THE FINANCIAL ADVISOR OPPORTUNITY Financial Advisor Compensation and Benefit Fact Sheet Competitive Compensation1 Bonuses We know what drives you – we’ve tailored an awardwinning career experience around it. Compensation is a huge part of your professional satisfaction, and we’re proud to say that at Edward Jones, your earning potential is without limit. Our performancebased compensation program is designed to support Financial Advisors as they transition careers and build their professional practices. You have the potential to receive several bonuses throughout the first few years while you build your professional practice, including: Compensation may include: •N ew asset bonuses paid monthly, based on the accumulation of new assets. • Trainee pay • Salary • Commissions • Bonuses • Profit sharing • Travel program Trainee Pay and Salary While studying for your licenses and training, you will be paid on an hourly basis. As you begin building your professional practice, Edward Jones provides a salary to help create stable earnings in the early stages of your career. Your starting salary as a new Financial Advisor is determined by your experience and income prior to joining the firm. Your salary amount will adjust as you move toward compensation based more on commissions and bonuses. Salaries are adjusted based on performance standards for the first two years. By the third year, you typically have built a steady book of business and will transition away from a salary.2 Commissions During your first three years as a Financial Advisor, commission payouts will vary based on years of experience, the state in which your branch is located and the type of product. Commission payout ranges are generally as follows: Year 1 Year 2 Year 3 Year 4 and beyond 18%–20% 22%–25% 27%–30% 36%–40% • Bonuses for obtaining licenses and completing training. •M ilestone bonuses paid every four months to Financial Advisors whose performance is 75% or more of standard. Financial Advisors who are at 100% or more of standard may receive an enhanced milestone bonus. •D eferred bonuses earned and paid every four months in years four, five and six, based on new assets gathered in the first three years. •P rofitability cash bonuses earned and paid by trimester, based on branch and firm profitability. Profit Sharing Each year, the firm shares a portion of net profits in the form of profit-sharing contributions to your retirement account. Once a contribution has been posted to your account, it is immediately 100% vested. Travel Program At Edward Jones, you have the distinct opportunity to participate in business diversification trips. This popular program recognizes and rewards those who build a strong book of business. These programs promote knowledge-sharing in an atmosphere where Financial Advisors can relax and recharge. In recent years, approximately half of our nearly 12,000 Financial Advisors have qualified for our diversification trips. 1 The details of a new Financial Advisor’s specific compensation may vary based on his or her individual circumstances. 2 Edward Jones ensures that each Financial Advisor’s compensation meets or exceeds the required minimum guarantee under federal and state law. Benefits The Partnership Opportunity Edward Jones provides access to a comprehensive package of benefits. Standard benefits, which are provided by the firm at no cost to you, include basic life insurance, basic accidental death and dismemberment insurance, income continuation plan for short-term disability, profit sharing and tuition reimbursement. Optional benefits include medical coverage (with an opportunity to fund out-of-pocket medical costs via a Health Savings Account), as well as: In addition to your compensation package, Financial Advisors in the past have had the opportunity to invest in Edward Jones’ parent company, The Jones Financial Companies, L.L.L.P., a partnership. Historically, limited partnership offer selection has been based on the minimum requirements of running a profitable and ethical branch. After meeting these basic criteria, other considerations are leadership and your assistance to others in your region and the firm. Today, nearly 15,000 Edward Jones associates are limited or general partners. • Dental plans • Long-term care insurance • A vision plan • Health care reimbursement account • Long-term disability • Supplemental accidental death and dismemberment insurance • Dependent life insurance • Dependent day care reimbursement account For more compensation details, visit www.careers.edwardjones.com. • 401(k) plan • After-tax plan and investment savings plan The Financial Advisor bears a portion or all of the costs of optional benefits. Sample Compensation Schedules (based on previous annual income of $90,000) 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 $7,000 $6,000 $20,000 $82,500 $12,000 (earned & paid in year 4) 2nd Year $34,650 $12,000 $9,000 $45,800 $101,450 $18,000 (earned & paid in year 5) 3rd Year $0 $18,000 $12,000 $76,100 $106,100 $24,000 (earned & paid in year 6) Total $84,150 $37,000 $27,000 $141,900 $290,050 $54,000 Based on historical production of middle 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 $44,550 $4,000 $3,000 $9,000 $60,550 $6,000 (earned & paid in year 4) 2nd Year $21,450 $6,000 $4,500 $25,400 $57,350 $9,000 (earned & paid in year 5) 3rd Year $0 $9,000 $6,000 $47,600 $62,600 $12,000 (earned & paid in year 6) Total $66,000 $19,000 $13,500 $82,000 $180,500 $27,000 *Schedules are based on a previous annual income of $90,000. Earnings do not take into account profit-sharing contribution and FICA contribution. Notes on calculations: Net commissions for each Financial Advisor are for the end of each year as a licensed Financial Advisor. For instance, in year 1, Financial Advisor net commissions are from the first 12 months as a licensed Financial Advisor. In year 2, net commissions are from months 13–24 as a licensed Financial Advisor. Edward Jones is an equal opportunity employer, committed to developing an inclusive culture. We believe that diverse ideas, opinions and perspectives are essential to building a strong business. ITEM# 8033 TAL-7298E-A EXP 30 SEP 2014 © 2014 EDWARD JONES. ALL RIGHTS RESERVED.