Jones Fence Sitters Real Issue Discussion

or Register to post new content in the forum

77 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.
Jun 19, 2005 2:46 pm

Goal:

Provide a real place to discuss specific transition oriented issues on leaving Jones to go indy.



Rules:

1. No Jones bashing or finger pointing

2. No "my dad can beat up your dad"

3. No Jones Guys being defensive



Every firm has strengths & weaknesses. This is a place to discuss those & see what is a good fit for you.

Jun 19, 2005 3:15 pm

I left Jones in early 05 & went to LPL. I have fielded calls from Jones guys from 4 states asking for feedback about the move & I thought that I would place some observations here to share with anyone needing help.



In my opinion here are strengths that Jones has...



1. Jones Corporate has made it pretty easy from a structural standpoint to do business. Not many forms are necessary on a daily basis to work. Being indy is paperwork intensive.



2. Jones has a very good system to train assistants.



3. Jones HR support from the home office is not given enough credit.



4. Jones does a good job of focusing the IR on just selling.



Here are some observations so far of being indy..



1. Transition sucks, but is temporary

2. The bond inventory is more robust than I ever expected. Most indies link directly to many dealers inventories. The inventories are much larger than Jones.

3. I never realized how focused Jones was from a product standpoint. There are many more options out there that ARE STILL IN THE BEST INTEREST OF CLIENTS.

4. It is very refreshing & motivating to know that this is MY business.

5. The "business" or admin side of running the business is really not bad. You set up quickbooks, online bill pay, officedepot.com & that's pretty much it. After a few months it's really easy.

6. The money is unbeleivable. I am running the exact same business & in my 4th month took home more than I ever did at Jones by 5k. Of course, that should be the case because I don't get LP, bonuses, or profit sharing. The flexibility w/ biz expenses & taxes though will also help.



I have many more thoughts, but would entertain any questions that you may have.



In closing...

I still run a squeaky clean business with my clients best interests at heart all the time. I was a good guy at Jones and remain that way today. Only bad people don't leave Jones.

Jun 19, 2005 3:26 pm

I reread that last sentence & I didn't say what I meant. Jones tende to villify anyone that leave Jones or is at another firm. Good people leave Jones because they believe that it is a business decision that is better for their families.

That's what i meant to say..

Jun 19, 2005 8:04 pm

Great post, I am a wholesaler with a top 2 fund company.  And yes I work with great Jones reps.  About 80% of my business comes from the top Independent brokers, LPL, Ray Jay, AIG, NPH.  The firm itself (Jones) is fine; it’s the reps that are getting screwed.  You are basically independent with ¼ of the payout. 

Jun 20, 2005 2:00 pm

Awesome post, you have already got me thinking that I want to start
with Jones to get my feet wet, for a few yrs then, go indy. This
country was founded on independent businesses, so why not start your
own. How many accounts did you get to transfer? Also, what did you tell
your clients? And, How long were you at Jones before you went indy?

Jun 20, 2005 4:21 pm

I agree with others.  It will give you an adequate start along with the freedom, but if you're independent in nature, go indy and get the 85-90% payout.  There was a publication that EDJ prepared and sent to its IRs a while back and it all but bashed the indy side.  It was a subtle form of propaganda.  As a recruiter that represents all types of firms (wires, indy, banks, etc), I looked at it and found it inaccurate.  There are probably FAs that benefit from working at EDJ, but there are some that would be better suited in a wire or with an indy.

Jun 20, 2005 8:37 pm

Riley-

I really don't see a need to start at Jones to "get your feet wet." Name recognition is what Jones gives you & I see Raymond James doing the exact same thing for 150% the compensation.



Jones is a good firm, but others firms offer a better value proposition to you & your clients.

Jun 20, 2005 10:45 pm

bestmoveever-

EDJ has an extremely good rep here. Unfortunately, there are a few
Raymond James clowns over here, that would be the only reason why I
would start with EDJ. I've got a good rep myself and I want to improve
upon it. I would really like to be with AG E, but they haven't started
an office here yet. They are waiting on some experienced brokers to
come in.  But, we will have to see what happens. EDJ called me
today. I wasn't here but I'm calling them back tommorow. I am still in
college so it would be an internship. I've got a buddy that is GP.
However, I would also like to note, I know a guy that has an indy
business that is huge. He makes mega bucks. However, he used to be with
Robinson Humphrey, who got bought out by Smith Barney. He took a chance
and really made it. He is older though, but it paid well for him. I
think last I heard he pulls in about $600,000 a yr. And guys I don't
know where you'll are in the country but, here that goes a hell of a
long ways.

---Riley

Jun 23, 2005 12:01 am

bestmoveever, tell me about the transition. did jones give you grief? what % of your book moved. what % did you try to move? how long did it take to move your clients? what kind of contact can you make without getting into legal trouble? any other advice would be appreciated.  

Jun 23, 2005 7:39 pm

Jun 23, 2005 11:23 pm
bestmoveever:

Goal:
Provide a real place to discuss specific transition oriented issues on leaving Jones to go indy.

Rules:
1. No Jones bashing or finger pointing WHO WOULD DO THIS?
2. No "my dad can beat up your dad"  IS HE THAT BIG?
3. No Jones Guys being defensive       DO THEY DO THAT?
Every firm has strengths & weaknesses. This is a place to discuss those & see what is a good fit for you.


Just Joking...............


I think Jones is the BEST PLACE TO START, their training is the very BEST.....with that said, once you get up to 250K Annual Gross, start looking because you will increase your bottom line by 50%... and that's for you, not some non-producing GP living large off your efforts.


As for Indy Firms, RJ, LPL, AIG Advisor (any of th 6 Bd's) all are very good, interview and see what fits you best, not just the payout.


While at Jones get your CFP, or AAMS, CSA,CRFA, CLU, CPA or whatever flavor you want, but get educated, that knowledge will tell you it's time to go on your own.


When you go INDY, you won't have all the Regional Meetings, or Mentoring, or Recruiting Meetings, but when you go to a meeting there will be Brokers from many different Firms, what an advantage to learn from people that actually do business different than you do? 


Oh, yeh, they actually pay you from 1% to 3% First Year Annual Gross of anyone you recruit....that beats any LP(your own money) offering, if they ever have another?  this is cash in your hand


So you save a Friend at Jones who can do 250K at 1% you get 2500 at 2% 5K you get the idea, ask the Firms you are talking too what they pay for recruits.....some are even higher


I look at Jones as the Minor Leagues do excellent Training you learn the Fundamentals, when you get good enough you go INDY to the Big Leagues, Bigger Pay Days for sure!


Jun 26, 2005 3:30 pm

doubleb:


I left recently & here are your answers:


Jones come after me: Yes, did it matter...not really


How much of my book: over 50%...about average


The money now: better than I ever did at Jones

Jun 27, 2005 9:18 pm

Player,

Jun 27, 2005 9:25 pm

Player, I've been watching this forum for a long time and can't stand by and watch anymore. You are so full of sh*t that it's coming out of your ears. 1% beats LP? You're a freakin' idiot. Is that annually? Who are you? Where are you? When were you at Jones? You are a gutless piece of sh*t that is more concerned about Jones bashing than having an intelligent conversation. I netted 37m last month and am going to Hawaii for a week of golfing. And by the way, I've been doing this for 16 years and my clients do business with me and not Jones. No complaints and a clean record. I am also not a big fan of annuities. So identify yourself or go back to your closet and spank your monkey you bitter punk.

Jun 28, 2005 1:13 am

two words for the chugger, reaction formation.



also, if you had benn indy for ten of the last 16 years, 37m net would not be noteworthy. but the the 80 net you would have made as a REAL business owner would be something to write home about. have fun golfing though... be sure to up date us on the great sales ideas you got from the Putnam wholesaler at the vendor meeting.

Jun 29, 2005 2:49 am
KoolAidChugger:

Player, I've been watching this forum for a long time and can't stand by and watch anymore. You are so full of sh*t that it's coming out of your ears. 1% beats LP? You're a freakin' idiot. Is that annually? Who are you? Where are you? When were you at Jones? You are a gutless piece of sh*t that is more concerned about Jones bashing than having an intelligent conversation. I netted 37m last month and am going to Hawaii for a week of golfing. And by the way, I've been doing this for 16 years and my clients do business with me and not Jones. No complaints and a clean record. I am also not a big fan of annuities. So identify yourself or go back to your closet and spank your monkey you bitter punk.


KoolAidChugger,  you are the JOKE........read what you wrote?  To net 37K you did 97 Gross, at any Indy Firm you would have netted even at 60%  about 58K I can take a lot of trips for 21K..................who's the idiot?

Jun 29, 2005 9:22 am

Koolaid chugger (appropriately named yourself it appears): 


I'm glad you did 97 gross.  There are many producers here who have done that more than once--myself included.  I'm also glad you have been in the business 16 years.  You must have learned quite a bit over the years--but apparently simple arithmetic isn't something you have mastered completely.  Let me assist.  To brag about a 4k (inflated value) vacation where you are taxed on it--while you left over 25k on the table is pretty ludicrous.  Don't you think?  Your net/net as an indy would be about 65% or so plus or minus a couple of % points on either side of that. 


You might start thinking a bit clearer if you started chugging Jack Daniels instead of Jones koolaid.  You wouldn't be able to drive a car granted--but at least you could pull your head out and once the hangover ceased--you might actually learn more than what big brother says is OK to learn....Step one is educate yourself.


Read my description of Indy vs Jones to get a more accuratae depiction of the real differences. 


Jun 29, 2005 1:07 pm

37 net.  That is darn good KoolAidChugger. I am not about to tell you your don't have a great business.  I never netted that amount in my time at Jones.  I decided to leave at about six years and it was a difficult decision.  All I would say is just take a look around sometime.  Go out and look at what other people are doing at Indys and major wirehouses.  See for yourself.  What harm could it do.  I still miss parts of EDJ however I do not regret my decision to leave.  I wish I would have done it sooner.


By the way, this is a fee month for me.  I will net about $40,000 on gross of a little over $100,000.  Nice thing though is that amount is pretty much automatic on a quarterly basis now.  That makes for a better family life for me and my clients are happy. 


Don't close yourself off to your career options. Best regards. 

Jun 29, 2005 9:53 pm

I left Jones in 1984 so keep this in perspective.  After being independent for 5 years another Indy B/D offered me 500k to come to them.  This was all done on a handshake.  In 2003, after 14 years with the same firm, another Indy B/D gave me 500k to come with them (10 year earnout).  The way I see it, I've received $1 million that I would never have received at Jones.  Someday, I'll sell my business and go push up daisies.  My projections indicate that I will have 400 million AUM in 15 years.  What will that be worth?

Jun 30, 2005 1:55 am

Well said, my business value grew by 300k this year, and I didn't have to pay any LP or GP to get it.......................... 


KoolAidChugger,  Listen to what people on here are telling you! This is not BS, go look around, ask a former EDJ IR you have to know atleast one, I know about 25, check this out for yourself and your family, you owe to them


By the way you are going on a Jones trip for a week, you will over pay for the trip, I am going for a MONTH........two weeks will be written off as business, and that will pay for the whole MONTH...checkout your options