Has anyone made the transition from Edward jones to wire house and if so, would you do it again? For context I'm exploring Morgan Stanley, Merrill, and UBS. 3 years at Jones, roughly 27 mm (had 2mm legacy). Trying to figure out if it's worth the leap.

likesmartfunny
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If you’re an entrepreneur make the leap and become an independent RIA and control your money and your future. The greater your income the more money you take home. Big firms will always scare you with compliance issues and overhead. Overhead is fixed, it doesn’t necessarily increase in relation to your gross revenue. As a fee based advisor with$27MM AUM, charging 1% you’d be grossing roughly $270,000 annually. $40k for an assistant, $20k for office overhead, $10k for a compliance company, $5k office supplies, $2k licensing. You get to keep roughly $190,000 or 70%. No wire house will give you that payout. If your AUM increases $12MM you earn another $120k. Now your gross is roughly $390k. If you need more help you can hire another assistant for $30 and keep $70k earning $270k or 73%. Going independent is scary but it’s the best thing I ever did. My AUM is roughly $120MM with ROA of 85bps. Larger accounts, over $500k, get break points on fees so the overall ROA will drop but it’s a good problem to have.

likeupliftinghelpfulfunny

Personally I am happy at a wire house. Not everyone is cut out to run their own business and recognizing that is very admirable. Wire houses can give you the freedom that you are looking for; you just need to know how to work the system and you need to work well with your manager and have an alliance with a large team. Does not mean you have to partner with them but having an alliance is helpful.. I know a lot of the people on this thread are trying to steer you to an RIA but wire houses can offer a lot of freedom. Morgan Stanley does have a very open platform and does not force you to do a plethora of things to hit grid. There are some hurtles to overcome but they are not onerous. 

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Yes. I just moved independent after three years to Raymond James and I am so happy. Get out. I’d go Indy before Wire.

likeupliftinghelpfulfunny

Southeast Michigan. I work in the metro Detroit area. Started in Ann Arbor.

If you leave Jones, I don’t know why you wouldn’t go Indy. That’s the only direction I would consider.

likesmarthelpfulfunny

I explored that but frankly didn't want to run the business myself. Also the where I'm at from an asset and revenue it wouldn't make sense

I am bias, but I think you should absolutely explore the wire houses, especially if your target segment is HNW. I am like you OP, no interest in running a business other than focusing on hunting for clients and gathering asset, build my practice. I didn’t have a book when I joined UBS, so for me, selling the UBS name and having a global platform very powerful. 6+ years here now, Club level producer as well. It’s not perfect here, but it’s worked out well for me and I have no plans to go Indy.

likefunny

I don’t think you need to leave Jones to pursue what you’re looking for if I’m understanding you right. I’m at Jones, 6.5 years in, 120 AUM, 750 gross all on my own back. I’m on K1, no W2 so can do business expense deductions as needed (no need for LLC strux although my commercial office space is held in LLC). Owner occupied office space so Jones essentially is tenant. If you’re looking to just focus on new business and assets, staying at Jones might just be your best bet. Btw, at this stage in the game, you’d be leaving money on the table by stepping away if you understand your comp plan. Grass is green where you water it. Just my 2 cents.

likefunny

Absolutely don’t go to Merrill. It’s a dumpster fire there right now and will eventually be taken over completely by the bank and Edge. I left there over a year and a half and never looked back.

likehelpful

Not at JP Morgan Securities. Still have access to the products but there are no quotas or goals. Chase wealth management and the private bank probably have quotas but don’t quote me on that.

funny

If you are going to make the leap, go Indy. What is the point of going wire. Happy to chat, I can help.

likesmarthelpful

Don’t do it! I just moved from Jones to wire house last year. I would not advise doing that. I regret the move to wire instead of Indy. All the different hurdles and grids is a pain. At Jones you will get 40% on almost everything at wire house you will definitely get less. Go Indy or stay at Jones! Good Luck!

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Look at ameriprise send me your email I can get you a contact

funnylike

Don’t go to a wirehouse. It’s a lateral move at best. Sure, you may have more products and services, but the payout won’t be better, and you will actually lose a lot of freedom. Go independent, if you are wanting more/better. We are with Raymond James, and had a wonderful transition. I can help. Let me know if you want to visit offline.

likehelpful

I will add that I left Jones in 2015, and have helped multiple others leave since then.

likeupliftinghelpful

Definitely don’t go to wire house. At that AUM level, I would try to find someone to join who has similar investment and planning philosophy instead of entirely by yourself. Do your research and find a place you’ll be happy at with 25 million and 100 million....

likehelpful

I left Jones to go independent, but I would suggest you wait till you have $50 mm in assets. Anything less and the numbers don’t work.

likefunny

Cetera has a newer channel (Cetera Investors) where you are completely independent and own your book, but you are highly supported on the "running a business" part - office overhead is taken care of.

likefunny

What’s motivating you to explore the wire house route?

smart

The decision about what platform to choose is not as black and white as it once was and instead is more shades of gray. Teaming (especially in wirehouses) may be useful for advisor training (newbies) but also makes it harder for advisors to change platforms when you want to. The most crucial question that you need to evaluate beyond culture when figuring out whether you are in the right place or not, is simply to take a hard look at whether you want to be an employee or an independent in the first place because there are more opportunities to succeed as an independent. You can earn a higher payout, receive incentives and overrides for recruiting, have your own LLC for tax planning (deductible business expenses) and make higher SEP contributions. From my perspective, hands-down - it’s better to join an RIA and be independent. Compliance at the wires throws up a gauntlet for being entrepreneurial, and it can be frustrating. Granted, there’s compliance at an RIA, just not as onerous. If you want to meet, I invite you to come and see our new flagship office (one of twelve) in one of the nicest Class A office buildings in Manhattan. We can discuss more benefits.

likehelpful

P.S. I can discuss a higher payout rate than the wires, transition capital and an asset bonus with you at a growing independent. I was a Club Level Producer at UBS after my time at Merrill Lynch. Morgan lured me more than a few times. I know about all the benefits of Independence and all of the downside at the wires. I’m happy to chat with you.

smart

I would be interested in hearing why you want to leave. That would help you distinguish between another broker or go Indy

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Let’s talk before you pull the trigger. There is a lot to consider and 98 percent of Jones advisors are better off opening an independent practice. Industry trends show very few go from employee model to employee model again 3147127269

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Go independent; Common Wealth, LPL or Raymond James are top three...obviously I may be biased but Independent you will make way more money and be free to run your business the way you see fit.

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Why jump from one firm that says they own your clients to another that says they own your clients? Go Indy. Drop me a line, happy to help.

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