To EDJ or not to EDJ?

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Mar 31, 2008 9:41 pm

I have noticed a lot of people bash EDJ, and others talk very highly of it. I have a friend that has been with them for about a year and he seems to be happy with them, but I'm uncertain if he would know the pros and cons of other options. I have kind of made my mind up to work for Edward Jones, but would like to know the truth behind the hate. I have no problem with working long hours, I'm in the car business and have been for a while and there have been weeks were I put in close to 100 hours.  I'm going to be having my first child anyday now and like the idea that 5 years from now I would have my own office, set my own hours, and could somewhat work around my family's schedual. Is that true of other companies? what about a base salary while studying for 7 and 66? Whats the difference in Fee and Commission based? A-shares? Is gross based on AUM or transactions? I have many other questions, but I feel this is getting long...


Thanks, Drew

Mar 31, 2008 10:22 pm

Drew,

As I have been told in the past ON THIS SITE, but I am not so rude as some on here, lots of info on the EJ site, under "getting started".  Also under Search on this site
There are lots of ways to compare companies. SEE BEST COMPANIES TO WORK FOR!
 
THERE ARE ALSO GREAT WAYS TO BE HAPPY... Do what you enjoy most, love your family, and be honest & ethical .. and be positive
Mar 31, 2008 10:33 pm

Thank you for that info, but I'm trying to get information from people that work for these other companies, about the differences between EDJ and these other companies. I have read every word on the EJ site and have spent 3+ hours per day reading the forums. I can't find anyone that classifies, A B C shares, tells the actual difference in fee and commission based business, How do you actually get paid on Gross, different details like these...

 
Thanks,
 Drew
Mar 31, 2008 10:51 pm

Thank you for being so detailed, I understood the basics of commission, like I said I'm in the car business. I understand the fee based business now it's pretty simple, but I don't understand what the commission would be if say I sell a MF for $40,000, is the commission different on each product or is there an industry standard?

 
I am not looking for complacency at all, infact, that wouldn't motivate me in the least. I want an income that continues to grow based on the effort that I put in, and a career that will require me to always learn and push myself.
Mar 31, 2008 10:53 pm

EDJ is a fine company, highly rated by clients.  Big on American Funds and it's hard to go wrong with American Funds.  They are sophisticated and stick to the basics.  No options which is a downer.  Great training.  It takes the same at EDJ as anywhere I would guess and that's it takes hard work.

Mar 31, 2008 10:56 pm

A = you get paid more up front the client loses upfront.  The long run you make less the client makes more

B  = you get paid more up front the client only loses if they take their money out, long run it's in between A and C
C = you get paid less up front the client makes more in the short run.  The long run you get paid more the client makes less
Apr 1, 2008 8:00 am

Just to add to what Ice said regarding setting your own hours...I work for Jones, and obviosuly know many others that do.  I pretty much come and go as a I please (though I tend to work long hours).  Take days when i need it.  Come in late or leave early when I need to.  I have friends that only work 3-4 days a week.  I have never once heard someone say that they get flack from anyone ragarding their hours (now, this is assuming they have already "made it", and are running a goo doffice.  If you are doing 5K gross per month, I suspect they might be talking to you about what you're doing.

 
But, as Ice said, don't use that as a determinant of your future.  Your biggest concern has to be (1) how to feed and clothe your family, and (2) how to make it in this business.
Apr 1, 2008 7:25 pm

I feel that I have a tremendous amount of freedom with Jones; I pretty much come and go as I please. However, obviously, if I'm not in the office, I'm not selling anything and thus not keeping my little dot above the red line. Therefore, I usually feel guilty if I'm not in the office during regular business hours.

 
I live in a small town and don't have the opportunity to work for a wirehouse in a "team" environment, but I think I would really enjoy working with a group of other guys to stay motivated and "go get 'em" together.
Apr 1, 2008 9:36 pm

Ice had a good post, but there will be fees at Jones in 2008---this does give you another good Jones option (but does NOT make you a fiduciary--but that matters not at all to you at this point Banks)

Apr 1, 2008 9:51 pm

when you say there will be fees in 2008, I assume you mean wrap program.  If this is what you meant, it does make you a fiduciary.  And by you, I mean EDJ and the broker. 

Apr 1, 2008 9:59 pm

You can exhuast yourself w/ research or you can exhaust yourself with work. If you err to the latter it doesn't matter where you go. Jones is terrific. Some of the best reps I know are there or are from there. They teach you how to story-sell which I strongly feel is as much a level of belief ingrained in you as an intelligence someone has & that's a major plus. They have VERY defined trade-offs to their business model. I liked these trade-offs when I started because the rigor they provided helped me create my own rigor. I didn't like them, though, when I got seriously ill and couldn't be in the office for several months. This got me interested in banks. In your research, be sure to include banks. There's a search button at the top. Search for bank & see what pops up. Good luck!

Apr 2, 2008 3:18 pm

Thank you all very much for the information, This does help.  I understand that I haven't been hired yet, but is there anyway to study for the 7 and 66 online or free somewhere, as I have a lot of free time in the car business? Thanks

Apr 3, 2008 9:59 am

Most Borders or Barnes and Noble bookstores have Series 7 study materials you can buy off the shelf.  Amazon may have some used.  I don't think you are going to find it for free anywhere.  You might find some practice questions on the internet, but not any real material.  I could be completely wrong, so use some of that free time to do some searching.

Apr 3, 2008 3:24 pm

Aseubanks,

If you want some easy reading, for a small investment of less than $20, buy Series 7 for Dummies,  it will give you some insight into the content of the exam. But in no way is it a substitute for the main material, which some companies like EJ would supply.
 
There is also a disk  with 250 questions & answers to practice ... not a bad deal in my eyes.
 
So if this is not your future career  ... you have learned something ... and only spent $20.
Apr 4, 2008 4:16 pm

Ok, like I'm the only jones basher around....guess every other non-jones guy took friday off... If you can't get started anywhere else Jones is fine, it is where I started, but for God's sakes don't drink the kool-aide.  Keep your eyes open, your mind open, and realize that other firms and other investment philosophies are not demonic just different.  Mostly Jones is a mutual fund seller, with some bonds and limited stock research.  If you want to expand beyond that, or have true interests in the financial markets, you will eventually end up somewhere else.

Apr 6, 2008 1:22 pm

Jones is a great place to start your career...and if your like me, live in a small town, a great place to finish your career too.  Before joining Jones I was in banking for 8 years and I must say...the training you get is second to none.  You will hear the Kool-Aid thrown around here and there but it all boils down to Jones doing everything possible to set you up to be successful.

Apr 6, 2008 8:43 pm

Several reasons why I would NEVER recommend any go to jones: (and I was a great producer at jones)


1.  Limited investment choices-This is the main reason.  Many situations arise where you will not be able to help a client.
 
2.  Lagging in technology-(the jones guys will argue this point)
 
3.  Cultic behaviour-Can't attend industry events (isolation)-This is a very strange trait of jones. 
 
4.   Payout.  You asked about $40,000 investment.  You gross about $2000.  At jones you get $800 and then pay taxes and some of your cost share expenses. I have paystubs that prove you will live on about 25% of your gross, or $500 in this case.  You could get $1800 at a 90% firm, but you pay all your own bills  (Not a big deal), and would have no training or guidance.  So, you have a $1300 variance.
 
My advice-find a local or regional firm.  Get a 60% payout to start with increases granted at certain levels.   You will then get the guidance you need and a more fair deal for you and your family.  New baby due-congrats!!  Private message me if you want.  You have a lot on the line.
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Bottom line-run this by your spouse:
 
EDJ-Gross 300,000 a year and live on 60,000
 
Somewhere else-Gross 300,000 a year and live on 150,000 to 180,000-After you have matured (2 yrs or so) 
 
1st year or 2 will be tough anywhere you go and you wont gross 300k for at least 2-3 years.  Jones will give a "sense" of security for those first 2 yrs.  Don't buy into it. 
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uwec has a spreadsheet-look for his posts and ask him to see it.
Apr 6, 2008 11:05 pm
GoneIndy02:

Several reasons why I would NEVER recommend any go to jones: (and I was a great producer at jones)

1.  Limited investment choices-This is the main reason.  Many situations arise where you will not be able to help a client.
 
2.  Lagging in technology-(the jones guys will argue this point)
 
3.  Cultic behaviour-Can't attend industry events (isolation)-This is a very strange trait of jones. 
 
4.   Payout.  You asked about $40,000 investment.  You gross about $2000.  At jones you get $800 and then pay taxes and some of your cost share expenses. I have paystubs that prove you will live on about 25% of your gross, or $500 in this case.  You could get $1800 at a 90% firm, but you pay all your own bills  (Not a big deal), and would have no training or guidance.  So, you have a $1300 variance.
 
My advice-find a local or regional firm.  Get a 60% payout to start with increases granted at certain levels.   You will then get the guidance you need and a more fair deal for you and your family.  New baby due-congrats!!  Private message me if you want.  You have a lot on the line.
--------------------------------------------------------------------------------------------------------------------
Bottom line-run this by your spouse:
 
EDJ-Gross 300,000 a year and live on 60,000
 
Somewhere else-Gross 300,000 a year and live on 150,000 to 180,000-After you have matured (2 yrs or so) 
 
1st year or 2 will be tough anywhere you go and you wont gross 300k for at least 2-3 years.  Jones will give a "sense" of security for those first 2 yrs.  Don't buy into it. 
--------------------------------------------------------------------------------------------------------------------
uwec has a spreadsheet-look for his posts and ask him to see it.


I just have a couple of questions about your post.....you are factoring in taxes on you live on income for EDJ but not for indy......and your not factoring in expenses you have to pay for through out the year (rent $12,000-$20,000, assistant $20,000-$30,000, utilities $7,000-$10,000, etc....) so your numbers are biased.   Now if you go to another firm where those expenses are paid for then I guess you just have to compare work environments.....do you get your own office do you have a branch manager breathing down your neck things of that nature.  Im not saying Jones is for everyone but when you look at all the factors involved they stack up just fine for the right people.

Apr 6, 2008 11:10 pm

deja vu

Apr 7, 2008 1:57 am

Eyetattoo-(cool name)

 
You have been brain encrypted by jones with these assumed expenses.  My numbers are correct.  I have my jones p&ls and pay stubs.  I, of course, have my current numbers.  These are correct.
 
I used to toot the same horn you now whistle to.  Your jones arguments hold no water.  I am only trying to give this man some advice that he wont regret taking.
 
Hey Eyetattoo, since I am no longer with jones, who pays for the upkeep of my computers?