Jones new platform
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Mr. New/New,
You are the exact example of Jones Mediocrity that I was talking about. I said $120k before expenses... Expenses $1000/month health care $1200/month health care $1000/month business expenses/seminar/BOA added pay/advertising, etc $3000/month Taxes $1300/month 401k $2000/mortgage payment for your home $500 left over for food for your family of four for the month... You will not make/save any money at Jones for 6 years...Therefore, your low risk/low reward $10k Net month is MEDIOCRE! Lastly, this is a stat that Spiffy can verify: Less than 25% of all FA's at Jones participate in the firms 401k plan! That's sad! The reason is you don't have any cash flow and therefore can not afford to put the money in even though you know it's the best thing for you.I made a mistake on the second line of my entry…that should read $1000 month state and local income taxes.
[quote=spikedkoolaid]Mr. New/New,
You are the exact example of Jones Mediocrity that I was talking about. I said $120k before expenses... Expenses $1000/month health care $1200/month health care $1000/month business expenses/seminar/BOA added pay/advertising, etc $3000/month Taxes $1300/month 401k $2000/mortgage payment for your home $500 left over for food for your family of four for the month... [/quote]Wow that sure is some fuzzy math you got going there spike. 30% federal tax bracket at $120k/ year? Should be a solid 25%, plus health care and 401K are pre-tax dollars, I come up with $1875 in Fed tax. So now you have $2375 to feed your family of 4.
My breakdown would look like this:
$367/month State tax, no local tax, reduce with pretax dollars for health and 401k
$777/month Health care, I use the Health savings account option
$400/month Biz expense/ advertising
$1980/month fed taxes, 25% tax with pretax dollars for health and 401k
$1300/month 401k
$1400/month mortgage
$3776 to feed family of four and we might catch a movie after Saturday soccer games.
This is why LP is so attractive to the mid-level producer. They come up with 20k after tax dollars, which at a 20% ROR (13% after tax) is returned to you in the form of a monthly income over 7.69 years (do the math). It makes them feel like they have an added monthly income coming in! Meanwhile every three years or so they get to start all over again! LP doesn't become a "gift" until year 9...
Max - you forgot to add in your profitability bonuses. If you’re at $120K net, then you are going to get a bonus. If I cared enough I would do the math and tell you how much it would be. You are also going to fund your business expense account with pre-tax dollars, so take the $400/month biz expense and advertising and move it to pre tax. Should we net out the cost of the taxes on the Diversification trips and add that to the pie? Yes, I know you LPL guys get to go to San Diego if you hit a certain level. Do they tax you on that? Also, you are using the firm’s numbers for the HSA plan. It’s only $360/month. Any contribution to your HSA is up to you. Otherwise your numbers are pretty good.
Don’t forget to add the taxes to the sales contests. Remember the turkeys, spiffy?
OK, the turkey thing kind of bugged me at first, but now it makes me chuckle. The prizes used to be things like gift cards to the Jones catalog or to restaurants. Now they’re things like a signed picture of John Bachman from 1985. Seriously, what am I going to do with that? At least with this one we can choose between two kinds of turkeys, a ham, and a 6" cheesecake.
Wow… penny here, penny there… woopty doo…
Fellas it simply boils down to the fact that they are paying you with your own money. Since you guys like jones math, then maybe you will like my math. Give me 5000 and I will give you back 2000 or if you are a "Big Hitter" you can give me 10000 and I will give you back 5000... you know for that profit sharing, LP and "bonus" ... Any takers??? Well I didn't think so. I guess I will have to work on the flavor of my koolaid a little more.... maybe a little less TRUTH and a little more smoke and mirrors. Your 10 net month is my 22 net month. .... hmmm I can work every other month and make more than the joneser who works every month..... I better keep that to myself... wouldn't want them jumping all at once..... Have a nice dayPeople always comment on my math…I’m excited to detail it for you, but if you are living in California your mortgate is more like $3,000-$5000 month. We didn’t put car payment if you choose to have one. We didn’t put cell phone, half the postage, half the phone bill, day care…
I guess what I'm saying is $10k a month is M.E.D.I.O.C.R.E. I'm not saying you can't make a living but it's not being a business owner...Jones word of the day.....M.E.D.I.O.C.R.E...
Spiffy, Just my suggestion. Take a nice digital of Bachman's photo, put on e-bay...and make 100% on the profit, not 38%. Just another way to "STICK IT TO THE MAN". Also, I appologize for copy and pasting your suggestion wire on this forum.Spiff,
Keep in mind that back in 2002 Jones lost it's number 3 producer in the firm out of Griffin Ga and one monetary reason was Jones was in a zero bonus bracket...Much of the sales force at the time and still today don't qualify for bonuses of any size. This was mentioned in your previous post as a large portion of compensation.Bonus at Jones= The ability to have your hard earned cash slip right through your hands to the waiting arms of the GP.
Example.... Do they still deduct the same cost as the satellite (I recall 1300/mo) for the T1? If you pay $400 as a single subscriber out in the real world, economies of scale would tell you maybe $100 per month (with 10,000 offices) would be in order. Oh wait a minute, could they be showing higher expenses than they really are to make the bones smaller? Nah, that couldn't possibly happen to such a fine organization could it? At Spiff's stage, he doesn't make enough to worry about expense. Only revenue. Bones aren't more than 10% of commissions even at the 50% bracket.Max-
Tell us what is so silly about misinforming the troops of the reality that their bosses are screwing them. (Maybe they should know and don't need to be reminded) I know its the American way. Management always treats their employess like......employees. You either are the man or you take it from the man. Period. The only thing that's silly is your comment.I don’t comment on these hijacked Jones threads, I shared what I knew about the platform and left it at that. Until spike said you would pay 30% fed tax on $120k/year, clearly incorrect math is my weakness. I think you guys are silly for still arguing the same points for the last 2 years, you didn’t like it, you left and no one really gives a shit anymore. I just wish Spiff would give up the fight and let you guys circle jerk amongst yourselves.
I think Blarmstorm said it best when he told bspears…“You just sound like a whiny bitch”.
I’m done.
Mr. Max,
I tried to stay on topic. The interesting thing is the attrition, expenses, attraction to the firm are all related to the EDJ platform. I'm sorry...I don't like to circle jerk or beat a dead horse. I will reiterate...Jones was a great place to start...I'm making $650,000/year now. No way I could've done that at Jones.NO- RUL: this was another hijacked thread by folks who cannot give it up. jones is imperfect as hell, but it’s all about tradeoffs that some people LOVE and some people HATE. as always, it’s the haters you hear from over, and over, and over…LIFE"S TOO SHORT!
Well I never really hear anything that good about Jones other than it is a good place to start, and get the hell out of there as soon as you can. I personally have never worked with them so I have no idea from my own dealings.