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May 30, 2006 12:15 pm

Hey all,



This is my 1st post ever, but I am a long-time reader.  You all
have helped me make the decision to leave EDJ, I am in the planning
process now.  I have a couple of questions:



Do you think their is some kind of "haircut" on the EDJ A-Share annuities like the one's you have proven excist on the B-shares?



Are there really more than eight mutual fund companies out there?



Thank you all so much for your insight!




May 30, 2006 12:22 pm

One more thing:



I spoke to a former EDJ IR who went to LPL.  He seems to think
that Big Brother might be recording my in-branch telephone
conversations.  Any insight?

May 30, 2006 12:54 pm

Ready2Jump = Incredble Hulk?

May 30, 2006 12:59 pm

LOL!  No, I really am new....




May 30, 2006 1:09 pm
Ready2Jump:

Hey all,

This is my 1st post ever, but I am a long-time reader.  You all have helped me make the decision to leave EDJ, I am in the planning process now.  I have a couple of questions:

Do you think their is some kind of "haircut" on the EDJ A-Share annuities like the one's you have proven excist on the B-shares?

Are there really more than eight mutual fund companies out there?

Thank you all so much for your insight!



Haircut on A share annuities from Jones?  The rest of us wouldn't know because only Jones sells them


I'm sure if the GP's could find a way then they have indeed done it.


May 30, 2006 1:18 pm
Ready2Jump:

Hey all,

This is my 1st post ever, but I am a long-time reader.  You all have helped me make the decision to leave EDJ, I am in the planning process now.  I have a couple of questions:

Do you think their is some kind of "haircut" on the EDJ A-Share annuities like the one's you have proven excist on the B-shares?

Are there really more than eight mutual fund companies out there?

Thank you all so much for your insight!


I would'nt call it a haircut, its more like a total HAIR REMOVAL!


May 30, 2006 1:25 pm

ready,


what was the final thing that helped you make your decision?  How long you been out and how much under mgmt?

May 30, 2006 1:37 pm

Ready,


Go to www.fragassogroup.com and buy his book...read it cover to cover before you talk to anyone about making your move...I sure wish I'd seen this earlier as it has some great tips on keeping the element of surprise in your favor, etc.,etc.,etc.  Also, keep your business as routine as possible and make all move-related phone calls from you home number if at all possible.  2nd choice is your cell phone.  As technologically-deprived as EDJ seems, never, ever underestimate the capabilities of your enemies.  It is much better to find out later that they were clueless, than to get blown out of the water and escorted from your office before you are 100% ready.  Good luck.

May 30, 2006 3:31 pm

success,



Thanks for asking.  I am trying to be smarter than the average EDJ
player, getting out before I get big.  I have been out 3 years,
although I moved to a different state about 18 months ago as a
new-new.  I have grown to $10M in that time.  I have a very
loyal client base, proven by the fact that all my business has come
from referrals, and have established many key centers in CPA's and
others.  My 12-mo rolling is $150k.



My final factors include trying to service over 100 households, knowing
I need 500 more to meet my goals.  I want to be an advisor, not a
salesman, constantly pushing clients to move so I can get paid. 
Hearing some of the top producers sales ideas scared me as well. 
Let's just say commissions have a great deal to do with what many of
them do for their clients.  And the haircut on annuities really
made me angry.  I had already found out about that before reading
the proof here. 



I have done some research and now firmly believe wrap accounts are in
both my clients and my best interest.  As long as serious asset
allocation is used as well.



ready








May 31, 2006 1:06 am

Ready2Jump-


10 million and 150k gross.  are you sure you are ready... that's bare minimum, if you ask me.  I'm w/ EDJ, seg 3, 25 million AUM, $225 12- month gross, 4 years, started from scratch blah, blah,blah...and I'm seriously looking at LPL.  One of our IR's just jumped. Seg 4, 30 Million AUM, and a lot of his "loyal" clients jave not moved with him... What's making you jump ship??

May 31, 2006 8:58 am

My guess is their clients weren't loyal because they sold EDJ and not themselves as a rep.  That's the case in many botched transfers from Jones that I've seen.

May 31, 2006 9:02 am

Thanks for the question J,



This is probably why the comment keeps getting made that indy is not
for everyone and that EDJ is good for some.  Everyone
circumstances are different.

In my case, I am in my 40's.  I came from a high paying job to
start here because this has always been my dream.  At Seg 3, EDJ
thinks I'm wonderful, yet I can't pay my personal bills.  Why
would I want to build my business to $20M and feed the pockets listed
on the 10k at EDJ?  It is hard to explain why my clients are so
loyal, but let's just say I know they are (the ones I want
anyway).  My networking has worked tremendously.  I have not
door knocked AT ALL in my new branch (new state).

Plus I will not have the expenses of an office the first year or
so.  I will probably do the virtual office thing so I splitting an
assistant with at least one other (also former EDJ).  With even a
50bps wrap I can pay my expenses.

One more key thing is that I do about 20-30% life insurance.  And
the haircut on annuities has me wondering what else EDJ is hiding from
us.  A haircut on A-shares annuities as well perhaps?

All that said, I love EDJ for the most part.  It IS a great
company.  I have learned a lot from my peers.  Now it's time
to start taking business from them. 


May 31, 2006 9:55 am

Well it's good that you know where you want to be in your practice.  There are some people that fit well into Jone model, but you've identified that you need to explore other options.  Best of luck.

May 31, 2006 10:31 am

Ready2Jump:


You will see some huge benefits on the life insurance biz - this is one area where the haircut or double dipping jones and other wirehouses do really pays off on the indy side.  You will see a 100% payout on the target premium v 40% or whatever of a lowered or tiered target premium from jones.  That is, your pay on a tgt premium maybe 85% of which you will see 100% of it v Jones or Wirehouse will have a tgt premium that maybe 85% as well (guess where a portion of that 15% goes) but you will only get your normal payout of that.  Most indy's do not double dip and give you several choices on where/how you can do that business.

May 31, 2006 10:32 am

I usually get 75-85% on target from life insurance premiums.  That will be a major difference from getting 60% of target at Jones, and then they pay out 40% of that 60%.  What's worse is that Jones probably gets 100-105% as a super GA.  That isn't a haircut, that is a full body wax.

May 31, 2006 10:51 am

"That isn't a haircut, that is a full body wax."





I've heard from LPL that the payout is actually 105%.  That
excited me.  Plus my client love it because it helps them see me
as the QB of their financial team, not just a running back.  I
have teamed with a top producing mortgage broker and we are doing
mortgage planning as well.

May 31, 2006 12:11 pm
BrokerRecruit:

My guess is their clients weren't loyal because they sold EDJ and not themselves as a rep.  That's the case in many botched transfers from Jones that I've seen.



That is very true BrokerRecruit. Early on w/ Jones my Rep & I were all about "What makes Edward Jones different." Instinctively, (I think or call it having a hunch) my Rep decided she wanted clients to choose her not Edward Jones. Little by little we stopped handing out "Motley Fool" articles and "Wall Street Journal" articles.


It has worked well. I'd advise Ready2Jump to do the same.

May 31, 2006 12:40 pm

Actually, my canned statement has been, for about the last 3 months:

"I am going to be your advisor for the rest of your lives."