Need help leaving Jones

I'll need your FA # first....

Where do you plan on going to?

[quote=breaking news]

I plan to leave in 5 months.  I believe this will give me enough time to get everything organized.  I will attempt to move 15-17MM.  I plan to go Indy.  I would appreciate any advice from FAs who left Jones and what you did to prepare and what you wish you would have done.  Thanks.

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#1) Start calling your clients--often!

#2) Discontinue any mailouts bearing the firm's branding (Investment Perspective, etc.)

#3) Distance yourself from the firm.  (I wish we could offer "x investment")

#4) Distance yourself from the firm. ("Mr./Mrs. Client, I no longer use the Edward Jones research as my primary tool for keeping up with the markets, instead I have to use x & y.  This is why...........")

#5) Let your "A' clients know that you are disgruntled with conditions at Jones.  I would not go any further than that.  You do not want to solicit clients to a firm where you are not registrered!

I can assure you that the contract that you signed is heavily weighted in Jones' favor.  Even if you have been planning it for years it will seem sudden to most of your clients.  They will want to know "what happened".  If you get a typical replacement in your office he/she will be more than happy to insinuate what happened..  Do your best to insulate yourself against that!

good stuff from spam.

If you have a good track record with the client, expound on it. Go over how you have outperformed the benchmark, and why it was your decision making - your independent thought - that led to the client making X dollars in the last year. Emphasis your analysis, as distanced from EDJ.

good stuff from spam.

If you have a good track record with the client, expound on it. Go over how you have outperformed the benchmark, and why it was your decision making - your independent thought - that led to the client making X dollars in the last year. Emphasis your analysis, as distanced from EDJ.

[/quote]

#1) Start calling your clients--often!

#2) Discontinue any mailouts bearing the firm's branding (Investment Perspective, etc.)

#3) Distance yourself from the firm.  (I wish we could offer "x investment")

#4) Distance yourself from the firm. ("Mr./Mrs. Client, I no longer use the Edward Jones research as my primary tool for keeping up with the markets, instead I have to use x & y.  This is why...........")

#5) Let your "A' clients know that you are disgruntled with conditions at Jones.  I would not go any further than that.  You do not want to solicit clients to a firm where you are not registrered!

I can assure you that the contract that you signed is heavily weighted in Jones' favor.  Even if you have been planning it for years it will seem sudden to most of your clients.  They will want to know "what happened".  If you get a typical replacement in your office he/she will be more than happy to insinuate what happened..  Do your best to insulate yourself against that!

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Very good but I would add:

1. Make sure your "best" clients have your mobile number "just in case anything happens"

2. Consult a good attorney to review your non solicit and define a legal path to what you can and cannot do once you resign

3. Consider using a 3rd party recruiter to help you conduct your search in confidence and find a b/d that is the best fit for your business model and goals

4. Prepare, prepare, prepare for the move and have a plan to execute. Your new affiliating b/d should have a flowchart with a timeline of all the steps you need to take.

Leaving Jones can be a great experience in that you will find out who your committed clients really are. Sometimes they aren't who you think. And, the good news is that you can leave the PITAs behind.

If you are going with only 15mm on the books, you might want to consider doing a WHOLE bunch of reviews over the next couple of months.  That is not a huge amount to start with!

I just can't see the wisdom of anyone leaving until they have at least $30mm AUC.

I would have to agree with Advisor238.  You will probably make 1 percent on assets so you are grossing $150,000 off of current assets.  Your office expenses will run 70 and net around 50 after expenses after 20 in clearing.  RayJay wants $250 gross to get your own branch.  Look at hooking up with another independent branch and work out a deal with them.  Otherwise, get your assets and production up to a decent level before you move.

IndyEDJ

Go RIA.  Then you don't have to worry about RJ or any of that other crap.

Thanks for the advise.  Wondering is it typical to have more or less the first year indy than your previous trailing 12 at Jones?

 $150,000 in annual gross is plenty, if you're careful about the firm you're looking at.

It would help if you knew exactly where the assets were, and whether they can transfer in-kind to your prospective new firm.  That's not a problem if they're leading mutual fund companies, but more difficult if they're stuck in proprietary offerings at Jones, assuming there are any.

You need to be careful not to say or do anything that is overtly clear to your clients that you're moving, and that you want them to come with you, until you actually pull the trigger.  Not a single word.  But that still leaves you with a lot that you can do.

Good luck.

You might want to wait, though.  15mm is tough, especially if you are getting a payout to move and have requirements you need to hit.  I agree...30mm is about the minimum I would consider.

 $150,000 in annual gross is plenty, if you’re careful about the firm you’re looking at.

It would help if you knew exactly where the assets were, and whether they can transfer in-kind to your prospective new firm.  That’s not a problem if they’re leading mutual fund companies, but more difficult if they’re stuck in proprietary offerings at Jones, assuming there are any.

You need to be careful not to say or do anything that is overtly clear to your clients that you’re moving, and that you want them to come with you, until you actually pull the trigger.  Not a single word.  But that still leaves you with a lot that you can do.

Good luck.

There are no proprietary products at Jones, at all. Unless you include American Funds…

I would really prepare for the paperwork and ACAT's etc... Get familiar with transfer paperwork and policies from mutual funds, ins co's etc. Whether they will take a fax, scanned documents etc.. Make up sample copies of the paperwork and keep it organized. When you leave you'll be going 100mph with phone calls, meetings etc and it is nice to have all of the paperwork primed and ready to go for when you leave. It's just one more thing off your plate. In addition it doesn't raise any red flags

The longer you "plan" the easier it is to betray yourself, be careful... The advice you're getting here is solid. At AUM of only 15-17m, you'd be best off going independent, but you'll need to find some sort of partnership arrangement. That shouldn't be too hard. Whether you are joining a team, or there to share expenses, you should have plenty of opportunities.

Avoid legal trouble! Don't do anything STUPID, or anything that is even in the grey area, as it could backfire upon you. I've been embroiled with Arbitration since going indy back in 2009. Not fun at all, though apparently we were going to be pursued regardless.

Jones is exactly the kind of place that would prepare you well for being independent, so that helps you.

I'd suggest you take some of this good advice you're getting, and get on it quickly, and as soon as you find a really good match, get out of Dodge.

It's time to narrow down where you're going to go.  You're new firm should have a good team in place that will help you through that process.  If they don't... they're not the right broker dealer for you.  Transition is key and losing 15-20% of your clients or more with the wrong transition team won't help you regardless of any offer. 

Jones is a great broker dealer, especially in your first 5 years with them.  Don't let upfront checks and a higher payout move you two steps back. 

[quote=B24][quote=Bodysurf]

[/quote] There are no proprietary products at Jones, at all. Unless you include American Funds.... :)[/quote]

Advisory Solutions is Proprietory!

The platform is, the investments are not.  There aren't EDJ branded investments.  Nothing proprietary about Advisory other than the process. 

[quote=down the road]

[quote=B24][quote=Bodysurf]

[/quote] There are no proprietary products at Jones, at all. Unless you include American Funds.... :)[/quote]

Advisory Solutions is Proprietory!

[/quote]

Every wrap program in the industry is proprietary.  But that's like saying IRA's are proprietary.  It's just the vehicle that contains non-proprietary investments.

Go to www.cantella.com and request the book Going Independent.  There is a load of advice in it that I found to be very helpful about costs, legal issues, things you might not have considered, and picking a broker/dealer.

i am with avalon partners, i signed on about a year ago, great people, they have no in house products , leave me alone to recommend what is best for my clients , no quotas. most important, mangement is very responsive, i dont have to wait weeks to get something approved

good luck to you

All the advise I got on here was priceless.  I did pick a good broker/dealer and worked out a sweet deal with a partner to share expenses.  Transferred 60% of the assets I wanted within two weeks due to good prep work.  Assets still coming in at a pretty good clip.  Already added 700K in new advisory business.  I'm shocked at how much my paycheck has gone up on the commision business.  I'm also shocked at the number of clients that came with me that told me they were glad I had made the change.  Most of these had been with Jones for years before me.  Jones Advisors-  Educate yourselves.   The best part is I feel like my relationship with all my clients has improved 10x.  They are all now vested.  I shared my vision with them and the need for their help in buiding a business together and they have bought in bigtime.  I'm getting referrals literally about every other day now.  I was getting about 4-5 year from them when I was at Jones.  Lovin Life!

BN, congrats, and thanks for following up. It's nice when a person comes back, so you see the other side of the equation. If you could do anything over, what might that be?

I left without an assistant so I had to do all the paperwork.  It slowed me down after the first 50 transfers or so because I started to have to mess with all the little details associated with those client accounts.  Getting my book back was great but it also meant I had to do the job of two.  I've been working 60-80 hour weeks.  It's my business though.  I own it.  I should have worked harder prior to leaving... I wish I had built about 10mm more of book before I left but the timing was right.  From day one at Jones I should have opened all one fund family accounts at the fund company.  It didn't make much of a difference on my P&L but it sure did on all those transfer out fees I ate.  I should have built stronger relationships with my newer clients (within the trailing 12 months).  Those larger accounts didn't come but didn't stay with Jones either. Leaving came down to simple math... I made a little less than 40% at Jones and I'm making a little less than 70% now.  If Jones is going to require vets to make $264K trailing 12 less P&L credits to keep their jobs at about the 7 year mark why would I stay?  264,000 x .40 = $105,600.  264,000 x .70 =$184,800.  A difference of $79,200 and I don't have to try to keep my job.  Their high yielding LP bond can't match that.  The tax breaks are going to be nice too.  1099 = dollar for dollar deductions while W2 = 2% plus I now have a SEP.  Jones told me when they hired me I would be a business owner.  Really?

Heads up on a few other things you haven't hit yet. IRA fees, license renewal and ce costs, B/O taxes. Breaking news, the silver lining in all that admin you did, was that now you really know the stuff. Get involved in networking if you are not already, it takes a few years for it to pay off, so the sooner the better.

Breaking News and others,

I am in a similar situtation, or pondering your situation, that is maybe leaving Jones. How did you handle the no compete issue? I talked with an indy recruiter who said that Jones is known as the most likely to sue or at least send threatening letters. Any thoughts?

Jones lawyers sent a letter a week after I left reminding me of my agreement and even sending me a copy.  I filed it.  That was the only contact.  As far as competing I put a good size ad in the paper letting people know my new biz and location.  Jones also sent all the clients a letter with my information.   That was nice.  The new broker has really been the one to drive the business my way though.  He has scared the older clients by being too aggresive...calling too often, offering investments on first calls, telling them I left for different reasons than I did and bad mouthing my current setup.  I'm not really worried about losing all those Jones clients.  I've actually gotten the ones I want.  Those are the ones that I built the best relationships with and sought me out.  Don't get me wrong though, my clients all had my cell phone number before I left and I did a lot of reviews prior to leaving.  Big hint... you need to meet with your top 20% F2F within two weeks of leaving.  The success rate of the ones that I saw F2F just prior to leaving was a lot higher than the ones I hadn't.  I told them if they ever need anything please call my cell phone first.  This was the first time I had ever made it a point to tell them to reach me by cell.  I believe it made the difference.  One more thing, don't mail anything because you don't want anything in writting.

Did you call the ones you wanted to keep or just waited for them to call you? I know you can't "solicit" but did you at least call to follow up on the letter to say hi, just wanted to let you know where I am kind of thing? What B/D did you go to? Was your cell phone number on your card prior to you leaving? I guess I could write it on my card, as it isn't on there...

Have you guys ever considered hiring someone to help you with your transition

My company specializes in on-site transition support. We have done thousands of transitions during the past 7 years for the major firms. 

We do all the work for you those first few weeks. We open accounts, fill out paperwork, ACAT's/Annuity ppwk, etc

Contact for more info

Lowenstein, I left in August to go Indy, Breaking News is spot on. I recieved the copy of my contract with no further communication. Everyone I met with in the last few weeks moved, and called me on my cell.

Maybe a dumb question, but what in the heck did you talk about in the meeting right before you left? And then when you got back in touch did they ask what in the world was going on? What percentage of assets did you bring over? Did you call any of them or solely rely on them to get in touch?

Calling to say "hi" would be soliciting. I did what my clients pay me to do.  I reviewed their accounts with them and gave them a heads up about things that we would need to do in the future before interest rates rise.  I finished by telling them if they ever have any financial decisions to make to please call me and here is my cell number.  Basically, I took care of them as long as I had them and then left it up to them.

Did they think it odd when they got the notice? I assume you didn't say anything during the last meeting, right? I was under the impression that just calling to let them know where you were was not soliciting, but I guess that piece of advice is off...

I would suggest not doing anything you couldn't defend.