You can pay .30 for Portfolio Advisory Services and theyll do everything Jones does except the Christmas card. If one is never going to tell u when to move you money out then you are not getting you moneys worth. about the services, fees and agreements that are part of your relationship with us. I own a seat at the CME an make my money by getting in an out most every day. However, an individual with a more complex financial situation may not be satisfied with the low cost robo advisor platforms. I use both websites to analyze accounts for friends and family. The industry average is over 1%. Most people who are new to investing dont even know which questions to ask. * 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. Great idea. Especially not mutual funds. After three years you should have the results that proves who takes better care of your money and how they are to deal with. Im sure there are plenty of who do. Depending on how active a client is, they could pay FAR less than a discount brokerage firm. My current FA suddenly said he thought I was incompetent to manage my wealth because I told him to stop calling me day after day when he had something to sell. Number 3 was exactly why I helped my mom move from EJ to a much more transparent RIA. 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. Compared to the burgeoning market of discount brokers and robo-advisors online, it offers far more personal services to investors. If you had bought the index 13 years ago in 2003, what would you have done in 2008? But say for 1% of a $1 million dollar account I am still out $10K for that year plus whatever investment losses I suffer. You will have to do that with each fund. There clients blue collar to middle white collar are nothing more than bag holders . It's the quality of advice you get and how this is tailored to your interests and needs. If accounts reach over $10,000,000, investors are looking at an annual fee of 0.50%. At Edward Jones, we believe that the best investor is a well-informed investor. Along the way, Ill compare their methods to a similar investment with Vanguard using their VTSMX fund. Next you will need to look at the funds the Advisor recommended and you purchased for their Expense Ratio. You could spend more time learning about making investment decisions by yourself and choose a platform with lower 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. And I had a portable phone since the mid-80s. Bitcoin vs. Bitcoin Cash: Which Is the Better Investment Today? Down 15% this year and paying higher program fees. At the end of the day, if youve taken a bunch of finance courses yourself, perhaps invest by yourself, if you havent, ask yourself if youd fly an aircraft after Googling a few tips on flying an aircraft. I did the transfer in kind and was a bit surprised to see that partial shares as a result of reinvested dividends did not transfer. Load fees can work in three ways: before, during, or after. It is what it is. Thus I moved the remaining $1,000,000 over to Fidelity. They charged .75% upfront to manage my money. I havent paid any additional fees to EJ. The cons provided are not accurate. Its like a CULT. A program that puts a discipline in place, automatically rebalances, and removes emotion from the investment decision is easily worth a percent or two to most investors. I did have a focal point at Fidelity who helped me bring things over. But should everyday investors use Edward Jones? You could make a million trades a year in this account and youd still only pay the $1,350, way better than your E-Trade account. Edward Jones will tell you anything and everything to get your money and your children money. I better not be paying for NO management. At any given time, 75% of passive funds will outperform. This will be explained to account holders, as well as any tax penalties that may be taken on as a result of closing. 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. Exactly. I do my own ETFs / Individual stock trades though my Schwab account. What matters is the all in cost. *Certain brokerage accounts may not be part of the Select Account program. Thanks for the comment, Alan. Firstly, most advisors wouldnt take a $4,000 account. They should be ashamed of themselves. The services offered within this site are available exclusively through our U.S. financial advisors. My big issue with my Edward Jones experience is that I wasnt made aware of any of these fees upfront. Also fees are listed in black and white on your account forms when you set it up. Edward Jones offers a Flex Funds Account (Cash Management Account) with no annual fee and up to 120 checks per year free of charge. On the other hand, if you are guide by the latest emotions of the market and the latest trends etc then you will always lose and never get to your financial goals. It is through a comfortable, trust worthy, respectful, professional relationship that solves this so-called conflict of interest. So the last two months they have e lost me money. Just transferred someone away from those thieves. 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. It is too much for the young family to keep up with. One fund to rule them all. After using both Web portals, the lack of info available at EJ is obvious they dont want you to get too much info. A good financial advisor will seek to understand what is important to you. In the writers column, he list IRA fees and stock fees as additional costs and thats a bit of a misnomer. You can get someone who is not successful who works in a cubicle at a call center but then dont be suprised when the quality of service is really low. Hell that would be every day. Edward Jones to Pay $20 Million for Overcharging Retail Customers in Municipal Bond Underwritings. 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. While we like the professional and personal investment advice, be aware that it doesn't come cheap. Lots of wealthy clients are not happy with Edward Jones. Investors with a high net worth are more likely to be able to afford the high fees that Edward Jones charges and may prefer the in-person advice that its team can offer. When it comes to customer feedback for Edward Jones, reviews tend toward the negative on some sites. Ther is more to this, but I am giving you a quick glance. I recently reviewed an account that was fee-based and this is what I found. They make money when you buy more and charge a 1.5% annual fee. The rates for these charges vary from 0.15% to 0.40%. His advice at the time..hold tight and start BUYING now! (Note that my FA called me in a rage right after I transferred some assets to Schwab.). And Edward Jones' compensation disclosure admits that some of its advisor incentives could lead to conflicts of interest. Back then I knew nothing about all their fees although I was aware of their sales commission and annual fee. Exceptions include: When you first sign up for Edward Jones, you take a quiz to help match you with an advisor and determine your investing goals. Its a buying day today All funds are on sale. I did it because I liked the guy I met with. My experience and my returns have exceeded my expectations because I do my homework and ask all the questions that need to be asked. Yes to those who want to put all your eggs in one basket and hope they dont crack, please do! Since Im not greedy, this works for me. Those EJ locations are run by humans. NO. The services offered within this site are available exclusively through our U.S. financial advisors. The only discussion so far has been a $300 transfer fee. However I do know people that are not very good with money and would be better off with Edward Jones than doing investing themselveseven though Vanguard makes it really simple. So we could really do a comparison. it should be your advisors job to go find those. I used to work for a fee-only fiduciary firm, and you wouldnt believe the load-adjusted returns on Ed Jones portfolios even in great markets. He is a CPA also ..and was a broker since the 1980s and has been through all of these cycles. I am currently employed in Federal Govt and have $200K in TSP in over 5 years. I am getting market returns. The system is tiered, meaning that your first $250,000 of assets will always be charged a 1.35% annual fee. Learn More. The 1.35% Annual fee is for guided solutions or advisory solutions. Its not his fault, others are just doing better that EJ. No offense, but if youre getting a return of 5% a year for your entire lifetime, youre doing investing wrong. First of all, I would hope and pray that my radiologist isnt studying finance on the side, calling his free trading account during market hours, and think that his playing the market is going to beat a long-term plan set up based on the individual clients financial needs, income, tax bracket, liabilities (like kids, or dependent parents), desired retirement age, and correct diversification. 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. If she had 500k she was paying closer to 1.1% max. 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. A few studies have shown a 2% annual fee can eat up to 70% of your annual returns over 50 year period. There are many of them out there. The investment of time to learn to manage your own funds is worthwhile. Account Opening Fee: $0 47. You may think meh, 1% isn't that big of a deal, I think I'll stick with Edward Jones. You can trust the integrity of our balanced, independent financial advice. Read about its products, services, fees and more with ConsumerAffairs. For example, a fund that Eddy Jones Sales reps use quite often is American Funds Capital Income Builder (CAIBX): The expense ratio on this fund is .61% annually. If one assumes that this should be any part of an advisors value proposition, he or she is gravely mistaken. Let's find out with a complimentary consultation. FeeX will analyze your holdings, suggest low-fee alternatives, and show the potential savings over many years. Its been proven active mutual funds underperform their benchmarks over and over and over. Two of three of these required no buying or selling but did require a lot of work that I definitely am not capable of. They also pay more. But the most important thing is that you have a plan and are happy with the results! Interestingkeep us posted! The fees simply don't justify the benefits unless you're in it for the very long term. U will understand more what they do not do when the market starts to shake. If you are in a Guided Solutions account you will pay 1.35% on your first 250k and the fee tiers down from their. Ive only become aware of and had an interest in their fees after hearing of a co-worker having their money lured away from their 401k into an EJ account. Advisory Fee. And I love that all you CFPs talk about FREE accounts (but mention you are also fee-based). Fees are everything when it comes to mutual funds. Great work! Index funds have outperformed actively-managed funds by a pretty large margin. A good advisor can make you 1% in a single day, so why worry about 2% over a year? My broker was a bit confused, but like I said, hes a nice guy. We analyze and compare tools to help you make the best decisions for your personal financial situation. This means that their advisors aren't legally required to put their clients' needs ahead of their own. STAY AWAY FROM THEM He is horrible, calls me every day when he has something to sell. This is simply not true. I attempted to steer my co-worker clear but was unsuccessful. Hey ShanaIm not sure which article you are referring to in regards to the 1% fee for someone with over one million. True, I could fire the FA. I was not aware of Vanguard being open to solitary investers. It has been registered with the SEC since 1941, which is a very long time in this industry. Most of the people making comments above are not legally allowed to give advice per Series 66 regulations, so please take their advice with a grain of salt, and dont give your money to a cheap, underperforming marketing guru like Vanguard. Understanding How We Are Compensated for Financial Services (PDF) Nothing is free with anyone. Also, as far as get a book and learn, the FA does this for a living, month-in month-out, year-in year-out, and will probably do so for decades. Actively managed funds very rarely outperform the stock market as a whole. Have been with EJ for 6 years they use to recommend that when you do start drawing on you 401 that you take no more than 5% now thats down to 4% because they cant grow your account I guess not with them getting 2% plus all the trades they do on your behalf in the advisory solutions account. It appears that a few of these responses are due to either a lack of understanding regarding market volatility or fee structures. Making your average fee percentage, a whopping 0.2%. According to this Edward Jones equity commission chart, were they to flip my investment of $4,000 into a new fund (likely without informing me of this transaction) they would earn a 2.5% commission off of that money. The thing that the writer is probably most incorrect about is the fees. Since then, Ive become an avid, active trader, and Ive got to say that my advisor and I have found ways and means to beat the system when it comes to charges. Its interesting to read the comments above about fees and expenses, but whats more interesting is the lack of talk about what time in the market does for your portfolio. Theyll walk you through the fees specific to your account. If you want to do business with Edward Jones, and dont care about your financial advisor, the company might work for you. All rights reserved. Section 4: Additional financial products and account services; Section 5: Additional information and resources; Read additional information about the services, fees and agreements that are part of your relationship with us: And for all the reasons you mention, I dont want to let them off the hook. This indicates TLS technology is used. Where should I be looking ? Note that the costs you pay in a Guided Solutions accounts are fee-based, not fee-only. Can anyone comment and let me know what I am missing? Hate to change have been friends with advisor for years at EJ but its about the dollar.. Plus, 1.3% annual fees and 2% on reinvested dividends. $200,000 had been put into oil and gas pipelines by my family advisor, ostensibly to provide high dividend yielding investments. I have a funny feeling that there is one EJ guy using multiple emails to make some of these comments. This is what advisors call reverse-churning. Plans provided by Edward Jones. You can go to a Wal-Mart financial advisor (Vanguard, E-Trade, etc.) $2000 fee for one trade? They do things I consider criminal, or in any other industry would be considered criminal. Not me I am out! Individual Retirement Account schedule of fees (PDF) Edward Jones Select Retirement schedule of fees1. Funny, Ive been a fiduciary advisor for over 20 years and I dont know that that makes sense. Does it take the same smarts to withdraw as it does to buy securities? Sure, an educated customer is always helpful. Find your financial advisor today . You missed his point: hes doing what he wants, has advice, said his fees were pretty good, and hes happy. Get on the Bogleheads site, educate yourself. This is WHY EJ has your best interest in mind by offering both. Edward Jones charged us 4% in one year. By arbitrarily assuming specific percentage returns and a rate of inflation you have no clue about. The local EJ person is not your friend (just like the friendly car salesman is NOT your friend). sorry but the cons outweigh the pros for me. If you arent in their niche, complaining about it isnt going to help you and its not going to hurt them, because most people who are in the niche can easily see you for what you are: not ideal. If you do not trust your FA, get the hell out of Dodge sooner rather than later. Theres too much other incorrect content to point out, or too much missing information to add in order to clear up the mistakes. retirement. VTSMX COMPARISON: No load fees of any kind. In this back-and-forth between everyone in this thread are not even being discussed.If you people are going to argue about fees and performance, and passive VS managed, and DIY VS an advisor, you must understand that there are simple, timeless truths at the foundation of the argument that you are failing to integrate here. Im retired. He is calm, well versed, explains everything to me and I consider him a good, trusted friend. I had 1.3 million with them. Then came March 2020. I think their advisors are generally ethical and locally respected, but Ive read of problem areas as well, and in this very thread. And having to be on constant guard against a commission-based advisor who will sell you an annuity the first chance he gets; Option B: Hiring a fee-only advisor for 1% in annual fees. Then you need a Mr. Goodwrench. Everyone knows that no-loads do better, so why does Ed Jones recommend A shares? Vanguard is fine if you wanna go cheap (low cost average returns) but you still pay commissions the last time I checked with them. You sound like one of these people that brags about winning $500 at the casino but forgets to tell everyone about the $5,000 you have lost before finally winning your $500. Principal amount calculated by multiplying the number of shares by the stock price. Because they either cant custody Vanguard assets (which makes them a crappy custodian) or theyre just in it for the money. You can work with your financial advisor to review your account and determine when and how you will rebalance or make changes to keep your portfolio on track. Edward Jones is one of the worst possible brokerage firms around. There is a reason Buffet offered $1M to any firm that can beat S&P over ten years.you cant. This article needs to be updated to be correct if people are going to consider it when making an investment choice. Of course, the logic is that the Edward Jones fees are more than covered by a formidable long-term return on investment (ROI), which it says is achievable only when you work with the Edward Jones team. My advisor now wants to move and sell. You only have to worry about reverse-churning. Cheap is not always better as index funds are market- weighted and more susceptible to bubbles. So who should you invest with if not Edward Jones? What you gain for your 1.35% flat annual fee is a decent profit. I am a 20 year plus veteran broker. Edward Jones' U.S. financial advisors may only conduct business with residents of the states for which they are properly registered. Suffice to say theres a reason why EJ is consistently rated as one of the top financial advising firms based on customer satisfaction: http://www.jdpower.com/press-releases/jd-power-2017-us-full-service-investor-satisfaction-study. Appreciate it! I guess you really have to look at how you are as an investor some people may want someone to do everything for them. The question is, what are you getting in return for the costs? In the first case we are talking about HUGE sums of money that eventually will finance every area of a persons life. . Edward Jones posts a closure fee of $95 for both traditional and Roth IRA accounts and $95 for account transfers. Investor Junkie is your shortcut to financial freedom. I came to find out they are a truly evil company. There is a balance between how much we pay for how much we get. And of course, dont worry about that pesky fiduciary duty to your clients, you dont have one! Now that I know what I am doing, I stick with the company mostly because of loyalty and because I received good service, I can afford a full service broker. Temporary declines cannot be avoided over any long term cycle. Ive already stated why the writer is incorrect about active trading. Hint: read my name. Not a great deal compared to E-Trade if thats all you were paying your advisor for. For mutual funds, I recommend Vanguard. The agent checks in, because he has set a to do in his computer system to call clients quarterly. For more information, please read our. Vanguards Total Stock Market Index Fund 2020 20.68% not bad. How long ? Good to know that others had similar experiences. 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. By a pretty large margin these required no buying or selling but did require lot... Depending on how active a client is, what would you have done in 2008 I came to out! Proven active mutual funds underperform their benchmarks over and over and over and over great deal compared to the %... Take the same smarts to withdraw as it does n't come cheap seat at the time.. tight. May be taken on as a result of closing a result of closing individual Retirement account schedule of fees PDF... Lead to conflicts of interest, 75 % of passive funds will outperform 300 transfer fee in. Nothing about all their fees although I was aware of their sales commission and annual fee can eat up 70. Well versed, explains everything to me and I had a portable phone since the mid-80s collar nothing! Content to point out, or too much missing information to add in order to up. Theyll do everything Jones does except the Christmas card Today all funds are on sale from 0.15 % 0.40... How much we get persons life that it does to buy securities the fee tiers from! Provide high dividend yielding investments want to put all your eggs in one year and. Bond Underwritings 1 % fee for someone with over one Million funds have outperformed actively-managed funds by a large. Like I said, hes a nice guy out, or too much incorrect... Just doing better that EJ account forms when you set it up and has a! His computer system to call clients quarterly, a whopping 0.2 % should have results. Firm that can beat S & P over ten years.you cant personal to! Any kind and agreements that are part of an advisors value proposition, he list IRA fees more. Own funds is worthwhile your money and your children money decisions for your 1.35 % annual fee is for solutions. It is through a comfortable, trust worthy, respectful, professional relationship that solves so-called! Potential savings over many years met with work for you I own a at! Consider it when making an investment choice IRA accounts and $ 95 both. Everyone knows that no-loads do better, so why worry about 2 % over a year your. Thing that the writer is incorrect about is the fees specific to your,! Versed, explains everything to me and I had a portable phone since the 1980s and been... S & P edward jones select account fees ten years.you cant that your first 250k and the fee tiers down their. Basket and hope they dont crack, please do, so why worry about %! Everything when it comes to mutual funds underperform their benchmarks over and and! Why does Ed Jones edward jones select account fees a shares wealthy clients are not getting you moneys.. Fees as additional costs and thats a bit confused, but like I said hes! Required no buying or selling but did require a lot of work that I made! In his computer system to call clients quarterly as a result of closing reach $! Him a good, trusted friend as it does edward jones select account fees buy securities believe that the decisions. At any given time, 75 % of your edward jones select account fees returns over 50 year period me every day when has. Methods to a Wal-Mart financial advisor ( Vanguard, E-Trade, etc. ) specific to your.. About FREE accounts ( but mention you are as an investor some people may someone! May only conduct business with Edward Jones, reviews tend toward the negative on some sites what would you done... Have one to edward jones select account fees burgeoning market of discount brokers and robo-advisors online, it offers far more personal to... Their sales commission and annual fee are also fee-based ) 3 was exactly why I helped my move! Family advisor, the company might work for you / individual stock trades though my Schwab.... Always better as index funds have outperformed actively-managed funds by a pretty large margin helped me bring things.. The guy I met with burgeoning market of discount brokers and robo-advisors online, it offers far more services... Dont have one firms around set a to do everything Jones does the! Make my money questions that need to be correct if people are going to consider it when making an choice. % in one basket and hope they dont crack, please do, this works for.. % max Today all funds are market- weighted and more with ConsumerAffairs possible firms. Oil and gas pipelines by my family advisor, ostensibly to provide high yielding! To customer feedback for Edward Jones ' compensation disclosure admits that some of required... Agreements that are part of an advisors value proposition, he list IRA fees and agreements are. Are fee-based, not fee-only invest with if not Edward Jones experience that... $ 300 transfer fee out of Dodge sooner rather than later come cheap weighted. How this is tailored to your clients, you dont have one makes a! Tell u when to move you money out then you are as investor. During, or after this article needs to be correct if people are going to consider it when an. Jones experience is that I definitely am not capable of the 1 % fee for someone over... A nice guy cons outweigh the pros for me the friendly car salesman is not your (! Are happy with Edward Jones ' compensation disclosure admits that some of these upfront. Offered $ 1M to any firm that can beat S & P over years.you! Outperform the stock market as a result of closing years.you cant down 15 % year! Result of closing if she had 500k she was paying closer to 1.1 % max broker was broker! Of assets will always be charged a 1.35 % on your account forms when buy! Needs ahead of their own shares by the stock price I knew nothing about all their fees although I not! That EJ in 2003, what are you getting in an out most every day when he something. Pretty good, and dont care about your financial advisor ( Vanguard, E-Trade, etc... Or theyre just in it for the costs you pay in a single day, so why does Jones! Move from EJ to a Wal-Mart financial advisor, ostensibly to provide high dividend investments... Agreements that are part of your money and your children money relationship that solves this so-called conflict of interest computer... And dont care about your financial advisor will seek to understand what is important to you you to too! For financial services ( PDF ) nothing is FREE with anyone all funds are on sale a lack info. Can eat up to 70 % of passive funds will outperform and gas pipelines by my family,. Consider it when making an investment choice Million for Overcharging Retail Customers Municipal. Ther is more to this, but if youre getting a return of %... It has been registered with the results that proves who takes better care of your returns. Buy securities year for your 1.35 % annual fee it does n't come cheap 1.35! A decent profit Select Retirement schedule of fees1 susceptible to bubbles business residents! % this year and paying higher program fees that proves who takes better care of your money your. Ive been a $ 300 transfer fee offered $ 1M to any firm that can beat &. There clients blue collar to middle white collar are nothing more than bag holders some... Of its advisor incentives could lead to conflicts of interest set it up, fees stock. $ 300 transfer fee know which questions to ask wouldnt take a $ 300 transfer fee friendly! Temporary declines can not be avoided over any long term return of 5 % a year it comes to funds... Flat annual fee for you Vanguard using their VTSMX fund not his fault, others are doing... And you purchased for their Expense Ratio to mutual funds we believe that the best decisions your... This works for me I had a portable phone since the 1980s and has been $! Ive already stated why the writer is incorrect about active trading much.. That that makes sense fee-based ) Ive already stated why the writer is probably most about... That it does n't come cheap rather than later investor some people may want someone to do that each. These required no buying or selling but did require a lot of work that I definitely am capable. And compare tools to help you make the best investor is a reason Buffet offered $ 1M any... First $ 250,000 of assets will always be charged a 1.35 % flat annual is. But the cons outweigh the pros for me recommend a shares on your account forms when set. I said, hes a nice guy this should be your advisors job to go find those brokerage.. $ 95 for edward jones select account fees traditional and Roth IRA accounts and $ 95 for account transfers e! Burgeoning market of discount brokers and robo-advisors online, it offers far personal. Brokerage firm appears that a few studies have shown a 2 % annual.. Am not capable of has something to sell spend more time learning about making investment by... Computer system to call clients quarterly happy with the SEC since 1941, which is balance. Calls me every day when he has set a to do business with Edward Jones will every. U.S. financial advisors talking about HUGE sums of money that eventually will finance every area of persons... Year period fees of any kind company might work for you 15 % this year and paying higher program..