Fix yourself some coffee (not decaf) and go back thru the old posts, that should answer your questions. To replace a $150k salary, you'd need to generate over $400,000 in fees and commissions. Very, very tough to do, in a year or two.

At the very least, consider Merrill Lynch, Morgan Stanley, UBS, Smith Barney, etc. They might offer a training salary close to what you're earning, now. I don't believe EDJ will even come close to offering a $150k training salary.

Also, consider that you're giving up a $150k corporate job for a sales job that has, embedded in it, a 70% probability that you will fail in one to two years. 

Think you can beat the odds? What if the odds beat you?

Good luck!

[quote=doberman]

Fix yourself some coffee (not decaf) and go back thru the old posts, that should answer your questions. To replace a $150k salary, you'd need to generate over $400,000 in fees and commissions. Very, very tough to do, in a year or two.

At the very least, consider Merrill Lynch, Morgan Stanley, UBS, Smith Barney, etc. They might offer a training salary close to what you're earning, now. I don't believe EDJ will even come close to offering a $150k training salary.

Also, consider that you're giving up a $150k corporate job for a sales job that has, embedded in it, a 70% probability that you will fail in one to two years. 

Think you can beat the odds? What if the odds beat you?

Good luck!

[/quote]

My old Jones region hired a guy with a similar background to yours.  He is now out about four years and I would estimate that he makes no more than 75k/year.  If you are looking to replace a 150k income be realistic and assume it will take at least 5 years at Jones.

[quote=Gone Indy][quote=doberman]

My old Jones region hired a guy with a similar background to yours.  He is now out about four years and I would estimate that he makes no more than 75k/year.  If you are looking to replace a 150k income be realistic and assume it will take at least 5 years at Jones.

[/quote]

Truer words have never been spoken. It would take 5-6 years to make 6 figures without inheriting some sizeable assets..

Come back after your meeting tomorrow and let us know what you think. If you are still interested you will be able to post more advanced questions.

I used to give these presentations at Jones-why it was so great...that really changed over time to why you should really think twice before you do this.

CIB

Ask the broker that you will be talking to if he figured out how to make 150K per year on his own, and then accomplished that; or, did he take over his Daddy's 20-something year-old book of business?  (BTW, it doesn't sound like your Daddy was in the business, so you won't get the same benefit.) 

You may also want to ask if he has adequate production to make the next "Diversification Trip", yet doesn't have the required four categories.  In other words, will you being hired get him a trip to The Bahamas next winter?  Knowing what I know now, that's exactly what I would ask.  And, I'm not trying to be cynical or a smart ass.

Bottom line, don't do it!

Yes, what they all said above me.

To replace a $150k salary, you'd need to generate over $400,000 in fees and commissions. Very, very tough to do, in a year or two.

To put that into perspective. If you are doing a diversified mix of investments in your practice you will generally have about a 3% average commission on assets invested. Jones doesn't have a wrap program that generates fees yet, at least to my knowledge.  Unless you concentrate on higher paying mutual funds and annuities exclusively, that means you have to invest or move between 13 and 14 million dollars a year.  

Unless you are stepping into (doing a Goodnight program) an office that already has 20 to 30 million dollars, you will find this a very very difficult nut to crack each month.  Even then you can see the turnover (polite way of saying churning) in invested assets will have to be substantial unless you can come up with a million dollars a month of new money.

Don't do it.

It would be a step down in pay scale and a huge step up in lifestyle stress.  Unless you have a burning desire to become a financial advisor and can stand the struggle and loss of income for at least 5 years with no certainty that you will succeed, then keep your current career.

gmoney46

Please listen to the folks that have responded to your post. Keep in mind that the IR will be compensated for getting you hired via Diversification trip points. 150 is alot not that it cant be done but it is highly doubtful

a former member of the "Cult" aka Edward Jones 

I made a $150k in year 3.  That was in the go-go 90's.  I started from scratch.  I would tell you that you will love the trips, love the autonomy.  But you must have an exit plan.  You can not stay at Jones forever and build anything that is yours.  You think it's yours but it's really theirs. 

The health coverage alone will cost you $1000/month for a family of four.

Consider finding a partnership to work in at a wire house like Smith Barney or Merrill if you have plenty of connections and confidence that you could bring in big money to invest. You could be the guy who brings in the money from your connections to the team.  If you don't have strong connections and you haven't been around a long time, despite your last postion, forget the team idea.  

Regarding Jones, I know a guy at Jones who retired from a high earning position like yours.  Ten years later, although he works hard, he still has not replaced his salary.  For what ever reason, it seems to be a labor of love for him.  Best of luck to you.

Gmoney,

Don't believe it at all. It will take 7 to 8 years to build that type of income at Jones. I was there for 5 years, and I never came close. there is a serious brainwashing that goes on. On the flip side, you might be one of the lucky ones to have a niche and be able to roll some huge assetts your way. Dont count on it. They will exploit your optimism! Their program just needs a warm body in an office.  As has been mentioned before, this is a career in sales. I would carefully consider the options. The reality is, if you want to learn to work with huge money clients, you would be better served at Merrill Lynch, Morgan, Smith Barney.... any of the big houses. At Jones, you'll learn to talk to the average man with average assetts. This translates to many, many, many clients and an awful lot of question answering. In other words, you'll have a very busy office. Plus your expectations are very unreasonable at Jones. And you'll certainly go into debt to do it. Are you prepared for that. I mean huge debt, especially if your one of the 90% who don't make it..

In my original group of 14 of the 68 that were hired that week in '98, not a one is left a Jones. They are out of the business, at banks, or have gone independant. The majority are out of the business.

Hope this helps!

[quote=Teleman]

Gmoney,

Don't believe it at all. It will take 7 to 8 years to build that type of income at Jones. I was there for 5 years, and I never came close. there is a serious brainwashing that goes on. On the flip side, you might be one of the lucky ones to have a niche and be able to roll some huge assetts your way. Dont count on it. They will exploit your optimism! Their program just needs a warm body in an office.  As has been mentioned before, this is a career in sales. I would carefully consider the options. The reality is, if you want to learn to work with huge money clients, you would be better served at Merrill Lynch, Morgan, Smith Barney.... any of the big houses. At Jones, you'll learn to talk to the average man with average assetts. This translates to many, many, many clients and an awful lot of question answering. In other words, you'll have a very busy office. Plus your expectations are very unreasonable at Jones. And you'll certainly go into debt to do it. Are you prepared for that. I mean huge debt, especially if your one of the 90% who don't make it..

In my original group of 14 of the 68 that were hired that week in '98, not a one is left a Jones. They are out of the business, at banks, or have gone independant. The majority are out of the business.

Hope this helps!

[/quote]

Wow, sounds like a very crappy job.  Why did you go into so much debt?

A good investment group for clients, and descent plac for brokers but not that good!!! Just DON’T do it unless you are give a book of $50 million or more. Would be a BIG MISTAKE!

Cowboy93 and others have posted that door knocking works very well for the Jones people.  Peanut, is a broker starting from scratch pissing in the wind when he is going door to door?

RecordGuy---again, you are either asking the same question because you don't have what it takes, or you don't understand that you have no clue where people on this board are coming from.  The fact that there are many successful EJ people who DIDN'T build a book primarily from knocking on doors does NOT mean it doesn't work.  It is just a reason for many people to beeeotch about why life isn't fair.  That said, the doorknocking thing is quite difficult; I just haven't seen or heard of any alternatives of an easy way to build relationships without established contacts.

Clearly, peanutbroker didn't have too much success at EJ.  Door knocking works very well only for the Jones people that are confident, smart (or common sense smart), and do more than is asked of them, and therefore usually stumbe into some "luck."  I would wander in to 5 EJ offices and ask these same questions--most IRs would be happy to answer them.  At least then you'll be able to sense the attitude of each individual to accompany their opinion.  But, my sense is this aint for you.

The local guy in my area is a good friend. He was the 6th guy in the office

and is making a nice living now. He said there was no doubt in his mind

that the assets the other indivuduals gathered was huge for his own

development. 3 of the previous 5 made nice livings prior, went to Jones,

survived about 2 years and then left the industy. Since they left the industy

those assets stayed at Jones. Starting at ground zero is very difficult to do

at Jones. Obviously it can be done but make sure you do your homework on

your market. Don’t expect that the clowns at Jones have done the necessary

research to justify a new office in any community.

TheTruth, thanks for the response.  I have spoken to many Jones brokers.  Most of them are very friendly and professional.  However, one thing I noticed when talking with them is that they all stepped into an existing office.  I have not once spoken with a Jones rep nor does anybody I talk with know of any Jones broker who built his business from scratch in the recent future.  Could be that Jones is expanding into areas dominated by banks and brokers.  I don't know. 

Cowboy93, did you establish a new Jones office?  If so, are you still there?  If not, why not?  How much $ did you gather doorknocking and how long did it take?  Thanks so much for sharing your experiences with us. 

Doorknocking does work, but don’t expect to make anywhere close to $150k per year anytime before the 5-8 year range if you start from scratch.   I know plenty that started from scratch 10-20 years into it and have done very well. $50 million plus + Doorknocking prospecting = Great income fast.

Record Guy,

First off, I incured a small amount of debt starting out but I had more than ample reserves to Start from scratch at Jones. Plus, I was a successfull small business owner when i started at Jones and I knew what it took to build a business. Now, that said, I did start from scratch and built, transfered, and knocked on doors until I really didn't need to anymore. It works!! After that, my own book just kept feeding itself.

As I have said before, along about year 3 to 4 I started questioning the amount that I was keeping, the amount the firm kept, the added responsibilities that you were Strongly Encouraged to participate in building the firm, (Namely Hiring other brokers) all for no compensation. They always told me that it was my choice to participate, but I was always reminded that I would not be the first to be considered for partnership offerings if I didn't help in building the firm. I never got partnership nor did I want it for all the strings that were attached.

GMONEY, save your monmey if you do decide to do the Jones thing. I would investigagte the other big firms. And, if you do decide a career in this business, start building your "system of redundancy" from day one!!!

I started from scratch and built it to $50 million in 7 years.  My track record was:

year 1: 72,000

Year 2 92,000

year 3 110,000

year 4  140,000

year 5 170,000

year 6 200,000

year 7 220,000

YEAR 8, I left to go Indy because I was hitting the AMT and Jones requires you to pay a lot (every expense) and you don't get to keep a lot.  I am excited about doing my tax return in 2006 because now I can take advantage of being a business owner.

Jones was a great place for me to start but like I said earlier have an exit plan becaue about year 3 or 4 you start to realize Jones only wants to cater to the new broker or struggling broker.  If you are a producer they just think everything is peachy and you have to volunteer a lot of your time.