I am a veteran advisor with 50mm under management. I am looking at two options.
Either take over an existing office at Edward Jones with 35mm or go independent with Raymond James. What would you do ?

I have been at EJ and RJ. I would go RJ for sure. As a vet, you will be expected to waste so much time doing team building, mentoring, attending meetings, etc. To much time doing something other than making money or doing what you want to do. At RJ, you will just be doing the job as you see fit, plus you can sell your book when your ready to retire.

Seems like the most people getting upset about EJ are the EJ advisors. We were asked our opinions and we gave them. Yes, you are looked at as the McDs of channels. Is that really a bad thing? You are in every town, you do “vanilla” advising and everyone in our industry knows that. If you don’t like the stigma of working for EJ, go somewhere else. It’s like AXA people getting made because they are looked at as insurance sales people. It is what it is. But don’t get mad at everyone that thinks that way. That is your “brand”, and you have no control over your brand, so if you don’t like it, go make your own brand.

Ray jay. It commands some respect within the industry vs the McDonald’s of financial advising

If you want to sell Capital Income Builder to middle-America, EJ. If not, anything but EJ.

The average EJ producer does about $450k. The average RJ producer does about $800k (I think). Which would you rather be?

I have been at both. RJFS on the hybrid Independant side is awesome! Keep in mind the two models are night and day different. Both offer a ton of support. RJ spent $300 million on tech last year.

You cannot team-up at Jones. You can at RJ

Jones payout with trips / bonus will be high 40’s or low 50’s. RJ net after all expenses will be high 50’s or low 60’s depending on overhead & healthcare, etc...

Compliance is very reasonable at RJ and very difficult at EJ.

EJ W-2 & RJFS 1099 - way more favorable tax treatment.

EJ owns the client and has an iron clad non compete / non solicit & you own your clients at RJFS

The early advisor was pretty close on the average production. It is around $750,000 at RJ

Our business should never be about trips and bonuses. It's an ethical/ fiduciary dilemma. Let's drop some a-share American funds last minute to get that bonus. Forget it I'd rather control my own bonuses and trips.

I think it depends on how long you want to work. If you are shorter term (less than 10 years) go EJ. If longer, go Indy (doesn’t matter the firm but Ray Jay is fine).

Wow, you are actually entertaining EJ? Hahahahahaha we have the best of EJ flocking to RJFS puking out the bullshit they didn't swallow from EJ. OMG EJ it is truly the Walmart of investment firms.

Options risky huh? How about for people who actually understand them. Most options strats are no riskier than an equities. My God you really have no idea. And there is a reason the best firms do "mess" with them. Your brand is not local 99% of your offices are in tiny run down buildings appealing to the mass market.

EJ1, here in lies the problem. No one is questioning you as an advisor. All of us are giving our opinion on EJ as a whole. Like it or not, they have that reputation in our industry. Not with the people that work with you, but from other professionals.

There is a reason fishbowl isn’t open to the public. It’s so we as professionals can share our opinions and ideas without having to “sell” them to the public.

All of us would promote our firm/structure/payout/philosophy or we wouldn’t be where we are. There are a lot of people posting on here that are recruiters, that’s why I switched from posting under my firm name to my title. Don’t take it personal when a recruiter is bashing your firm. They aren’t talking about you, they are talking about your firm. Look at how many people have posted about WF. Those advisors (by in large) aren’t bad, but they get lumped in with WF.

I’ve said many times, there is no bad firms/channels, just bad fits between advisor and firm.

MP1, not mad just setting some things straight. If by “vanilla” you mean we don’t trade in options, derivatives, or other higher risk vehicles, then yes you are correct. There’s a reason we don’t mess with that. And dude, I might have a Home Office that has a certain “brand,” but I make my own brand in my local town. Not mad about that at all, proud to be from Jones. And not to keep score, but we constantly outrank RJ by both FA and client satisfaction.

If there are EJ folks upset with EJ they have the opportunity and should take the initiative to leave. Ultimately an Advisors brand is what he or she makes it. National advertising doesn’t do a lot on the local level - pro or con. My clients deal with me and know me and my brand.
BTW - trips are based on assets, so there is no conflict to push product to earn a trip. And bonus is first firm based and second branch profitability over a 4 month period. It’s really hard to push product to earn a trimester bonus.
For OP, I think you might want to compare comp and structure in an $85 mil branch. The ones in my region at that AUM are grossing about $750k to $850k. Net commission is 40% once fully ramped (you’ll have a base salary before then). Profitability bonus depending on how the firm is doing around $30k and a couple of trips per year if you are bringing in $425k/mo in assets. If you stay, you can earn limited partnership that can add $5k+/year for each offering you qualify for.
Personally I like not dealing with the headache and hassle of paying all my own bills, but that’s a personal choice

Left EJ recently for RJ after 17 years. More freedom and flexibility for you and client. Trips are free at Jones..you are taxed for every penny on expensive trip details. The travel agent (Martiz) does not look out for that. I am taking whole family to week at Disney world for less than I would pay in taxes and have no mandatory meetings etc. Jones is great for early training, bad for veterans. Learned more in 5 months than last 10 years at Jones controlled meetings. LP offerings are so watered down now, not worth it and will be less than selling Book later in life. Now with new tax law EJ folks can’t write off the out of pockets expenses. I averaged 25 - 30k my last several years. I vote RJ with my, admittedly biased, perspective

Doesn't WF have an indy option for you?

Do you know what the asset makeup of the 35mm EJ office is? Is the location somewhere you’d be happy to stay for the rest of your career? If there’s a good amount of fee based assets and you’re happy with the location that sounds like an excellent opportunity even if you don’t bring all 50 million with you. EJ is guaranteeing payout for 12 months and giving you asset bonuses for what you bring over of your 50mm current book. It’s certainly worth serious consideration.

Yeah - don’t get caught up in the “anti” people that are on here. You are comparing two very different models and one is not better than the other for everyone. You need to figure out which is better for you. I started new with Jones and took over a smaller office than the one you’ve been offered and it’s worked out well for me. I really like the culture, structure and compensation model. Others as you’ve heard don’t like it. I would suggest you talk to as many Jones FA’s in the area where your office would be. Ask about the Regional leadership. That can make a big difference in your Jones experience

Payout is 87.5% but admin fees on advisory accounts are 7-10 bps. Figure overhead (if you join a decent practice) could run another 10bps? Depends. So if you net everything out, you should end up around 55-60%.

@VP1 In my 18 months with EJ I haven’t built a single portfolio with Capital Income Builder and I’m doing just fine.

Indy