Knock, Knock. Who's There? An Elated Edward Jones Advisor.
Edward Jones advisors are happy-very happy. Whats with those guys anyway?
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Beneath The Hype
“It is a pleasure believing in your firm's philosophy,” says Chanod. “I don't go to sleep at night wondering if I put my clients in the wrong investments. It is that belief system that gets you through a year like this.” Some clients come to him saying, “So and so put 40 percent in hedge funds and is making a ton of money.” But now, more than ever, Chanod says he is armed to stand by the firm's conservative investment philosophy
Of course, even Edward Jones has had its hiccups. It wasn't until last summer that the firm finally rolled out its much-awaited fee-based advisor account called Advisory Solutions, years after most other firms began pushing fee-based business. Technology has been another stumbling block. Chanod remembers, for example, that when he joined Edward Jones in 2005, the firm didn't even have companywide email, and he often had to resort to making certain financial planning recommendations using a rudimentary retirement calculator. Since then, the firm has rolled out a suite of financial planning software called Financial Assessment Solution Tools (FAST), which helps put Jones advisors on more equal footing with advisors at other financial services firms.
One former Edward Jones advisor of 13 years says he left the firm a little over three years ago, precisely because these problems had yet to be addressed. The technology was inferior and he wanted to move to more of a fee-based model. Perhaps he would feel differently today. Still, this advisor, who is now with Raymond James, says he also felt Edward Jones had policies and procedures which hampered his ability to do business: They didn't make exceptions for special clients. For example, he lost part of a major account when he could not get an IRA fee waived (both the husband and wife on the account were charged the same fee) by management — such accommodations are often made on a case-by-case basis at larger firms for top producers. Overall, this advisor says he still thinks Edward Jones is a good firm, but he's happy he moved on. While he was working at Edward Jones, he never thought he would work for another company, he says. “I see it differently now. Everyone who works there thinks they are with the greatest firm in the country, but they don't necessarily know [firsthand] what else is out there.”
That may be part of the firm's strength: The culture is very tight knit. Indeed, if you happen to see a very large group of happy families at Disney World it might be a group of Edward Jones reps, their spouses and their kids on a firm-sponsored trip. Under the travel reward program launched more than 40 years ago (called the diversification program), Edward Jones rewards FAs who have a diversified product mix and meet a certain level of business ($102,500 gross for a six-month period) with trips to places like Mexico and Hawaii twice a year. Weddle says typically 45 percent to 50 percent of all FAs qualify every six months — and the firm spent $75 million dollars last year on the travel rewards program. Weddle says, “Every one of our FAs is in their own office — that is a tremendous sense of independence, but also accountability — so every once in a while we want to get folks together to share ideas to reinforce the culture and sense of camaraderie. You don't want that independence to become isolation.”
Like at many Wall Street firms, there was no Christmas party this year in St. Louis at the Edward Jones' headquarters. Instead, Weddle says he is having members of the management committee and their spouses over to his house for dinner. What do you expect? It's Edward Jones.
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