GP....Big Deal

or Register to post new content in the forum

34 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.
Aug 16, 2005 4:17 pm

I know there are some phenom stories about GP money at Jones. I don't think it's any more lucrative than the stock guys get at wires. I also see what the directors at wires get paid, this is a good alternative to GP money. Also, did jones put a hold on some partnership money last year. I would not be diggin it if after killing myself at Jones, they hold up the perks.

Aug 16, 2005 7:11 pm

From what I know the returns are quite a bit higher than you would have done with MER, AGE or RJF. (even after the discounted price on the stock) The risk in my opinion is not much different than the risk of the stocks. Even the LP (bond in drag to some) has kept up with the above mentioned stocks if not beating them. I don't think you understand the "partnership money being held up" very well.

Aug 17, 2005 9:41 am

I know guys who were supposed to get LP money last time, did'nt get it. they may have gotten it by now...i don't know

Aug 17, 2005 11:18 am

The earnings are accumulating in a pool to be paid at end of year. Not a bad deal.

Aug 17, 2005 11:26 pm

Exactly right not a bad deal. An annualized return of 21% (through July)  w/no out of pocket $. As soon as the SEC makes up their mind about 12b-1's and revenue sharing (which will affect many brokerages other than Jones) the LP offering will proceed.

Aug 18, 2005 8:52 am

give me an example of how much this is, per year or whatever...For a edj rep million dollar producer. Not THE Biggest producer in the company. But a Rep doing around 1 million a year, 20 year vet, what would his GP look like?

Aug 18, 2005 12:40 pm

So, let me see if I understand you a bit. In your first post above you say that the GP is not a good deal and now you admit you know nothing about it! Typical of this board. Big difference between LP and GP. I have no GP so I can't comment anymore that I already have. I am close to a million, not a 20 year vet and my annual income from LP runs about 40k-50k

Aug 18, 2005 1:02 pm

Guest1,


Don't be so paranoid. when I was at Jones, I remember stories of GP's that seemed like a lot of money, but I was new in the business (so everything seemed like a lot) I don't recall what guys were getting who were bigger producers. I have a friend who is still at Jones who is constantly obsessing and bragging about GP money. I know at ML we have half a dozen guys here in my branch who get 300k - 500k per year in Merrill stock. (these are guys with LOS 20 or more, that obviously do 1.5 +)I was simply wondering if this is a similar gig to GP. I am not trying to be condescending. 

Aug 18, 2005 11:19 pm

Guest1,


200k of LP generates 40-50k a year....same amount in your favorite "preferred" G+I fund is going to COMPOUND at around 9-10%.  Therefore the "bonus payout" you are receiving on your INVESTMENT (note, not given to you) is about $20-30k/yr....unless you are dreaming about going to STL and getting the brass ring the rest of us pay for, why do you stay?  It looks to me like the addtl 200k you are leaving on the table could pay for some nice trips...I will freely admit that I am frustrated right now....I am standing on the ledge--talk me down.

Aug 18, 2005 11:59 pm

Ex, I hav only paid for 25% of the LP, the rest financed itself. It is not my role to "talk you down" I trust you can fiqure it out for yourself

Aug 19, 2005 12:14 am

That's called leverage...you paid for it by forgoing the earnings...try again.  The fact is the excess return is 10-15% per year...Indy's at your prod net $200k/ yr more than we do...no fuzzy math there.


Thanks, bro, for the push....

Aug 19, 2005 12:15 am

See ya..

Aug 19, 2005 1:22 am
ExNIRSS:

That's called leverage...you paid for it by forgoing the earnings...try again.  The fact is the excess return is 10-15% per year...Indy's at your prod net $200k/ yr more than we do...no fuzzy math there.


Thanks, bro, for the push....



lol.....welcome aboard!  The water's fine man....jump in!

Aug 20, 2005 1:12 am

I am standing on the ledge--talk me down.


[/quote]


Come on ExNIRSS! Where are you coming up with that kind math...you must be an ex-CPA or something!

Aug 20, 2005 4:27 pm
Guest1:

So, let me see if I understand you a bit. In your first post above you say that the GP is not a good deal and now you admit you know nothing about it! Typical of this board. Big difference between LP and GP. I have no GP so I can't comment anymore that I already have. I am close to a million, not a 20 year vet and my annual income from LP runs about 40k-50k


If you're producing a mil and getting 40% or even 50%, you're still screwed next to the Indy getting 80% (after ticket charges) or more.  The $50K doesn't begin to make up the difference...not even considering the cost of overhead.


Besides, can you really put a price on your freedom?!!

Aug 21, 2005 11:45 pm

Hey, frustrated!


I realize advanced math for you means anything where you have to take off your shoes, so I'll keep it simple....


Indy >>>> Revenue less expenses = take home pay


EDJ >>>>> Revenue less direct expenses (of which you are) = GP take home pay


Please don't throw me in the briar patch...

Aug 22, 2005 9:26 am

If your doing a million at wire, you are also getting some good size stock bonuses. I'ts a huge benefit over lifelong career. The Indy guys I know, after figuring their offices, payroll, and all expenses say they are closer to 60%.

Aug 23, 2005 10:41 pm

If your Indy friends produce a mil and are only at 60%, they have some real cost control issues...

Aug 24, 2005 12:14 am
Indyone:

If your Indy friends produce a mil and are only at 60%, they have some real cost control issues...



And yet, even if they are at 60% with serious cost control issues, isn't that a little better than being at a wirehouse?

Aug 24, 2005 9:58 am

As a business owner in another industry, I get the Indy mindset. My own experience, with ML for the past couple of years has been great. (The business in general frustrates the hell out of me - but that has nothing to do with where I am). I was at ED Jones (where I have to believe the day to day life is similar to Indy) for 18 months, I thought I was going to jump out a window. It's like being in solitary confinement. Now if I had a book of a ton of clients that kept me busy, maybe I would have enjoyed the independence more. But, prospecting, having no business, in a brand new industry to me, it was not a productive atmosphere.


At ML, in my particular office, we have 60 Advisors, a lot with LOS 20 or more, a great director, strong market share in the community, a beautiful office. It's really a positive environment. I am surrounded by strong examples of where I want my business to be. Of 60 advisors -20 make 400k , another 20 or so are probably at 250k + 10 are above 500k the rest are somewhere 80k - 175k. I don't know how it works at INdy land, but there is quite a bit of succession planning within the brokers here.