Best way to leave Jones

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Jul 30, 2005 11:37 pm

I Recently found this site and thanks to others posts I dont feel alone.  I have decided to leave Jones for another firm.  I am in my first year and my contract states I owe them $75k to leave & go to another firm.  The new firm is leaving me to fight that on my own.  Local business attorneys reply with "I dunno". 


My question is with the IR's who leave & go to another firm how enforcable is this?  I guess looking back I didnt think I was becoming an endentured servant.

Jul 31, 2005 1:12 am

you owe it. you recieved the training and signed the contract. you read it, right? pay it. the training you recieved was worth far more. good luck.

Jul 31, 2005 10:54 am

[quote=hawg]the training you recieved was worth far more./QUOTE]


Sorry I was in sales before.  The training I received has not been worth $75k.  Oh unless I can send individual checks to my wholesalers who do the teaching/coaching/mentoring here. 

Jul 31, 2005 11:14 am

The money you "owe" Jones is not just for training (which I agree is a joke). They also consider the capital investment into your office, sattelite system, and other ancillary training costs such as travel.   Because you haven't been there long enough for them to feel that they have recouped all these costs, they will probably be all over you like a dirtly shirt.  You should consult an attorney who specializes in securities laws or just wait it out until you have passed the term of your indentured servitude.  I did.

Jul 31, 2005 11:59 am

How long have you been with Jones?  Do you have a 2 year or 3 year "obligation"?  You can get an MBA for far less than the $75k they think the training is worth.  I would talk to the new firm and see if you can get them to pick up the tab if there is one.  What firm are you going to?

Jul 31, 2005 12:35 pm

I have a 3 year sentence.  Thanks for the advice.  I really need to contact a securities lawyer.  Just wondering what to expect from anyone else who made the move at this stage- I know I cant be the first.

Jul 31, 2005 5:50 pm

There are a few more factors to your situation:


1) Were you new/new or did you take over an office or do a Goodknight?


2) What are the labor laws like in your state?  Are you in a "right to work" state?  Or, are there laws on the book that protect employees and employers?


3) Are you doing enought business that anyone is going to miss you?  Say, more than 150K annual gross?


Jul 31, 2005 9:50 pm
Soothsayer:

There are a few more factors to your situation:


1) Were you new/new or did you take over an office or do a Goodknight?  New/New(their standard) I reopened closed office after they xferred all but $140k of the previous accounts out 3 days before my can sell


2) What are the labor laws like in your state?  Are you in a "right to work" state?  Or, are there laws on the book that protect employees and employers?  Right to Work-I have not found any helpful laws


3) Are you doing enought business that anyone is going to miss you?  Say, more than 150K annual gross?      No less than $100k gross, and no I think they might be happy I'm gone I ask too many questions like.... why?



What do you think Soothsayer?


Jul 31, 2005 10:23 pm

Kviper,


I would be careful about using your Edward Jones phone to make calls to other Broker Dealers. I have heard they have a Big Brother Caller ID that shows every phone # you dial.


Use your cell phone.


Double Trouble



Jul 31, 2005 11:16 pm

Here are my recommendations:


I agree with Double Trouble use your cell phone ALWAYS.


If you are going to a reputable firm most of the time they will negotiate/settle with Jones and take care of that training cost.  Afterall it will probably be cheaper to buy you out then train someone new just like you.  If they do not offer this then trust me they do not want you bad enough and you should look somewhere else.


Be careful who you talk to even your friends, especially your friends.  "People love to gossip".


I do think the training you got was some of the best in the industry, regardless what anyone else says.  Was it worth 75K only you can answer that with what you produce from it.  Most brokerages, especially banks know how good the training Jone provides is and a lot of times will settle your training cost with Jones if they think you are worth it.  If they do not I would not transfer and I would ask the firm why they will not help out.


The answer 90% of the time is your production and productivity.  If that is the case then you need to dedicate yourself to do better and go back in 6 months.


Aug 1, 2005 12:32 am

What do you think Soothsayer?


I don't think you have much to worry about.  You can lay as much claim to the clients as they can.  You're not that big of a fish, and remember, if they want money that have to go to court in your home state.  If your home state is "right to work", they might be packing sand from the the word "Go!".  Find a lawyer who has worked with personal bankers, insurance reps, or other brokers in the same situation.  Go at with the mindset that you are never going to pay a nickel.  Do not, I repeat, do not engage them on your own.  Let them deal with your lawyer.  You'll be surprised how fast $75K becomes $7500, and then $3000, and then $1800.  They want to string you out, and see how long you're willing to keep the lawyer on the payroll.  Good luck.  And keep asking those questions!


Aug 3, 2005 11:30 pm

Best way to leave Jones? Quickly.


PBN

Aug 4, 2005 9:51 am

You just make a new plan Stan...No need to be coy Roy...just listen to me. 

Aug 4, 2005 12:03 pm

Your new firm should be willing to pay EJ if they really want you.  Try Raymond James, we have several EJ brokers coming over.

Aug 4, 2005 3:41 pm

I

Aug 4, 2005 3:45 pm

I moved over to ML from Jones after 18 months. My fee was covered @ $45,000. People move around in this business....It's really no surprise. Jones training is great.. very thorough and process driven. I can't imagine they really expect new brokers to cut a check.


Good Luck

Aug 4, 2005 3:59 pm

.....just hop on the bus Gus.

Aug 6, 2005 4:59 pm

Leave...........as far as Jones going after training cost, I understand they have lost big time in arbitration cases lately.


Edward Jones has been loosing many IR's to Banks, "BAC" & "WFC", and other local Banks,  including Credit Unions...check with a local securities Attorney or talk to other Firms Legal Dept., they can look up cases and results......you will be surprised

Aug 9, 2005 2:54 pm

Just drop off the key Lee....

Aug 17, 2005 2:28 pm

I think getting a securities lawyer may be useful, although an employment lawyer may suffice.  When I left the firm, I was out of the "endurement" period, so they didn't come after me for expenses, but they did send a certified letter demanding I not compete for my former clients.  My employment attorney advised that I would be able to successfully defend my position, but that it would probably cost me $25,000 to do so if it went to court.  His advice was to lay low and contact my clients in person or via phone, and not to produce a paper trail Jones could use against me later.  As well, I had my transferring clients sign a statement indicating they willingly pursued a relationship with me, and were not enticed to do so. 


In the end, Jones was simply posturing. 


A colleague of mine received a certified letter from Jones' attorneys saying he owed $24,000-plus and he never replied to it.  It's been about a year and nothing has happened.


I did hear through the grapevine that Jones is getting more serious about pursuing damages from folks who leave.  Whether it's true, I do not know. 


Do not let the fear of Jones prevent you from leaving "THE FIRM" -- yes, that was an allusion to the Grisham novel.  Your ultimate happiness is all that matters.


Best Wishes,



SPTRIX