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. (Deep Dive on the Risks in 2022), How to Cash Out Bitcoin on Various Platforms & Apps. The answer to this question isn't easy and most are guessing at the total fees paid within an account. My experience with EJ is that the advisors push whatever corporate is trying to sell. Mine are free with BOA. Id love to see the Fischer portfolio and what fees they charge. This account is insured up to $2.5 million using multiple banks. I really wish I had decided to do my investing on my own several years ago. Yeah, keep it simple. it should be your advisors job to go find those. This effectively consolidates breakpoints. Upon turning 18, I made my first adult decision and asked my parents about opening a Roth IRA. Some investments, such as mutual funds, may also have internal expenses in addition to a sales charge. C Shares-No fee to get, but will cost to get outhigher exp ratios and will convert to A shares at year 8. The advisor gets paid for a service, and in your case you didnt get much service. When you first sign up for Edward Jones, you take a quiz to help match you with an advisor and determine your investing goals. Either I am treated differently from most clients, or Edward Jones just is not a good bet. The fees I couldnt deal with either. Hard to blame them for this one. However, they have their concierge service for account under $500K, select service for accounts $500K-$1MM, and flagship service for $1MM+. 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. Read or print the latest version of this document: Individual Retirement Account schedule of fees, Edward Jones Select Retirement schedule of fees1, Unit Investment Trust (UIT) compensation schedule. Ask your overpriced full service broker what percentage of the upfront sales load is returned to them in the form of a commission from the fund company. A shares, B shares and C shares. His advice at the time..hold tight and start BUYING now! Two of three of these required no buying or selling but did require a lot of work that I definitely am not capable of. (You have to weather the market downturns without flinching.). And then trust the Vanguard LifeStrategy fund to give you proactive advice about your financial situation, taxes, estate planning, and long-term financial goals. The difference is $148,545 or about $7,500 per year. Between the three advisors they should pick similar models. Hey KimI hate the thought of you losing sleep! My managed Roth IRA that I pay 1% on is up 15% after fees. This is another OPINION and what really matters is your NET result. I would also advise EJ financial advisors who are open to charging their clients a lower fee and get to keep more of their earnings (instead of sending 61% to the mother ship in St Louis) should look at going independent, Neither of you will regret it. There are laws in place to bring to light the fee structures. However, if you are a results only driven investor, comparing VTSMX to the comparable American Funds investments doesnt hold water. I agree with the pharmacist. The above arguments and comments highlight the problem with the financial education and perception of the mainstream. An Advisory Solutions Account Starts off at 1.44% annually. robo advisors and their portfolio algorithms have nothing to do with financial advising. To help smooth out the awkwardness you might feel in switching brokers, theyll get you one more time on the way out the door with a $95 total transfer of an account fee. Charging a young and dumb 18-year-old a 5.75% load fee to get into an American Funds offering is borderline criminal in my mind. Nice backstop. This site is designed for U.S. residents only. Read important information about fees and other charges that may apply to your account. If you do that, whether you paid $7 or 5.75% to get in, it really wont matter. 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. Let's take a look at the brokerage account options from Edward Jones. I AM a medical doctor (radiologist) and very familiar with the over confidence some physicians have, aka I can take out a gallbladder so surely I can fly a plane, which has obviously led to several disastrous results. This site is designed for U.S. residents only. Thanks for the kind words! This is the part people cannot grasp. I am a 20 year plus veteran broker. 1-2% annual fees are high by most standards. In any and every financial firm you have good people and not so good and its your responsibility to find out all information Bouton their fees and not to depend upon that person to share. Franklin Templeton Income. I didnt know much about investing, but at this point I knew I had to learn. find a Financial Advisor on the Wiser Advisor website. Most people who do business with Edward Jones are happy. I transferred assets into Edward Jones and it was a big regret. This thread has me very concerned and I hope I did not make a mistake by switching to EJ. Edward Jones is, by far, one of the most ethical firms in the industry. Personal financial success is directly correlated to asset allocation and risk management. I could write a book about the pitfalls of investing with a firm like EJ. In actually think the percentage payment to an advisor is more of a conflict of interest per say. Vanguards Total Stock Market Index Fund 2020 20.68% not bad. Edward Jones account holders may also be subject to SMA manager fees. Let's examine the competition. Its more important to look your financial goals and what displine and strategy will you have to get there. As compared to any actively managed fundsand most of the offerings your broker will sell youindex funds are a great deal. For my money, throw it all in one of the Vanguard LifeStrategy funds based on your own risk tolerance. Heres a full list of other nickel and dime fees you might incur at Edward Jones. You arent going to do business with a successful financial advisor who is good at what they do for free, or cheap. Value of Assets. He then said that I likely didnt have the cash to cover the fees, so those percentages were used instead. Joe, your investment style may work for you but Tom is right in general (though there are cheaper ways to manage a buy and hold investment than EJ.) Their international stock fund, for example, charges a full 1%. They are very educated and of impeccable character, however after years of work with them we are retiring and may not need the expense of such. I took my modest fortune of $4,000 to my parents financial advisor. Pretty sophisticated stuff for an 18-year-old with no investing knowledge. If that seems like a strange ratio, that's because a crucial part of the company's goal is to reach clients where they live and offer the same high quality of service, rather than clustering in big cities. Disclosures and Fee Schedule (PDF) There is nothing that Edward Jones has to offer that a person cannot get somewhere else. You pay less because you get less. Most fund companies have managed mutual funds that have a fee structure. You get what you pay for. Copyright 2023 Edward Jones. More than likely, the expense ratios in your funds via Edward Jones are too high. If you see yourself knowing and understanding better than any adviser, then its pointless to have a financial adviser. My big issue with my Edward Jones experience is that I wasnt made aware of any of these fees upfront. Im informed about investing but dont want to do the work of it and certainly dont have the computer tools that they use for asset allocation, determining how long your money will last, etc. The question is, what are you getting in return for the costs? Even if you are in a fee-based account, the advisor is still working off of commission. I actually beat the market by avoiding some of the downturn and buying low. Copyright 2023 Edward Jones. The management fee (also referred to as the "program fee") begins at 1.35% for an investment of $250,000. "https://" at the beginning of the website address, or URL. The industry average is over 1%. When my mother passed her assets were at EdwardJones. Some fees may be waived under certain circumstances. The services offered within this site are available exclusively through our U.S. financial advisors. However, if you run the numbers on an investment calculator over a 20 year horizon the variances are staggering. the kicker is they still take the fee. Call FA and ask for a total fee report. With VTSMX, the only fee youll pay is the very low expense ratio on the fund itself. That this guy had the audacity to send me a card of his kids in the WDW stockade from a vacation they took each year just galled me! Heres what 2% adds up to over time. EJ may make more sense if you need the full range of their services, are really poor with money, and/or dont want to do the research to find better options. They can generate in 2 seconds and send to you. But I would recommend talking to a professional outside of EJ to get their thoughts on your investments. Get educated and do it yourself with a discount firm like Vanguard. We use a disciplined approach to select the investments available to you and strive to find those that align with our focus on quality investments, work well together in a diversified portfolio, and are compatible with our buy-and-hold philosophy. Those EJ locations are run by humans. American Funds Balanced This cuts down through the tiers to reach a rate of 0.05% for the top AUM band. If your answer is I would serve them both equally you are a liar or an idiot who has no clue about how businesses operate. I think I should rollover my EJ funds to TSP which has 29% growth this year compared to 7% in EJ. That sounds like an exceptionally bad advisor operating within an already broken model. That is 100% false. Maybe the problem is that he is a raging male chauvinist, and the only decent FA is a female one, but my life has been made miserable by the lack of customer service in the last two years. The integrity factor cannot be easily discerned. Plus, 1.3% annual fees and 2% on reinvested dividends. Get on the Bogleheads site and educate yourself. He is a CPA also ..and was a broker since the 1980s and has been through all of these cycles. I went with E.J. I find all the article and comments irrelevant to my experience with EJ. In other words, go with someone who charges say, $200 as opposed to 1% of your investment account. Read or print the latest version of this document: Edward Jones Select Retirement Account schedule of fees (PDF) Grandfathered pooled retirement account fees. Create an account to follow your favorite communities and start taking part in conversations. The company has branches pretty much everywhere. I will definitely check that one out. Interestingkeep us posted! Total commission may vary for trades executed over multiple days and is added to a $4.95 transaction fee per trade. 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.. This was just what I was looking for. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the . 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. The commission varies depending on the type of asset that you buy. Also fees are listed in black and white on your account forms when you set it up. Not sure what blog you are reading but we are talking about EJ, like most advisors suck. They teach advisors to use bullet points on anyone who questions the investment selections in such a manner. A proper money manager will sound more expensive but companies like Edward Jones will never tell you the real cost of their free services. Go to Vanguard, save a ton in fees and do it yourself. I told him that those fees were itemized on the statement. But of course, past performance is no guarantee of future results. And bubbles formed for index funds? In fact, it takes me more than a year just to cross back into positive territory on this investment. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. The EDWARD JONES SELECT RETIREMENT ACCOUNT mark is filed in the category of Insurance & Financial Services . 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. So as an Edward Jones advisor do you give clients to new advisors as my wifes does? or you can go to a full-service broker. THEY CANT HANDLE IT. If she had 500k she was paying closer to 1.1% max. 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. Sadly I have been with EJ for decades so I will not be sleeping tonight. You want cheap..believe me.you get cheap. You must have added to your account of over 1 to 1.5 million of your own money during that period of time. If one does not understand that temporary, sometimes large, declines will always exist then he/she either needs more education on the topic. Then held and held. The adviser I have with Edward Jones has done a stellar job over the last 13 years!! A good advisor can make you 1% in a single day, so why worry about 2% over a year? Have fun on your ed jones paid for vacation to the Bahamas this year. Im no authority of any kind on the stock market ins and outs. For people who want a hands off approach, I still think a target date fund at Vanguard solves the matter more efficiently. My third advisor told me he was going to selll all of my assets because I refused to buy an annuity fruom him. Let me put this plainlyEJ Advisors are parisites IMHO. The brokerage business in general is going away. Edward Jones fees are extremely high if the advisor is just managing investments. Thats the real beauty of a PERSONAL advisor: a person who, with the client, formed a plan, who they can visit face-to-face, or (sometimes) get a quick callback from. Thats the cost of your Netflix subscription for a highly educated financial professional. ARE YOU NUTS? Join our community, read the PF Wiki, and get on top of your finances! 1/5. Advice from TRUSTED friends or TRUSTED business associates can be of utmost importance in the selection of a financial advisor. However, I cant really recommend that most people do it on their own, because its stressful, time-consuming, and takes nerves of steel. Its the mutual fund company, not the advisory firm. 3. The Edward Jones Portfolio Program is a comprehensive managed investment program that combines personal investment strategy driven by the advisor and professional portfolio management driven by a global asset manager SEI. What needs to be looked at in truth is the return you are getting, going to get you to achieve your financial goals. EDWARD JONES IS A GIANT RIP OFF But I hadnt done enough research. You decide how you want to use it. Here are the five most common ways you might be getting screwed by Edward Jones broker fees. Mike, Are you a broker or and advisor? In my case my magic 8 ball ha betteruck than this Edward Jones guy. With their simple online program it is so easy to do it yourself. OK, that makes me feel better about being a little hard on EJ. I know they are considered a good firm, but, for the past two years, I have had nothing but miserable experiences with them. Individual plans provide individuals with an account into which they may contribute money that may be used for retirement. I have a Fidelity account and was reviewing some old funds that Ive owned for 15 years that are non Fidelity. Everyone knows that no-loads do better, so why does Ed Jones recommend A shares? Dont get too touchy feely with them this is business, you have plenty of friends your advisor relationship needs to stay mostly professional. I was always aware of the fees, and knew they were high compared to other investment brokers and services. Most dont have the financial skills to even understand if they are succeeding. Ask your broker or advisor to show you the exact portfolio they will be using for you and if all or most of the funds have the same name.RUN. Lets take a look at the cost of the Roth IRA fees in my Edward Jones account and how I came to discover them on my path to figuring out my personal finances. This is highly unlikely, especially if you start with a mutual fund that has an upfront sales load. First $250,000 1.35%. Do yourself a favor and RUN FAST AWAY from those peddlers pushing this sort of investment. I average over 100% return per month, 149% so far this month December. Exercising fear tactics doesnt work with me. So, how do they pay their phone bills, light bills, mortgages, employees, and all that expensive advertising ? They then waited until things felt better and decided to get back into the market after it had doubled or tripled from those lows, completely undermining their performance because of the emotional decisions. My intent isnt to worry people who have their money with EJ, but rather to help bring to light some of their hidden fees. Im confused by your comment. They serve people in their niche very well. All they say when the market gos down is now is the time to add more to your account. Check out AOA and AOR. They are ruthless, in it for themselves and EJ, EJ should have gone under as a company a long time ago. If someone is paying you $10,000 per year in consulting fees, and another person is paying you $10 per year in consulting fees, who are you going to serve better? I was originally with Merrill lynch then I realized I could do better with fund manager in fla had a lot of fidelity funds they were advisor funds did well even with high fees because of advisor loads then he merged with Ameriprise funds thats wher the problem began fees were high but he said if I paid extra half percent I would be regarded as a special account person red flag went up I had been also invested with vanguard for years after this I decided to switch all accounts over to vanguard peanuts for fees I wished I would have done this when I first started to invest yrs ago what people dont seem to realize is up or down markets you still pay the high fees and that really adds up alan b. Im starting to move my assets to Schwab. Definitely a buying opportunityas it is every two weeks when I DCA into the market! Its YOUR money! I think most of you are missing the boat on the whole commission thing. Edward Jones Guided Portfolios. What are the expense ratios on those funds? Thx for the tip on vanguard. So has the rest of my family at EJ for the last 20+ years. I like that EJ will not offer or sell stocks that are substandard, hedge funds, etc. I have the same experience. Meanwhile the writer wants you to bat an eye at the $135 a year on your $10,000 account? Take the time and find someone who had your interest tied to their paycheck. 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. Perhaps your advisor was not as transparent and helpful as mine. People have mentioned that the 1-2% fees dont make that much of a difference. If one is never going to tell u when to move you money out then you are not getting you moneys worth. pros For being so ethical they sure spent a lot of money fighting the fiduciary rule. Its incredible Meanwhile, I have lost a sizeable portion of my investments. 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