Questions About Joining Edward Jones
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You're a tool. I do some stock business and I sell some B share annuities from time to time. My payout over the last 6 months has been 39.86%, 39.25%, 39.69%, 39.25%, 39.53%, and 38.46%. I think that last month I did a couple good sized B share annuities, so my payout wasn't as high as usual. I'm a pretty typical Jones FA. So, while I know it's not 40%, it's also not as low as you say either.
I love how you get down to 25 cents on the dollar, but completely ignore the fact that the majority of that money is going to something that is either going to protect you, your family, or your future. I do get a little frustrated to see a $10K net paycheck get cut down to $6000, but then I stop and think about all of the money that would come out of my pocket if I didn't pay for those things. Health insurance, dental insurance, eye care, HSA, 401K, life insurance, and disability are all things that I'd have to buy elsewhere to protect myself, my family, or my future anyway. They all benefit me in some form or fashion. Either today or 25 years from now. I have a difficult time blaming Jones for that, like you seem to be doing.
Jones does a service for me, for which I pay them. That's how I look at the 60% that they keep. I either have to go indy and do those things myself, or I have to pay someone to do them for me. At this point in my life, I choose to let Jones do them for me.
[quote=Spaceman Spiff]
Jones does a service for me, for which I pay them. That's how I look at the 60% that they keep. I either have to go indy and do those things myself, or I have to pay someone to do them for me. At this point in my life, I choose to let Jones do them for me.
[/quote] WOW, are you serious? 60%? What DO you get for giving up 60%? For 60% I better have $0 expenses, no need for prospecting and own the relationships too. Holy Shit!!!
A salaried BOA, rent, utilities, computer systems, software, furniture, carpet, paint, phones...I could keep going, but we've had this discussion before. I don't want to mess with any of that stuff, so to me it's worth it. I don't have time, or I don't want to take the time, to both continue building my business and try to take care of all of those things too.
The cost associated with Jones is absolutely worth it in the beginning, since you could never get a similar setup with similar support for the same cost.
However, once you exceed, say, 150K in production, the costs really start to rise. It is not until you start receiving decent sized bonuses (like over 500 or 750K gross) that your income really starts to grow much. Think about it - let's say you do 300K production - about average production for a 10 year guy at Jones. That would give you about 110-120K net. Then you deduct office supplies, phone, postage, & marketing, and you are down to about 100K net. I won't include benefits, because as Spiff said, you have to pay for those whether you are indy or not. So that's about 33% net. You could also get away with a cheaper rent, lower cost buildout, and less expensive furniture. Now, you add back in a few thousand for the 401K profit sharing contribution and a some of the benefits that they subsidize, and you are back to maybe 35% net.
Real big producers at Jones can get CLOSE to an indy payout, since if you were doing, say 1mm production, you would have to hire a few staff people on your own dime, which Jones would pick up. And with bonuses (in most years), you could get up well over 50% net payout.
So I think Jones is a good place (pay wise) for newbies (like first 1-5 years), and really big producers. It sucks pretty bad for the mid-level producers (like 175K-850K). Unfortunately, that is most of the firm.
[quote=Spaceman Spiff]
A salaried BOA, rent, utilities, computer systems, software, furniture, carpet, paint, phones...I could keep going, but we've had this discussion before. I don't want to mess with any of that stuff, so to me it's worth it. I don't have time, or I don't want to take the time, to both continue building my business and try to take care of all of those things too.
[/quote]
Hell the banks/cu are offering that plus a deposit base to call on plus referrals from the other bank employees. 60% is really expensive but if it gets you in the business then its worth it. If you can make it long enough to get the other perks then that's cool too. But man I would at least want to own equity in the book if I am giving up 60%. I can see giving up the book maybe if you gave up 40% but no way giving up 60%.
Indy is the eventual way to go...keep 90% of what you gross and after all the things spiff descibed you keep 65 to 70% of net....rent, phone, internet, cable, and a staff person are monthly expenses...BUT they are all write-offs at the end of the year SO... You save a butt-load on taxes... furniture and computers are buy them once and maintain item....paint and carpet..negotiated in the rent.... bottom line..... do $50000 gross at Jones...keep $19250 (approx 38.5% payout on avg) before all the expenses, probably net 12 to 13,000 take home maybe ....OR keep 90% =$45000 less expenses keep close to 30k plusfor your take home....PER MONTH... BY THE WAY....easily double....
I would also comment...if you were to eventually get LP money and its paid for, add 2 vacations a year (which you pay taxes on) and tri-mester bonuses (when firm is bonus eligible) and year end 401k profit sharing... a rep might get close to 45-48% payout of their gross yearly production....but that will take years to achieve...probably a decade.
Are you still around, justincredible? I hate to bump a 6 year old thread, but I’d love to know how things worked out for you. Now, in 2016, I’m in the EXACT same situation you were in, and your thread is one of the first search results that pops up when you Google “working for Edward Jones”. There’s a ton of good information here… really has me thinking!
[quote=dja1980]Are you still around, justincredible? I hate to bump a 6 year old thread, but I’d love to know how things worked out for you. Now, in 2016, I’m in the EXACT same situation you were in, and your thread is one of the first search results that pops up when you Google “working for Edward Jones”. There’s a ton of good information here… really has me thinking![/quote] I agree with dja in the sense that I am also curious as to what justincredible ended up doing. I’m mulling an FA position at EJ but it makes me nervous to hear they accept people with no prior experience to become FA’s. It makes me wonder what the reputation of this firm is, regarding clients point of view.
Get your finance degree. In two years you’ll be making good money and have a secure job and you can go anywhere.
Only work at Jones if you have a guarantee you will move into an existing office with at least $15 million in assets that won’t walk out the door.
If you go with Jones new-new, it is very likely you will get your ass kicked for three years, bring in enough clients not to starve and then lose you job when you have a rough four months. Jones does that four four or five advisors until some lucky stiff walks into an office with assets.
Reading the comments in this post makes you see the only people that would work at Jones are desperate and don’t have real good career options.
[quote=dja1980]Are you still around, justincredible? I hate to bump a 6 year old thread, but I’d love to know how things worked out for you. Now, in 2016, I’m in the EXACT same situation you were in, and your thread is one of the first search results that pops up when you Google “working for Edward Jones”. There’s a ton of good information here… really has me thinking![/quote] I agree with dja in the sense that I am also curious as to what justincredible ended up doing. I’m mulling an FA position at EJ but it makes me nervous to hear they accept people with no prior experience to become FA’s. It makes me wonder what the reputation of this firm is, regarding clients point of view.
Their reputation is what you’d probably expect it to be of a firm whose main presence is in fairly run down strip malls. Their investment services are for the largely uneducated investor with under $100,000. The majority of the income earned is commission based, therefore you’re always out there hunting, not actually “advising”.
As our country gets more tech savvy and begins to look at other robo options like Betterment and others, I think EDJ will be the most ripe to fall.
Just my 2 cents.
Gents, I am just impressed and surprised!! I am reading now in September 2016 these postings from 2010 and I have to ask if there is anybody still reading this,
1.- Justincredible: Did you go for it? Are you an Ed Jones advisor now??
2.- With so many disparaging comments about Ed Jones coming from people that allegedly worked there at the time or used to work there. How successful were you guys ?? If you were working there, I understand why you were upset, you found a guy that was excited bout the career and you sounded bitter and jealous that you didn’t have that energy. You were obviously spending too much time reading and writing in this blog instead of seeing people or fighting to see people…
3.- I understand that all of you, that actually worked at EJ , understood the challenges and opportunities and accepted to do it, nobody forced you. Why not simply accepting the fact that you just didn’t have what it takes. That’s perfectly fine, I always wanted to be an astronaut but didn’t have the right stuff…
4.- I would love to hear if any of you are still working at EJ and if so why… If you do what you love, you never work one day in your life…
5.- $65,000 in 2010 was a pretty good income, so Justin (or whatever his name is) proved that when you have the right motivation nothing can stop you. I didn’t read one single positive piece of advice, nothing about what he needed to do or how to achieve the expected goals. There was only whining and it sounded like the self-excuses of people that used those same excuses to justify their own failings.
Please feel free to share and it would be amazing to confirm that Justin received and accepted an offer and is now one of the top producers wherever he’s is at,because I would bet some cash, that if he got in he’s making it big.