To be fair, not all advisors are equal -even at a firm like EJ. You missed his point: hes doing what he wants, has advice, said his fees were pretty good, and hes happy. There is also no potential to churn accounts. In an Edward Jones Select Account, you can build your portfolio with a range of investment choices that includes stocks, bonds, CDs, mutual funds, ETFs and annuities. There is no magical investment ferry who will make your investments perform at some outperforming level (outperforming what, by the way?). We dont always see eye to eye with everyone but good communication is key to a good working relationship. If you are attempting to access a new account, the account must go . All Edward Jones fees are subject to change without notification. Lastly and advisor can be just as emotional driven as the investor so you have a case of the blind leading the blind. It should have been a thank you card! Ive been with EJ for about 2 years. Knowing nothing about money, I assumed I was handing my hard-earned income over to the most capable and reputable folks in the business. I recently reviewed an account that was fee-based and this is what I found. An element left out of this discussion is the integrity of your FA, regardless of the brokerage firm involved. The cold hard fact is Edward Jones is very expensive and doesnt provide great service if you dont have very much money. These depend on the type of account you choose. Use a low cost managed account if you need assistant and financial planning advice. The above arguments and comments highlight the problem with the financial education and perception of the mainstream. Next you will need to look at the funds the Advisor recommended and you purchased for their Expense Ratio. Call Vanguard and let them transfer your money out. If your investment included a back-load fee, youll of course have to pay that, too. You may also consider a target date fund that rebalances your stock/bond allocation as you near your target date of retirement, which will include a slightly higher but still very manageable expense ratio. Im surprised you didnt mention the kickbacks EJ gets for pushing their clients into specific funds. Referrals from those you trust, with nothing to lose or gain if you do or dont follow their advice, is the best kind of referral. pros 1. Ive dealt with EJ for most of my life and finally decided to educate myself. *Certain brokerage accounts may not be part of the Select Account program. Plans provided by Edward Jones. Temporary declines cannot be avoided over any long term cycle. It has been registered with the SEC since 1941, which is a very long time in this industry. My go-to trusted Fiduciary Financial Podcast (and Ive listen to many). The problems came after my dad died and I lost my family EJ advisor. Their high fees are guaranteed whether you make money or not. I see from this rude post, from an Edward Jones salesman, that Ive made the right decision. Did they advise u to get out. Edward Jones will tell you anything and everything to get your money and your children money. I am guessing far worse, especially when adding in the 5.75% load fees (that come out of your investment). At any given time, 75% of passive funds will outperform. Thats what you are paying them to do. No matter where you put your money i.e. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. I could go on further, but I know this is already a long post. Instead of set-and-forget index funds like VTSMX, actively managed financial services companies have been known to hop in and out of various fundsat the expense of the client. Should You Pay Off Your Mortgage or Invest? Instead, I had just over $5,000 after 10 years in the market. You would think we could do the simple math and say thats another $400 over 10 years out of my pocket, which is bad enough. What did they do instead? Understanding How We Are Compensated for Financial Services (PDF) Did your advisor tell you to take a step back this week and get more conservative? Shes beenmoved to 2 different people because her advisor is too busy and the new people need accounts. You get what you pay for. This type of IRA would potentially have an IRA fee depending on your balance at Edward Jones. That fund you mentioned is 9% YTD my Roth IRA through a FA I pay 1% on is doing 15% after fees. We tip 15-20% or more when we eat out but people balk at 1-2% to manage your wealth. Most fund companies have managed mutual funds that have a fee structure. Fees are not the number one determinant of returns. These article is missing vital information off the Form CRS about their fiduciary arrangements, and many comments have no experience with EJ or its experience from at least 10-15 years ago before the modern fee-based account programs were setup. Personalized service: Most platforms in the financial services industry offer very limited customer service. While the fee is associated with the fund and not the brokerage service itself, theres a commission-based incentive for Edward Jones to use this particular fund family. I am impatient and my FA is holding the reigns (sp). For me, I would consider that a VERY steep price to pay. Thanks for stopping by, Lynne. Transactional accounts are a joke, you can trade stocks and etfs and many MFs for free at Schwab, TD, Fidelity, etc. The services offered within this site are available exclusively through our U.S. financial advisors. First of all, 0.5% on a $10M account is $50,000 per year! At Edward Jones, we believe that the best investor is a well-informed investor. Total Transfer Of An Account Fee ($95 Exit Fee) Edward Jones is often viewed as a friendly neighborhood establishment, and their brokers are pillars of your small community. Get educated and do it yourself with a discount firm like Vanguard. Your broker probably wont point them out to you. You're in the Right Place. This means that their advisors aren't legally required to put their clients' needs ahead of their own. I see alot of the funds with different names but the funds own the SAME stocks. I pay it fwd by teaching young people how to avoid the dreadful advice and the totally unsuitable proprietary loaded products pimped by people like EJones, Ameriprise, Goldman Sachs, Voya, Affinity brokerage models, Betterment, Thrivent, etc etc. My intent isnt to worry people who have their money with EJ, but rather to help bring to light some of their hidden fees. You need to study your accounts better. Edward Jones' U.S. financial advisors may only conduct business with residents of the states for which they are properly registered. While this may feel like it risks your investing in an industry that causes a conflict of interest for you, your advisor will take note of any options you'd rather avoid and respect your decisions. Edward Jones is a full-service investment firm that provides advisory and money management services. You simply set it and forget it. . You dont have to like Edward Jones but I find the people that I work with and for to be very conscientious, hard working and honest people. They dont they do nothing but churn your accounts every 36 months and get commissions. It scales down from there, reaching a rate of 0.50% for assets valued over $10m. For that amount of money people real should take the time to learn about investing. Select Retirement Account: $5,000 in individual retirement assets or $10,000 for purchases of annuities; Advisory Solutions Fund Model: $25,000; . Lot of EJ shills on here. THEY ONLY WANT TO PUT MONEY IN THIER OWN POCKETS 1) EJ has always had an annual fee for IRAs, unless you have over 250k invested and then the fee is waived. This is fact not opinion. What needs to be looked at in truth is the return you are getting, going to get you to achieve your financial goals. Vanguard likes to tout its low fees. 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. And of course, dont worry about that pesky fiduciary duty to your clients, you dont have one! Getting your moneys worth has nothing do do with your portfolios value not dropping during market corrections. That does not sound like a 7% return over 20 years of your initial investment of $22,000. As someone below saidGet a book and learn. American Funds Income, Hartford Funds Growth would you not want to of sold your account into a money market then reinvest 2000 point lower? For some reason, the problems at EJ seem much more acute lately. Hence the name of the book. I have been with EJ for 20 years and with the same FA. I was young and didnt even know what doing my homework even entailed. Not to add insult to injury, my last part of the EJ saga is almost the worst: my advisor gave my account (worth more than what most people have) to a trainee who doesnt know how to even make trades. Or if you were in a fee based account previously (where there was a percentage charged monthly) and then switch to a commission based IRA and now the fee is being charged. Theres nothing wrong with the Wal-Marts of the world. For equities and fixed-income securities, Edward Jones uses a cost basis method of original lot cost. Regardless of the firm its all about the adviser and your relationship to that adviser. Maybe. $25K-49K 5% "https://" at the beginning of the website address, or URL. Why Do California And New Jersey Tax HSAs? Four Edward D. Jones & Co. customers have filed a class-action lawsuit against the company and its executives, asserting that its aggressive promotion of fee-based advisory accounts is an illegal . When reviewing fund options, youll see many expense ratios in the 0.50% to 0.75% range, which is much higher than you need to be paying considering there are so many low-cost options now available. As long as your individual advisor is doing their job that should easily be made up by the flexibility of the new account. Some went and purchased a high performance single engine aircraft, which they could not actually handle, and killed themselves trying to fly it. Even on commissionable accounts, they can get tagged as a fiduciary unless youre clearly acting outside of their recommendation. 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. Specifically, firms like Betterment or Wealthfront are suitable for individuals who don't have complex investment portfolios. The 0.59% annual expense ratio amounts to $23.60 out of that $4,000, but that amount will only grow as the account does, while the $40 flat fee will make up less of a percentage of my overall accountprovided my account actually does grow. They serve people in their niche very well. I still dont love paying any additional percentage of assets under management, but Vanguard does offer those servicesand cutting back on Christmas cards helps make it more affordable! Good advice. Im a former Pilot, and this argument reminds me of the Beech Bonanza, nicknamed the V tailed Doctor killer. % return over 20 years and with the SAME stocks see eye to eye everyone. 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