Kool-Aid
87 RepliesJump to last post
Player,
Specifically what investments are you talking about that your firm pays you more on? Are these prospectus items?
Also where’s that WSJ article you promised me about the CA lawsuit and the fines EJ might pay.
BPD
Where is your favorite place you have been lately?
Costa Rica. Nosara specifically. We have a family home there.
Player,
Don't forget...
To help retain IRs, cover insurance costs. At least a portion when first starting out. Let IRs pay 25% in Seg1, 50% in Seg2, 75% in Seg3, and the full boat in Seg 4&5. That might help with retention too.
P.S. For those of you not familiar with EDJs ins; for medical, dental, and small life policies on family, I was paying over $700/month. Tell me that doesn't put a kink in the net net.
So what are you paying now for medical insurance coverage?
Can't speak for exEJIR, but I am paying full boat just like at Jones with the exception that I can choose the coverage levels that I want instead of being forced to choose the super duper all enclusive cadillac plan or the el cheapo crapolla plan. I have an HSA qualified plan and pay around $425 a month compared to the over $600 a month. Plus the HSA offers additional tax breaks that were not available in the Jones plan. In addition I sold the plan to myself so I am the writing agent
Things may have changed since I was there... Do you have an HSA option?
You mean you have choices when you control your own margins? Boy, that question back fired.
[quote=babbling looney]
So what are you paying now for medical insurance coverage?
Can’t speak for exEJIR, but I am paying full boat just like at Jones with the exception that I can choose the coverage levels that I want instead of being forced to choose the super duper all enclusive cadillac plan or the el cheapo crapolla plan. I have an HSA qualified plan and pay around $425 a month compared to the over $600 a month. Plus the HSA offers additional tax breaks that were not available in the Jones plan. In addition I sold the plan to myself so I am the writing agent
Things may have changed since I was there… Do you have an HSA option?
[/quote]BL,
Yes we have a high deductible plan that you can pair with an HSA. Signed up for it today. Monthly Premium went from $700+ to $300+. Family Plan.
Are you going to participate in a Roth 401k this year? I can’t beleive that we are going to be able to put $15k into a Roth. Wow. Hope they don’t take it away.
BPD
[quote=BigPayDay]
Are you going to participate in a Roth 401k this year? I can't beleive that we are going to be able to put $15k into a Roth. Wow. Hope they don't take it away.
BPD[/quote]
FYI, If you were independent, you could put your spouse on the payroll and put 30k into a Roth 401(k). Have a good weekend!
Are you going to participate in a Roth 401k this year? I can't beleive that we are going to be able to put $15k into a Roth. Wow. Hope they don't take it away
No. I need the tax deduction now, so putting money into a non deductible Roth doesn't work for me. I have a traditional owner/individual 401K. My husband is self employed already and doesn't need to be on my payroll to get further tax advantages, but that is a good plan for anyone who can swing it. He has his own retirement accounts.
If you think you will be in a LOWER tax bracket in retirement than the bracket you are in now then the deductible 401k can be a great option. But if you feel that you are going to be in the same or higher bracket in retirement then the Roth IRA is a better way to go. I have about 10 years till retirement. Time till retirement can also play a part on which is better as well as what age you will be retiring at. I will be retiring pre 59 1/2 and so the ability to take out the Roth contributions pre 59 1/2 with out restrictions is a big deal. Jones has a pretty good calculator that will compare different scenarios. Let me know if I can run one for you.
Ex, my wife is self employed. She will be putting $15k into a Roth 401k as well. By the way she has a great financial advisor.
[quote=BigPayDay] Player,
Specifically what investments are you talking about that your firm pays you more on? Are these prospectus items?
Also where’s that WSJ article you promised me about the CA lawsuit and the fines EJ might pay.
BPD[/quote]
Player,
The cat’s got your tongue and your dog ate the WSJ article. I know.
BPD
P.S. Do you dream in emoticons?
bpd
Debate this - in your independent office at Jones can you bring in a CPA to help your clients, an estate planning attorney, a P & C rep? Can you bring any of them into your business, do revenue sharing with them? Can you do fee based planning? Can you build financial plans at all? What relationship do you have with a client who uses your trust services - who manages the assets and under who's control? If you get killed or disabled what does jones do for your family after the years you spent building up that book of business? If you leave jones who owns that book?
Shall I continue or let you respond first?
csmelnix,
More fair questions. I will try and answer.
Yes, I can bring in a CPA and/or attorney. A P&C rep? Why would I? As far as estate planning attorneys I have one that comes in to my conference room at set times each month, usually twice a month for 2 - 3 hours and meets with clients. We have been doing these joint meetings for over 2 years now and they have been very fruitful. This year alone we have completed three rather large CRTs.
We do not do fee based planning.
Yes we can build financial plans.
Yes, we use the Edward Jones Trust Company often. I have found it to be a great asset. The relationship I have with my client doesn’t change much actually. I act as the liason between the client and the trust company. And because the trust company is managing not just their security assets but now their real estate and/or business holdings the fee I earn is larger than before they were using the trust company. The assets are managed by the trust company, yes I still get paid. Edward Jones has one profit center, the IR. (You may have heard this before.)
If I get killed I am worth far more dead than alive. My family would be VERY well off. If I am disabled I have a disability policy that would pay close to 75% of my income. It isn’t cheap, but as you know we have a higher chance of being disabled than we do dieing, especially when you are as young and healthy as I am.
If I leave Jones for another firm, Jones technically owns my book, I would take 60% - 70% of it with me though. I don’t see myself ever fully retiring as I love what I do. I have not been in the office on a Wednesday in several years. It is my golf and/or hunting day. When the time comes I would probably bring in one or more of my children into the business and transition my book over to them.
I have responded. You can continue now.
BPD
___________________________________
The grass is GREENER where you water it!
BPD be honest, you can bring a CPA or attorney into your business as in a one stop shop i.e. wealth management shop. You can't do revenue sharing w/ them either - come on now be honest.
What plan is that that makes your family better off in your death? I'm not talking life insurance, what does Jones do for your family directly?
The trust thing - are they charging a fee to manage that? Point being is, Jones is managing them, not you! Very different than where I am.
I would love to see one of those financial plans!
The legacy question, I know Jones has claimed to have changed this policy recently, maybe they'll actually let you bring in a family member now.
Jones has one profit center the IR! COME ON - you mean the underwriting, IB business, and the bond desk aren't profit centers? Wow, you really have been brainwashed.
More questions: Can you do insurance business directly? Can you build out your business horizontally? How do you handle tax loss harvesting for your clients? Any chance you can use products that provide absolute returns to further diversify portfolios? Can you establish investment services with a local or regional financial firm? Can you offer mortgage services/programs away from Jones? Do you have any control of your margins?
BigPayDay
BigPayDay wrote:Ex,
Great question, I'm glad you asked. My pay out last year was around 56%. This includes my net commissions, bonuses, profit sharing and two trips per year. I am on pace to do about 10% better than last year. This does not include earnings on Partnership. (Which by the way over the last 15 years has averaged 22% per year.) Since I have been with Edward Jones there has only been 4 Trimesters where a bonus was not paid.
The 44% that I do not get covers my office staff. I have 2 full time BOAs. Jones pays 100% for one and 75% for the other. This includes salary, benefits and bonuses. One is a partner. They were also trained internally. When I set up my office Jones paid for the build out of it and a few years ago paid for a remodel to be done. I have about 1400 square feet with a conference room. Jones covers the lease, office utilities, half the phone, half the postage, half of the yellow page ad, half any marketing events like open houses, client appreciation events, seminars, etc. They pay for AND coordinate all my various insurance and securities licenses each year. They provide live CE Videos that I bring in CPAs and Attorneys to 6 times a year. (This by the way is with out a doubt the best source of new business that I have.) Jones has various training courses I can attend out in the field and at the home office. (I'm not talking about Mutual Fund due diligence trips.) This summer we went on a Mediterranean Cruise with my family of five paid by Jones. I had to pay for my youngest child's air fare. Next summer we are going on an African Safari. (Just the wife and I, no kids.) Over 55% of the sales force earned trips last Diversification Program period. Jones covers all of the computers, faxes and printers in the office. They supply paper, toner and repair when necessary. I do not have to pay extra for a Quotes system or INTERNET service. Yes, I have Jones supplied email. (I know hard to believe.) You would also be surprised with all the new technology Jones is rolling out early next year including a new and improved portfolio analysis system and drum roll please......financial planning software. I do not have ticket charges and can buy VAs electronically through the system. (Not many firms have the ability to do this.) I do not have to buy E & O insurance.
I have several friends that work in the industry at various different firms: LPL, ML, RJF. My buddy at LPL says his net, net is between 62% - 68%. He does around $750 gross per year. I have two buddies at ML that are $Million Dollar producers that have a total payout close to 60%. We meet often and would you believe it, each one of us thinks that we are at the best firm or in the best situation. The bottom line is we are in a great industry and there are many great firms out there. And the more people we help reach their financial goals the quicker we will reach ours.
Happy Thanksgiving!
BPD
BigPayDay,
Would you really like to compare this to my practice?
I too have two full time employees, I have my own fully funded 401K and profit Sharing Plan. You might just want to set down with one of those CPA's that come to your CE class, and have them look at your tax return, and ask them if you generated that type of revenue in your own corporation what the results would really be?
Here is some food for thought:
1) Jones is NOT paying you the total Commission they receive from vendors, since I let I receive anywhere from .15% to as much as .35% HIGHER payouts in Gross Commission thru my BD.
2) I can take some of my income as a dividend, taxed at 15% do some figuring on that one
If I were Managing General Partner at Edward Jones this is what I would do:
1) Exchange all LP & GP for STOCK (Private) making that 22% return on your LP only taxed at 15% not 33% you can do the math? The GP's 50% return taxed at 15% not 33+%.
2) Make all the LP's & GP's Officers of the Company, thereby being able to do Signature Guarantees (saving the Firm Millions in postage not having to send forms to STL for Signature Guarantees)
3) Raise the Payout for all newbies to 50% for the first 3 years, cutting down on the failure rate, putting more return to LP's & GP's.
4) Change payout structure for IR's to 40% from zero to 250K (Segment 1) from 250.1K to 500K 50%(Segment 2) and from 500.1K to 1 Million 55% (Segment 3)and 1 Million.1 60%(Segment 4)........ those mean something ?
5) Fully disclose all commissions and revenue sharing fess paid to the firm to the IR's, wouldn't you like to know?
6) Award LP and GP based on commissions, not a popularity contest for ass kissers, you know and I knew IR's that shot right to GP because of who they knew, not what they did for the Firm.
7) Have Regional Leaders limited to no more that 40 IR's
8) For recruiting have the recruiting IR get a 3% over ride the first 3 years.
9) Allow two and three IR offices, with a buyout option, allowing for you to sell your practice to a child, or whoever you choose
So what do you think?
Do you think you would want to work under that system ?
By the way, the article was in a California paper and I will post it, as I have said in other postings it was sent to me by an x-joneser that lives in California, and as soon as I go back to my office I will post it, I am on the road playing Golf & Tennis. Maybe someone reading this will post it first..........
Also, you mixed up the local paper with the WSJ, what I said is your clients don't read the WSJ ,according to Doug "3 Mil" Hill, it appears he was RIGHT, they may not even read their local papers either?
You never did respond to my above posting, could it be I am right on target?
[quote=BigPayDay] [quote=BigPayDay] Player,
Specifically what investments are you talking about that your firm pays you more on? Are these prospectus items?
Also where's that WSJ article you promised me about the CA lawsuit and the fines EJ might pay.
BPD[/quote]
Player,
The cat's got your tongue and your dog ate the WSJ article. I know.
BPD
P.S. Do you dream in emoticons?[/quote]
BigPayDay,
Yes, Annuities, Mutual Funds & Life Insurance Policies, and LTC policies, anyother questions?
As for the Article it was in a California paper, sent to me my an x-jonser, i will let you know when i get back to my office........see previous posting, that you never responded to?
Big payday,
You left out that you cannot do fee based unless you have 1/2 million. Everything else doesn't matter. I've built up a fee based practise that pays me about 150k gross in 2 years. You start at zero every month. Or after 15 years of shoving "A" shares down people's throats you may have build up trails paying 150 gross. I'll pay for my own vacations, Thank you.
To be fair, EJ does very little IB and underwriting. The bond traders are salaried and they do not receive commissions for their trading positions. Hard to believe, but they really don’t.
However, EJ really does have one profit center - the GPs.
JoeDog
[quote=csmelnix]
Jones has one profit center the IR! COME ON - you mean the underwriting, IB business, and the bond desk aren’t profit centers? Wow, you really have been brainwashed.
[/quote]