Jones tops with HNW? Say it ain't so

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Aug 1, 2007 11:55 pm

Could this be right?



http://registeredrep.com/wealthmanagement/WealthyLike_Ed_Jo nes_Schwab/



I'm beginning to think all these people that complain about Edward Jones and how bad they are, are just jealous. Or maybe they were not good enough to make it with them.

Aug 2, 2007 12:05 am

Ummm yeah. That's it.

Aug 2, 2007 9:27 am

"But oddly enough, among full-service brokerages, the firm was the one least used by survey respondents."

Aug 2, 2007 10:21 am

I don't think they are jealous.  Jones pissed them off for a variety of reasons and they come here to make themselves feel good by bad mouthing their former employer. 


My personal opinion is that if the mucky mucks at the home office would ever loosen up and let us really compete for the big dollars out there Jones would start to climb in the list as far as HNW people using our services.  I think we're a great fit for the $0-$1 mil crowd.  Lot's of $500K accounts would be well served at a Jones office.  With the lack of true fee based, broker run platform we are not going to attract a lot of HNW clients away from ML.  At least I've not had much luck with it. 


With that said, I don't think anyone does service better than a Jones FA.  That's why you keep seeing the reports and the Jones name show up in the magazines. 

Aug 2, 2007 10:48 am

[

Aug 2, 2007 11:43 pm
Spaceman Spiff:

I don't think anyone does service better than a Jones FA. 


Except a SUCCESSFUL Jones FA that went independent.


Aug 3, 2007 12:18 am

Yeah i kinda thought that was funny when I read it...and no I never worked at Jones

Aug 3, 2007 1:02 pm

Jones is an excellent place to start a career in the financial services industry.  Great training, solid no-nonsense compliance and supervision, and excellent office support. 


The research and literature show that the biggest reason people leave a sales organization is compensation.  The first year I left my income was four times my best year at Jones.  There were two reasons:


1.  My cut went from 38% to 90%*


2.  I had a greater range of products available to offer my clients (No, I don't offer EIAs)


There is a lot of complaining about Jones on this site.  I can understand why.  For me the time spent with Edward Jones was as close as I've ever come to Indentured Servitude and I think the emotion Jones Vets feel about their experience there is driven by how good it feels to be free at last.


*Yes, I now spend about $30,000 per year for overhead

Aug 3, 2007 5:58 pm
GoldCaddy:

*Yes, I now spend about $30,000 per year for overhead


How on earth do you keep total overhead at 30k?  1 good assistant alone would be 35-50k, inclusive of taxes and benefits you'd have to provide.  With decent office space, equipment, insurance, utilities, advertising, etc I can't see how you can get by for under 75k.  You counting self employment tax in that 90% or 30k? or any 401k contributions your former employer made? or bonuses? or other benefits which you now have to foot the bill on?


I bet you meant 130k and 30k was a mistype?  SE tax alone is about 7k a year on 90k income.

Aug 3, 2007 8:02 pm

You don't know how indies work around SE taxes?!! You need to do some more homework...

Aug 3, 2007 10:39 pm
Omirp222:
GoldCaddy:

*Yes, I now spend about $30,000 per year for overhead



How on earth do you keep total overhead at 30k?  1 good assistant alone would be 35-50k, inclusive of taxes and benefits you'd have to provide.  With decent office space, equipment, insurance, utilities, advertising, etc I can't see how you can get by for under 75k.  You counting self employment tax in that 90% or 30k? or any 401k contributions your former employer made? or bonuses? or other benefits which you now have to foot the bill on?


I bet you meant 130k and 30k was a mistype?  SE tax alone is about 7k a year on 90k income.



That crap sounds an awful lot like the argument I used to hear against indies at every Jones meeting I attended.  I love the comments about how the se taxes would kill an indy.  With all of the write offs a business owner is entitled to, I pay far less in taxes now than I did at Jones (and my income is substantially higher).  Omirp, if you don't know taxes any better than this please don't post on the topic!

Aug 3, 2007 11:35 pm

Jones uses anti-indy propaganda?  Say it ain't so.

Aug 4, 2007 4:05 pm
BigPayDay:

Could this be right?

http://registeredrep.com/wealthmanagement/WealthyLike_Ed_Jo nes_Schwab/

I'm beginning to think all these people that complain about Edward Jones and how bad they are, are just jealous. Or maybe they were not good enough to make it with them.


But if the above is true why does the SAME article state,


"Edward Jones outranked its peers in each of the three “pillar” categories with ratings above eight, and it came out on top among both customers with net worth of under $1 million and those with over $1 million. But oddly enough, among full-service brokerages, the firm was the one least used by survey respondents."


BPD could you explain why this is?


Aug 4, 2007 4:17 pm
compliancejerk:

BPD could you explain why this is?




I don't think BPD did the study, if you're really curious maybe you could contact the company that conducted the study.

Aug 5, 2007 5:19 pm
Indyone:

You don't know how indies work around SE taxes?!! You need to do some more homework...



Tax evasion?  It's the ONLY way to get around it LOL.  In order to avoid most SE tax, an owner would have to expense everything out, thus having FAR more then 30k/year overhead/expenses.  Could form a corporation and call it "employee taxes" instead of SE tax as well, if it make you feel better.  But it still has to be paid.


But if you're only pulling in 75-100k you're small potatoes and could easily hide almost all your income.  But you can't "avoid" SE tax.


And I've owned a business for 11 years now, I'm quite versed in all the "tax benefits" of business ownership.  If that's what you want to call it.

Aug 5, 2007 5:22 pm
Gone Indy:
Omirp222:
GoldCaddy:

*Yes, I now spend about $30,000 per year for overhead



How on earth do you keep total overhead at 30k?  1 good assistant alone would be 35-50k, inclusive of taxes and benefits you'd have to provide.  With decent office space, equipment, insurance, utilities, advertising, etc I can't see how you can get by for under 75k.  You counting self employment tax in that 90% or 30k? or any 401k contributions your former employer made? or bonuses? or other benefits which you now have to foot the bill on?


I bet you meant 130k and 30k was a mistype?  SE tax alone is about 7k a year on 90k income.



That crap sounds an awful lot like the argument I used to hear against indies at every Jones meeting I attended.  I love the comments about how the se taxes would kill an indy.  With all of the write offs a business owner is entitled to, I pay far less in taxes now than I did at Jones (and my income is substantially higher).  Omirp, if you don't know taxes any better than this please don't post on the topic!



SE tax is only 7k max, how is that going to kill anyone? lol  And I'll post where I damn well please.  You're the idiot who worked for Jones, don't take it out on me.

Aug 5, 2007 6:49 pm
Omirp222:
Indyone:

You don't know how indies work around SE taxes?!! You need to do some more homework...

Tax evasion?  It's the ONLY way to get around it LOL.  In order to avoid most SE tax, an owner would have to expense everything out, thus having FAR more then 30k/year overhead/expenses.  Could form a corporation and call it "employee taxes" instead of SE tax as well, if it make you feel better.  But it still has to be paid.


But if you're only pulling in 75-100k you're small potatoes and could easily hide almost all your income.  But you can't "avoid" SE tax.


And I've owned a business for 11 years now, I'm quite versed in all the "tax benefits" of business ownership.  If that's what you want to call it.


You're a clueless idiot is what you are.  Keep posting...you're looking dumber by the minute.


...and you might want to look for a different tax advisor...sounds like yours is committing malpractice.

Aug 6, 2007 1:00 pm

Indyone knows what he is talking about, as do I.  MY accountant as well, and you obviously need to get yourself one that has a CLUE!!!! 

Aug 6, 2007 1:43 pm

I'd be interested to know what a sum total of $30k in overhead gets you. Sounds very, very low to me.

Aug 6, 2007 2:10 pm
mikebutler222:

I'd be interested to know what a sum total of $30k in overhead gets you. Sounds very, very low to me.


New rims, gas, maintenance, and insurance for the Gold Caddy that doubles as his rolling office is my guess.