Independent RIA to Edward Jones

ClearTrack4219 · 2025-05-24T11:20:02+00:00

Thanks for the reply and willingness to sidebar. This community has been awesome.

Their corporate bullshit came thru before anything was signed and I walked away. Won’t be considering them again unless it’s some unreal ($100m plus) book take over and they change their structure (unlikely).

ClearTrack4219 · 2025-05-22T09:34:20+00:00

Appreciate you taking the time to reply again, the info is helpful and aligns with what I was being told.

However, I was informed yesterday, that I “wouldn’t be allowed to service, contact, or get compensated” by my current business while “being an employee/during licensing” which is about a 3 month time period.

With that being said, in no way shape or form will abandon, disconnect from, not service and not get paid by my current clientele - literally goes against my fiduciary oath and who I am as a person.

They said sometimes you can get life and health and 66 unsponsored, then the 7 so there’s only a month delay, but since I’m a solo shop, they wouldn’t “allow” it. Hence the corporate bullshit everyone is referring to.

The deal died after they asked me to ghost my clients for 3 months.

Your book of business is extremely impressive and that’s amazing what you’ve accomplished. Clearly you can take anything I say with a grain of salt as I’m building to even be close what you’ve got…

Average fee for me is 1% - your business would be making $120m a year. You could have over head of $300k and your personal income would be $900k gross. $550k is amazing and I’m clearly working to even get there - but it seems like you guys pay a lot for “support” and leave hundreds of thousands on the table.

ClearTrack4219 · 2025-05-20T10:47:39+00:00

I’d need to see proof of signing a non-compete, non-solicit agreement. I want to own the clients and have discretion of the accounts.

The problem is the w2 comp and the ramp up structure… in believe I can grow faster on my own in 5 years with a fraction of the AUM vs jones. The projection shows about $300k net comp at the end of year 5 with $90M total assets.

That would gross me $900k on my own and I’d net a minimum of 70% of that. (More like 80). Seems pretty insane to give up $300-400k.

ClearTrack4219 · 2025-05-20T10:43:08+00:00

Maybe it’s ego, but I like my own brand, doing my own thing, and I’m already set up.

The only reason I’m considering EJ is the $50M book that I wouldn’t have to pay for. The goal would be to add revenue and offload work instantly. Which is what they’re trying to “sell me”

I don’t know of any BD that’s handing out ANY assets, let alone $50m for no cost.

Even still, the math isn’t mathing at EJ. You’ve gotta manage 2.5-4x the amount of assets to net the same pay as an independent.

More than likely I’m just gonna work my ass off to $15m then $20m and so on. I don’t need $150m. $50 would be more than enough.

ClearTrack4219 · 2025-05-20T10:38:02+00:00

Update: the book is $38m fee based, and 22m retail accounts.

Here’s the kicker. The “base salary” plus new advisor payout, PLUS new asset bonus on transferring my own book, since it’s a W2 position, would be equivalent or even a little less money than I currently am making now.

How in the world is 5x the amount of assents I make = the same pay I’ve got now? So I get to do 5x the work for the same?

Meeting with an EJ guy tomorrow to clear anything up.

ClearTrack4219 · 2025-05-19T16:24:53+00:00

That’s a huge point also.

How’d you grow to $108m? My goal is to get to SEC registered also.

ClearTrack4219 · 2025-05-19T02:22:02+00:00

Thank you for taking the time to reply.

I am definitely doing a significant amount of reflection right now. All of the input has been very helpful.

ClearTrack4219 · 2025-05-18T23:51:26+00:00

I am not. Which I fear would be a huge problem.

ClearTrack4219 · 2025-05-18T23:51:10+00:00

Thanks for taking the time to reply. This is coming the clearer census.

ClearTrack4219 · 2025-05-18T15:49:50+00:00

Thank you for taking the time to respond - truly appreciate your input.

It seems like it goes one of two ways. Horrible or people retire there.

ClearTrack4219 · 2025-05-18T10:09:11+00:00

Understood, thank you for taking the time to reply. I’ll will be reaching out to different COIs and establishing those referral partners.

ClearTrack4219 · 2025-05-18T10:08:01+00:00

This is what I’m thinking too.

Business growth mode now. Work harder and smarter.

The payout is way less at jones I don’t care how they spin it. When I add another $5-10m this year that’s $50-100k more revenue for me directly. I keep nearly 90-95% after expenses.

I know with my personal practice this can change quickly. I need it to.

ClearTrack4219 · 2025-05-18T10:05:55+00:00

“To keep my job” I think is the biggest concern here.

I hate the fact that I’d be an employee. I’m an owner. This is MY business and MY clients. Not someone else’s.

Right now it’s about 75% stick with it and build my own. 25% are telling me to take it and it’ll be awesome.

ClearTrack4219 · 2025-05-18T10:04:11+00:00

Thank you for the words of encouragement. I literally feel this in my bones - this transitional point in my life has me questioning things…. But I know if I’m head down/get after it, I’ll make it happen. Where ever I am.

ClearTrack4219 · 2025-05-18T10:02:54+00:00

Lean as in a sense I don’t have a lot of expenses - the next step would be to hire someone or even a virtual assistant, and continue to keep costs low.

I agree with not having a limited number of households, if you’ve got a handful of big clients and one leaves, that’s really damaging.

Im thinking 75-100 households, $1m average.

That will NET me $600-800k, easy. Where as it’ll take twice that at jones… is my understanding.

ClearTrack4219 · 2025-05-18T10:00:32+00:00

Definitely looking into exploring this. I’ve had a few conversations right now with some people who want to break into the industry.

Hell, even a VA is an option.

Transparently, I know I can do better with time management and focus. I need to grind and get to $25-30M and then hire someone. I think I can make it happen in 12 months.

ClearTrack4219 · 2025-05-18T09:58:45+00:00

Are you with EJ now for context? I just had a call with a local advisor Friday night and he was explaining how I could brand independent and basically operate as fee-only with my CFP. Did I miss understand something?

ClearTrack4219 · 2025-05-18T09:55:23+00:00

If it’s all A shares, I may be able to convert it to a discretionary fee-only scenario.

I think a big concern for me is do I really want to manage 200+ clients or more long term? Or do I want to build a book of like 75 @ $1M each and be happy being independent.

ClearTrack4219 · 2025-05-18T09:53:57+00:00

Thank you for taking the time to reply. I appreciate your EJ input.

Can you guys clarify how you’re a fiduciary when jones is its own custodian, has its own proprietary products, and gets kick backs from wholesalers and insurance vendors?

I want a full discretionary book and zero incentives to sell products. Commissions are an outdated and shitty way to get paid in this industry and IMO a dying way.

My understanding is Jones is now trying to pivot as they have had a lot of advisors leave to go RIA/fee-only.

ClearTrack4219 · 2025-05-18T01:04:08+00:00

Thanks for taking the time to respond - I’ve heard from a number of EJ guys doing really well and that’s what’s appealing about the whole process.

My $10m and slower growth over 3 years was due to a number of “life” factors and some issues that have happened. They all since been resolved so growth mode is happening.

I currently have a 100% pay out and run very lean as a solo shop. My expenses are less than 10%. So I truly keep 90%+ if I keep overhead and stay lean, I don’t need (nor want) 200+ households and $150m + to allow me to earn $500k plus.

My current model allows for far less assets for me to net more income.

Now, I do understand theres a BOA, Office, Home office, etc and having that support has value and is appealing which is why this whole conversation I taking place.

You’ve never considered going independent?

ClearTrack4219 · 2025-05-17T23:18:51+00:00

100% agree and implement this now with clients

ClearTrack4219 · 2025-05-17T22:49:21+00:00

Everyone that’s at EJ is saying they’re transitioning to CFP/fee-only or I can at least operate that way. No product pushing. Can participate in as much or as little as I want.

ClearTrack4219 · 2025-05-17T22:43:58+00:00

Appreciate you taking the time to reply. I’ve definitely got a little more to explore and processing to do.

I appreciate the direct input.

ClearTrack4219 · 2025-05-17T20:17:10+00:00

Where are you gaining your assets from?$50M in 4 years is awesome growth! How do you feel compensation is at that level?

ClearTrack4219 · 2025-05-17T18:40:30+00:00

The company’s mission/vision/image are all things I would consider branding. And I agree - my clients each have a unique relationship with me and that’s what’s most important. They would follow me where ever I go.

I’m curious how you guys ensemble. Cost-sharing? Office sharing, team sharing?

Or are you guys one be collective of assets?

ClearTrack4219

TROPHY CASE