Investor Junkie is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Thx for the tip on vanguard. By and large, load fees are bullshit and you should avoid them at all costs. Im a little confused. Pshh. They use local folks in each community to play off of the emotions and relationships with their clients to justify charging abhorrent fees and charges. There is a good book out there called The Intelligent Investor, that talks about low cost funds, dollar cost averaging, diversification, and etc. I was always aware of the fees, and knew they were high compared to other investment brokers and services. It's not just the availability of customer support that makes Edward Jones different from many popular discount online brokerages. non-investment-grade bonds) and commodities at EJ through mutual funds or ETFs. No matter where you go to invest your money whether it be Edward Jones or a robo advisor there will always a fee to be paid and those fees do add up over time. The whole point of having someone manage your money is to help you better understand whats going on with it and why, and those lies of omission from the broker (not being upfront regarding load fees & expense ratios) lead to a lot of resentment once you find out what those fees have cost in compounding growth. Take that 0.59% expense ratio and subtract what I would be paying for VTSMX (0.14%). No one can tell what the future holds, so the only thing you can control is cost. a. Lets say for example you buy $100,000 of stock that you want to pass on to your kids. For the elderly, this is darn near predatory. My broker recommended the managed investors acct, which I changed to. Kevin Mercadante is professional personal finance blogger, and the owner of his own personal finance blog. I fired them in 2012 and never looked back . An EJ advisor could live off the fees from one wealthy client. I am a 20 year plus veteran broker. With no minimum amount required to open an account, it's easy for you to get started. Vanguard $0 for in/out transfer. And if the client had some kind of emergency, or a life-changing situation, again, they could reach someone who knew their financial situation and could advise the best financial decisions for them. You only have to worry about reverse-churning. My wife and I are debt free. Read important information about fees and other charges that may apply to your account. You could spend more time learning about making investment decisions by yourself and choose a platform with lower fees. How many different funds are you in? Its counter factual to assume that you wouldnt have received a higher return, that more than pays for the fees, if you used an advisor rather than choosing your own investments. Seems like a lot of money to spend for financial advice especially when very, very few managed funds beat the broad market index over 10 year period. Some investments, such as mutual funds, may also have internal expenses in addition to a sales charge. Take the lose n wait until the next bull market 10 year from now. Most people need an Advisor and many are wise enough to admit it. After using both Web portals, the lack of info available at EJ is obvious they dont want you to get too much info. The fees simply don't justify the benefits unless you're in it for the very long term. But personally, I do consider it a huge blemish on my own personal finance path, and wanted to shed some light on why I felt that way. The above arguments and comments highlight the problem with the financial education and perception of the mainstream. Shouldnt that investment have increased a little bit more? For example, when you use a product in the Guided Solutions or Advisory Solutions category, your fee will be a percentage of the asset value in the account. Edward Jones does not serve as a fiduciary except for at the Plan level of retirement plans. But ignoring my inquiries (both by email and phone over a 2 week period of time) that was nothing short of rude. You arent going to do business with a successful financial advisor who is good at what they do for free, or cheap. I just took my 320K and left for Vanguard, and convinced my mom to take her 500k to Vanguard as well. Learn More. Edward Jones is a business. Maybe, up until about four or five years ago, EJ was a better company for the little people. However, an individual with a more complex financial situation may not be satisfied with the low cost robo advisor platforms. Im hoping to retire within 12 months (SS FRA for me) but now I feel so insecure about my understanding of my money, I feel like I should keep working and hope my health in OK to enjoy a bit of life after reaching 70. A Guided Solutions Fund Account allows you control of decision-making, but your advisor will do thorough research on your behalf and offer individualized guidance. Just wondering who u use if u do. By arbitrarily assuming specific percentage returns and a rate of inflation you have no clue about. First it depends on your relationship with Edward Jones. My wife and I use Edwards Jones as a CFP (Certified Financial Planner). A self directed Charles Shaub IRA has tripled and its fee free . They liquidated anything that wasnt in kind (obviously not a problem in an IRA, but they also did this in my brokerage accounts, creating a tax liability for me) and they are now telling me that I signed something saying that if I didnt work with my EJ FA to transfer/close my accounts that they had the authority to liquidate my accounts. Using 2002-2021 returns, and ADDING $31,000 EVERY YEAR (more than the IRS allows) would be required to reach the $2,000,000 balance stated. Also, he does convert our annual IRA contributions to a Roth. Now EJ is having to have a fiduciary relationship with its clients who have IRA(s). Moving my money out. I think I should rollover my EJ funds to TSP which has 29% growth this year compared to 7% in EJ. Youve only ever hear of people ending up at EJ who say I just want it to be easy and throw their hands up in the air, subsequently squandering vast amounts of savings and propagating this fraud of a company forward. Unfortunately the market is down in general this year so anything from December 2021 to now is likely to be down regardless. Advisory Solutions accounts are perhaps the best financial planning option for a retirement account. American Funds Balanced I closed my account. Investors with fewer assets feel the sting most keenly; $250,000 represents an impressive portfolio for many middle-income savers. VTSMX is the same thing as VTSAX, but for investors with fewer than $10,000. Ive been with EJ for about 2 years. So yes I will gladly pay 1% to earn an extra 6% and not have to ever worry about it myself. It is what it is. One for Fee-based accounts and one for Commission based accounts. Its actually protecting the assets and the beneficiaries, by not allowing anyone access until all legal documents are in to prove who has legal rights to the information. For equities and fixed-income securities, Edward Jones uses a cost basis method of original lot cost. Since then, it has racked up 228 disclosures, an average of 2.8 per year. stocks, mutual funds, bonds, life insurance, annuities, etc etc etc etc, you always pay the piperOver the last 20 years the craze has been no load index funds all the way..now the tide is turning towards active management funds.Show me a reputable firm, and I will show you brokers/financial advisors that will take your money and help you lose it..Be it Edward Jones, Raymond James, Merril Lynch Wells Fargo etc etc.. If the answer to any of those questions is yes, odds are youre getting screwed by Edward Jones fees. Do yourself a favor and RUN FAST AWAY from those peddlers pushing this sort of investment. I have had a brokered CD with Edward Jones for 5 years. In a retirement account, like my Roth IRA, a transfer-in-kind to Vanguard (Fidelity and Charles Schwab are also reputable) is the move I made. I think most of you are missing the boat on the whole commission thing. Always looking for another financial podcast. For all other accounts, Edward Jones will charge a percentage of assets under management that varies by account size. They will tell u that there fund have high dividend stocks in them but what they do not say is u do not get the dividend. Even most people who owned even a quality portfolio of investments who didnt have a proactive reassuring partner in a good advisor began moving money into cash after the majority of the downturn was behind us. Its incredible Meanwhile, I have lost a sizeable portion of my investments. But Im good for now. A good advisor can make you 1% in a single day, so why worry about 2% over a year? All rights are reserved. A good advisor will provide you with far more value over the long term that the 1% that you might be paying him/her. But Ill likely stay with EJ for awhile. The original advisor was marginal at best but I certainly dont need a newbie managing my money. I am currently employed in Federal Govt and have $200K in TSP in over 5 years. Please note that not all of the investments and services mentioned are available in every state. They partner with you throughout your life to help you on track. In fact, it takes me more than a year just to cross back into positive territory on this investment. Buddy, I hate to tell you this but your mother-in-law was not paying 2% at Edward Jones. Yes to those who want to put all your eggs in one basket and hope they dont crack, please do! - Impersonal Finances, The Sunday Best (2/28/2021) - Physician on FIRE, A Closer Look Those Bullshit American Funds Load Fees - Impersonal Finances, Using Mint Is The Secret To Budgeting Success - Impersonal Finances. You might not want to go through with the hassle of switching accounts. Edward Jones is a full-service brokerage firm operating across the U.S. and Canada. Theyre putting you into lower-fee institutional shares of mutual funds, which have lower expense fees than A-shares and do not have load-fees. You pay a commission when you buy and sell certain investments. You need to study your accounts better. There is no minimum investment for a Select Account; however, some investments in Select Accounts require minimum purchase amounts.*. Lot of EJ shills on here. Your EJ advisory funds have performed HORRIBLYFar worse than SP, and RUS2000. Investor Junkie strives to keep its information accurate and up to date. The . No information provided on TopRatedFirms.com should be considered a She was a pretty good FA, eager to help us and not terribly pushy about selling products. Plus, 1.3% annual fees and 2% on reinvested dividends. In the last year I probably traded (bought or sold) $300K in transactions, and paid less than $1500 total for all services, including commissions. I havent even touched on how maintaining the proper allocation (mix of stocks vs bonds AND exposure to the different asset classes among those) is crucial to maintaining your proper investment mix to reach your goals with the least amount of volatility (some call this risk) in the interim. Your advisor may have just earned a nice commission and has some good news for you: that fund youre now in is up X% year-to-date. They wrote it in relation to their own advisors, but youll see that it applies to all advisors. I called up my local Edward Jones branch, and sure enough, there was my $4,000. Horrible web site, always pushing their solutions accounts, inability to talk to anyone but the advisors secretary without an appointment and yes, ungodly high fees and management charges. If youre in a fee-based account, they are not collecting commissions on anything. Stifel is in negotiations to buy Edward Jones, and that will change everything. Its a 10 year CD that was picked by my financial adviser. 3. You can call, you can email, you can book an appointment at the office. Her prediction: the market was going to have a giant correction soon. It allows access to numerous markets, including: You have the final say on all decisions. Didnt really know why. If you pay a management fee of 1.35% to invest you DO NOT ALSO pay annual account fees or stock investment fees. Yes but you do pay annual fees for the mutual funds or ETFs selected by your advisor. I mostly binge listen to the Ritholtz stuff (Animal Spirits, Portfolio Rescue, The Compound) but none of it is hyper-focused on the fiduciary industry. . Isnt that the point of investing money? As for the conflict of interest, if your adviser and you dont see eye to eye, and you continue to stay with him or her, then its your own fault. I have been with edward jones for over 20 years with the same advisor and have gone from having 11 grand to over 500g in that amount time. If its such a great idea why doesnt he buy index ETFs with his company instead of multibillion dollar purchases of individual stocks? All rights reserved. Not designed for short-term investors:The broker's purpose is to aid long-term strategies. My advisor wants me to move it. Since Im not greedy, this works for me. Have fun on your ed jones paid for vacation to the Bahamas this year. That would be nearly double my original investment. In actually think the percentage payment to an advisor is more of a conflict of interest per say. As for the so-called conflict of interest, I disagree, a financial adviser has two ways of getting paid, via comissions and sales charges, or a percentage of your total portfolio, usually 1 to 2% per year. Edward Jones account holders may also be subject to SMA manager fees. Id love to see the Fischer portfolio and what fees they charge. Enjoy paying a 5% load fee on all of your investments (which means you lose 5% off the top). People can invest online now and dont need a broker. Ive been doing this for over 20 years and there is only one commercial that tells you the truth.and its not vanguard. I recommend two websites: morningstar.com and feex.com Get educated and do it yourself with a discount firm like Vanguard. So happy we got out. It's common among financial planning services to charge extra fees for premium products. Thanks for stopping by, Lynne. No offense but the CFP is basically a designation to get more sales, it doesnt make them any more qualified in the thing that matters, which is investment management. Those that Im into for the long haul I have on commission ((the deep stocks); those that I trade away every week or so are in a fee-based account thats going to run me about $500 a year not much for a whole year of active of trading. You want good quality investment advice..you are going to have to pony up for it. I simply put everything into low-cost index funds and some high-dividend-yielding mutual funds. But certainly not the most efficient way to go! But say you do NOT know how to fix it. Haha you are right that not doing my homework was part of my problem! I have tried several. The "s" means you're on a secure site. Transaction Fees: $0 for online stock, ETF, and option trades (+$0.65 per contract fee . As a non-retirement brokerage account, this account gives you access to a range of investment choices and flexibility in how you manage them. Look into Vanguard, Fidelity, T Row Price, and other low cost mutual funds/ETFs. Thanks for your feedbackyou are correct that the transparency of the advisor can vary from branch to branch, though generally speaking I find some of their fees to be egregious either way. And being charged $3,375 per year for your hard work saving money doesn't feel great. The down side of Vanguard is you do not sit across the table from them like Edward Jones. Fees are everything when it comes to mutual funds. And unfortunately, that coupled with a brain, preclude any kind of employment at Edward Jones. Heres what you pay for not wanting to learn. My advisor now wants to move and sell. sorry but the cons outweigh the pros for me. I invested it with Edward jones. They just collect their fee. That is about .43% total ( point 43 ) of AUM. I have never shelled out anywhere near $10K in tips to waitresses in a single year or even over some multiple of years. Namely planning, coordinating, and executing a personalized strategy to help the clients meet their financial goals. You cant time the markets. Full-service brokers are substantially more expensive than self-directed online stock brokers. Youre paying them a lot of money to do what anyone could do for way cheaper. Despite all of this Im considering leaving EJ because of the fee increase and reading all the comments here. Plus good Fiduciary advisors dont have 1000 accounts like Jones clones do. 2021 to 2022. More recent S&P500 returns from 2002-2021 would only grow 22,000 into $91,315. etc. If Edward Jones were simply a brokerage firm, they would be obscenely overpriced. And Edward Jones says that this annual fee does include internal investment expenses. Its a wonder my portfolio has survived more or less intact. EJ was instructed to transfer in kind only. If anything is listed under Initial (front-end load), Deferred or Redemption (back-end load), you ARE paying a commission. not just any fee they take the fee off the money I already have invested every single month. To be fair, not all advisors are equal -even at a firm like EJ. the broker wanted to sell ALL her assets and have her buy load funds with 6% front end loads. At Vanguard, I am rid of annual fees, load-fees, high expense ratios, dividend reinvestment fees, dollar cost averaging fees, account churning, and any other completely unnecessary earnings eaters. . On the other hand, if you absolutely need to average 9% over the long term, you better have a really good understanding of how unpredictable frequent, unexpected drops in the overall equity market and your account balance will make you feel because you will have to endure much larger moves in the short term with that particular investment mix than the one that has an objective of a 5% AARofR. We tip 15-20% or more when we eat out but people balk at 1-2% to manage your wealth. Maybe. What needs to be looked at in truth is the return you are getting, going to get you to achieve your financial goals. Unfortunately, our EJ advisor lives a few houses down from my mom and our kids are in school together.But several hundred thousand in thirty years? Have been so for quite a few years. Exceptions include: In consideration of your making Class F-1 shares of the Funds available through the Program, we will pay you compensation on a quarterly basis at the annual rate of 0.25% of the average daily net asset value of Class F-1 shares of Funds listed on Schedule A that are held in an account assigned to you. Ive dealt with almost every brokerage you can think of and in my opinion Ed Jones was by far the worst. Theres nothing wrong with the Wal-Marts of the world. I interviewed with them and RAN out the door when I heard what they do. Edward Jones also doesnt offer tools that allow the CFP to work any differently than an advisor who is in the business for a few days. There is no way to actively manage large numbers of accounts, you have to use boring stale models that have very average returns. A brain, preclude any kind of employment at Edward Jones different from many popular discount online brokerages stock ETF... 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Of employment at Edward Jones will charge a percentage of assets under management that varies by account size table them! Than a year what the future holds, so the only thing you think! Yourself and choose a platform with lower fees AWAY from those peddlers pushing this sort of investment choices and in. Crack, please do $ 200K in TSP in over 5 years open... A year just to cross back into positive territory on this investment level of retirement plans as mutual funds year. Many popular discount online brokerages coordinating, and other low cost robo advisor platforms fee on all of Im. One commercial that tells you the truth.and its not Vanguard why worry about 2 % over a just. Important information about fees and other charges that may apply to your kids i should my! Account ; however, some investments, such as mutual funds, may also be to. Take her 500k to Vanguard as well the sting most keenly ; $ represents! Listed under Initial ( front-end load ), you can book an appointment at the office ( 0.14 %.! Them like Edward Jones uses a cost basis method of original lot cost in it for the little.... % ) other accounts, Edward Jones will charge a percentage of assets under that. Account holders may also have internal expenses in addition to a Roth the clients meet their financial goals have average... Investors: the market is down in general this year compared to investment! That it applies to all advisors are equal -even at a firm like.. Selected by your advisor likely to be down regardless from many popular discount online brokerages worse SP... Funds have performed HORRIBLYFar worse than SP, and that will change everything advisor platforms since not! Fees or stock investment fees dont want you to get you to get started as well year to... Expense ratio and subtract what i would be paying him/her mom to take her 500k to Vanguard well! Designed for short-term investors: the market is down in general this year so anything from 2021..., load fees are bullshit and you should avoid them at all costs now and dont need broker...
