Leaving Jones

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Jun 17, 2009 9:42 pm

I realize this topic has probably been covered dozens of times but hopefully you'll forgive me and give me some ideas.

Here is the basics of my situation.  I've had my can sell date for about 12 weeks and am blowing it out of the water (know it means nothing but know I can do this job at least).  I'm not unhappy at Jones but never took the job knowing I would be here forever.  I also have no mentor and no real training so I'm not loyal to them at this point.

I've had another firm approach me and offer me a position.  The payout is much better.  Get an office. Warm leads (not that I will stop prospecting).  No book but to be honest I'll only leave around 1mm AUM.

I know I made a commitment but what is my risk here? Jones will come after me but how much do people usually settle for?  Any help and I'd appreciate it.


Jun 17, 2009 11:27 pm
cyaEDJ:

I realize this topic has probably been covered dozens of times but hopefully you'll forgive me and give me some ideas.

Here is the basics of my situation.  I've had my can sell date for about 12 weeks and am blowing it out of the water (know it means nothing but know I can do this job at least).  I'm not unhappy at Jones but never took the job knowing I would be here forever.  I also have no mentor and no real training so I'm not loyal to them at this point.

I've had another firm approach me and offer me a position.  The payout is much better.  Get an office. Warm leads (not that I will stop prospecting).  No book but to be honest I'll only leave around 1mm AUM.

I know I made a commitment but what is my risk here? Jones will come after me but how much do people usually settle for?  Any help and I'd appreciate it.




You need a copy of your contract before you do ANYTHING but I'm guessing you lost it.  Your RL will know something is up if you go ask him for it though.  Ask one of the other Seg1's in your region to look at his contract.  His will look the same as the one you signed.  Also I would not let your BOA know whats going on, and don't print out all the client info at once.  Make sure you take everything you bought for your office so the new guy won't have anything to use when he tries to keep your clients at Jones.

Good luck.

Jun 18, 2009 10:58 am

I kept my contract.  Don't have an office yet.  Any idea on how much Jones will come after me for?

Thanks

Jun 18, 2009 11:41 am

$75,000

Jun 18, 2009 11:45 am
cyaEDJ:

I realize this topic has probably been covered dozens of times but hopefully you'll forgive me and give me some ideas.Here is the basics of my situation. I've had my can sell date for about 12 weeks and am blowing it out of the water (know it means nothing but know I can do this job at least). I'm not unhappy at Jones but never took the job knowing I would be here forever. I also have no mentor and no real training so I'm not loyal to them at this point.I've had another firm approach me and offer me a position. The payout is much better. Get an office. Warm leads (not that I will stop prospecting). No book but to be honest I'll only leave around 1mm AUM.I know I made a commitment but what is my risk here? Jones will come after me but how much do people usually settle for? Any help and I'd appreciate it.





How are you blowing it out of the water but have less than $1MM AUM?



I think if you don't take clients, don't go to a big firm(wires,regionals banks etc) then they would probably settle for less than the $75K

Jun 18, 2009 12:04 pm

I've read the wind discussions so I won't go into details about myself. It's all relative.

Where do they come up with that 75k figure?  Must be the hard costs like the building because the training had to be worth less than 10k if they outsourced it.

Jun 18, 2009 12:12 pm

I balked at the $75K number also - I thought the majority of the training was a joke - but Spiff and B24 can give you their opinions as to why that amount is actually a bargain.

Jun 18, 2009 12:14 pm
Borker Boy:

I balked at the $75K number also - I thought the majority of the training was a joke - but Spiff and B24 can give you their opinions as to why that amount is actually a bargain.

 
Jun 18, 2009 12:21 pm

I liken EDJ training to public education.  It's really geared towards the lowest
common denominator so those who are quick learners, learn little. I did
think their series 7 program was solid though.



It's important to note, I have no issues with Jones. The culture seems
good, the people have been nice, and I'm doing well.  They have been
fair to me but when opportunity knocks sometimes you should open the
door. Either way I'll be happy but feel this position could give me a 2
year boost so giving it a serious look.

Are their horror stories on them going after the full amount and not neg. that # down?

Jun 18, 2009 12:33 pm

The training may not be worth 75,000, but thats what the contract said when you signed it.  The contract could've said 1,000,000 but if you still quit w/in that time period, you'd still be on the hook.  I've had several friends get the bill for 75,000.  Most negotiate it down.

 
I'd say you'll probably only have to pay abuot $73,589
 
Jun 18, 2009 12:36 pm

Realized what I signed, I read it :)

Cool, now I just need to sell $4,000,000 worth of long term bonds and I'm golden!

Jun 18, 2009 2:53 pm

haha, nice.  I hear Jones sells a good amount of A share Am Funds as well.  Maybe try those.

Jun 18, 2009 4:08 pm

Actually it's $6,250,000 in long term bonds to net $75K @ 3 pts. 



 
So, this company that wants you to work for them gives you "warm leads", huh.  Really?  Where do they get them? 
 
What kind of training and mentoring do they offer you? 
 
Your own BOA or do you have to share? 
 
Your own office or do you have to share?
 
Trips?
 
Profit sharing/401k/LP/Bonuses?
 
Cool shovel awards?
 
What are you going to tell those clients you just created at EDJ?  Are you just going to leave them hanging?  How about those prospects you've got in your system?  What do you think they're going to tell you when you call them and tell them that you now work for XYZ bank? 
 
I realize you think you're a rockstar right now, but I can't tell you how many people I've seen that flamed out after killing it right out of the gates.    Before you get your panties in a wad about leaving Jones for the payout and the "warm leads" maybe you should consider what a quick jump like that could do to your fragile new career and reputation in town.  You can reinvent one, but break the other and you're toast. 
Jun 18, 2009 6:22 pm
How about this:
 
Mr. Client, I left Jones because I disagreed with the policy they recently created that explicitly precludes their advisors from providing specific investment advice and recommedations in retirement accounts.
 
Now more than ever, my clients need custom-tailored advice to help them reach their financial goals, and I don't believe I can accomplish that by being required to simply educate you and then force you to decide which investments are most appropriate for your situation.
 
Jones plans to continue charging full-service prices while offering discount brokerage service, and I could not continue to operate in that manner.
Jun 18, 2009 6:34 pm

Just so you know, that wasn't a Jones created policy.  You didn't really think it was did you?

Jun 18, 2009 6:45 pm

Borker, are you retarded?  That came down from left field, one of the government agencies that doesn't normally inject itself into our realm, trying to remember from the spring regional, but I think it was actually OSHA or some such...

Jun 18, 2009 6:53 pm

And that is qualified retirement accounts under a business plan.  Send a letter like that out and just wait for your next audit....

Jun 18, 2009 7:05 pm
Spaceman Spiff:

Actually it's $6,250,000 in long term bonds to net $75K @ 3 pts. 



 
So, this company that wants you to work for them gives you "warm leads", huh.  Really?  Where do they get them? 
 
What kind of training and mentoring do they offer you?

Can't imagine it's worse than Jones, I've gotten none so far. Guess this could be my fault since I've not reached out and asked someone to mentor me.

 
Your own BOA or do you have to share?

Share

 
Your own office or do you have to share?

Share - which I might enjoy more.  Not so sure yet.

 
Trips?

Yes

 
Profit sharing/401k/LP/Bonuses?

Bonuses, yes - 401k, yes - LP & PS, no

 
Cool shovel awards?

No .. this might be a deal breaker!

 
What are you going to tell those clients you just created at EDJ?  Are you just going to leave them hanging?  How about those prospects you've got in your system?  What do you think they're going to tell you when you call them and tell them that you now work for XYZ bank?

This would be tough honestly.  I've gotten to know these people and like them.

 
I realize you think you're a rockstar right now, but I can't tell you how many people I've seen that flamed out after killing it right out of the gates.    Before you get your panties in a wad about leaving Jones for the payout and the "warm leads" maybe you should consider what a quick jump like that could do to your fragile new career and reputation in town.  You can reinvent one, but break the other and you're toast.

Good points, thanks for sharing. I'm giving it serious consideration on all sides but I've got a family to feed and 20% more on commission is well, 20% more. Maybe my summer regional will pump me up so much I'll never consider leaving?
Jun 18, 2009 7:07 pm
Hank Newbie:

Borker, are you retarded?  That came down from left field, one of the government agencies that doesn't normally inject itself into our realm, trying to remember from the spring regional, but I think it was actually OSHA or some such...



I've heard other firms allow their advisors to give advice on retirement accounts, I'm lost why we can't. I think Borker makes a good point although I'd feel silly saying it since I've been ignoring the policy anyway.

Jun 18, 2009 7:29 pm

If it is not coming down from federal regulators, I am either being lied, our legal/compliance department is taking a conservative position, or those "other firms" are just crossing their fingers...