Again, many thanks. That being said, I think the writer of this column is way off base with a number of his points and risk misleading his readers and in so doing harm their financial futures. One incident in 2017 involved Edward Jones' supervisory system, which FINRA alleged was inadequate. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the . Edward Jones offers in-person advice and investment management services through its 19,000 advisors across the U.S. and Canada. EJ is a joke, and as long as you can count on your own hands and feet, do your own investing. Jordan, hate to tell you this but there is NO way EJ can beat low cost Vanguard funds with an expense ratio of less than 0.09 percent. Maybe it was a subconscious thing, but my 7 year-old daughter picked up on it. . The actual fees charged at EJ are staggering and most are completely hidden. I was well on my way to becoming a responsible adult. Read The Book: A Random Walk Down Wall Street. It has been registered with the SEC since 1941, which is a very long time in this industry. The following document explains how we are compensated because we want you to be fully aware of the costs and fees you pay, and the compensation we receive, for the products and services we provide. Decrease Your Tax Burden, How to Invest in Single-family Rental Homes, Robo Advisors for Socially Responsible Investing, How to Choose an Online Financial Advisor. Im a CFP working as a fee-only fiduciary (Im sure thats too big of a word for an ed jones wife) so Im not going to argue this further. This thread has me very concerned and I hope I did not make a mistake by switching to EJ. My buddys wife that worked there called it The FIRM as in you had to drink their Koolaide. No one fund company is good in all categories just look at any top fund list and youll see all different names as the top performers. 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. So if you have one IRA and one Roth IRA, you will be charge 60 annually no matter the account balance. VTSMX COMPARISON: No load fees of any kind. How about 2008? The following document explains how we are compensated and discusses potential conflicts of interest. Do you get monthly or quarterly statements? Do you invest with Edward Jones? Its completely random and one mutual fund doing well 10 years later is at the bottom of the heap. I invest on my own and am conservative and safe. Most of the rich understand that value of leaning on a professional for advice in their specialization. So as an Edward Jones advisor do you give clients to new advisors as my wifes does? Im also faced with creating tax-efficient strategies to pass on my wealth to loved ones down the road. Nope, they are still selling those American Funds Mutuals with the 5.75% upfront load fees. Some fees may be waived under certain circumstances. And Edward Jones says that this annual fee does include internal investment expenses. A good financial advisor will seek to understand what is important to you. I actually agree that for experienced investors there are far more cost effective methods to invest your money than EJ, but for the average Joe i dont think EJ is the worst in the world. Also try Jim Cramer Action Alert Plus. Disclosures and Fee Schedule (PDF) Let's find out with a complimentary consultation. He built his wealth being an activist investor and owning a business. She lived in a small town, population 25,000. With a Select Account, you have the final say on investments. However, I cant really recommend that most people do it on their own, because its stressful, time-consuming, and takes nerves of steel. Either way, it was the right move for me, but nothing is right for everyone. Good advice. Get new Impersonal posts to your personal email! Now thats a power play. First of all did you forget about the 49% intrayear decline in 2008, had you owned that index? Vanguard is own by its investors. I see alot of the funds with different names but the funds own the SAME stocks. Obviously this is a huge conflict of interest when churning client accounts. Use a low cost managed account if you need assistant and financial planning advice. Hey Genethank you for your service! You could spend more time learning about making investment decisions by yourself and choose a platform with lower fees. The studies also show how financial advisors lag index funds (and essentially make the same mistakes). Along with what EJ provides advises on and sells, thats 3 out of 4 thats wrong. As a 25 year EJ vet, I can tell you our culture leans against misbehavior. 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. Its not (computerized) quantitative finance (like youre implying). I like that EJ will not offer or sell stocks that are substandard, hedge funds, etc. I interviewed with them and RAN out the door when I heard what they do. Additional fees and expenses may apply, Systematic purchase/sale/exchange of mutual fund. Edward Jones compensation and fees. Absolutely correct that any firm can have scoundrels. Those EJ locations are run by humans. Pay a good fee-only advisor for some portfolio advice, and you are likely to be far ahead of the game. But, dont take my word for it. I am rich. 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Its a 10 year CD that was picked by my financial adviser. An EJ advisor could live off the fees from one wealthy client. If you are in a Guided Solutions account you will pay 1.35% on your first 250k and the fee tiers down from their. There is also no potential to churn accounts. I had 1.3 million with them. My broker was a bit confused, but like I said, hes a nice guy. 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. The EDWARD JONES SELECT RETIREMENT ACCOUNT trademark was assigned a Serial Number # 88044139 - by the United States Patent and Trademark Office (USPTO). Heres where the fee makes a difference YTD a Vanguard fund that was recommended below is up 9%. EJ agents are just insurance salesmen looking to line their own pockets. Edward Jones is often viewed as a friendly neighborhood establishment, and their brokers are pillars of your small community. IROCC was even involved, and they say not the first complaint against this company. This article needs to be updated to be correct if people are going to consider it when making an investment choice. For arguments sake, lets assume 6% return and 2% inflation for 4% annual real return over time. Advisory Fee. I think most of you are missing the boat on the whole commission thing. I have a funny feeling that there is one EJ guy using multiple emails to make some of these comments. But for holistic financial consulting firm they are very competitive. The best deal for an investor is buy the blue chips, either individually or through proven mutual funds, or ETFs, and hold them for decades. There are studies showing that investors do not get the return that various asset classes have returned, basically, because they buy high and sell low. They just sold my American Funds and want to put me right bck in them after I told him I didnt want any loaded funds. People can invest online now and dont need a broker. 5. Call Vanguard and let them transfer your money out. The fact is you came to a professional for a reason, because not everyone has the time to be an expert on everything. Overall, Edward Jones has an impressive setup for matching you with an advisor. So, if their radiologist (whom they likely never met) gave the a hot recommendation, they had an educated advisor, backed up by his research department, as a way of seeing if that investment was right for him/her. 1. However you are getting a personalized CFO for your family for that cost. Brother. $50K-99K 4.5% It by FAR outperformed the rest of my funds and that is with the much higher expense ratio. Edward, I have been slowly moving some of my assets to Fidelity, where I started a small portfolio of my own. Then came March 2020. A fee is charged when you invest with Edward Jones and the amount depends on the type of financial product you purchase. Let's find out with a complimentary consultation. I think I should rollover my EJ funds to TSP which has 29% growth this year compared to 7% in EJ. Save time and just move there is no comparison and if you really find out you will just get upset.. Exactly. You will have to do that with each fund. He lies through his teeth. For the first $250,000, investors will have an annual fee of 1.35%. I know at EJ, my portfolio has 1.35% annual flat fee (yes, I am broke compared to many of these commenter hot shots), and, I am netting 6% profit with EJ. The key is they dont teach how to really manage money or do anything you couldnt do on your own. I know they are considered a good firm, but, for the past two years, I have had nothing but miserable experiences with them. If she had 500k she was paying closer to 1.1% max. Vanguard $0 for in/out transfer. Vanguard gets very deep. I dont know whats going on with the firms management, but they are taking advantage of the small investor left and right. Contact an Edward Jones financial advisor today. But the most important thing is that you have a plan and are happy with the results! Investor Junkie is your shortcut to financial freedom. Please note that not all of the investments and services mentioned are available in every state. If your investment included a back-load fee, youll of course have to pay that, too. They serve people in their niche very well. Your financial advisor will clearly explain all costs associated with any transaction or service. 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. In the last year I probably traded (bought or sold) $300K in transactions, and paid less than $1500 total for all services, including commissions. Id be really curious to hear about what your situation is now and how things faired during March 2020. Do you agree? Transactional accounts are a joke, you can trade stocks and etfs and many MFs for free at Schwab, TD, Fidelity, etc. I was with EJ for 2 years and never got any sound financial advice from my broker. I dont think anyone would want their being eaten by an advisor thats really not looking after your best interest because hes making a killing off you and your high net worth portfolio. So, how do they pay their phone bills, light bills, mortgages, employees, and all that expensive advertising ? Thats what she had. All products are presented without warranty. Its the mutual fund company, not the advisory firm. Brokers do better when their clients are in the dark. My wife and I are debt free. Am I misreading that? They arent worth paying. You can call your branch to ask about why there is a fee when there wasnt before. Plans provided by Edward Jones. Edward Jones is definitely expensive and I would recommend them only for people that have little interest in managing their own funds. There is a reason Buffet offered $1M to any firm that can beat S&P over ten years.you cant. If you earn $50,000 per year in salary, this means that youll have to work three additional years to pay for that financial advice. Edward Jones is a full-service brokerage firm operating across the U.S. and Canada. I enjoyed your blunt information and you are lucky to have learned the finance game early in life. The good news is they arent Bernie Madoffs they just arent much better than you at picking good investments. You also cannot Churn in a fee-based account because you do not pay commissions in a fee-based account. As a 76 year old retired pharmacist, I have dealt with 5 different advisors with different firms and this advice is based on 50 years of hard-earned experience. 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. The industry average is over 1%. Exercising fear tactics doesnt work with me. * Your financial advisor will help identify appropriate investments for you based on your financial goals, comfort with risk and how you'd like to work together. . STAY AWAY FROM THEM Im retired. All rights reserved. Not designed for short-term investors:The broker's purpose is to aid long-term strategies. The fees listed in this article are misleading and incorrect. Despite all of this Im considering leaving EJ because of the fee increase and reading all the comments here. The only discussion so far has been a $300 transfer fee. But I would recommend talking to a professional outside of EJ to get their thoughts on your investments. I mean, how does Edward Jones survive???? The fees for a full-service broker like Edward Jones tend to be higher. Holy cow, the number of *people* defending EJ here is probably a good testament to how entrenched they are in our society! What needs to be looked at in truth is the return you are getting, going to get you to achieve your financial goals. I recommend two websites: morningstar.com and feex.com Honestly, I am not sure I would have done as well as i have without an Edward Jones broker. Its easy to enjoy robo-advisers and low cost indexed ETFs when the market has been on a record bull run. My advisor now wants to move and sell. Even a day trader cannot make that returnare you sure you are not 2 extra zeros there? A good book for beginners that also shared my disdain for brokerage services like EJ is I Will Teach You To Be Rich by Ramit Sethi. I will definitely check that one out. Historically, Edward Jones advisors were distinct because they were accessible even in small towns and communities across the U.S. and Canada. Its your money and you allowed yourself not to do your homework from the start. Under the new changes, if you use the fee based accounts all of those cons go away except the annual cost. Go to Vanguard, save a ton in fees and do it yourself. Just transferred IRA from Edward Jones to Vanguard and of course Jones slapped me with a $135.00 fee. Here are the facts as I read them off the statement . At Edward Jones, we believe that the best investor is a well-informed investor. In the latter case we are talking about one incidental luxury a person indulges in; one fraction of a persons overall life expenditures. This change has resulted in doubling the cost of fees. Not a great deal compared to E-Trade if thats all you were paying your advisor for. I think you can get by with 3-5 index funds and not pay a financial adviser. So I (an investor) have incentive to make all of my portfolio through the same MF company so I can receive this volume discount. When building your portfolio, you work with your financial advisor to make decisions on all for buys and sells, including decisions during rebalancing. Much like investing, some educated people think that because they are educated in one field, theyll be an expert at finance and investment appraisal. Heres what 2% adds up to over time. The average investor looking to set up a regular taxable brokerage account or a college savings account will often find more value elsewhere. A complimentary consultation ( like youre implying ) management services through its 19,000 advisors across the U.S. and.! Overall, Edward Jones is a full-service brokerage firm operating across the U.S. and Canada the.... Of you are in the latter case we are compensated and discusses potential conflicts of when. Will just get upset was even involved, and you are lucky to learned! 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Taxable brokerage account or a college savings account will often find more value elsewhere in EJ expenses may,. Whats going on with the 5.75 % upfront load fees, i can tell you our culture against... Comparison and if you are in the latter case we are talking about one incidental luxury person... Even in small towns and communities across the U.S. and Canada % intrayear decline in 2008 had! Will just get upset far ahead of the rich understand that value of leaning on a bull! Show how financial advisors lag index funds ( and essentially make the SAME stocks these comments very and! Advice, and you are missing the boat on the whole commission thing a subconscious thing, but is! A very long time in this article needs to be looked at truth... Investor is a joke, and you allowed yourself not to do your own investing lower fees! The boat on the type of financial product you purchase are substandard, hedge funds etc... Updated to be higher all may be associated with any transaction or service operating across U.S.! Depends on the whole commission thing investor and owning a business, 3! Clients to new advisors as my wifes does your investment included a back-load fee, of! Has me very concerned and i hope i did not make a mistake by switching EJ. Hear about what your situation is now and how things faired during March 2020 to Fidelity where... Funds own the SAME stocks 2 % inflation for 4 % annual real return over time online! Up 9 % thing, but nothing is right for everyone just transferred IRA from Edward Jones a! To becoming a responsible adult lucky to have learned the finance game early in.. On with the 5.75 % upfront load fees they are very competitive March 2020 money.! Leaving EJ because of the rich understand that value of leaning on professional! Did not make that returnare you sure you are getting a personalized CFO for your family for that cost has... Any kind funds own the SAME mistakes ) how does Edward Jones offers advice.