Edward Jones Reviews

Pros

You are your own boss.
No propriatary products sold.
Vacation reward trips
Profit sharing
Opportunity to become a limited partern in the firm
Good reputation in the industry
Providing financial advice is the only business Edward Jones is in.

Cons

Poor health benefits
doorknocking
You work with one other person (branch administrator) in a branch office so you spend a lot of time alone.

Advice to Senior Management

NEVER go public. Ted Jones wanted us to own the company for the benefit of our clients.

Pros

During a good portion of my nine-year tenure at Edward Jones, the climate was a lot better. Even though some things seemed simplistic in its business model, initially I did not have to deal with home office pressure to present certain products.

One particular (but hardly promoted) program is its PASS program, which allows brokers to work in the home office for more than a year in various departments to acquire real training and development. Instead of the traditional sales training route, I went to work in St. Louis for more than a year and it gave me more insight and time to develop my business.

Cons

The climate has changed for the worse since John Bachmann stepped down and Jim Weddle has become the managing partner. Also, there are several misleading to false statements that brokers give to recruits, and a lack of disclosure during and after the hiring process that's not fully realized until you're in the firm. The secrecy is perpetuated to the point I started looking at everything skeptically.

No. 1: "You are your own boss."

In reality, you are a corporate employee with some of the negative downside aspects of a sole proprietorship. You can be terminated by Edward Jones at any time. You have to pay the utilities, buy supplies from the firm, do all your marketing and advertising, etc., out of your pocket -- even though those are Edward Jones' properties and you have to get approval from Edward Jones. Moreover, you have to pay for a portion of Edward Jones' national television ads and give the firm at least 60 percent of the commissions and revenue.

No. 2: "No proprietary products sold."

Edward Jones is proselytizing all of its financial advisors to move clients with at least $50,000 into its Advisory Solutions program -- a proprietary product. Edward Jones is now developing a unified managed account (entry point: $500,000) -- another proprietary product. In both cases, they generate more in fee revenue for Edward Jones.

Moreover, the issue is the practice Edward Jones is using -- basically, taking existing assets on the book and persuading the clients how "it is the best thing for them" when in reality it multiplies Edward Jones' revenue with the same (if not worse) performance the mutual funds many of the clients owned.

No. 3: "Vacation reward trips."

You need a certain amount of production and a percentage of standing to qualify. With Edward Jones' new production standards, a veteran financial advisor has to produce more than the $22,000 rolling four-month average bare minimum to get the trip. Given that the trips are offered twice per year, that means someone with at least five years' experience has to produce a minimum of $132,000 gross commissions every six months just for the right to pick a trip. Moreover, if you're not one of the bigger producers who essentially do nothing but walk in the door and qualify in the first month or two, you're scrambling to pick a decent one.

Moreover, the estimated price of the trips seem excessively high (Edward Jones may say the trip costs $5,000 per person and reported that value to the IRS, but if you cash out you only get $2,000). You have to claim it on your income taxes and you get taxed at a very high rate. In addition, Edward Jones takes out a monstrous amount of money out of your paycheck during a three-month period to pay for it.

No. 4: "Opportunity to become a limited partner in the firm."

I worked with the company for nine years and could not get a consistent answer from a veteran broker or a home office associate on how it selects limited partners. Moreover, in order to become a limited partner you essentially have to buy into it in the form of a loan.

What is not disclosed is that the general partners take the vast majority of the firm's profits. Despite being a partnership, Edward Jones has to file SEC reports because its limited and general partners are considered shareholders. If you look at the SEC reports, the vast majority of the company's $393 million in 2010 profits went to the general partners:

* 347 general partners received $307.3 millon ($885,590.78 per person)

* 254 subordinated limited partners — primarily retired general partners — received $41.7 million ($164,173.23 per per person)

* 14,870 limited partners received $43.8 million ($2,945.53 per person)

No. 5: "Good reputation in the industry."

Edward Jones' high attrition rate, its poor technology and its outdated door-knocking techniques are being revealed more as it churns out brokers. The retention rate is less than 50 percent after a year and close to 25 percent after three years. Moreover, during the 2008/2009 market downturn, the managing partners started putting more pressure on its brokers to the point the culture was becoming hostile, if not toxic.

Advice to Senior Management

When the firm sold its UK division in 2009 without telling its employees about it -- initially, employees had to go to outside sources on the Internet to find out more information, prompting Weddle to make a statement the following day after receiving backlash -- that showed me that Edward Jones' culture had changed for the worse. The business model is broken, but moreover at the end I simply could not trust anything I heard from veteran brokers and home office associates.

Pros

great training, own office, potential for money

Cons

door knocking, very hard work, takes a few years to make money.

Pros

Edward Jones has a great reputation.

Cons

As a "new new" the prospecting methods they teach will not result in enough new accounts and gross commissions for you to keep your job.

Advice to Senior Management

Be upfront with new hires that they will need to bring in business from friends, family and their own personal network in order to be successful.

Pros

Potential for Future Income
Independance from management
Able to run your practice how you want

Cons

After first year salary goes away, if you are not a natural salesman, good luck

Advice to Senior Management

Live by the reputation Jones has in other regions. Outside of our Regional leader and a few other advisors, the Jones culture is not in Utah.

Pros

Opportunity to learn alot and grow in your position.

Cons

No feedback from supervisors and/or management.

Pros

Nice Trips, office was sunny, they put up a new sign when the old one got worn out, they paid to have the carpet cleaned every year

Cons

Limited product offerings, firm pressures advisors to take on regional and recruiting efforts with no compensation, they own the client book, poor benefits package, low payouts, unrealistic expense caps, compliance/field supervision is repressive, management does not tolerate individual thinking. Family/work balance for them is 70 hours/6daysof work. Survey for "Best Place to Work" is orchestrated. To leave the firm without legal entanglements you must retire or die. Firm does not provide any support for local communities.

Advice to Senior Management

Stop pouring the Kool-aid and be truthful. Provide some support for social and humanitarian causes in small communities where offices are located.

Pros

Great opportunity if you have a great FA to work with.

Cons

The Home Office is very out of touch. The BOA is treated like they are expendable. Too easy to get fired. Great opportunity for a thriving business, but too micromanaged.

Advice to Senior Management

Listen to your BOA's, especially if the FA has gone through a lot of them. You are only losing out on a great asset and damaging your reputation with a bad FA.

Pros

If you are lucky enough to work for a profitable and nice FA it can be a great experience as it was at the first office I was in. My FA was like my best friend, was very caring and great to work for. The time off and benefits that you begin with from day one are great compared to other companies. The hours and flexibility are good and allow for having a life outside of work and is a great position for mothers.

Cons

You are on your own in a branch with one Financial Advisor and if you don't get along guess what that's your problem according to Associate Relations in home office who pretend to be on your side so that you open up to them and then they turn it around on you and use your words against you. I was told to change my ways so I could cater to my Financial Advisor and if I was not willing to do things the way he wanted me to I could go find another branch. I was fired on the spot even though I have had an outstanding on every review, have gotten the highest ratings and maximum bonus amounts allowed and was offered Limited Partnership. I found out that even though I thought they valued me as an employee and saw me as an asset to the branch apparently anyone is expendable and they do not have your best interest at heart. The home office is based out of St. Louis and they did all of this over the phone without room for discussion. I felt like they were reading from a script and it was easier to fire me because it was done over the phone and there was no emotion involved. I was treated like a criminal even though what I had done was in the client's best interest and under the pressure of my Financial Advisor that I should be on the quest for perfection and I had missing information. My FA that I had been with for over a year did not even begin to try to help me and that hurt a lot. I feel very betrayed.

Advice to Senior Management

Try to gain a better understanding of what it is like to be out in the "field" (the individual branches) so you can do a better job of managing your employees. It is unrealistic to expect a brand new (or seasoned veteran) FA to be a good manager of people when all you do is train them to sell financial products.

Pros

Great benefits and good pay

Cons

The BOAs career can be crippled by a lazy financial advisor. The advisor I worked for refused to work, called in sick constantly (one time 12 days in a row), drank on the job and talked to clients about taking money out of their homes to invest in the market. I went from loving my job to hating every moment of my work day. Management told me that if the FA wanted me to sit at a desk for 8 hours with nothing to do then that was their right as my supervisor.

Advice to Senior Management

Listen to the BOA when they report unethical behavior by the advisor. Also remember that there are two careers in the office. The BOA has the right to have a productive, meaningful job.