[quote=Gone Indy]

Speaking of great Jones technology, here is the command (on the black screen) to get a list of your states muni bonds:

"inv,mbd,iob=y,st=ca"  (reminds me of the old DOS language I learned in college)

and then, if you are lucky, you will have a choice of 3 to 5 muni's from your state which are all at least 30 years in maturity.  Remember, at Jones the only bonds to choose from are the bonds that they have in their inventory (and then the client gets raped on the mark-up!

Munytalks,

    You stated "LPL = 16.2 Mil  x 1.0% Fee = $162,000 per year. MINUS 10% to LPL= $ 145,800 net to Broker. (assume he works from home, like YOU did when you first started at Jones)"

    90% net?  I must assume that you are breaking the law and not paying FICA at 12.6% (all out of your pocket) up to 90k.  What about ticket charges.  How about postage?  You must illegally not be mailing confirmations or perspectuses to clients.  No assistant, your business must be booming.  How about health insurance, decided to chance it?  No phone bill?  How do you grow your business.  No marketing expenses?  At 24 million I brought that in in the last year and a half.  Working from home?  I bet clients really respect your business.  No contact management system?  How do you keep track of your clients?  What about Insurance?  Decided to chance it if your clients file a suit?

    You better start growing your business to make the independent move more profitable.

Rank: What does your jones insurance cost you? 

Rankstks,

If you weren't so blind to the reality of the industry you might actually take a step back and look into the real numbers.  LPL just had a Moss Adams study completed, you ought to call them and have them send it to you - it'll shed some light on how well producers at LPL do compared to the cookie cutter shop you were FOR. 

Secondly, LPL provides these numbers to Reg. Rep and they (LPL) determine the number this way.  All licensed individuals are included.  That means, licensed assistants, licensed paraplanners, CPAs, etc... which dilutes the number.  When you actually look at the producing reps the numbers are far larger.  The average production of producing reps tends to fall in the $350k range. 

Finally, even if we all accepted the $168k number - I would love to compare that to your $41m aum number at jones considering the fact that the jones advisor has that spread across 1000+ households v the 150-200 households the LPL advisor would have.  Hmmm, what book would I rarely work with.

Do some investigation in to the industry and not just your little realm of "pyramid scheme" cookie cutter shop you are in now, you'll see there are far greater ways of doing business than your current situation.

[quote=csmelnix]

Rankstks,

If you weren't so blind to the reality of the industry you might actually take a step back and look into the real numbers.  LPL just had a Moss Adams study completed, you ought to call them and have them send it to you - it'll shed some light on how well producers at LPL do compared to the cookie cutter shop you were FOR. 

I mean "work FOR"

Secondly, LPL provides these numbers to Reg. Rep and they (LPL) determine the number this way.  All licensed individuals are included.  That means, licensed assistants, licensed paraplanners, CPAs, etc... which dilutes the number.  When you actually look at the producing reps the numbers are far larger.  The average production of producing reps tends to fall in the $350k range. 

Finally, even if we all accepted the $168k number - I would love to compare that to your $41m aum number at jones considering the fact that the jones advisor has that spread across 1000+ households v the 150-200 households the LPL advisor would have.  Hmmm, what book would I rarely work with.

I mean "rather work with"

Do some investigation in to the industry and not just your little realm of "pyramid scheme" cookie cutter shop you are in now, you'll see there are far greater ways of doing business than your current situation.

[quote=rankstocks]

Munytalks,

    You stated "LPL = 16.2 Mil  x 1.0% Fee = $162,000 per year. MINUS 10% to LPL= $ 145,800 net to Broker. (assume he works from home, like YOU did when you first started at Jones)"

    90% net?  I must assume that you are breaking the law and not paying FICA at 12.6% (all out of your pocket) up to 90k.

That's the beauty of incorporating.  Of my six figure net, I'm paying FICA and medicare on less than $40,000.  Ask your tax advisor about that one...it's all legal, rookie.

What about ticket charges.  How about postage?  You must illegally not be mailing confirmations or perspectuses to clients.  No assistant, your business must be booming.

 You don't have ticket charges?!!!  No postage costs?!!!  I do have an assistant, and yes, my business is producing as much as we can handle.

How about health insurance, decided to chance it?  No phone bill?  How do you grow your business.  No marketing expenses?

I have health insurance...probably cheaper and better than yours.

At 24 million I brought that in in the last year and a half.

Gee...it only took me 10 months to get there...and who knows how inflated your number is...I know mine is real.

Working from home?  I don't I bet clients really respect your business.  They do No contact management system?  I use Act! 6.0...it does a great job and syncs with my PDA.  How do you keep track of your clients?  See above What about Insurance?  I have E&O...costs about $150/month.  I understand that Jones doesn't offer any such protection...Decided to chance it if your clients file a suit? No, but apparently you have since you're working for Ed.

    You better start growing your business to make the independent move more profitable.  It's already six-figure profitable, with about 60% of that recurring, so I'd be satisfied with just a little growth going foward.  I sure don't start at zero every month.

[/quote]

I wouldn't have responded, but since you've got my AUM mixed up with muny's post, I thought I'd address your comments since who knows who you were trying to tak a shot at.  You've got a lot to learn, and you're not going to learn it listening to the propaganda you're obviously getting from your employer.  You and Guest1 (Holder?!!) should go have a group hug...

[quote=rankstocks]

Munytalks,

    You stated "LPL = 16.2 Mil  x 1.0% Fee = $162,000 per year. MINUS 10% to LPL= $ 145,800 net to Broker. (assume he works from home, like YOU did when you first started at Jones)"

    90% net?  I must assume that you are breaking the law and not paying FICA at 12.6% (all out of your pocket) up to 90k.  What about ticket charges.  How about postage?  You must illegally not be mailing confirmations or perspectuses to clients.  No assistant, your business must be booming.  How about health insurance, decided to chance it?  No phone bill?  How do you grow your business.  No marketing expenses?  At 24 million I brought that in in the last year and a half.  Working from home?  I bet clients really respect your business.  No contact management system?  How do you keep track of your clients?  What about Insurance?  Decided to chance it if your clients file a suit?

    You better start growing your business to make the independent move more profitable.

[/quote]

RANK! Put down that UZI and back slowly away from your computer!

Geez Oh Pete, I did not mean to push all your buttons. Calm down, you probably have viens popping out of your forehead right now.

You said you have to ASSUME I am "breaking the law"? Why?

Let's be honest, Okay? When you come in, don't you sit down and enter  COMM on your screen to see what your month to date Commission is? Doesn't it read like this:

Gross Commission $XXXXX         Net Comm $ 40%

Trails  $XXXXX                          Net Trails  $ 40%

Total Gross Commission $XXXX   Total  NET COMM $ 40%

I was using the JONES deffinition of NET , not what the REAL world uses. I thought if I explained in terms you are used to seeing, you would get it.

STAY WITH ME  RANK- Now, a couple of days before payday, don't you then enter  CALLPATHID  to find out what Jones has taken out of your  "NET" in order to see what the basis for your monthly GROSS number will be?

Included in there will be Postage, Fedex, BOA overtime and/or bonus,printing, supplies and don't forget the biggie- Mandatory Business Expense plan reduction. Hey man, you don't even get to pick that number, it's assigned to you.

I didn't go through all the expenses because I didn't think that is what you were saying in your initial post.

Bottom Line is this: I looked at my Total Gross Number one day and said "If I can do that at Jones, why can't I do that Independant?"

I'm sorry you don't have the confidence in your abilities as a Financial Professional to step out on your own. It isn't for everybody. And not all Indy's WERE superstars in their previous positions- people go Indy for a variety of reasons. Having failed, as you always put it, in a previous position is NOT one of them. Going INDY is a HUGE step.

Furthermore, most Jones brokers do not come from other firms. In fact, an overwhelming number of them came to Jones because their previous careers had tapped out. Case in point, my former Regional Leader who was unemployed and in rehab when he applied at Jones. He is now a General Partner. God bless the NASD for making the U4's public knowledge.

Now, think about what I have said before you blast away. If I were still at Jones, it is very likely you would be asking me for ideas so that you could get your production up to my level.

Have a nice day.

Muny - 1

Rank - Nuthin

Thanks for playin

To answere revealers questions: $259/month health premium for my wife and I, add another $300 cash for my HSA. 

My office expenses for 1/2 postage, phone, etc averages about $350/month.  My payout is around 38% on average before office expenses.  With expenses, it averages around 36% net net.

Jones then adds 3-5% profit sharing annually, LP has averaged over 20%/year, Bonuses have been good, and a couple free trips a year is nice.

A recent registered rep article showed the TRUE cost of being independent.  At 400k gross, the average producer NET's 41.6%.  If you have a problem with this number, take it up with Registered Rep.  All I know is that I NET around 45% with all the compensations Jones provides.

Why would one assume that a guy that injects the kool-aid like rankstocks started out of his house.  He is probably Holder’s love child and as such was set up with a fat goodknight or an existing office.  I’m sure you are netting 45% after all the bs expenses you pay at Jones…NOT!

I can hear the GP’s now.  “We didn’t look to good on last years comp comparison.  We should increase the value of those trips IR’s win.  It makes us look better and doesn’t cost a penny.  Only person it scews is dumbass IR at tax time.”  45% my A$$

[quote=rankstocks]A recent registered rep article showed the TRUE cost of being independent.  At 400k gross, the average producer NET's 41.6%.  If you have a problem with this number, take it up with Registered Rep.[/quote]

OK, I AM taking it up with Registered Rep.  Someone (broker editor?)please post a link to this article, as I think that number is complete crap.  I'd like to see how it is arrived at since I don't gross near that number yet, and my net is considerably higher than 41.6%.  If/when the article is posted, I'll be happy to shoot holes in it if indeed, it says that the average 400K producer only nets 41.6%.  That number sounds like it came straight out of St. Louis.

I love how the Jones guys always count the LP as part of their compensation.  Last time I checked they have to BUY the LP, it is not given to them.  So if you receive 20K in LP it costs you 20K.  As an independent I could take the same 20K from my account and buy a  solid investment.  Now, I know the drones will all tell me how great the returns of the partnership have been.  But I can (and do) invest in very good funds that not only have similar returns but also are far better diversified.

I remember sitting at one of the Jones trips and listening to one of the drones brag about how he has $250,000 in LP.  All I could think about was why in the world would you want 250K invested in one company?

That's the beauty of incorporating.  Of my six figure net, I'm paying FICA and medicare on less than $40,000.  Ask your tax advisor about that one...it's all legal, rookie.

I think I heard about this I1.  Love for you to post more details or PM me.  S-Corp that pays dividends is what I heard??

[quote=rankstocks]

To answere revealers questions: $259/month health premium for my wife and I, add another $300 cash for my HSA. 

My office expenses for 1/2 postage, phone, etc averages about $350/month.  My payout is around 38% on average before office expenses.  With expenses, it averages around 36% net net.

Jones then adds 3-5% profit sharing annually, LP has averaged over 20%/year, Bonuses have been good, and a couple free trips a year is nice.

A recent registered rep article showed the TRUE cost of being independent.  At 400k gross, the average producer NET's 41.6%.  If you have a problem with this number, take it up with Registered Rep.  All I know is that I NET around 45% with all the compensations Jones provides.

[quote=rankstocks]

Munytalks,

    You stated "LPL = 16.2 Mil  x 1.0% Fee = $162,000 per year. MINUS 10% to LPL= $ 145,800 net to Broker. (assume he works from home, like YOU did when you first started at Jones)"

    90% net?  I must assume that you are breaking the law and not paying FICA at 12.6% (all out of your pocket) up to 90k.  What about ticket charges.  How about postage?  You must illegally not be mailing confirmations or perspectuses to clients.  No assistant, your business must be booming.  How about health insurance, decided to chance it?  No phone bill?  How do you grow your business.  No marketing expenses?  At 24 million I brought that in in the last year and a half.  Working from home?  I bet clients really respect your business.  No contact management system?  How do you keep track of your clients?  What about Insurance?  Decided to chance it if your clients file a suit?

    You better start growing your business to make the independent move more profitable.

[/quote]

RANKSTOCKS-

I am still waiting for an answer to my post directed at you. Since you assume twice in your post that I am operating illegally, I think you owe me the courtesy of an answer.

Isn't it true that Edward Jones terms your monthly commission BEFORE deductions as 'NET'?  Does that mean they are operating illegally? Are they lacking in full disclosure?  

How can you expect people to have repsect for you when you blast out character attacks, then don't respond when you are asked a simple question?

[quote=Ready2Jump]That’s the beauty of incorporating.  Of my six figure net, I’m paying FICA and medicare on less than $40,000.  Ask your tax advisor about that one…it’s all legal, rookie.

I think I heard about this I1.  Love for you to post more details or PM me.  S-Corp that pays dividends is what I heard??[/quote]

Set up an S-Corp and pay yourself a reasonable salary.  The salary is treated as W-2 earnings.  Dividends paid out beyond that are not taxable.  The net earnings beyond your W-2 wages are taxable whether withdrawn or not.  HOWEVER, the earnings in excess of your salary are income taxable but not social security taxable.

[quote=Indyone][quote=Ready2Jump]That’s the beauty of incorporating.  Of my six figure net, I’m paying FICA and medicare on less than $40,000.  Ask your tax advisor about that one…it’s all legal, rookie.

I think I heard about this I1.  Love for you to post more details or PM me.  S-Corp that pays dividends is what I heard??[/quote]

Set up an S-Corp and pay yourself a reasonable salary.  The salary is treated as W-2 earnings.  Dividends paid out beyond that are not taxable.  The net earnings beyond your W-2 wages are taxable whether withdrawn or not.  HOWEVER, the earnings in excess of your salary are income taxable but not social security taxable.

Oh, and for Rank…my wife works out of home and she takes money to the “bank”. According to you, 2 of the 5 places…

[quote=Revealer][quote=Indyone][quote=Ready2Jump]That’s the beauty of incorporating.  Of my six figure net, I’m paying FICA and medicare on less than $40,000.  Ask your tax advisor about that one…it’s all legal, rookie.

I think I heard about this I1.  Love for you to post more details or PM me.  S-Corp that pays dividends is what I heard??[/quote]

Set up an S-Corp and pay yourself a reasonable salary.  The salary is treated as W-2 earnings.  Dividends paid out beyond that are not taxable.  The net earnings beyond your W-2 wages are taxable whether withdrawn or not.  HOWEVER, the earnings in excess of your salary are income taxable but not social security taxable.

[/quote] Dividends from S corp ARE taxable, but only at 15%, just like qualifying dividends from stocks. Also,put your wife on payroll so she earns enough $$ to max out 401K (if you are into maxing retirement savings.) I am NOT indy but I have part ownership of a successful family biz. EVERYBODY is on the payroll and we pay small salaries and BIG dividends. My CPA set it all up. Could do same thing with an LPL/RJ type operation (except put EVERYBODY on payroll.)[/quote]

Ummmmm...I'm pretty sure that dividends on S-corps are NOT taxable.  The net income from an S-corp is passed through to the owner(s) and taxed as ordinary income (but not subject to social security taxes).  How much you take as a dividend from an S-Corp is irrelevant for income tax purposes.  The net income is taxed each year regardless of whether or not you take it out in the form of a dividend.  I believe you're thinking of a regular C-Corp where the income is taxed at the corporate level, and then taxed again  when it is removed as a dividend.  That is precisely why most owners (including myself) do an "S" election to avoid taxation at the corporate level.

I'm not here to bust your chops, man...adding family on payroll is a valid income tax deferral strategy, although partially offset by the additional social security taxes incurred.  I just wanted to make sure everyone understands how an S-Corp functions, as opposed to the C-Corp, which I think you're describing.