Technology at EJ
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When I came over to EJ from another firm, which is now gone, we were in the stone age technology-wise. I was just analyzing our new Morningstar platform and realized all I can do is compare funds and get star rankings. Not like I can sort the universe of funds and locate the best performers compared to a relative index or do my own, true due diligence for my clients…!
It strikes me that the goal of the management at this firm may very well be to have 20,000 "thirty someting" reps all happy as heck to drink the kool aid and make 100k per year. And sell lots of banking products to increase fee income for the GPs....! Nuff said. Needed to blow off some steam. Time to hear comments from inside and outside. Thanks!! ((previous post) I have been at EJ for 7 years now, and have rejected the kool aid....as the firm rushes hell bent to grow, less is being done for branches by HQ, and I pay 60% of what I make for diminishing service, some of which I never use. The financial assessment software is difficult to use. I learned the hard way to not waste my time doing stuff for my region. T Then, when you read the firm k-1, you see that, yes, the limited partners are paid first from revenues, but the general partners are allocated $3 for every $1 to the LPs. Hmmm...I have talked to RJ, LPL, and FSC, and received some impressive stuff from Commonwealth. I want to move to a fee based practice, and EJ is finally coming out with a platform based on the AG Edwards program...My estimates are that I would make approx a 60% payout leaving, but need "pay my own expenses" (Jones has always told us they pay for staff, but frankly I have never figured that one out since staff pay is expensed on my P&L!). I have about 60mn under care, and gross about 300. **If y'all were going to start over, and go indy, where would you go and why? Thanks, in advance, for your feedback!!Ahhh…I see light breaking from the dark clouds…LPL was my choice…never looked anyplace else…You can pm me if you want to discuss further…Product choice, great payouts, technology, compliance…Have no idea what RJ or Commonwealth has to offer…
How did you figure you would get a 60% payout with about $300K production? Most of the IBDs you mention would offer payouts in the 90%+ range. Expenses would of course need to be covered still.
He estimates 60% IF he went indy. Its not tied to the $300K in gross he is actually doing nowat EJ. That means he nets $120K (40%), right?
I was at EDJ for three years. I hit location gain and profitability after 7 month of production. Three years in the wife and I had a kid and I went to get health insurance from edj and realized that Jones was not really a pro-family company. I left in 2000 grossing 250K to go to a wire. I learned a great deal in my 7 years at a wire and left last year to go to RJ. I have moved 75% of my assets so far. Anyway, enough about me. I looked at LPL, Common Wealth, First Allied and Finet (Wachovia). I turned down $700k from a couple of wires. I chose RJ. I liked and like my contact with top management. The research is better than what I had at my wire. I almost went to Finet but did not like that they kept the 12b-1’s from wrap accounts. LPL had a better payout but seemed to offer a lot less support than I get from RJ. First Allied didn’t answer my questions. Common had great marketing materials but offered no transition assistance and seemed focused on mutual funds and had no proprietary research. FYI, My wire has not sued me for leaving. EDJ sued me and was bot off by the wire. If you leave EDJ be sure to take your cost basis info with you because they are the only firm I know of that does not send cost basis info to the receiving firm of an ACAT. Hope this helps…
Or when you leave Edward Jones you request cost basis from your old office and make them do the work!
Net 60 after expenses. sorry. Most IBDs calculate a very low salary for your office administrator.
Is this a statement for or against his assertion? Please explain further.Net 60 after expenses. sorry. Most IBDs calculate a very low salary for your office administrator.
Just got my total annual compensation booklet from Jones. 58% total payout. not bad. Factor in postage, phone, and misc. out of pocket, and I’m still 55%. How can you be at 40% if you are grossing over 300k? I don’t really understand. With the 5%+ profit sharing, quarterly bonuses, LP payout, and winning the trips, how can you be that low?
also call Ameritas in Lincoln NE. I know several reps woth them that are happy. Woodbury as well, i think they are headquartered in MN.
Nice try Rankstocks, not nuyin it.
Here’s what I really don’t get about the Jone’s people. Since most of their book is MFD’s and they love their trails, they could go indy and make up to 80+% just off the trails. It seems to me that all the other stuff is just irrelevant. Some of those guys pull 10K+ gross off the trails, I would rather see a check for 8+k then 4+k anyday. That would pay for a boatload of computers, office space, assistant, etc…
So my question becomes..."have they never done the math?" Stating that, I really really want them to stay at Jones and stay out of my way.<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
EDJ LPL Assistant salary 2750 2500 Office lease 1400Utilities: Electric 130
Telephone 220 47
Long distance/800# 30 30
Internet access 30 30
Cellular phone 30 30
Branch Office fees
Rep contract fees 125
Bonding fees 10
Branch plan 15
Branch folio 50
Branch plus 50
Quote screen, Yahoo 10
Morningstar 15 15S & P 25
Value Line 20 20
SIPC fee 20
NASD fee 22
Other fees (state fees, NASD Renewal, compliance inspection) 40 68
Insurance: Medical 257 248
E & O 83 150
Office - Hartford 42 42
Advertising 200 250
Postage 100 166
Supplies, Other Office Expenses 50 100
================
TOTAL _____ / Month
______/ Yr[quote=GoneIndy02]
also call Ameritas in Lincoln NE. I know several reps woth them that are happy. Woodbury as well, i think they are headquartered in MN.
Nice try Rankstocks, not nuyin it.
[/quote] I got mine recently too. My bonuses aren't going to be as large as rank's, but I was in the 55% payout range also. I'm not sure I understand why you're not buying it.[quote=new_indy]Here’s what I really don’t get about the Jone’s people. Since most of their book is MFD’s and they love their trails, they could go indy and make up to 80+% just off the trails. It seems to me that all the other stuff is just irrelevant. Some of those guys pull 10K+ gross off the trails, I would rather see a check for 8+k then 4+k anyday. That would pay for a boatload of computers, office space, assistant, etc…
So my question becomes..."have they never done the math?" Stating that, I really really want them to stay at Jones and stay out of my way.[/quote] If you are a vet, you move 80% of the book...8k/mo gross trails=6400/mo cash flow to cover expenses. (Not to mention systematic investments) If that advisor sees the light and realizes the rest of the industry is using advisory fees, all he/she needs to do is bring in 15 million new $, charge 1%, and they are grossing another 150k/yr, netting about 120k/yr profit (10k/net/mo) when they walk in the door instead of 8000/mo. Meanwhile their commission clients are still probably producing around 10k/mo gross on top of trails (8000/mo profit). From that point on the curve gets very steep on the up-side. It really is that simple, and this assumes only 80% moves. I moved 90%. CIBThanks, WestH for the detalied reply!
That info is very useful. One question: can you guys (Indies) really get by with a 30k assistant? Maybe I've been spoiled, but I have a registered assistant, and pay her over 50k. Cost of living here is quite high. I see it this way: any admin tasks a branch administrator does not do have to be done by me or the back office. Frankly, I want to sell and service the investments themselves, not do the related, myriad tasks a good "BOA" does. Another question: how hard did EJ come after you? I just spoke with one of the guard dogs at HQ, and she said they can - and do - still get TROs in Cali. Any and all feed back is greatly appreciated![quote=Effay]Another question: how hard did EJ come after you? I just spoke with one of the guard dogs at HQ, and she said they can - and do - still get TROs in Cali.
Any and all feed back is greatly appreciated![/quote]First and most importantly, be very careful about what questions you ask of anyone at EJ that have ANYTHING to do with brokers leaving. You can very easily send up clear red flags that could lead to more serious problems for you. Tread very carefully here.
If you are seriously considering leaving, hire an attorney experienced in this industry right away. They will explain all the risks, including TROs and what you can and cannot say or do.
Ok people, Here’s the real deal…
Listen to your transition people and you won't have any problem with TRO's in Cali... The Net/Net/Net question is one that always boggles my mind when it comes to Jones versus Indy. Let's say you are in the 55% Net program at Jones...You gross $500k...you get a W-2 with $200,000 on it! Then you file your taxes and your tax guy/girl says, all of your deductions phase out because you bump up against the AMT. You pay uncle Sam $40,000 so now your Net/Net/Net percentage is more like 40%. Indy (I'm at LPL). I grossed $650,000 last year. I paid my assistants, phone, rent, etc. Then I paid payroll taxes, then I contributed to my wife's 401k, my 401k, my profit sharing 25% of payroll, and paid my kids $4000/each so that they could make a roth contribution. I got to deduct my health insurance premiums (Can't do that at Jones). I SAVED/INVESTED $70,000 last year. I can tell you that at Jones I NEVER even dreamed of saving $70,000, I could barely scrape enough together to contribute to my 401k. It's not how much you make it's how much you save....At Jones you can't save enough for the amount of income you are producing...and top of that if you have LP at Jones you get a K-1 that is phantom income that you have to pay more tax on!!!!!