Newbie looking for some help

or Register to post new content in the forum

18 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Jun 3, 2009 10:28 pm

24 years old and graduating from UCLA with a degree in economics. Have had a total of 4 sales/finance related internships. 2 under an FA (Merrill & Ameriprise). Of course, my ideal place to work is at a big bank in PWM or GWM but those areas of the business aren't doing much hiring and are looking for individuals with successful sales records.

After some reading here and research and applying to many of the smaller shops. I received calls from AXA Advisors, Waddell & Reed, and today from EDJ.

Waddell & Reed seems a bit harsh. Paying out for training expenses such as Licensing and $3k/month in gross commissions for the first 3 months from "can sell" date. Although, I like their open architecture approach which will allow me to custom tailor portfolios. I dislike their overly aggressive sales approach. Most people 97% would drop out in the first 1-3 months. I'm not interested in pushing class A mutual funds to people when there's lower cost ETFs available just to make a quick buck.

EDJ seems like a great program. Commissions are a bit lower than W&D but the training and baby start seems perfect for a guy like me; no family resources and brand new to a market. And i'm still given that open architecture support but without derivatives and commodities.

Besides the firms listed above;
Can anyone tell me of some experiences with other firms and what I should expect from the EDJ interview process? Like questions etc. Behaviorial, analytical, and/or quantitative questions?

1. What was your base salary during training and after your 1st date of selling day?
2. When it comes to choosing an office, how flexible is corporate with regards to location?
3. To confirm, net cumulative commissions for the first 3 months, after can sell date, should total $2,250 or $2,250 per month?
4. Are you able to choose your own BOA? I'd like someone with a genuine interest in finance and looking to become a broker someday.

Jun 3, 2009 11:00 pm

www.indeed.com ... go to the EDJ forums, all the answers you want are there.

Jun 3, 2009 11:27 pm

[quote=NumbersGeek]



Besides the firms listed above;
Can anyone tell me of some experiences with other firms and what I should expect from the EDJ interview process? Like questions etc. Behaviorial, analytical, and/or quantitative questions?
---
Tell me a time when you struggled and what you did? Tell me a time when you set a goal and how you accomplished it? Tell me a time when you got kicked in the teeth for a month straight and how you overcame it?
You WILL get an offer from EJ.

1. What was your base salary during training and after your 1st date of selling day? ENOUGH to pay your bills. If you do what you are supposed to the first year, you will make 50, 60k easily with salary and commissions. After that you're on your own.

2. When it comes to choosing an office, how flexible is corporate with regards to location? HOW flexible are you? Put it this way, if you don't like the location, walk. They will work with you on this.

3. To confirm, net cumulative commissions for the first 3 months, after can sell date, should total $2,250 or $2,250 per month?---  2250 gross for 17 weeks plush 20 or so accounts if you are new new starting at home. Double that in gross if you are working out of an office.

4. Are you able to choose your own BOA? I'd like someone with a genuine interest in finance and looking to become a broker someday. --- You can hire whoever you want within reason. But I wouldn't hire someone like that, even if you could for the salary a BOA gets.

BTW, you will be selling A shares at Jones. If you have preconceptions about A shares and ETFs and the ideal portfolio you will struggle here.


Jun 3, 2009 11:51 pm

What are some of the fees on A shares? I have no problems with ETFs and being able to structure/manage portfolios. Mutual funds are the thing of the past and I like the Merrill model of wrap accounts with individual low risk stable equity positions(standard and dividend) and fixed income investments(munis).

Wealth preservation and management are the two things that i would like to do for my client and that means low to moderate risk investments.

Jun 4, 2009 12:41 am

Numbers - A-shares have what is called a front-end load (you seem to have some knowledge of securities, I am surprised you don't know what an A-share is).   Depending on the company, the sales charge starts at around 5.5 to 5.75 percent.  It then goes down at different levels (50k, 100k, 250k, 500k, 750k, 1mil).  


You also have management expenses and 12b-1 (or marketing) fees.  These are what pay you your recurring revenue.
 
Ah, fcuk it!  You'll find out.
Jun 4, 2009 1:04 am
Moraen:

Numbers - A-shares have what is called a front-end load (you seem to have some knowledge of securities, I am surprised you don't know what an A-share is).   Depending on the company, the sales charge starts at around 5.5 to 5.75 percent.  It then goes down at different levels (50k, 100k, 250k, 500k, 750k, 1mil).  

You also have management expenses and 12b-1 (or marketing) fees.  These are what pay you your recurring revenue.
 
Ah, fcuk it!  You'll find out.



I know what A,B,C shares are, high/mid/low(no) load mutual funds. But why would you use mutual funds when you can purchase ETFs for smaller costs and get that index return that high risk individuals are seeking?

I see a benefit by reducing those high front end fees for 1-2% annual charges on AUM and an actively managed account of equity and bond positions. What happens when that person shops somewhere else and the other person is offering B or C shares and they see a benefit of no long term commitment?

To me, mutual funds are old 90's news.... let it die and step up to ETFs...

Jun 4, 2009 6:20 am

"Wealth preservation and management are the two things that i would like to do for my client and that means low to moderate risk investments."


 
With that being your stated goal, you need to find a place where insurance doesn't get put through a grid.
 
"I know what A,B,C shares are, high/mid/low(no) load mutual funds."
 
You're wrong.
 
I see a benefit by reducing those high front end fees for 1-2% annual charges on AUM and an actively managed account of equity and bond positions.
 
Can you quantify this benefit for us?
Jun 4, 2009 6:38 am

NumbersGeek,



I started out in a bank program that provided salary and commissions for two years.   It also provided ongoing training and a good referral system. I would look for those two things when you interview since getting new accounts/clients will be your most important goal if you want to stay alive in this business.



As far as debating A shares vs. ETFs, it's a waste of time.   What you'll soon learn is that if you build good relationships with clients, the actual product you recommend will be a small part of the equation.   If you create a good investment plan based on your client's needs, both mutual funds and ETFs should work well over the long term.



Instead of focusing on product or having any preconceived notions about active (mutual funds) vs. passive management (ETFs), your only focus in the first few years will be prospecting and building a book of business that will pay you for the rest of your life.



I don't much know about EDJ, but from what I hear they seem to be a good place to learn this business. A 3 month program somewhere else is not going to be enough time for you to get up and running. Find a place that will give you at least a year of compensation.   

Jun 4, 2009 8:50 am
buyandhold:

[quote=NumbersGeek]
4. Are you able to choose your own BOA? I'd like someone with a genuine interest in finance and looking to become a broker someday.

 
Why would this matter?  You're not  going to find an aspiring broker signing up to mail out your birthday cards and get your clients coffee.  Just get someone who has a nice voice and a cute smile that will take the edge off your clients when they come to your office.
Jun 4, 2009 9:16 am

You do understand this is primarily a SALES position and not a money management position. If you want to become a money manager may I suggest looking into trust departments at smaller banks to start.

Jun 4, 2009 9:28 am

You guys are being punked.

Jun 4, 2009 8:36 pm
NumbersGeek:

What are some of the fees on A shares? I have no problems with ETFs and being able to structure/manage portfolios. Mutual funds are the thing of the past and I like the Merrill model of wrap accounts with individual low risk stable equity positions(standard and dividend) and fixed income investments(munis).

Wealth preservation and management are the two things that i would like to do for my client and that means low to moderate risk investments.

 
You have an opinion on mutual funds being a thing of the past, but you don't know what the fees are ? How can you have a strong stance on a product that you know nothing about ? You want low risk investments, so you want to avoid equities. Good luck with preserving wealth with that strategy as inflation slowly chokes the life out of your clients portfolios.
Jun 8, 2009 6:07 am

Anyways...

Assuming there is no office opened up in a region, how long would it take EDJ to get one up and ready? Will I have to go through 13 months of working from a home office before getting a brand new office setup?

Jun 8, 2009 9:06 am

I was IN my office in 6 Months.

Jun 8, 2009 6:14 pm

Underminded:

If you don't mind me asking, what types of commissions were you pulling down in the prior months? are you an experienced salesmen or new/new?

And to the rest; I do understand this is a sales position.

Jun 8, 2009 7:32 pm
NumbersGeek:

Anyways...

Assuming there is no office opened up in a region, how long would it take EDJ to get one up and ready? Will I have to go through 13 months of working from a home office before getting a brand new office setup?



'Assuming there is no office opened up in a region ..''

Good one!
Jones has an office opening up in my region every other week.
Plus they have almost 13,000 offices. Two years ago, I think we had 10,000. I think we have more offices than Starbucks now.
So you can't miss.
Either they will give you an office in six months if you are doing OK or else you will inherit an office from somebody who drops out to go work at Starbucks.




Jun 9, 2009 9:06 am
NumbersGeek:

Underminded:

If you don't mind me asking, what types of commissions were you pulling down in the prior months? are you an experienced salesmen or new/new?

And to the rest; I do understand this is a sales position.

 
Yeah.  Just to clarify, I was a GK1, (10M assetts=4Xs the requirements of a new/new)  I was skating along pretty well, meeting expectations and everything.  We started the office search after PDP.  My GK Vet has a client who owns some commercial real estate.  We were able to find a great place really quick, the buildout only took 6 weeks.  I was in the office in under 7 months.
 
It was a win/win.  I was out of the GK's office and on my own, AND the GK Vet got his 15k bonus 5 months early.
 
Most likely though, somebody will wash out in your region and you'll get their office OR you'll get a GK before the 1yr mark.
 
best of luck
Jun 10, 2009 9:46 pm

Numbers geek - if you understand that this is a sales job, then you understand that to answer all of these questions - it would be best to talk to real flesh and blood people.  Spending a lot of time on a website chat room is not a positive sign that you're willing to do what it takes to build a core, relationship business.  Also - the term 'numbers geek' implies that you truely love the numbers aspect of the financial world - and that you're more interested in watching stocks than doing deep discovery of people who are in emotional peril. 

 
I suggest that you go talk to people, from many differnet firms - and get real opinions from people actually doing the job (no offense to my friends on this wonderful website).