start out with an office and some kind of an existing book of business. What are you thoughts on that?
Existing office is a double-edged sword. It will get you an office, a BOA (likely), and some assets - this is the good side of the sword. The other side is that most advisors (unless you are a transfer broker bringing assets) end up spending way too much time adddressing existing clients, making some money the first 18 months, but not prospecting enough. By year 2 or 3 they are out of ideas and prospects, and the existing client well has run dry. Then comes the next FA to try his hand at it…
The other problem is if it’s a competitive situation (FA moves firms). A $30mm office turns into 10mm pretty quickly. And most of those assets are old bonds, CD’s, MMKT, cash, A share funds, etc. - mostly stuff that will take up your time but make you very little money. Best scenario is like my buddy’s office - he came from AGE about 4 years ago, brough maybe $15mm, took over an office of about 20mm for a guy that left the business. He turned it into a goldmine, as the previous broker didn’t really mine his own book.
Bottom line, no matter how you get an office or existing clients (inherited), you MUST keep prospecting, or you will die.
Well i’m very new so it may be more appropriate for spiff or broker24 to comment on this. But knowing what I know and how hard the doorknocking is, I would do it in a second if it were offered. From what I have heard is that you won’t gain the respect of other FAs because you were “handed” your business. Whether or not thats true I dont know, but if it is, so what. I know that I’m not in the business to earn respect of other FA’s. I’m here to help my clients and to live the lifestyle that I want. If it’s offered to you, go for it by all means.
Congrats on the offer. I’m waiting to hear back on when my final face to face will be. Would it be wise to ask about the GK or legacy plans in the final interview? I asked about GK in my branch visit. (I kind of planted the seed to try and harvest later since he’s been a FA with EDJ for 13 years. I asked open ended questions about the program, success rate, would he recommend it, etc.)
ice is absolutely right on with his comment about respect. It's nice to have, but doesn't pay the bills. Other FAs won't send you referrals, place trades, or anything else that puts money in your pocket. An existing office will.The existing office trap is definitely one to watch out for. Unless you're handed $30MM+, you NEED to learn how to prospect and bring in new clients. Whether it's through doorknocking, seminars, cold calling, or whatever, you have got to get really good at meeting people and then getting their butts into your office. IMHO, if you are offered anything beyond starting new/new from the trunk of your car and your laptop on the kitchen table, take it.
Thanks for the advice. I agree, I’d much more concerned with paying the bills then whether or not someone thinks I was handed my business.
Any ideas on what the starting salary is? Thanks again!
Starting “base” salary depends on the region your from. Its determined by the cost of living in your area. I believe $15-$16 per hour is the top range. This doesn’t included bonuses, milestones and commissions earned after your can sell date.
Lamda is a bit high…on the salary. Much less but it does depend on your area. Put it like this. You aren’t going to starve but you aren’t going to buy a new car either. Good thing is after your “can sell” date you get your salary plus your commissions. Then it’s up to you on how hard you work. “It’s the easiest job to make a little bit of money and the hardest job to make alot of money” (Tom Hopkins)
That actual amount turned out to be under $11/hour up to the can sell date, and then a salary of a little more than $25k for the next 12 months.I got an offer on Tuesday from a wirehouse that's $40k plus commissions & bonuses for several years. I really like EDJ but I don't see why they're offering so much less than the wirehouses.
All throughout this forum you will see that folks can definitely make more money elsewhere than EJ-Indy, wirehouse,etc. Not having worked at any of those I can't comment on them but I can say the folks at EJ are the folks I want to be associated with. Maybe later on with more experience I can consider other options but for now, I'm EJ.
That actual amount turned out to be under $11/hour up to the can sell date, and then a salary of a little more than $25k for the next 12 months.I got an offer on Tuesday from a wirehouse that's $40k plus commissions & bonuses for several years. I really like EDJ but I don't see why they're offering so much less than the wirehouses.[/quote] Because they can and the offers get accepted by enough people so they can hit their hiring numbers. I had offers from EJ and a wirehouse. I chose the wirehouse as the starting pay was higher plus I thought there would be an advantage to being in an office with established advisors. Two+ years in I am very happy with my choice.
Keep in mind that salary agreement you so anxiously are signing also includes the noncompete you will remember five or 6 years down the road. I’ve wondered what they would do if you crossed that section out when you sent it back in.