Edward Jones. Opportunity or no?

[NCAgent828]

A friend of mine is taking over an existing office and has been talking about the opportunity a bit. Sharing benefits obviously. What are the downfalls? Could an agent realistically keep their insurance agency in addition to being a Financial Advisor with investments?

Anybody out there done anything like this? My understanding is that they pay a salary during the first 4 yrs. during which time an agent could grow an agency more slowly while selling investments and have the income to help fund it all.

Open to any thoughts you have.

 

[NCAgent828]

In addition to the post above. I’m transitioning to sell almost entirely commercial lines products and this would help with schedule and ability to be involved in both operations.

 

[NCAgent828]

All of the other posts on this subject are extremely outdated it seems. Hoping for someone who has done this or knows of those who have.

 

[DHK]

A friend of mine is taking over an existing office and has been talking about the opportunity a bit. Sharing benefits obviously. What are the downfalls? Could an agent realistically keep their insurance agency in addition to being a Financial Advisor with investments?

Anybody out there done anything like this? My understanding is that they pay a salary during the first 4 yrs. during which time an agent could grow an agency more slowly while selling investments and have the income to help fund it all.

Open to any thoughts you have.

A few years ago (about 8-9 years ago?), I interviewed with the firm "previously known as Merrill Lynch". One of the things they required was that I sign a form indicating that I wasn't selling insurance actively.

Edward Jones is a brokerage firm. *IF* they let you keep that outside business, it would be regulated by their compliance department. EDJ would have their own internal insurance brokerage for all new business generated.

I'd only recommend EDJ for those who are starting fresh OR those who have an existing INVESTMENT book of business - including life insurance and annuities.

If you want more details, you could register and ask at www.advisorheads.com and get their (probably very similar) feedback.

 

[DHK]

In addition to the post above. I’m transitioning to sell almost entirely commercial lines products and this would help with schedule and ability to be involved in both operations.

They don't do that, so they won't let you.

 

[VolAgent]

I would recommend sticking with insurance and let your friend do EDJ.

Based upon what you have posted elsewhere, it seems like you are thinking of leaving your current cluster/aggregator. I'm not sure if it just isn't a good fit or if you are chaffing at restrictions from the group. If the later, I can promise you that is nothing compared to what compliance at EDJ will do to you.

Your current cluster does not require access to all your investment accounts, which EDJ will probably make you move in house, nor does your current cluster require the ability to review your personal bank accounts, nor does your current cluster have the ability to deny any and all business activities outside their core business.

Want to own rental property? Better tell EDJ and make sure they are ok with it. Want to serve on the board of a charity, better tell EDJ about it. And it has been a while, simply volunteering with a charity may require a OBA to be filled out and approved.

Don't want to tell EDJ about it? That's fine, you've now violated FINRA regulations and are subject to punishment and fines form FINRA. Do something EDJ doesn't like, that is also a FINRA violation.

While your current group is far from perfect, EDJ compliance is a whole different level.

Since you want to focus on commercial, why not simply write through MGAs until you can get direct with the companies you want? Also, I saw you mention needing more non-standard personal line companies, typically those appointments are much easier to get.

 

[Golfnut2112]

Why not just find a independent broker dealer? List your outside business activities ( which takes two minutes) and continue doing want your doing. The only thing you will need to run thru the BD except securities are FIA’s which is no big deal. All your other insurance activities or other business ventures can be done outside the BD once they are listed as a OBA.

 

[NCAgent828]

I would recommend sticking with insurance and let your friend do EDJ.

Based upon what you have posted elsewhere, it seems like you are thinking of leaving your current cluster/aggregator. I'm not sure if it just isn't a good fit or if you are chaffing at restrictions from the group. If the later, I can promise you that is nothing compared to what compliance at EDJ will do to you.

Your current cluster does not require access to all your investment accounts, which EDJ will probably make you move in house, nor does your current cluster require the ability to review your personal bank accounts, nor does your current cluster have the ability to deny any and all business activities outside their core business.

Want to own rental property? Better tell EDJ and make sure they are ok with it. Want to serve on the board of a charity, better tell EDJ about it. And it has been a while, simply volunteering with a charity may require a OBA to be filled out and approved.

Don't want to tell EDJ about it? That's fine, you've now violated FINRA regulations and are subject to punishment and fines form FINRA. Do something EDJ doesn't like, that is also a FINRA violation.

While your current group is far from perfect, EDJ compliance is a whole different level.

Since you want to focus on commercial, why not simply write through MGAs until you can get direct with the companies you want? Also, I saw you mention needing more non-standard personal line companies, typically those appointments are much easier to get.

Thanks so much for your response. It’s a thought that comes and goes. Always trying to weigh out the use of services vs the cost to remain and what 10 years from now looks like. Eventually want to be doing investments so was curious how realistic it would be to do this now or wait till later. Finding some niche markets and writing them outside the group hasn’t helped me want to stay long term though.

 

[NCAgent828]

Why not just find a independent broker dealer? List your outside business activities ( which takes two minutes) and continue doing want your doing. The only thing you will need to run thru the BD except securities are FIA’s which is no big deal. All your other insurance activities or other business ventures can be done outside the BD once they are listed as a OBA.

Sending PM to get some more info on this.

 

[LostDollar]

I would recommend sticking with insurance and let your friend do EDJ.

Based upon what you have posted elsewhere, it seems like you are thinking of leaving your current cluster/aggregator. I'm not sure if it just isn't a good fit or if you are chaffing at restrictions from the group. If the later, I can promise you that is nothing compared to what compliance at EDJ will do to you.

Your current cluster does not require access to all your investment accounts, which EDJ will probably make you move in house, nor does your current cluster require the ability to review your personal bank accounts, nor does your current cluster have the ability to deny any and all business activities outside their core business.

Want to own rental property? Better tell EDJ and make sure they are ok with it. Want to serve on the board of a charity, better tell EDJ about it. And it has been a while, simply volunteering with a charity may require a OBA to be filled out and approved.

Don't want to tell EDJ about it? That's fine, you've now violated FINRA regulations and are subject to punishment and fines form FINRA. Do something EDJ doesn't like, that is also a FINRA violation.

While your current group is far from perfect, EDJ compliance is a whole different level.

Since you want to focus on commercial, why not simply write through MGAs until you can get direct with the companies you want? Also, I saw you mention needing more non-standard personal line companies, typically those appointments are much easier to get.

That was interesting to see. I had no idea of the restrictions for an agent.

I suspected that it was optimistic for someone to consider having the time to (successfully) do two different sets of business though. 3-4 years ago we were door knocked at least 3 times in 6 months by a newly starting Edward D Jones agent. I just looked and see he is still going with an office in a very nice office park not too far from our home. I find it difficult to think that one individual could successfully manage all the customer interaction and quote research I have seen discussed in commercial insurance threads AND provide, to a large customer base, the investment and retirement guidance he wanted my wife and I to consider allowing him to provide us.