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May 7, 2006 5:54 pm

zacko,

thanks for the conversation.  its nice to actually read a post that doesnt bash JOnes or any other firm for that matter.

May 8, 2006 12:56 am

Zacko, you nailed it............................

What price is there for real FREEDOM.........MONEY and a lot more of it!

May 8, 2006 1:11 pm

The biggest benefit and Zacko I think you really outlined it is the fact when you are indy and OWN your own business - you control your margins!!!!  You actually get to determine what and where you spend and how much of it you spend.  Look at your gross after paying the costs to do biz at your indy shop - it's probably a 83-85% payout:  from there, you are making the choices on how to best spend the money and as a result can determine what your net will be.  More importantly, you control spending that money in areas that directly affect your business locally v having a GP or whoever else determining how to best spend it for you. 

 Imagine a million dollar producer who nets 40% and Jones or whereever else - the b/d determines how to best spend the $600k they took from you.  Take that indy million dollar producer who is seeing $850k hit his/her grid and determining where they are going to spend their dollars to affect their business.  Now they net $600k or better.   They took $250 k and spent it where it helps their business as they determine. 

Now ask:  What did you get for the $600k jones took from you?  A BOA, an office, a trip or two, 1/2 expenses paid on the office and a few other things like????   Compare that to the $250k the indy owner spent.   They're getting probably 2 - 3 admin assistants, marketing targeted specifically to their ideal client, a level of local service due to the support staff they have that their clients never felt before and etc....  Point being, with the $250 k I spend as an indy - at a minimum I am giving/getting the same that it costs the jones advisor but for $450k less. 
I control it, I know where it'll benefit me and my business and in the end receive a much greater level of benefit as a result of it.

May 8, 2006 3:51 pm

does anyone know how the independents in Louisiana are doing? 

May 8, 2006 4:22 pm

I am certain you have a point success… perhaps you should just state it.

May 8, 2006 4:31 pm

[quote=success]does anyone know how the independents in Louisiana are doing?  [/quote]

What does that question mean?  Are you trying to say that being and independent is..... oooooh .....scary music.......dangerous?  Of course it is.  When you are in business for yourself (any business), you'd better be ready to go up against the wall, go all out and put everything on the line.

I would imagine that they experienced some difficulties with accounts transferring out, if their clients have moved away and do not intend to come back.  Possibly they had some damage to their buildings if they were in the area that was affected. I expect they were insured.

You do realize that all of Louisiana didn't get wiped off of the map and that the investments that the reps are managing are nice and snug somewhere else?  Living in the path of known dangers such as hurricanes, tornadoes or on top of earthquake faults is just one risk that people take.  Most of us plan for the eventuality of that risk and don't expect someone else to pick up the pieces for us.  That is also the difference between being an Independent and being somebodies employee.

May 8, 2006 4:41 pm

success - they're doing ok, for the most part.  I think that there are select groups that were impacted more than others.  I know a group of five really well and they have had to move offices 4-5 times since Katrina hit, but are settled now.

I know some reps were initially hit when clients had to withdraw some money to handle repairs, build new homes, move, etc., and this caused them to take a small hit in production initally, but they have rebounded since then. 

May 8, 2006 5:03 pm

Just saw a response from Weddle on the suggestion box responding to the question, "should we as IR's be concerned that over half of the firm net revenue is  from revenue sharing." The questioner went on to ask," Will Edward Jones go out of business if revenue sharing practices are banned completely."

His first response was "It sounds like you have been talking to a recruiter from another firm." I was amazed he did not respond in the usual form, That's a great question, I am glad you asked.

Question for BrokerReucruit-

Should we be concerned? Is there a move a foot to ban the practice?Or is this as Weddle suggests a scare tactic? 

May 8, 2006 5:20 pm

No, I am not scared.  I am very confident in my ability and what firm I work for.  Yep, thats right. I work for somene.  We all do, you just may not reallize it yet.  I have never and will never say Jones is perfect, but it sure beats working for a wirehouse.  Now, the independent thing has merit.  You own your business, but I am not sure I have ever heard of being able to retire on selling my book.  But lets say you are banking on selling your book to help with your retirement nest egg.  How much do you have to sell your book for it to provide, say, 30k-40k a year?  600k?, 700K ?  Who in their right mind will pay you that?

As for revenue sharing.  Its like a statistic.  you can create whatever answer you want when asked what impact it will have on JOnes.  Bottom line, it would reduce overall revenue by that amount. Simple.  Not half, not a third.  maybe 4%. 

Whether you convince your client to buy an A share or you choose to put everytihing in managed money, at the end of the day its what you think is best for your client.

May 8, 2006 5:25 pm

[quote=success]

  I have never and will never say Jones is perfect, but it sure beats working for a wirehouse. 

[/quote]

May 8, 2006 5:25 pm

I don't think rev sharing will be banned.  Jones would certainly be affected if they eliminated it.  In fact, more than just about any firm they would be hurt.  IR compensation would be reduced with certainty.  So would bonuses.

Weddle brings up a recruiter?  That's too funny.  I'd imagine that Weddle and others have to deal with the fact of ongoing departures.  It must be on his mind.  Especially with the long weekend coming up.

May 8, 2006 5:27 pm

Success-

Read the disclosures. 220M out of a net of 300M came from revenue sharing. I count insurance revenue sharing as well.  Where does your calculator come out to 4%.

Not suprised. Most IR's are big picture reps.

May 8, 2006 5:39 pm

[quote=success]

You own your business, but I am not sure I have ever heard of being able to retire on selling my book.  But lets say you are banking on selling your book to help with your retirement nest egg.  How much do you have to sell your book for it to provide, say, 30k-40k a year?  600k?, 700K ?  Who in their right mind will pay you that?

[/quote]

Wow, the kool-aid must have really gone to your head. 

Go to this website and see what your biz would be worth,... www.fptransitions.com

May 8, 2006 5:42 pm

footsoldier,

Total gross revenue of 3.1 billion would.  Take away $220M, whats your total revenue now?  2,880,000.  Will it have an impact, sure.  If the NASD ever decides to look into wrap account, i bet you income drops in half and if they crack down on variable annuities, you're done.

May 8, 2006 5:57 pm

[quote=success]

footsoldier,

Total gross revenue of 3.1 billion would.  Take away $220M, whats your total revenue now?  2,880,000.  Will it have an impact, sure.  If the NASD ever decides to look into wrap account, i bet you income drops in half and if they crack down on variable annuities, you're done.

[/quote]

It never fails. At some point in a discussion about the different business practices of Indy Vs Jones the Jones reps get the same snotty holier than thou attitude.  Its the same feeling you get when you are talking to your know-it-all teenager.  You just know that they will have to learn the hard way.  Sigh.

May 8, 2006 5:58 pm

Success-

Gross revenue minus expenses = 300M. That is called net profit to partners. If rev sharing reprents 220M which is 95% net to the GP's your numbers are bullsh*t.

Perhaps in a way you can understand. It is not how much you make, it is how much the GP's keep. That's why rev sharing is so important to our firm.

May 8, 2006 6:03 pm

its not being a snotty teenager.  its a fact.  my point is not to be sarcastic.  it is sto imply to point out that there are many things that can neg. impact all of our businesses.  revenue sharing for us and wrap fees for you.  those are just 2 examples.  I have no problem with you being indy.  its fine.  i didnt say you drank indy kool aid.  people are so quick to through this kool aid thing out.  maybe i like working for jones.  maybe i dont care if i can sell my book.  i’ll give it to my daughter.  maybe i will like drawing 40k a year in LP earnings.  maybe when i am 80, i may regret not going indy.  by then, money wont be able to help me.

May 8, 2006 6:10 pm

i’ll give it to my daughter.

May 8, 2006 6:13 pm

success-

Did you get your financial planning training yet? How about a calculator? I am sure your destined for greatness at Jones. You could be one of the company leaders someday.

No matter if your indy or working for someone else, you have to do the math at some point. Mr. Gecko said it best. It's all about greed.

If you can understand a 10K, maybe even you would be enlightened.

May 8, 2006 6:14 pm

how about this question mr babble.  what makes you happy?