Pend/32 FSPEND/12

There! Feel better now?

ahhhhhhh…that’s better…thanks

Wow, that’s funny. Let’s see if we can organize a PM Promo…We’ve got some pretty nice Jones picture frames we can give out as prizes.

Seriously though, man, I really miss Summer Regionals. I miss getting together with my fellow IR's , learning about new products like... uh, well, getting together anyway.

And I miss those Elmer Fudd cartoons they used play at the beginning of the Regional Meeting. Oh wait, those were Doug Hill videos. Hey, is it just me or does he sound like Elmer Fudd to you?

"People, we have pwoblem. We must gwow. If we don't gwow, we die. Gwowf. Gwowf. Gwowf. That must be ouw mantwa."

I couldn't help but to find humor in everyone of those posts.  In the first post I ever made, I mentioned I was actually split down the middle w/ Jones, and when it comes to the things mentioned previously, well, I agree.  Never hated it like all of you, but your all right about everything listed above.  Was it all that bad though???  Few FSPENDS?? Hell, you didn't have to go to PM Promo's.  I had buddies @ the Reg Metting's, we just clowned on everyone that drank the kool aid.  You can still make it as a Jones IR and not drink the aid, but I bet there are a few of you that will clown on this post, so feel free and fire away.  Don't think you scared me off, I will be out of town @ weddings all weekend, but I will be ready for all the kind words when I return. 

Have a nice weekend fellas, look forward to chatting again next week.

"Yes, MR IR, I know you just asked a perfectly simple question, but I am going to need you to go ahead and send a wire to #__  and we will get back to you in about a week" 

I don't miss that s*$t

"And I miss those Elmer Fudd cartoons they used play at the beginning of the Regional Meeting. Oh wait, those were Doug Hill videos. Hey, is it just me or does he sound like Elmer Fudd to you?"

I personally think the biggest cartoon character of the GPs was Fes Shaughnessey (SP?).  What a goofy dude he is! 

Yeah...he was a little weird looking. Big drippy earlobes and weird nose. But what about Alan Skrainka? With that big egg head?

Seriously, had a client who had HUGE crush on Alan Skrainka and was two steps away from being a stalker!

Been with JOnes 7 years and love it.  Do I love ALL parts?  No.  Never have, never will.  BUT, last year I grossed $517,000 which netted me about $196,460.  I also got $42,000 in bonuses and 10,730 in profit sharing.  So, $249,190/$517,000, I had a 48% payout on cash items.  I didnt figure in things like trips because you clowns some how dont value them at all.  I agree you can go on your own trip with your family.  Remember, you will  NEVER spend $600-$1,000/ night on a plush hotel.  Dont say you will.  So, I will take a 48% payout and deal with email restrictions, field supervision and A-share annuities.  No problem.  I dont care how much Weddle makes.  Thats like working and BAC and worrying that their CEO made a gazillion dollars.  who cares.  SO, you are your 90% payout is fiine, but at the end of the day, you get to keep what 60%.  I’m not leaving for an extra 12% payout.  Yep, leave it on the table.  I was actually thinking about all this as I was laying in the infinity pool in Italy. 

I miss the sexual harrassment and inclusion videos myself...

Success--back out your office overhead which comes out of your net...and I assume your assuming 1% of net from Jones advertising?  And, that's in an extremely high bonus bracket enviornment.

Also, you are losing tax deductions as well being an employee.  Your first 2% off your AGI doesn't count. 

Trailing 12, I grossed about 730k netted about 590k and had about 120k of office overhead (did alot of advertising --but cutting back so I should be lower on overhead going forward) which brings me to 470k net.  Thats about a 65% net/net.  I also get mega tax benefits and own my own business.  I put 60k into a safeharbor plan last year for the wife and I (yes, she is listed as an employee).  17% better net/net than Jones--NOT counting overhead at Jones?  So, the real difference is closer to 20% on payout.  On 700k of gross--that's 140k more I take home than I would have at Jones.  My trails and fee business will generate over 300k gross this year and probably get close to 400k next year.

Almost 12k per month difference and your still like a hamster on a wheel generating trade after trade to get paid.  nothing wrong with that.  I congratulate you on your achievements.  But, you don''t have it near as good as you think you do.

(ps also got 1000 free stock options--presplit from RJ last year)

Success-

How big an office did you inherit? Very few have done it from scratch to the numbers you describe. What is the rest of the story? Cmon tell us.

More have built offices from scratch than you think…

Success

You are the "ultimate employee" for Jones. You will always be an employee...yes you do make some money but what are you going to do at the end of the road? Give it all away to some GP's punk nephew. Get the hell out of there while you still can and become an owner, the rewards are bigger on the indy side. Oh and BTW did I mention there is email on the indy side.

Run baby Run!!!!!!!

Hey Success-

48% is reduced by at least 3-4% for expenses not covered by Jones. Zacko is right on again. My point regarding the 512K in 7 years. Firm average is .70 so assets would be around 74M, an average of 10.5M per year. That would be quite a story. Maybe some of have seen that, in my region I can't think of anyone.

I built my office from scratch and my numbers are in the range mentioned, but about 5% lower. The difference is, I’m out under 5 years. I actually like the trips a lot…honest.

In 5 years I was over 500k also.  I got about a 1% turn on my assets until I got to 50-60 million.  Now, it's abut .70 or maybe even a little less.  If I ran a Jones style business--I would have been able to do a million last year.  But, when your putting new $$ in wrap accounts, it slows you way down on the production.  I'm not complaining as it's all part of my long term business plan.

I liked the trips too for a bout 5-6 years.  After that, wife and I always did our own thing and blew off the Jones dinners.  Took cash on alot of them too in favor of going on my own vacation.

The RJ indy trips (gotta do 700k to go) are nicer and more lavish--but the Jones trips weren't that bad.  I did some stuff I wouldn't have ever done.  RJ's 1099 on my nevis trip last year was 8k so I gotta pay taxes too. 

What will Jones reaction be once revenue sharing is gone as we know it

today?

The Truth: What will Jones reaction be once revenue sharing is gone as we know it today?

--------------------------------------------- 

Correct me if I'm wrong, but the primary problem with revenue sharing is the fact that it wasn't disclosed to the client. The practice is not illegal per se, unlike it's nondisclosure. So, I don't think it will be eliminated.

However, if it was eliminated, who do you think would bear the brunt of the loss of a major source of revenue? You score 100 points if you said, "The broker's payout".

zacko has some good points concerning taxes.  you are also right that i am limited on my retirement savings (401k).  Dont get me wrong, i think independent absolutely has its benefits.  however, if there were no downside, no one would work for anyone else.

I started from scratch.  I received 0 accounts from anyone.  no family money either.  i worked 70 hrs week the first year and opened 395 accts.  a wife and 2 kids later, i work about 30 and having fun.

Success,

Some people just don't want to have their own businesses.  They would rather not have the additional responsibility and liability.  I spend about 2-3 hours per month doing payroll, paying bills...etc.  As an indy, you pay your also pay your own E&O.  I also think most brokers who know about indy--who don't go are afraid.  They are scared they might be wrong in leaving their current firm...after all if it sounds too good to be true, it probably is.

At Jones--it's sort of like your half way there already.  In fact, to most clients--the perception of being indy or being at Jones is the same.  They see you as being in a one man office.  Of course, I could hire brokers now if I wanted and get an override.  I've chosen not to for now.