Moving From Jones to AGEdwards

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May 6, 2005 12:30 am

I'm considering moving from Jones to AGEdwards (suburban area). I'm four years out with 25mm and 170-180k gross. I know I'm don't have enough assets to go indy, and I'm just in the beginning stages of looking into AG, but would like some feedback. I have about a thousand questions, but I'll ask my top ones.



1) What is the payout at AG? I know at Jones, it averages around 38.9%, which has been close to my average also.



2) What kind of office support is there? I have an OUTSTANDING BOA now, and would love to bring her with me. Do they hire assistants?



3) How is the technology and home office support?



4) What are the quotas or production standards?



5) How do you prospect? (obviously, my business has been built through doorknocking and referrals)



I would love input from anyone who has gone from Jones to AG, and also to be fair, anyone who has gone from AG to Jones. Constructive comments only, please. Thanks in advance.



May 6, 2005 11:30 am

No input from me...yet.



Why are you considering leaving Edward Jones?



What makes you think that you'd get a decent payout at AG Edwards given your level of production?



A lot of bigger firms started starving out their lower producers a few
years back by lowering payouts to the point that reps would consider
leaving.  The starve out level around $250k at some--higher than
where you are now.  Even at 4 years of experience, you are by no
means a heavy hitter.  You aren't doing bad.  Just OK.



What would happen if you moved and your production dropped by 25%? 



I think you should stay where you are and build your business for a few
more years.  Unless you are maxed out in your current market,
which I doubt.  I think you should try to get to $350k gross, at
least $300k, then move.



Just my opinion.




May 6, 2005 1:36 pm

Why do you think you can't go indy?  My pay out as an independent rep is 80% to 100%. You may have to work with an OSJ in a grouping of other reps to get the required production for the payout grid.


Do the math.  You don't need as many assets to have an income that is the same or better than you are pulling at Jones.  If you factor in the additional costs that Jones takes from you in advertising and that you have to pay out of pocket such as supplies, brochures, postage etc you will find that your actual payout is probably about 15 to 20% now.  That and the fact that the health insurance premiums at Jones for the IR was extremely high and not a business expense for me makes being independent a much better (taxwise) deal for me. 


There are no quotas in my office because I decide how much I want to do.    I don't think that there is a magic number of gross $350K or whatever that makes a move feasible. It all depends on how much income you would be satisfied with. 

May 6, 2005 6:02 pm

40% Stocks, Bonds, Funds, Fees - 50% Annuties other insurance


Office support fairly lacking need to do $350K in production to get half an asst


Tech is very good, and getting ready to get a lot better - been told that is far better than EJ


No quotas, have to be doing $175 after 5 years, or you start getting dinged


Prospect however you want - we do seminars and referrals mostly


May 7, 2005 12:55 pm

Tedstriker,


Best move I ever made.  Wish I had done it a lot sooner then I did.  Edwards as long as you have a good branch manager is a much better place to work then Jones.  Your benefits are better, healthcare cheaper, and imagine having A LOT more money in your 401K right now.  The technology and products are amazing you will feel like an actual financial consultant not an investment representative.  If you would like to create a team with other brokers you can do that, if you want to set up business relationships with CPAs you can do that.  Jones always tells you run your business the way you want, but try to think outside the box and do something that does not fit into their business model.  It's not going to happen.  At AG Edwards the response will be if it makes good business sense DO IT.  At  Edwards you will receive the highest total payout in the industry considering benefits and all.  With the exception of going private.  If you had been out longer I would say going private is a great way to go, but let me tell you when you make the move and ask your clients to come with you it helps A LOT to have the largest brokerage firm outside New York on your side.  When you get ready to retire you can SELL your book.  Yes actually get money for the business you built all those years instead of handing it over to someone else and letting the partners of the firm receive all the benefits.  Jones will tell you, but you will have a branch manager.  As long as you are running an ethical business and producing a descent amount.  You do not have to be a TOP produceer they will stay out of your hair.  Go to Saint Louis and visit 1 North Jeffferson and see for yourself.  You owe it to your family and yourself to explore your options.  Hope this helps!!!!


May 7, 2005 3:54 pm

Uptick,



Interesting screen name. You former Jones guys can never get Jones out of your head.



My question to you is:



If you want to sell your book at AG Edwards, who buys it?



How is the price determined?



Do you really think a veteran IR at Jones just walks away from their book without any compensation?



BPD



May 7, 2005 5:14 pm

"Do you really think a veteran IR at Jones just walks away from their book without any compensation?"


Of course not!  They hand the book off to their underachieving kid who would never make it as a new/new IR in a thousand years.  Then, the really talented people get to hear over and over just how wonderful junior is.  How much money he makes.  How many trips he's been on.  All of his great "sales ideas."  The veteran broker keeps his LP, which in time will deliver lower and lower returns as it continues to be watered down with nepotism and back-scratching. 

May 7, 2005 5:24 pm

Sounds like a good deal.



Also sounds like you are jealous, Sooth.



The LP has averaged more than 22% a year since 1990. Last year it was a hair under 20%.



Can "The really talented people" do this too? Yes they can too.



The only ones that can't are those who do not work for "The Firm".



Like I've said before, Jones is like the Yankees in baseball or the Cowboys in football, when you're the best you are loved or hated.



BPD



May 7, 2005 5:34 pm

Well, when you're ready to start learning how to be the best, give me a call.

May 7, 2005 5:36 pm

What's your number?

May 7, 2005 5:39 pm

Number One.  Why?

May 7, 2005 5:44 pm

You said give you a call.

May 8, 2005 12:22 pm


Also sounds like you are jealous, Sooth.
It's a normal human reaction to be jealous when a do-nothing, no-talent twenty-something is making 4 times more than someone who unfortunately had to start new/new.
The LP has averaged more than 22% a year since 1990. Last year it was a hair under 20%.
Yeah, and the S&P 500 averaged 19% in the 90s.  What's your point? If Jones continues to not grow, and the firm continues to water down the LP with nepotism, the number will shrink, plain and simple.
Can "The really talented people" do this too? Yes they can too.
Yes, I agree they can.  But, they'll be playing second fiddle to the former top-producer's kid for their whole career. 
The only ones that can't are those who do not work for "The Firm".
I'll make my own way.


May 8, 2005 2:50 pm

Sooth,



You must really hate the Walton family (Robson, Jim, John, Alice and Helen), George Bush (43), Ted Jones, Michael Douglas, Franklin Graham, JFK Jr., Abigail Johnson, Keith Murdoch, Jesus, Donald Newhouse, Peyton Manning, etc., etc., etc. Just think how much you are going to hate Bill Gate's, Michael Dell's and Larry Ellison's children.



Sounds like you let jealousy control your life. You may want to seek professional help for this before it's too late.



What has the S&P averaged since 1990? Not 22%. If I'm not mistaken the S&P has averaged a -3.5% over the past five years. THAT'S MY POINT! With the exception of a handful of individual stocks there are very few investments that have done this well. And you're levereaged at very low interest rates. Remember you only have to put 25% down.



The offices that have been Goodknighted to family members more than not increase in business, not decrease, actually helping LP returns, not hurting them.



BPD



P.S. I'm glad you'll make your own way.



May 8, 2005 2:56 pm

But BPD, you're trading more than 60% of your gross income for a chance to buy a few thousand dollars worth of the LP.  That doesn't make good financial sense.

May 8, 2005 3:08 pm

Fool,



It's not always about the money. You don't get it.





BPD



________________________________________

The grass is GREENER where you water it!



May 8, 2005 3:10 pm

If it isn't about the money, why would you care if the LP averaged returns of 22%?


I think it's YOU that doesn't get it.

May 8, 2005 3:16 pm

My point is, if I'm comfortable where I am why change? If I did make a change money would not be at the top of my list.



Wouldn't you agree?



BPD

May 8, 2005 3:24 pm
BigPayDay:

Sooth,



You must really hate the Walton family (Robson, Jim, John, Alice and Helen), George Bush (43), Ted Jones, Michael Douglas, Franklin Graham, JFK Jr., Abigail Johnson, Keith Murdoch, Jesus, Donald Newhouse, Peyton Manning, etc., etc., etc. Just think how much you are going to hate Bill Gate's, Michael Dell's and Larry Ellison's children.



Sounds like you let jealousy control your life. You may want to seek professional help for this before it's too late.



What has the S&P averaged since 1990? Not 22%. If I'm not mistaken the S&P has averaged a -3.5% over the past five years. THAT'S MY POINT! With the exception of a handful of individual stocks there are very few investments that have done this well. And you're levereaged at very low interest rates. Remember you only have to put 25% down.



The offices that have been Goodknighted to family members more than not increase in business, not decrease, actually helping LP returns, not hurting them.



BPD



P.S. I'm glad you'll make your own way.






Sooth,



Thought I'd copy this for you. Wouldn't want to let this post pass by without the opportunity for you to read it.



BPD

May 8, 2005 4:07 pm

If you're comfortable where you are, good for you!  That, however, does not make the drivel about Edward Jones being more moral, ethical, higher paying and/or better than anyone else true.