Balancing Freedom with Compensation Certainty

It’s no surprise that compensation is a leading factor when financial advisors are considering changing firms. In the AdvisorHub study on brokerage-firm culture, done in partnership with Edward Jones, financial advisors said compensation was the top reason they’d consider leaving their current firm. While going independent is tempting for financial advisors looking to make a change, it may present considerable compensation uncertainty.

In a competitive landscape, recent enhancements to Edward Jones’ compensation structure are giving experienced financial advisors a strong reason to consider moving their practice to Edward Jones. The difference? Edward Jones compensation plans are designed to set up experienced financial advisors for success, individually evaluated and providing a competitive salary based on the assets they bring to the firm.

Transitioning experienced financial advisors can own their success on day one and avoid the compensation risk of independent practice. It’s the best of both worlds – support from a home office and autonomy to grow their practice independent of firm sales goals. Edward Jones financial advisors run their own offices, set their own goals and partner with clients on achieving their financial and life goals – and compensation reflects success in those efforts.

As a private partnership, Edward Jones has long held a transparent compensation philosophy – with less complexity and fewer modifications compared to the industry – that helps financial advisors uniquely realize their potential. First and foremost, compensation is commensurate with a financial advisor’s experience and practice maturity. New plan features are designed to optimize the financial opportunity and are tailored to support an individual’s unique practice. Key features include:

12 Months Salary: The firm will provide salary for the first 12 months based on the portability of the financial advisor’s previous assets. All commissions and fees are additive, so it closes the gap between prior year income and the commissions earned during the transition.

New Asset Compensation: Edward Jones will compensate financial advisors for new assets gathered and brought to the firm for the first 24 months.

Bonus Compensation: Financial advisors are eligible for profitability bonuses on their start date, which are paid on a trimester basis.

No “Loans”: There are no loans in the Edward Jones compensation package. No upfront or back-end payments requiring certain production levels. No claw backs and financial advisors are not contractually bound to the firm for the long term.

This “no ceiling” compensation approach is why some come – and stay. In fact, since 2016, approximately 80% of financial advisors who joined Edward Jones from other firms remain today.

For experienced financial advisors considering a transition, Edward Jones balances freedom and flexibility with the certainty of a salary. Edward Jones financial advisors are rewarded for their hard work in the short-term and provided with the support they need to reach their full potential long-term. Learn more about compensation for experienced financial advisors at Edward Jones.

Considering a Financial Advisor career with Edward Jones? Hear from some of our current Financial Advisors about the position and the career path they took to build a successful practice.

Mike was a Certified Public Accountant prior to becoming a financial advisor with Edward Jones. He liked the work, but was growing weary of the hours and travel away from home. Getting ready for marriage and starting a family, he knew things had to change to provide more work-life balance. He had always wondered about becoming a financial advisor but didn’t have a lot of client facing interactions outside of conducting audits. After making the change, he realized how meaningful it was to build client relationships and the satisfaction of being present in his family’s everyday lives.

What were you looking for in your next career?

“I really wanted to stop traveling so much and the tax season hours were getting unbearable. When I wanted to start a family I knew a change had to take place so I explored becoming a financial advisor. I really liked the business model that Edward Jones offered; running my own business with the support of the Home Office, but not having someone hanging over my shoulder.”

What are some talents that you carried over from being a CPA, which helped you become a successful financial advisor?

“Having the financial and tax background gave me more credibility with clients from the very start. I knew what I was talking about, and they appreciated that. I also had comfort talking to people, whether they had large investments or were just starting off; those discussions were enjoyable to me.”

What stands out most to you about being an Edward Jones Financial Advisor?

“It is hard work, but being a CPA made it an easy transition getting my business up and running. I took a leap of faith, most of the time CPAs make good money and I had to focus on the long term, be patient, but in the end it all was very much worth it. I have the joy of dropping off and picking up my daughter from school, there’s nothing better than being present in her life. I also didn’t anticipate the depth of relationships I would build with clients as an FA vs. CPA. It’s great when people call you up for little things and have questions about making purchases; they rely on you and trust in you, not just in their investments. I have awesome client relationships.”

If you’re ready for a challenging yet rewarding career as a financial advisor, you can learn more about the opportunity or apply now to connect to a recruiter near you.