Edward Jones. Opportunity or no?

[VolAgent]

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.

I'm not saying you should stay or leave. I believe the MGA route is viable in either case.

That said, I do not see Edward Jones improving your situation in the slightest. And I do agree with LostDollar, you will not be able to do both investments and commercial insurance well. You are better off focusing on one and letting someone else do the other, either a team member, a business partner or a referral partnership.

 

[NCAgent828]

I'm not saying you should stay or leave. I believe the MGA route is viable in either case.

That said, I do not see Edward Jones improving your situation in the slightest. And I do agree with LostDollar, you will not be able to do both investments and commercial insurance well. You are better off focusing on one and letting someone else do the other, either a team member, a business partner or a referral partnership.

After seeing this I totally agree with you!

Sometimes grass looks greener when there is grass right here. Thanks for all your input. Means a lot for you to spend the time to respond.

 

[pfg1]

No disrespect to Jones, but if you work for Jones, you ARE Jones - period. You can't do anything else financial or insurance. I looked into it years back - a friend of mine who is high up with them tried to recruit me. What I was told after beating on them for an answer... I had to shut down my business, and terminate ALL my insurance contracts/appointments if I wanted to work with them. The other thing that killed it for me... you can't pass your book of business on to family or beneficiary. They own it.
That is their model, wasn't for me.

 

[NCAgent828]

No disrespect to Jones, but if you work for Jones, you ARE Jones - period. You can't do anything else financial or insurance. I looked into it years back - a friend of mine who is high up with them tried to recruit me. What I was told after beating on them for an answer... I had to shut down my business, and terminate ALL my insurance contracts/appointments if I wanted to work with them. The other thing that killed it for me... you can't pass your book of business on to family or beneficiary. They own it.
That is their model, wasn't for me.

So State Farm of financial advisors basically?

 

[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.

Not doubting you at all but how do you know that they are that way?

 

[DHK]

I think @NCAgent828 has me on ignore.

 

[NCAgent828]

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.

Was not ignoring, distracted is all. Yes, that sounds similar to what I’ve read. Doesn’t seem like a bad gig just seems like it will fit or not fit. Sounds like a gamble to give up an agency and hope all goes well without some solid assurance that it will. All makes since to me.

 

[Golfnut2112]

You will be required to show bank statements during your audits and you can have outside accounts however that firm must sent copies of your statements to your current firm, both issues are not a big deal. Real estate transactions are also not a big deal, you need to remember these BD’s are not trying to own you but keep you in compliance. The OBA form just notifies your BD what you want to do and are usually approved in a day or two, I never had one denied in 32 years. I would be more worried about minimum production standards with Edward Jones since you will be splitting your time.
I forgot the only bank statement that is required is the one your securities commissions are deposited in.

 

[DHK]

remember these BD’s are not trying to own you but keep you in compliance.

I think that depends on all the infrastructure being provided.

EDJ reps have an office space and a BOA (branch office administrator). In short, they DO "own you" and your time because they are paying for all that overhead... and want the assurance that you are putting THEIR needs first while meeting your investment client needs.

While I have not worked in compliance, and even if it could be a compliant OBA... "no man can serve two masters". You would be an employee of EDJ, not just contracted or registered through them. (In fact, you would not be allowed to "keep your book" if and when you leave them.)

Employment agreements are different than independent contracted agreements.

 

[NCAgent828]

You will be required to show bank statements during your audits and you can have outside accounts however that firm must sent copies of your statements to your current firm, both issues are not a big deal. Real estate transactions are also not a big deal, you need to remember these BD’s are not trying to own you but keep you in compliance. The OBA form just notifies your BD what you want to do and are usually approved in a day or two, I never had one denied in 32 years. I would be more worried about minimum production standards with Edward Jones since you will be splitting your time.
I forgot the only bank statement that is required is the one your securities commissions are deposited in.

So it sounds like from what you are saying they may not have an issue with the insurance business?