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Fifth Year - Edward Jones

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Feb 12, 2009 9:57 pm

Hello all,

  Five years ago exactly this month, I came on here asking for opinions on leaving my managerial job and going into the securiites business, in particular with Edward Jones.  This is the first time I've been back since February, 2004.   I was basically told either no-way, or go with EJ just to gain some experience.  I'm back to tell you all that I'm now a segment 4 broker with $27m in assets, and have earned six-figure salaries each of the past two years.  I've been on all-expense trips to Hawaii, St. Thomas, Turks and Caicos and of course Disney World.   This year is difficult for sure, but so far I'm averaging about $8k net per month.  My assets were approaching $36m before the downturn, so there you go.   I was advised in 2004 to start with AG Edwards!  Gosh, what a change that would've been....  I suppose I'd be in Georgia working for Wells Fargo Securities about now.   wp_fan
Feb 12, 2009 10:29 pm

Don’t you feel exploited? … Did they make you knock on doors and talk to prospects? … Did you have to go the regional meetings? … Did it bother you when EJ forced you to sell all Putnam funds? … Don’t you hate the color green?

 
Feb 12, 2009 10:34 pm

love the post, very motivating

Feb 12, 2009 10:40 pm

wp_fan:

New/new?  GK1 or GK2 or are you that kid that I knew in my region that took over Dad's office? 

Seriously though,  Congratulations!  Making it in this business regardless of what firm you are with is a job well done. 

Feb 12, 2009 10:40 pm

[quote=buyandhold]Don’t you feel exploited? … Did they make you knock on doors and talk to prospects? … Did you have to go the regional meetings? … Did it bother you when EJ forced you to sell all Putnam funds? … Don’t you hate the color green?

  [/quote]   1. No - they told me I just needed 25 quality prospects a day.  I don't suppose they cared how I got them as long as I didn't break any SEC rules.   2.  I actually like to go to the regional meetings, since it's generally an all-expense paid trip to the beach!  Even the one-day trips are to pretty nice places.   3.  I was never forced to sell anything.  The only Putnam's I sold were to people who transferred some in, and I was trying to get them a breakpoint and they were familiar.  Just about $250k over 5 years.   4.  No.  I'm not a terribly independent soul, so I like to associate with something.  So, yeah I do wear an occasional EJ tie or shirt.  And, I drink my beer from a green EJ koozie - but they also make them in yellow, blue and orange I think.   But, yeah it's been a pretty cool career move.  I just wish all this volatility would stop.  My previous industry is in turmoil as well, so it's all ok.
Feb 12, 2009 10:43 pm

[quote=jkl1v1n6]

wp_fan:

New/new?  GK1 or GK2 or are you that kid that I knew in my region that took over Dad's office? 

Seriously though,  Congratulations!  Making it in this business regardless of what firm you are with is a job well done. 

[/quote]   I took an office that had been opened by a new-new, just for six months or so.  He had been an engineer and decided to go back.  The assets were about $750,000 when I got there with about 27 clients.  Since I had been working in my spare room, I thought that was huge!  Now I've got about 375 households.
Feb 12, 2009 10:50 pm

Like I said.   Congratulations!  I would not have begrudged you if you HAD taken over dad’s office. 

Feb 12, 2009 10:57 pm

Awesome. Sounds like you had a very supportive region.



While I’m not directly accusing you of it, the post smacks a little of someone from the home office writing. From all of the people I know with all of the bad experiences with Jones and the “I just talked to 25 quality prospects a day”, sounds a little like the company line.



But if you earned it, congrats! Hats off! I go to write my daily 25 (minus 2) complaints.

Feb 12, 2009 10:59 pm
Moraen:

Awesome. Sounds like you had a very supportive region.

While I’m not directly accusing you of it, the post smacks a little of someone from the home office writing. From all of the people I know with all of the bad experiences with Jones and the “I just talked to 25 quality prospects a day”, sounds a little like the company line.

But if you earned it, congrats! Hats off! I go to write my daily 25 (minus 2) complaints.

  Damn, I was punked!
Feb 13, 2009 1:08 am

WP Fan

Congrats, its not easy.  However, I question if you will be singing the same tune 2 years from now if we have a flat or down market and you keep pushing the company line of "its a great time to buy".  It works for a while, but pretty soon your clients might turn on you.  When Jones rides BAC with a BUY down to 4, then decides to downgrade last week to a HOLD, your clients will not be happy.  I know, I was sitting in Hawaii for a Div trip last week when the GP told us of the downgrade.  You could hear a pin drop in the room from every FA who had sold BAC just the week before.  If we were really Financial Advisors and not salesmen, we would have advised people last spring to move to money market for awhile.  But that does not pad the GP's pockets, so we will never be told that.
Feb 13, 2009 3:10 am

[quote=wp_fan][quote=buyandhold]Don’t you feel exploited? … Did they make you knock on doors and talk to prospects? … Did you have to go the regional meetings? … Did it bother you when EJ forced you to sell all Putnam funds? … Don’t you hate the color green?

  [/quote]   1. No - they told me I just needed 25 quality prospects a day.  I don't suppose they cared how I got them as long as I didn't break any SEC rules.   2.  I actually like to go to the regional meetings, since it's generally an all-expense paid trip to the beach!  Even the one-day trips are to pretty nice places.   3.  I was never forced to sell anything.  The only Putnam's I sold were to people who transferred some in, and I was trying to get them a breakpoint and they were familiar.  Just about $250k over 5 years.   4.  No.  I'm not a terribly independent soul, so I like to associate with something.  So, yeah I do wear an occasional EJ tie or shirt.  And, I drink my beer from a green EJ koozie - but they also make them in yellow, blue and orange I think.   But, yeah it's been a pretty cool career move.  I just wish all this volatility would stop.  My previous industry is in turmoil as well, so it's all ok.[/quote] So you have 27 million  assets under management with 375 households. That's a great average of 72K per household. At about the 5th year where you are at you say that you have averaged over 100K per year, backing that out means at 38.5% avg payout means you are producing approximately 260k gross dollars. That's right at 1.00% velocity. That makes you a very dangerous broker as you have to be turning your book over quite often. I would guess a lot of mutual fund switches into A shares and upgrading a lot of older annuities into the Jones A shares. You can't be doing a lot of fixed income as it doesn't pay enough to keep your velocity up.
Feb 13, 2009 3:28 am

Nice noggin - my first instinct was right - Home office troll.



Who actually says “Gosh” anyway?



Feb 13, 2009 5:26 am

1% is not even close to high velocity…let alone counting new assets coming in at higher comm levels.

Feb 13, 2009 3:22 pm

The velocity is higher than 1% in the early years of your career, as new money will come in at higher commission levels.  And don’t forget insurance.

Feb 13, 2009 3:27 pm

Strange argument to be making that a broker netting 100k on 27 million is churning assets when he could be put everything in a fee based accounts and make more than that next year.

Feb 13, 2009 7:57 pm

I'm in Georgia, and anyone wanting to call me is welcome.  Put me a private message and I'll give you my cell number. 

I sell about 40% in mutual funds, 15% in stocks and the remainder in managed accounts or bonds.  I've been very focused on long term care and life insurance as well.  I started out prospecting mostly small business owners, as there are about 2,000 in my county.  A lot of those guys buy big policies.   I wouldn't mind going the independent route, but like I said I'm not so much the independent type.  I would like the money, but I don't want to be that far out on an island.  I thought I said I made more than $100k, but if not that's what I meant.  Really, I'm on here just because I was reflecting back to the same comments I heard five years ago...... I was worried then, but not so much now.   I'll probably only check back a few more times b/c I certainly don't want to get "hooked" on this chat room.
Feb 13, 2009 8:24 pm

noggin - regardless of fact/fiction of wp fan.   $27M today was likely $35M or more 12 months ago giving a “$100k net” producer closer to .75 bps for velocity (excluding insurance).

Feb 13, 2009 9:18 pm
Incredible Hulk:

noggin - regardless of fact/fiction of wp fan.   $27M today was likely $35M or more 12 months ago giving a “$100k net” producer closer to .75 bps for velocity (excluding insurance).

  You're right Hulk.  At the peak of last year, I had built up to about $36M and things seemed to be getting easy.    Still, I can't comprehend all the negativity now, and in 2004.  Maybe I'm in a good spot?
Feb 13, 2009 9:36 pm

So, 5 years up to $36 MM at the peak, so really that was at about 4.5 years, means he’s averaging about $9 million a year in either new assets or growth of existing assets.  Not too shabby. 

  noggin - just because you couldn't make that kind of money in your Jones office doesn't mean you should assume that nobody can.   wp - congrats on doing well at Jones.  Keep gathering assets like that and you'll be up there with Rankstocks in AUM before you know it.  These guys around here are negative on Jones for the following reasons:   A) couldn't cut it at Jones, got let go and now are taking pot shots at their former employer B) had some differences of opinion in the management of the firm and assets of their region (take that as I didn't get anything from the guy down the street who left the firm) C) coming to grips with their own shortcomings and feel the need to place the blame in someone else's lap instead of taking responsibility for their own actions.  or D) are generally nice guys, but have some philosophical differences with Jones and the way we manage money.  These are the least negative of the group.  The most negative are from either group A or C.   
Feb 13, 2009 9:46 pm

congrats.  bring in $9 million every year and you will be fine, no matter where you are.