[quote=advisor28]

Spiff,

Keep in mind Wachovia is now in your backyard and has the necessary chips to make one more large aquisition...Per Jones future: I will bet that the growth goal for the firm won't sustain over the next 10 years and with the average producer being $250K (generous estimate) there will be a push to go public via aquisition.  Jones will continue to be behind in platform and tools, 2 trips for $215k producers will go away and the metro reps will get tired of not getting a good bonus for the same production the rural reps attain.  Simple interest partnership will not keep up with the new packages of today..   

[/quote]

I won't disagree with you, because my crystal ball doesn't work correctly and neither does yours.  

My thoughts are that Jones will not go public through acquisition.  We might go public like Goldman did, but not through because a bank like WB buys us out.  However, if it happens I don't see it for a long time.  You must have missed all the conversations in the past on this board about the GPs WANTING to keep the average production just above profitability.  If I'm a GP I want as many dollars going into the firm's pockets (and consequently mine) and as little as possible into the FAs.  The way you accomplish that is to have a ton of brokers getting little to no bonus, but enough commission dollars to be profitable.  Keep as much of the 60% at home as you can.  Why would I want to screw that up.

I don't know what the fee based platform is going to be.  Weddle hasn't called to ask my opinion on the matter.  Until it rolls out I'm not going to argue about it.

I don't think Jones is as far behind on the tools and platform process as you believe.  Seems like every other week we have some transfer broker sending in a Suggbox to Weddle thanking him for the way the company runs and the tools we have.  I've never had a one on one conversation with someone from another firm that has pointed out glaring deficiencies in the software we use here.  If you want to be the first, be my guest.  I'd love to hear what you have that is far superior to what we use. 

If the trips go away, I would seriously look at either 1)heading back to a team leader position at the home office or 2) looking at indy world.  Unless I was making so much by that time that it doesn't matter if the firm sends me on vacation or not.  Right now, they are a great bonus.  If they go away I would guess it will be because some regulating body tells us to make them go away, not because Jones GPs want to keep more money in their pocket.  They get to take those trips too.

I'm not going to complain about the simple interest LP.  The worst return it's had since 1979 was 15%.  It hit 57% in '82 and 56% in '86. 20 and 30% were the norm in the 90's.  Guaranteed 7.5% isn't shabby either.  Only downside I see with it is that it isn't always available like company stock.    Oh well,  can't have your cake and eat it too.

Spiff may drink a little of the kool aid, but he speaks the truth and has a pretty balanced view compared to many.

Good post Spiff.

Personally I don’t see EdJones being acquired.  Their one-man office is so unconventional compared to the rest of the industry(and expensive), and as such I can’t see another firm willing to pony up to buy them.

[quote=joedabrkr]Spiff may drink a little of the kool aid, but he speaks the truth and has a pretty balanced view compared to many.

Good post Spiff.

Personally I don't see EdJones being acquired.  Their one-man office is so unconventional compared to the rest of the industry(and expensive), and as such I can't see another firm willing to pony up to buy them.
[/quote]

Joe & Spiff,

I tend to agree.  Though as I think about it, it would be a great launching pad for an LPL or Ray Jay.  It seems to me that it (being an acquisition of EDJ) would only fit into an independant B/D model.  If one of them acquired EDJ, they could maintain the EDJ training for new hires, the one-man office setup, etc., as well as some of the culture, and then allow seasoned brokers to transition over to the indy platform when they want to.  They could just feed the machine with trained brokers from "Jones" (and since so many already come from EDJ, why not just BUY them?), without all the pomp-and-circumstance of trying to jump ship to another firm and losing clients.

I do not see a bank or wirehouse buying us.  I just don't see the economic viability of such a transaction.

Really what it comes down to is how greedy the GP's are.  To be honest, I think they are all making pretty serious coin right now, without having to answer to anyone.  If I made that much money, and was not owned by a public entity or larger independant entity, I think I would be pretty content.  Then again, it also comes down to the long-term viability of our model.  If we start to flounder or stop growing, we might have to look at being acquired.  But until then, I don't see the GP's selling out.

B24-

I think LPL or Ray Jay would be the last in the line to acquire. They want seasoned reps that can manage themselves. The majority of Jones reps are newbies.

My guess, since we are guessing would be an insurance company that has a similar business model,i.e., an Allstate or State Farm or Farmers. If they wanted the brokerage side, how hard would it be to integrate a p/c shop with a street corner mentality?

You think there are mass defections at AGE right now, just think what would happen if Allstate or State Farm acquired Jones and we all had to do p/c biz too.  I'd definitely be calling Joe and seeing if he needs a partner. 

I think it would be far to difficult to predict how many FAs are going to stay for anyone to grow through acquisition of Jones.  Imagine how it would look on that company's balance sheet when they suddenly have 5000 offices around the country they're paying rent on without any offsetting income because the FA went indy or took a big check from a wire.  It would take them years to make it up.  It's not like AGE that had a lot of big office building they owned that could be sold.  Jones doesn't actually own a lot of property.  All of the offices are leased.  

The average tenure of Jones FAs keeps going up.  At least in my region it does.  Seg 4 is now the biggest segment in our region.  5 years ago it was 1 and 2.  I think you are going to start seeing a lot diffent wants and needs being communicated to the home office folks from the FAs.  Like the Financial plannning tools that were rolled out and the fee based platform that is coming.

Like I said.  Maybe going public like Goldman is a possibility, but I don't think anyone is going to acquire us.  

Spiff-

One last thought. You mentioned that if the trips went away you would seriously look at going back to home office.

I will admit they are well done. My wife misses them more than I did. I can easily pay for the additional cost going alone. Why such importance on the trips. Its not the people, hell I rarely knew anyone that I felt the need to communicate with after the trip. I am intrigued by your comment.

Spiff,

Did you come out of home office and take over an existing branch??No wonder your so loyal to the Jones way.  As for defections, AGE has very few at all firm wide.  More people have left Jones when they attain 5-7 years in the biz then any other firm.  Please explain the going back to home office comment. Jones is a Mecca for low producing FA's and your right there is nothing wrong with that, my question is why? I have my own thoughts on the matter what are yours? Please don't tell me you know a few guys who gross $1million, there are many more outside of Jones per firm.

[quote=Spaceman Spiff]

You think there are mass defections at AGE right now, just think what would happen if Allstate or State Farm acquired Jones and we all had to do p/c biz too.  I’d definitely be calling Joe and seeing if he needs a partner. 

[quote=advisor28]

Spiff,

Did you come out of home office and take over an existing branch??No wonder your so loyal to the Jones way.  As for defections, AGE has very few at all firm wide.  More people have left Jones when they attain 5-7 years in the biz then any other firm.  Please explain the going back to home office comment. Jones is a Mecca for low producing FA's and your right there is nothing wrong with that, my question is why? I have my own thoughts on the matter what are yours? Please don't tell me you know a few guys who gross $1million, there are many more outside of Jones per firm.

OH Spiffmeister-

Would you be suprised to know that many leases negotiated at Jones have 3 month out clauses?

Jones may have long term horizons for clients, but do they for themselves?

FYI, very few of AGE offices are “owned”. The vast majority are leased.

Joe,

Per your question, it is not my intent to give Spiff or any other Ed Jones Broker a hard time I'm sure they are very capable advisors...My issue with Jones is that the advisors they train are given a consistant message that other firms do it wrong.  I was treated well and I treated them well, what I've realized since I've been gone is that I have a greater respect for many advisors outside of Jones as well as those within.  I had alot of success in the system and was very involved in leadership, but I can speak from only my own accounts for nearly 6 years. No chip on my shoulder but I think a reality check is necessary for clarity and mutual respect within the industry.   

Joe-

Spiff is one of the brighter Jones reps. That being said, Spiff has only his experience with Jones. Hasn't worked for any other firm, hasn't started a biz from scratch.

When he looks outside Jones, he will find that his training at Jones will catapult him to much greater success. He will be stifled at Jones. He is too smart and probably too good to stay.

Spiff-

I hope you interpret my comments as a compliment to you. Advisor28,Spiked, myself and many others were in your shoes at one time. We have the perspective of different platforms, software, programs etc...Your career will skyrocket when and if you leave. It's the rare Jones broker that makes it to the promised land.

Seg 4 , in my neck of the woods is barely making it. Remember its not what you gross but what your net net is after everything. 

Foot, I believe your talking to deaf ears.....

Not deaf ears spears.  Ears that are not completely convinced that the grass is greener. 

You guys are correct that my only brokerage firm experience is with Jones.  I've never denied it or implied differently.  I will say the fact that I started with some assets is only marginally important in the long run. 

28 is correct that Jones tends to tell FAs that everyone outside of Jones is evil.  Especially those of you who jumped to the dark side of Indyworld.  You guys were failures who couldn't cut it at Jones and had no other choice but to go indy. 

For the record, I don't agree with that sentiment.  I think there are quality advisors at every firm.  I just haven't met them yet. 

I have friends that are now with RJ, LPL, UBS, Wach, Morgan, and a couple at banks.  All former Jones guys, so I know they are quality people.  All of them have said they had a great time at Jones, but were ready for something different.  Some of them wanted to do more fee based.  Some of them wanted to work with a team.  Some of them didn't want to prospect anymore.  Only one of them was asked to leave by Jones for lack of production and went indy. 

Define success for me.  Is success more money in the bank?  Is success reaching AUM goals?  Is it brining in larger clients?  Is it helping more clients reach their goals.  Maybe your definition of success is not the same as mine.  I know what I believe and I stand by those beliefs.  When the company I work for no longer matches what I believe is best for my clients and my family, I'll leave.  It's pointless to jump from the fire into the frying pan until the heat gets turned up.   

Spiff, you should ignore all the EDJ bashing.

As E B Farnum on Deadwood says:  "One hopes for the best. One perseveres. One reevaluates constantly. One is an asshole if one doesn't."

While EDJ has huge conceptual flaws, that doesn't really affect your ability to service clients within the EDJ framework. If the EDJ framework as a whole, is the best for clients and advisors, is questionable, but a personal decision.

[quote=shredder]FYI, very few of AGE offices are “owned”. The vast majority are leased.[/quote]

What does that have to do with the price of tea in China?

All bashing aside, EDJ's allowed me to join this industry, trained me to sell and taught me just enough to feel comfortable leaving and going Indy.  I will be selfish here and say I don't want anymore LPL reps, at least in my location.  I have 3 in my town and one empty Jones office.  Now granted I transfer any acct from them I can with no flak or some dumbass GP calling me.

[quote=advisor28]

Joe,

My issue with Jones is that the advisors they train are given a consistant

message that other firms do it wrong. I was treated well and I treated

them well, what I’ve realized since I’ve been gone is that I have a greater

respect for many advisors outside of Jones as well as those within.