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ricjames254 View Drop Down
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    Posted: Aug/06/2021 at 4:47pm
I have a family member----lets call him Bob----who is an advisor with Jones.  Bob is starting the retirement process and wants to pass on a portion of his book to me.  That amount is 75 mil AUM.  Bob lives in a wealthy suburb of a major city and has built up a seemingly great practice with loyal/high net worth clients that he has been working with for years.  I have had preliminary conversations with the people at jones and they gave me a rough outline of how the transition would look and the first few years are pretty bloody....to start with the firm takes 50% of commissions from the inherited clients off the top for a period of four years as an adjustment.  Then---of the remaining commission---it would be a sliding scale starting at 90% to EJ and 10% to me which would gradually increase over four years until the adjustment disappears.  Sounds like id be on the hook for office costs out of the gate as well but i need to clarify.

I am an attorney who has been out of law school for 7 years working as a state and federal prosecutor.  I am very good at my job and like what i do. I also have 200k in student loans that will conceivably be erased if i work for the government for another four years.

Every conversation i've had with the people at Jones makes the job less appealing. The adjustment is just brutal. However, I realize how lucky I am to be given this opportunity and most people in the business would kill to start with 75m AUM and that the hardest part of the job is done and this is a pretty significant advantage.  I am not adverse to hustling and i know i will have to work hard----but at this point in my life have no interest in door knocking or cold calling. I have a personality that would be well suited for sales and I was a FA for a hot second before law school so I have a rough idea of the game. I tend to focus on all the negatives and the things that piss me off about the conversations I've had with EJ-----from a financial perspective, I would be stupid to pass this up, right?
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Moraen View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 4:59pm
Yes. Seems like a good opportunity.
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luvindy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote luvindy Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 5:05pm
I'm not sure if you can see the rest of the board yet. 

Beware women and Afro Americans that will be ahead of you. Unless you are one or both? 

Can this dude definitely choose to give everything to you? If yes, then you're an idiot not to take it. The only question is why is someone retiring with 75 million. If it's a shitty book, you might be in for a lot of work when he's gone.
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ricjames254 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote ricjames254 Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 5:26pm
White male. His book is much larger than the 75 he is giving me. That is the cap on what the firm will let him give me. According to him its a great book---most of the difficult clients were moved to other advisors over the years and he has no reason to lie to me. And I think the way they are doing retirement is he is with me during meetings with his clients over the next couple of years. 
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PEACH_cm View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PEACH_cm Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 5:40pm
Originally posted by ricjames254 ricjames254 wrote:

White male. His book is much larger than the 75 he is giving me. That is the cap on what the firm will let him give me. According to him its a great book---most of the difficult clients were moved to other advisors over the years and he has no reason to lie to me. And I think the way they are doing retirement is he is with me during meetings with his clients over the next couple of years. 
get him to go independent help with the transition and keep the whole nut and remove yourself from Jones or any major firm that has any control over you or your business
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advisorman View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote advisorman Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 8:42pm
90% to Jones???!!!!
King of sarcasm and speling
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Delbs View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Delbs Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 9:39pm
Originally posted by advisorman advisorman wrote:

90% to Jones???!!!!

Yes, in the first year you only get a 10% payout. Mainly because you are getting a $75k salary and $4 per $1000 you bring in. It’s a sliding scale over four years. These new FA’s are making good money and also with a lot of assets, profitable right away and getting bonuses as well. 
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Delbs View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Delbs Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 9:48pm
Originally posted by ricjames254 ricjames254 wrote:

I have a family member----lets call him Bob----who is an advisor with Jones.  Bob is starting the retirement process and wants to pass on a portion of his book to me.  That amount is 75 mil AUM.  Bob lives in a wealthy suburb of a major city and has built up a seemingly great practice with loyal/high net worth clients that he has been working with for years.  I have had preliminary conversations with the people at jones and they gave me a rough outline of how the transition would look and the first few years are pretty bloody....to start with the firm takes 50% of commissions from the inherited clients off the top for a period of four years as an adjustment.  Then---of the remaining commission---it would be a sliding scale starting at 90% to EJ and 10% to me which would gradually increase over four years until the adjustment disappears.  Sounds like id be on the hook for office costs out of the gate as well but i need to clarify.

I am an attorney who has been out of law school for 7 years working as a state and federal prosecutor.  I am very good at my job and like what i do. I also have 200k in student loans that will conceivably be erased if i work for the government for another four years.

Every conversation i've had with the people at Jones makes the job less appealing. The adjustment is just brutal. However, I realize how lucky I am to be given this opportunity and most people in the business would kill to start with 75m AUM and that the hardest part of the job is done and this is a pretty significant advantage.  I am not adverse to hustling and i know i will have to work hard----but at this point in my life have no interest in door knocking or cold calling. I have a personality that would be well suited for sales and I was a FA for a hot second before law school so I have a rough idea of the game. I tend to focus on all the negatives and the things that piss me off about the conversations I've had with EJ-----from a financial perspective, I would be stupid to pass this up, right?

Almost all office costs (rent, utilities, computers) come out of the 90%, not your pocket. You only have to pay for paper, stamps, coffee, etc. 

That size book should be creating at least $500k in revenue. If you did nothing, four years from now you are making $200-$250k easily.  You work at it and you could be making double that as well. It’s a great opportunity if this is what you want to do.
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WarPig View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote WarPig Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 9:50pm
Are you black?

If not, at least claim you are partially Native American.


Edited by WarPig - Aug/06/2021 at 9:50pm
Call me Ike
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Delbs View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Delbs Quote  Post ReplyReply Direct Link To This Post Posted: Aug/06/2021 at 9:52pm
My GK made $72k in salary, $32k in new asset bonus, $24k in net commissions (~10%) and $14k in travel cards in his first year! That was off $30mm. 
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PEACH_cm View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PEACH_cm Quote  Post ReplyReply Direct Link To This Post Posted: Aug/07/2021 at 9:33am
Originally posted by Delbs Delbs wrote:

My GK made $72k in salary, $32k in new asset bonus, $24k in net commissions (~10%) and $14k in travel cards in his first year! That was off $30mm. 
what did you get for giving?
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