Success: Yeh, you “write it off” OK, but only to the extent of which your biz expenses EXCEED 2% of your income (misc. deduction on sched A) and ONLY if you itemize. Don’t even make me start in on AMT issues of 2106 deductions. Care to argue this?

Revealer

I am glad to see somebody point that out!

ok, apparently i have struck a nerve with some of you.  I apologize if i seemed sarcastic, etc.  I like working at Jones and I would probably do very well as an Indy.  In fact I have no doubt i would be just fine as an indy.  However, my final point is this.  I have never once critized the independent platform except on the occasion to rebut arguments wrap fees and bad annuities.  I happen to like the idea of managed money, but not all type.  I can see the value in having an account where my clients can buy the best mutual funds out there regardless of the fund family.  What i dont like is the constant “kool aid” and other jones bashing comments.  I think it is great that many of you own your business and you can control your revenue and expenses.  Just dont say I am stupid for leaving some money on the table.  I like money, but its not my life.  At least not anymore. 

success-

I too don't like the kool aid analogy. Your defense of yours/my company just shows you haven't yet got it. When you see the true manipulation for what it is, the constant double speak, half-truths, and sometimes outright lies, if you have an ethical bone in your body you just have to question the leadership.

I'll say it one last time. Check out the 10K. It reveals many companies that the firm owns (including another brokerage firm with Doug Hill as President). It is very evident as to who the real customer is at Jones. And it is not who they say it is. What a shock.

Success: its cool. I just think when you are speaking about something you don’t have all the facts on it is difficult to sound truly informed. I’ll put it in poker terms (maybe  another bad reference point for an analogy) I’ve played with the hand you have and I’ve played with the hand I have, like my hand now alot. (I am in the minority however on this point but I still loved the trips. That may change when I have time to start planning my own, been busy in transition) On some level many of us may feel we are trying to do some a favor by exploring other options and give them serious consideration.

I have never once critized the independent platform except on the occasion

to rebut arguments wrap fees and bad annuities.



XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bad annuities? Have you checked your revenue sharing annuity roster

against some of the other annuities that you conveniently don’t sell? Not a

good point to argue on your part.

If you have been reading the threads, proudlp and success are convinced rev sharing doesn't matter because its only 4% of total revenues.

When the computation of NET revenue to the greedy GP's (excuse me the owners) is done, the picture gets a little clearer as to why it is so important to EDJ to keep rev sharing and now must disclose until the cows come home. So if it goes away how do they replace 220M. A reasonable question that deserves an answer.

So far nothing but hot air from EDJ reps, and nothing but sarcasm from manangement. Rev sharing matters most to EDJ.

I'm not into picking fights...just pointing out the fact that Revenue Sharing is only 4%.  4% of Revenues equates to roughly 4% of Income equates to 4% of the return.  Even if the return was 50% last year, 4% of that would mean that Jones GP would still pay 48% 

Incidentally revenue sharing was only around 125 million last year.  Not 220.  If you figure about 3.1 Billion in revenues, 125 million is about 4% of that. 

It is a complete misunderstanding of corporate accounting to assume that if Income was 300 million and 127 million was revenue sharing, that somehow revenue sharing was 1/3 of income.  It just doesn't work that way.  You are comparing apples to shoes. 

I've said before that if revenue sharing disappeared completely then Jones would be hurt...by about 4%, though...not enough to likely cause the business to burst into flames and go away the way so many here would like. 

[quote=footsoldier] So if it goes away how do they replace 220M. A reasonable question that deserves an answer.

[/quote]



The answer to that question, is Jones eating crow and offering some sort of wrap acct. Personally, I hope it happens sooner than later.

Proud LP--

What you don't understand is that $125 million, $220 million--or whatever the hell the number is (why don't they just own up to it?)--just shows up on the Jones doorstep for product that has already been sold.  In some cases, that product was sold years and years (if not a decade or more) ago.  There is no capital outlay on the part of Jones, no training, no added cost of doing business, nothing.  It is just a big old helping of extra cheese on the enchilada.  Take away that cheese, and Jones ain't got such a good enchilada. 

The first thing to get whacked at Jones if significant changes comes to revenue sharing agreements as they exist today will be the Jones training program, because their insatiable desire to "throw sh*t at the wall" will very quickly go away (along with the Growth Leader position).  I was never a GP, but I have a degree or two in finance, I've read the 10-K, and I can push my HP financial calculator to the outer limits of its capability.  Without revenue sharing, EDJ is in a world of hurt.  Period.  If Weddle wants to bring a #2 pencil, a legal pad, and a financial calculator to a showdown with old Sooth, then I say, "Game On, Genious!"

That is a facetious spelling of “Genius.” 

Proudlp-

According to the edward jones website, mutual funds 172M , insurance 30.3M.  More than you stated and less than I quoted. 202M out of 300M (remember 95% of rev sharing flows through to the GP's) net profit. Roughly 67.3%.

  http://www.edwardjones.com/cgi/getHTML.cgi?page=/USA/product s/mutualfunds_revenue_sharing.html

http://www.edwardjones.com/cgi/getHTML.cgi?page=/USA/product s/investments/annuities_rev_sharing.html

This is proof that rev sharing is a huge profit center and critical to the firm. What say you proudlp and success now. Your firm could be in for a major change if the regulators do their job.

This paragraph is very telling at the bottom of the last page of the mutual fund disclosure. Hartford paid 3x as much as American last year to EDJ.

7. Hartford and Edward Jones also participated in a profit-sharing agreement entitling Edward Jones to a percentage share of Hartford Investment Financial Services, LLC's ("Hartford Financial") net income, paid annually. Edward Jones' profit-sharing participation in 2005 is included in the total revenue sharing earned from Hartford in the preceding chart. Effective Dec. 29, 2005, Edward Jones and Hartford Investment Financial terminated Edward Jones' profit-sharing participation. Edward Jones received a $70 million termination payment from Hartford Financial, which is included in the total earned in the preceding chart.