Edward Jones

Edward Jones recruits heavily from my school, but I don't even know what Edward Jones is, it's like a brokerage house or something, I could internship there fairly easily but will this experience look good to investment banks?

http://www.edwardjonesopportunity.com/university/…

Doesn't sound that bad, I wonder how much this kind of job pays, I'm guessing around 35k a year which sucks.

 

Totally different industry. Other side of the Chinese Wall. Also, you're selling securities to individual people who... how best to put this... don't have a need for individualized wealth management solutions.

 
Best Response

Dude, we're all selling shit. I'm selling highly personalized products to the board and C-suites of major corporations. Guys at Edward Jones are selling stocks and mutual funds to mom and pop. Guys in GS PWM are selling individualized portfolio strategies to multimillionaires (otherwise known as HNWs). Don't be fooled by the idea of being a hardcore number-crunching analyst. The entire point of an analyst is to help sell shit. You go far enough in any portion of this business, it's sales.

So what you should think about is what kind of sales you want to do and who you want to sell to. You want to sell bond funds to Grandma or LBOs to Mr. Hotshot CEO? There are good and bad points to both.

 

"You want to sell bond funds to Grandma or LBOs to Mr. Hotshot CEO? There are good and bad points to both."

There aren't a lot of good points to selling bond funds to Grandma as your first job out of college when you could be doing something like investment banking.

 

Well put Mis Ind.

Biggest problem working as a broker is that there is substantial overcapicity in the industry. You and about 100 other advisors will be prospecting the exact same client base and there isn't much to differentiate you from everyone else because all the firms push managed product almost exclusively now.

---------------- Account Inactive
 

Buyside's right. Being a wealth manager (or broker, or IP, or IM, or FA, or whatever the firm calls them) was great back in the 80's when the market was untapped. Now it's completely oversaturated; they say the wash rate for new brokers industry-wide is over 90%. One firm I used to work for would hire 20 new brokers for every one broker it expected to keep. Many firms just hire as many as they can and let the brokers duke it out among themselves. After all, the firms only serve to gain by the competition.

Zala, I can only think of a couple of reasons one would want to do that. You might want to sell bonds to Grandma if you don't want to work too much, and if you like getting respect from your clients (but definitely not your prospects). After all, their level of sophistication is relatively low, and you are the godlike broker they've entrusted with their financial futures. On the whole, they'll listen reverently to whatever you have to say... until you start losing their money, in which case they'll call you an idiot or a fraud and go to the next broker.

Additionally, there is a serious difference in social status between a broker and a banker, on average. Sure, there are incredibly wealthy and powerful brokers with rock-solid books, but on average, bankers consider themselves to be far superior to brokers. Also, bankers tend to make far more money and have a deeper knowledge of finance and the economy. Most brokers sell a limited number of products and don't need to know much about anything but those products. Oh, and they need to pass their Series 7/63, which in many cases marks the extent of their knowledge of the field. Those who pass their CFAs are often more sophisticated.

 

I was somewhat confused by the actual duties of the positions listed on the site. Since they aren't clearly stating what the role is, then they are likely obfuscating.

The home office opportunity didn't look all that stellar. It seemed like you would be doing work on the equity and bond execution desk -- not all that interesting or challenging. If its the only thing you have going its better than nothing though.

The best brokers are very independently minded. Being a broker is like running your own small business. The top of the food chain does very well but the vast majority of experienced brokers, over 95%, make less than $200,000 a year.

---------------- Account Inactive
 

Anyone who thinks that a job with Edward Jones as an advisor is not viable experience even in the I-Banking industry is terribly mistaken. Obviously the job entails working with different clients than that of someone in the I-Banking industry but the fact of the matter is like previously stated everyone is selling a service. If you were unaware of the opening steps of becoming a financial advisor for a Edward Jones, it includes a time period in which one is paid to stay at home and study for the series 7 exam. Earning the series 7 license is an important step in advancing in not only the field of financial advising but Investment Banking as well. Along with that working for an extremely reputable company, like Edward Jones and earning a series 7 license in the process, gives you a great chance at getting accepted into specialized graduate program to then get the education needed to become successful in the Investment Banking industry. So to answer your question, working for Edward Jones as an advisor could be a great step to achieving your goal to be successful in Investment Banking. (Below are the compensation rates for the top 33% of incoming financial advisors for Edward Jones, so your estimate of 35k a year is slightly off)

Based on historical production of top 33% of new financial advisors Years Salary* Milestone Bonus New Asset Bonus Commission Cash Compensation (earned & paid in years 1, 2 & 3) Deferred Bonus (calculated based on years 1, 2 & 3) 1st Year $49,500 salary $7,000 milestone bonus $6,000 new asset bonus $20,000 commission $82,500 total

2nd Year $34,650 salary $12,000 milestone bonus $9,000 new asset bonus $45,800 commission $101,450 total

3rd Year $0 salary $18,000 milestone bonus $12,000new asset bonus $76,100 commission $106,100 total

 
AKGOLF:
Anyone who thinks that a job with Edward Jones as an advisor is not viable experience even in the I-Banking industry is terribly mistaken. Obviously the job entails working with different clients than that of someone in the I-Banking industry but the fact of the matter is like previously stated everyone is selling a service. If you were unaware of the opening steps of becoming a financial advisor for a Edward Jones, it includes a time period in which one is paid to stay at home and study for the series 7 exam. Earning the series 7 license is an important step in advancing in not only the field of financial advising but Investment Banking as well. Along with that working for an extremely reputable company, like Edward Jones and earning a series 7 license in the process, gives you a great chance at getting accepted into specialized graduate program to then get the education needed to become successful in the Investment Banking industry. So to answer your question, working for Edward Jones as an advisor could be a great step to achieving your goal to be successful in Investment Banking. (Below are the compensation rates for the top 33% of incoming financial advisors for Edward Jones, so your estimate of 35k a year is slightly off)

Based on historical production of top 33% of new financial advisors Years Salary* Milestone Bonus New Asset Bonus Commission Cash Compensation (earned & paid in years 1, 2 & 3) Deferred Bonus (calculated based on years 1, 2 & 3) 1st Year $49,500 salary $7,000 milestone bonus $6,000 new asset bonus $20,000 commission $82,500 total

2nd Year $34,650 salary $12,000 milestone bonus $9,000 new asset bonus $45,800 commission $101,450 total

3rd Year $0 salary $18,000 milestone bonus $12,000new asset bonus $76,100 commission $106,100 total

pics?
 

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