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Mar 10, 2008 2:32 pm

Oops! I forgot one thing.

You should go to jones.  Why? Partnership.  Partnership is so grand!!  And such a good deal.   (Tongue firmly planted in cheek.)
Mar 10, 2008 10:39 pm

[quote=Bluetang]

How can you not succeed?  The prospecting requirements are much harder than they sound.  What they cannot and do not accurately convey is the effect of repeated rejection has on your morale.  This causes you to reinvent the wheel (find a new better way to prospect) or find prospect avoidance techniques that still make it seem as if you are working.  This is how most new brokers fail.  Lack of product rarely has anything to do with new brokers failing because the majority of new brokers are selling A shares and annuities which is available anywhere.

[/quote]   Bingo!
Mar 19, 2008 12:51 am

Just so you know, Jones has an SMA platform it is called the MAP Account. The product that they are rolling out in the next (who the hell knows when…) is a mutual fund wrap act with the option of going with ETFs. I have about 10% of book in MAP. 

Mar 22, 2008 12:36 pm

I left in early February after field supervision wouldn’t allow my client out of his American funds and into commodity ETFs like GLD. DBA, OIL or FXY.
They’re not that fond of SDS, QID, etc. either even though a four year old could see we were in a  bear market.

Their one size fits all, cookie cutter, well diversified portfolios work ok in a bull market but are a recipe for disaster with the bear.

Still, one broker summed it up nicely over lunch at the Tempe campus, " I’m not interested in the market, I’m interested in trails. "

If they’re not a cult what is a cult?

Mar 22, 2008 2:57 pm

Wouldn’t let you out of American Funds?  A share?  How long were they in?  And American Funds made it through the last bear just fine and will do the same for this bear.  Just make sure you are in the correct funds.  Back to the original topic, if the client were in a managed account, moving them would not be a problem.

Mar 22, 2008 5:06 pm

If  the client were in a managed account and Edward Jones was running it they would be dead meat in a protracted bear market i.e. 1972 thru 1982.

BTW, in all those classes on sneaky ways of gathering assets and "deepening client relationships " it seems odd Jones never found a moments time to discuss market fundamentals.

Ever wonder why?

They don’t want you to know, could stop the preferred funds kickback machine which makes up , oh,  40% of their  revenue?

Mar 23, 2008 1:23 am
jjsirius:

Still, one broker summed it up nicely over lunch at the Tempe campus, " I’m not interested in the market, I’m interested in trails. "

If they’re not a cult what is a cult?

    I was at a  due dilligence meeting a few weeks ago and was having dinner with a group of guys, when a young FA who had been out of the PASS program for a year or so informed us that the fastest way to get to Seg. 4 was the same way he got to Seg. 3...splitting the ticket between three mutual fund companies. He then went into explaining exactly how much this strategy increased his payout.   He said he justifies this with compliance by explaining to them that he believes in the firm's philosophy of not putting all of his clients' eggs in one basket.   I looked at him incredulously and replied that following his logic, he should be recommending that his clients invest only a portion of their money with Edward Jones and he should then refer them to two other firms to invest the remainder of the money.   He just looked at me with a blank stare.   Creep.
Mar 23, 2008 3:08 am
  splitting the ticket between three mutual fund companies. He then went into explaining exactly how much this strategy increased his payout.   He said he justifies this with compliance by explaining to them that he believes in the firm's philosophy of not putting all of his clients' eggs in one basket.            [/quote]     This is not a surprise.  When I have a prospect that is with EDJ,  before looking at their statement, I tell them they probably have most of their money in MFs, probably split between 3 companies.  Then I tell them they probably own 3-5 individual stocks, well known companies.  Then I tell them they own at least one muni bond that does not mature for a very long time.  Then I ask to see the statement.  I have yet to be off by much.  When asked how I know this information, I explain the EDJ way.  Multiple MF companies to avoid breakpoints under the shroud of diversification.  Blue chip stocks to have something to call you and discuss.  A long bond because they pay so well.  Shock and dismay quickly follow.  And EDJ criticizes every other firm as not doing what is best and cheapest for the client.
Mar 23, 2008 3:20 am

[quote=Bluetang]

  splitting the ticket between three mutual fund companies. He then went into explaining exactly how much this strategy increased his payout.   He said he justifies this with compliance by explaining to them that he believes in the firm's philosophy of not putting all of his clients' eggs in one basket.   [/quote]     This is not a surprise.  When I have a prospect that is with EDJ,  before looking at their statement, I tell them they probably have most of their money in MFs, probably split between 3 companies.  Then I tell them they probably own 3-5 individual stocks, well known companies.  Then I tell them they own at least one muni bond that does not mature for a very long time.  Then I ask to see the statement.  I have yet to be off by much.  When asked how I know this information, I explain the EDJ way.  Multiple MF companies to avoid breakpoints under the shroud of diversification.  Blue chip stocks to have something to call you and discuss.  A long bond because they pay so well.  Shock and dismay quickly follow.  And EDJ criticizes every other firm as not doing what is best and cheapest for the client.[/quote]   That's great.  You could probably even get more detailed by guessing American Funds and Franklin Templeton.   I wonder how it would turn out on a cold call if you tried to predict how their account is set up at EDJ.  I try not to criticize other brokers though.
Mar 23, 2008 3:24 am

Lots of Putnam locally, and of course American Funds.  Don’t wanna get too specific because one of these days I will be wrong and when I am want as little egg on my face as possible.

Mar 23, 2008 12:26 pm

Splitting the ticket three ways is normal at Jones?

I've seen two families used on a regular basis, but never three, up until this incident. 
Mar 23, 2008 12:40 pm

I was a very recent seg 2 grad but LPL took me on because of my numbers.

At the 3 day seg 2 grad session in Tempe I mentioned I might be leaving to someone (?) over lunch.
At the closing ceremony a seg 4  stood up to address  the 150 or so  people  and  got so emotional  (over what  I’ve  yet to  understand  )  that he started babbling and crying.
-Thought I was going to throw up.

I was completely upfront with the area general partner telling him the truth.

" I’m not jones material. "

He still probably doesn’t know what a CDO is.

When the jones tag team phoned for the " mandatory you quit or we fire you " conference call they were aware of that conversation over lunch in Tempe. Once again - stepford brokers.


Mar 23, 2008 1:25 pm

[quote=Borker Boy]

Splitting the ticket three ways is normal at Jones?

I've seen two families used on a regular basis, but never three, up until this incident. [/quote]     Why use two families and miss one breakpoint when you can use three and miss two or more breakpoints. 
Mar 23, 2008 10:29 pm

[quote=Borker Boy]

He said he justifies this with compliance by explaining to them that he believes in the firm's philosophy of not putting all of his clients' eggs in one basket.   I looked at him incredulously and replied that following his logic, he should be recommending that his clients invest only a portion of their money with Edward Jones and he should then refer them to two other firms to invest the remainder of the money.   He just looked at me with a blank stare.   Creep.[/quote]    
Mar 24, 2008 1:11 am

Borker, you are rapidly reaching the point at where your ethics and the culture you are witnessing become mutually exclusive.  I applaud your honesty and courage to say what you think, but if this is the kind of garbage that is sanctioned and encouraged in your region, I doubt you’ll last long with your current firm.

Mar 24, 2008 1:53 am

[quote=GoneIndy02]I would not recommend anyone go to jones.  Jones is VERY cultic.  I cannot emphasize this enough.   It’s difficult to explain this jonesism.  You just have to trust us on this.  Cults have common traits, i.e., everyone else is wrong and only we do it right. 

  Isolation-when jones found out that Lord Abbott invited our region to a mixer with other reps from other B/Ds, we all got FRANTIC phone calls from St Louis telling us that we were not allowed to fraternize with other firms and if we attend we would be "dealt with".  What were they afraid of?  Would we compare business models and find that jones might not be the right fit?   At the time I too was convinced that jones was holier and purer than everyone else.  Didn't take long though to see that this trait of "isolation" is one of the many signs you are in an insecure company.[/quote]   I was told something very similar on my due diligence at American Funds last summer...no Jones reps there either.  My wholesaler told me that AmFunds hosts Jones-only events since Jones management does not want their reps fraternizing with us evil independent and wirehouse brokers .  Interestingly enough, there were plenty of wirehouse and regional firms represented there...the only notable exception I recall was EDJ.  If you think it's for your protection, think again.  My guess is, management is no fan of these forums either...
Mar 24, 2008 1:56 am

[quote=Borker Boy]

Splitting the ticket three ways is normal at Jones?

I've seen two families used on a regular basis, but never three, up until this incident. [/quote]     I should clarify, bigger accounts are split more than smaller accounts.  Point is they are split.  When you put a large cap value fund from multiple fund families in the same portfolio, kinda makes the entire diversification argument dry up.  Two possiblilities exist. 1.  Splitting tickets for payout 2.  Lack of understanding of asset allocation and what diversification actually is.   Again, this is from personal experience in my area with a number of EDJ brokers.  I believe that every firm has good and bad advisors.  I will leave it to others as to determine if this is the result of incompetance or unethical behaviour.
Mar 24, 2008 1:18 pm

That’s funny.  I remember how hard of a time they gave me when I would use x-ray to show people what they actually owned and exactly how non-diversified they really were.  Multiple funds don’t always mean you are diversified, but they never bother to tell the young Jones guys that.