Current or former Jones IR's Only

55, based on the context of your question, I am not sure if you understand what you are asking.  If you are truly asking about Gross as it relates to our industry, then 100K gross is pretty easy.  I THINK you are referring to your W-2 gross.  But correct me if I am wrong.  And sounds like you are asking how much do you need in assets for it to just kick off 100K in net commissions without doing any new business?  You can't really look at it like that, but it is a LOT.  However, you could easily do 100K in net income with a combination of trails, new business, insurance, etc. at about 25-30mm in assets.  But, as you alluded to, it really depends on a lot of things.  Primarily, what type of assets are they?  If you build a book of 30-year bonds, you're screwed.  If you have stocks you are trading, and mutual funds with trails, some managed money, some insurance, it is quite manageable.  Tough question, though.  Incidentally, we just had a guy in my region pull down a 100K gross MONTH.  Still trying to figure that out.  That was a once-in-a-lifetime deal I think.  Probably a big second-to-die policy in there.

If you are trying to figure out how to make a good income, you need to figure out how to GET that business first.  I know you hear a lot of Indies on this channel talking about how easy life is, but keep in mind they all had to work hard to build a book to get where they are now.  Don't let ANYONE, not even Jones (and I work there), tell you how long it will take to make how ever much you want.  Everything changes as you get further into the business.  I know many Jones IR's making a ton more than Indies, and many making a lot less, for various reasons.  But EVERY situation is unique.

Figure out how to build business.  Period.  It will be tough no matter where you work.

Off my soapbox...

Broker 24, thank you very much for answering my question. I was talking about w-2 income. I’m just trying to figure out where I will need to be as far as production goes. I’m wanting to establish some long term and short term goals but I guess I will just have to wait until I know more about how this business works to establish some clear goals.

Just to add a little clarity, I was asking how much assets you would have to accumulate each year to break 100,000 gross in w-2 earnings. If you invest x amount of clients assets this year, you will gross 100,000 in commissions.

Also, say I invest 100,000 for a client in say American Funds ( which fund it doesnt really matter) what would my commission on that be? Whats the formula?

Disclaimer: Im not saying that I would do such a thing.

Obviously, to net $100K, you would need to gross $250K given Jones' 40% payout.  That being said, it's not that easy.  If I understand what you are asking, there are some moving variables.  For instance, will you use Jones insurance?  If so, single person, family plan, etc.? My insurance cost (family plan), phone and postage cost, misc supplies, etc. were about $1250/month out of my net.  You also have the 1% advertising fee Jones takes out of your check. 

As for profitability bonus, with my office rent, I would have to gross way more than $250K/year to even think about getting a bonus. I think I needed to gross over $25K/month to even touch being profitable.

I'm guessing you would need to gross about $300K/year to feel like someone making $100K/yr at a "normal" salaried job.  To do this, I would think having $30M in assets, with a steady flow of new clients, referrals, existing client biz, could possibly generate that. 

When I was at Jones, it seemed like my revenue was always at about .72% of my year-end AUM.  I would assume that's low because I had a chunk of assets in one or two stocks that generated NO revenue.

Good luck.

[quote=Mike84]

Disclaimer: Im not saying that I would do such a thing.

[/quote]

That's funny.

If you invested $100K in American Funds, I assume you would use A shares.  At the $100K breakpoint, you would get a 2.75% payout (American is a little lower than most funds, most funds pay 3% at $100K). So, that would generate $2750 gross to you.  At a 40% payout, you would net $1100.  With American, their trails pay out .25%/yr AFTER the first 13 months (most funds pay immediately).  So, after 13 months, the $100K investment (assuming the client had AT LEAST made up the upfront load) would throw out $20.83/month ($250/yr) in gross trails, or $8.33 net.

So, the A shares give you a nice pop up-front, but the trails will take a while to build up.  At Jones, American pays trails monthly (all preferred funds pay trails monthly). At most firms, American pays trails quarterly.

I have a relative of mine that just made 100k this yr at Jones with 60AUM. What does that tell you. No joke. 

so you only keep 40% of your trails?

55–you really only keep 38%-expenses as part of your total NET NET.

Rook, with 60AUM, and only netting 100K, he is doing something wrong.

Most IR’s I know with that much are doing FAR more than 100K net. My

mentor has 38AUM and does about 127K net, net (he spends nothing on

the office, no advertising, etc.). He is also experienced in insurance, and

does a lot of estate planning work. He rarely takes an account under

100K (unless it is family of client or referral from CPA/attorney). The guy

doesn’t sell over the phone, either. But, that is the difference between

some people’s style (at any firm).



This is precicely why, as you progress thru your career, you have do

develop your own niche and style, and not be selling 30 year bonds after

7 years.

Good evening,  I have a couple of questions about jones.  I was just hired and am most of the way through sfs.  Jones jumps up and down about how good their training is, however I have found it confusing and their support to be marginal at BEST.  Anyone else have that issue or am I on another planet?  I just left military service where I had a highly technical job of which only a few percent of the military is qualified to do.  I'm saying this to support my claim that I am not stupid... or maybe I am...who knows, but still...is it me or is Jones' training really fragmented?

After reading a lot of the posts on this site there are a lot of Jones haters out there, so please if you're a Jones hater please just give me the objective stuff...not the BS.  Secondly, What would you study most when preparing for the 7.  Just curious...because failure is not an option for me.  Anything would be helpful.  Thanks so much.

What branch of service/What job did you have?

I havent started sfs yet so cant help ya there.

I was an Aircrew EWOP/Biglook, US Navy Special Projects/Programs. 

Kris, despite what you read on here, most would agree that they are very

good at training and getting you started. To be honest, if you cannot

pass the 7 with Jones’ training program, you will have a hard time doing it

anywhere. They make it a full-time job, and they have one of the highest

pass rates in the industry. It is the most regimented part of the job, so if

you need MORE direction than this, it might not be the career for you.

And I am not saying that to ridicule you, I am only basing it on what you

have said. One caveat to this - don’t feel bad about not being real good

at the exam stuff - even if you are technically minded. You will not need

to remember most of it to be effective at this job. You will be given the

tools throughout your career. Actually, some of the better performers on

the exam end up being pretty bad at this job.



As far as your second question - the study material prepares you well for

the balance of the exam (how much to study on each topic). However, if

you have been through most of it, go back and focus only on the things

you don’t understand. Don’t waste ANY time on the things you have

down cold.



Good Luck. PM me if you have any specific questions on the exam or

Jones experience.

Thanks Broker24.  I understand what mean about this biz not being for someone that can't pass the test.  I love business.  I love helping people.  I have owned a Real Estate Investment Company and a Car Dealership before I joined the Navy.  The Navy thing only happened because some a'holes flew planes into buildings 5 years ago.  I decided to get into this business when I got out because it was new to me and I absolutely hated the car business.  I still invest in Real Estate, but I want to learn this side of the business world too and help people in the process.  While I am not a pauliana and just want to run through the flowers helping people...I also wanted to make a LOT of money and build a business over time - say 20 or so years.

I moved to San Diego, set my ships on fire, sent them to sea and I have no plan B.  This has to work.  I may take you up on your offer for advice...thanks for your kindness.

What do you need support with?  Anything specifically?

Options…VERY confusing!  Thats a big part of the test too.  I’m not worried I’ll pass if I can get options hammered out.  What was your experience like with the 7?

[quote=kristoffurpol]Options…VERY confusing!  Thats a big part
of the test too.  I’m not worried I’ll pass if I can get options
hammered out.  What was your experience like with the 7?[/quote]



Options, are never suitable for any client.



What else do you need to know?

Learn Options down pat, they are the single biggest part of the test.  You don't have to understand everything about them, just be able to use the formulas they give you.

Then purge them from your brain as you will never use them again.

Oh and the Jones training for the 7 is pretty good.  Just do what they tell you.  Read everything three times.  Take the quizzes and practice tests closed book.  If you can pass the final practice tests, then you can pass the 7.

The Jones training really is very good.  They will give you some mnemonic tools that will help with the options.  I suggest you treat the training as a full time job and spend at least 8 hours a day on studying and test taking.  I don't know if they have a test bank now or not, but you could also purchase a Series 7 study set and test bank CD and do that as well.  Dearborn or Kaplan are a couple of companies that I have used for studying other licenses in the past.

I think they have a trainer assigned to you that you can call and ask questions about the options and margin accounts (study those too) and any other thing that is confusing to you.

As Vagabond says, you will never use options at Jones, but it is good to know about them and be able to discuss the concept.  Makes you look smart

This job is about sales and your past job experiences in that area will be a plus for you.

Good luck.

Have you had your conference call on options yet?  If not, it will really help.  Also, don't be afraid to talk to your study coach for help, that is what they are there for.

As BL and others have said, EDJ does have a great training program as far as passing the 7.  Everything after that is considered "just in time training".  My advice, once you pass the 7 and get into the biz is to read everything you can get your hands on about portfolio planning and pros/cons of each type of investment.

As far as the test goes, options is the most heavily weighted portion of the test.  So study hard, and good luck.

That being said, you'll never use options again at EDJ.

Thanks everyone...!

I never had a call on the Options from Jones.  Most of our conference calls are more overview of what is ahead and admin stuff.

I have taken notes on what ya'll have told me and I will definately read my stuff more times through.  I am confident that I will pass the 7.  I'm just unsure of myself (which is NOT me, and why I'm not centered) because this stuff is all new to me.  My military tarining was new...but at the same time it was a lot different than finance stuff.

Any tricks to remembering Options formulas?  I know the Jones one...anything that helped ya'll?

Thanks again...Kris

It may help to not call them "options" when you read them.

Instead, call them contracts, because that's really all they are. So, there are two types of contracts, a put contract and a call contract. Every contract has a strike price (the price to buy or sell the stock) and an expiration date (the date the contract is void). The person who sells the contract is the person who wrote the contract.

Call Contract - Gives the buyer the right to buy a stock at a certain price (and forces the seller of the contract to sell at that price)

Put Contract - Gives the buyer the right to sell a stock at a certain price (and forces the seller of the contract to buy at that price)

This may not help you at all, but helped me keep things in perspective. They're called "Options" but the only with any options is the buyer.

As mentioned earlier in this board, EDJ reps making nice bring home are

doing a ton of insurance business. Most are in small towns and are able to

compete with the products that ABC insurance co down on main street

offers, not to mention the ability to actually understand what variable

insurance is and what the risks are for clients.



A Shares and Insurance thats what it takes, and lots of it

What about Jones guys focusing on larger fish (100K+) like the other guys?  Is that doable?  My business model calls for doing a lot of seminars and home shows.  From ya'lls experience is that a smart way to go?

Its gonna suck if its not 'cause thats my plan...

K

[quote=valuebroker]As mentioned earlier in this board, EDJ reps making nice bring home are
doing a ton of insurance business. Most are...able to...actually understand what variable insurance is and what the risks are for clients.

A Shares and Insurance thats what it takes, and lots of it

[/quote]

I have a colleague at my firm now that came from Edward Jones. He said the felt like his training was very poor and everybody always told him that selling insurance was where the money was at but nobody ever showed him how. Would it be fair to say that if somebody went to Jones with a great foundational understanding of the different types of insurance and how to sell them, that they would have a deecnt chance of being successful at Jones?

Keep in mind that the payouts on insurance products are different at Jones.  When I came to LPL, I was amazed at the difference in payouts. I'm not talking about net to broker, I'm talking about gross from the insurance company to the broker/dealer.

I know there has been talk in the past on these boards about how Jones has an outside agency to make extra money, so I won't go into that. But, I know that if I sell the same Hartford 20-yr term product that I sold at Jones, my gross is higher (obviously the net is higher too).  Why is that? Do you really think Jones doesn't have as good a deal as LPL? I doubt that. That extra piece of gross commission has to go somewhere...

I was never trying to say that mother jones was not getting their cut, that is

why you obviously went INDY or a damn good reason why anyone does.

However, circling back to what nole was asking is yes I believe that if you

truly understand insurance and how to sell it as well who to market it to,

then; to answer your question, yes you can make that an extremely

profitable part of your business. Whether that is with EDJ or ABC wirehouse

or insert favortie INDY firm here is up to the individual to decide.