For my money, throw it all in one of the Vanguard LifeStrategy funds based on your own risk tolerance. 5. This is my question at this point. Hence the name of the book. They teach advisors to use bullet points on anyone who questions the investment selections in such a manner. Thank you Susan, and you are rightit was an early enough lesson. 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. This is a huge conflict of interest because not only will the A shares do worse, the mutual fund company will share this revenue with advisors to push their ultra high expense ratio products. Theres an old adage: you get what you pay for. For mutual funds, I recommend Vanguard. But for holistic financial consulting firm they are very competitive. If so, take a look at their fee structure. The information on Investor Junkie could be different from what you find when visiting a third-party website. that was the biggest lie Ive heard on this entire site. Fees are everything when it comes to mutual funds. I do NOT work in the Investment Industry. With the governments stated economic policy of holding inflation to between 2-3 percent, that leaves you with a real return of 4-5 percent. Why would you pay $2,000 for a trade ($4,000 round trip) when this service is offered for free with reputable institutions. Thats very true, and thats why I prefer the commissions than the 2% a year. Id love to see the Fischer portfolio and what fees they charge. Individual plans provide individuals with an account into which they may contribute money that may be used for retirement. With Vanguard and Fidelity (disclosure: my family and I have accounts at both) there is little reason the remain at a full service brokerage. All others are BS. I wouldnt be too hard on yourselfit looks like youve accumulated significant assets, fees or not! Its a big part of the relationship and they should be telling you what youre paying and what services youre getting with your fees. 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. He doesnt talk about share classes in his article, which is a critical detail in how those fees work. Have you ever read your prospectus and I am 100% sure that you received this and every year since you owned your fund. Vanguard $0 for in/out transfer. I know they are considered a good firm, but, for the past two years, I have had nothing but miserable experiences with them. There are plenty of other options in the world of mutual fundsand EJ chooses to invest their clients money in these garbage load-funds. Regardless of their performance they get 2% a year from you. Edward Jones will tell you anything and everything to get your money and your children money. The annual account fee for individual plans is $40 per calendar year. 1.35%. At any given time, 75% of passive funds will outperform. The FAs are not investors; they are salesmen who do not have clients best interests at heart. Its incredible Meanwhile, I have lost a sizeable portion of my investments. All rights reserved. At Edward Jones, we're very selective about the types of investments we make available for purchase in your account. What are the expense ratios on those funds? 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: However, I usually find people saying they have high fees but they don't say how they found them. Get new Impersonal posts to your personal email! 1 month history? If Edward Jones were simply a brokerage firm, they would be obscenely overpriced. But I hadnt done enough research. My wife and I are debt free. I find all the article and comments irrelevant to my experience with EJ. They have both said I could sue, but it would involve arbitration. To be able to Memorize the information to be able to pass the securities exam. If she had 500k she was paying closer to 1.1% max. Furthermore one can opt to stiff the waitress if one isnt happy with the meal or service. These begin at 0.09% for the Advisor Solutions Fund Model and 0.19% for the Advisory Solutions UMA (universal market access) Model. Overview. Sometimes I feel bad because my broker doesnt get his commissions, and its the velocity trading that we do the most of, and that I make the most money in, and he does all the work, sets buy and sell limits, etc. In todays market environment, one should only expect 6-8 percent returns when planning long term, i.e. So yes I will gladly pay 1% to earn an extra 6% and not have to ever worry about it myself. You can invest in Vanguard for about 0.15% if you go for the lowest fee funds (.010% for your plan, .005% for your funds). Do you use a discount broker and handle your own acct? And I had a portable phone since the mid-80s. If you want to watch an Edward Jones rep dance around a question ask them if they are a FIDUCIARY. 5/5. Lets talk expense ratios. Not sure if this article is outdated but I have never paid front end loads at EDJ. This indicates TLS technology is used. VTSMX COMPARISON: No load fees of any kind. Estimates put transaction costs at about the same level of expense ratios, thus doubling your annual fund fees. This cuts down through the tiers to reach a rate of 0.05% for the top AUM band. 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. In the writers column, he list IRA fees and stock fees as additional costs and thats a bit of a misnomer. 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 much prefer EJ where I can walk down the street to see my guy. What you gain for your 1.35% flat annual fee is a decent profit. Stocks and etf trades create a commission of about 2%. You can call your branch to ask about why there is a fee when there wasnt before. Then came March 2020. After 14 years, my advisor reassigned me to someone in his office (someone I did not like) and refused to return my calls when I wanted to discuss my concern. Get on the Bogleheads site, educate yourself. Have been so for quite a few years. This is what advisors call reverse-churning. ARE YOU NUTS? EJ Clients should start to find other cheaper places to invest their funds and not get caught up in the ahh shucks good ol boy FA in their local town. IROCC was even involved, and they say not the first complaint against this company. Just finished a complaint process with Edward Jones, of course they found themselves in no fault. If your returns after expenses are 10 percent a year annually, and paying that 1.25 percent and a small amount for ETFs and mutual funds, then Id say its worth it. It scales down from there, reaching a rate of 0.50% for assets valued over $10m. All of their FAs flout SEC and FINRA regulations, big time. Hate to change have been friends with advisor for years at EJ but its about the dollar.. 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. I would challenge the writer to challenge his own assertions. So yes I will gladly pay 1% to get an extra 6% in returns lol. You pay a commission when you buy and sell certain investments. My original advisor took me out of mutual funds that were doing well. I actually beat the market by avoiding some of the downturn and buying low. They pocketed over $2000 in commissions to liquidate the positions in her account and nailed us for nearly another $500 to split up her IRA. Regardless of the firm its all about the adviser and your relationship to that adviser. If you pay a management fee of 1.35% to invest you DO NOT ALSO pay annual account fees or stock investment fees. If you had bought the index 13 years ago in 2003, what would you have done in 2008? The service also works smoothly on the firm's mobile app, available on iOS and Android. The lot relief method (sell order) used in Select accounts is first-in, first-out (FIFO), and our Advisory account types use tax-advantaged lot relief methods intended to minimize the income tax impact of trades. If you want a relationship and friendship, go get some friends and leave your finances out of the picture. No online trading it would defeat the purpose for me. If thats not true in your situation then leave. However, they have their concierge service for account under $500K, select service for accounts $500K-$1MM, and flagship service for $1MM+. So in my opinion its really all dependent upon the individual investor, and not the firm in which you go with. The cold hard fact is Edward Jones is very expensive and doesnt provide great service if you dont have very much money. The management fee (also referred to as the "program fee") begins at 1.35% for an investment of $250,000. There is a good book out there called The Intelligent Investor, that talks about low cost funds, dollar cost averaging, diversification, and etc. This is what Jack Bogle called the tyranny of fees. 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. Not a great deal compared to E-Trade if thats all you were paying your advisor for. As Ben Franklin said, The bitterness of poor quality remains long after the sweetness of low price is forgotten. edward jones sign in account A Chegg account can cost anywhere from $9.95 to $19.95 a month, depending on the subscription plan chosen. I just meet with a financial advisor today and he said his charge is 1%. I didnt want to pay him for the exact same service and options I could get completely free at fidelity (or other places). 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. Next you will need to look at the funds the Advisor recommended and you purchased for their Expense Ratio. But say you do NOT know how to fix it. Aligned. Ive had the same advisor for 14 years. The main benefit may be the 12-month 0% APR on balance transfers and the absence of fees (unusual) for transfers made within 30 days of account activation. 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. Dont go wth the managed account! I have Americsn Funds and am pleased with it. And Edward Jones says that this annual fee does include internal investment expenses. The brokerage business in general is going away. Im hoping everything worked out well and that you were able to process the account. Stay far far away from Edward Jones. I may be naive but I really dont understand why so many people are commenting on Ed Jones high fees and commissions. I do sometimes use some as a core but would never use entirely. My experience with EJ is that the advisors push whatever corporate is trying to sell. Get a grip! Dont get too touchy feely with them this is business, you have plenty of friends your advisor relationship needs to stay mostly professional. All rights reserved. Between the three advisors they should pick similar models. Back then I knew nothing about all their fees although I was aware of their sales commission and annual fee. Edward Jones compensation and fees. 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. If one is never going to tell u when to move you money out then you are not getting you moneys worth. At first, it was just a 401K rollover, done and forgotten, which is why I went with Edward Jones, a name I trust, and with a trustworthy broker whos a part of my community. For me, I would consider that a VERY steep price to pay. 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.. Most of what you say just sounds ignorant meaning lacking education or knowledge. The ongoing fees built in to mutual funds are set by the mutual fund company and exist universally wherever that fund is held 401k, at the mutual fund company or in a brokerage account such as Jones. 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. Advice from TRUSTED friends or TRUSTED business associates can be of utmost importance in the selection of a financial advisor. Expense ratios of funds vary, but index funds that simply track the behavior of a particular sector or set of investments are generally the lower cost option. Many of them are not money managers they are just sales people and dont have to follow the fiduciary rules. But it isnt the declines that affect our returns, its how you react to them. Please review the applicable Edward Jones Guided Solutions Brochure for more information. Plus customer service very reluctant to answer a question always want to refer you to agent but they are not always available. Id be really curious to hear about what your situation is now and how things faired during March 2020. Edward Jones Compensation and Fees; Are we the right fit for you? Guess I didnt have enough money in to rate his attention. There are two ways to do it the 5.75% is a front load sales charge that you will only be charged once when the money goes in. Some [not all] Doctors think that because they are a doctor they are talented at everything. Depending on how active a client is, they could pay FAR less than a discount brokerage firm. Ironically, this error presents itself without prejudice. You hire Edward Jones because they have an established process to create a personalized strategy to help you reach your financial goals. However, within a year, the pipeline investments had melted down to about 0. If accounts reach over $10,000,000, investors are looking at an annual fee of 0.50%. Edward jones Advisory Fund is by far the worst investment I have Down almost 6% over the last year. My advisor is a nice guy but this service is just not for me. . I cannot recommend EJ. You're in the Right Place. That is 100% false. That fund you mentioned is 9% YTD my Roth IRA through a FA I pay 1% on is doing 15% after fees. PS: In all fairness to EJ, when I asked several years back exactly what % I paid in fees, the response was People who day-trade for a living are rarely successful at it. Either the market is up and you make less than you should or the market is down and you lose more than you should. And of course, dont worry about that pesky fiduciary duty to your clients, you dont have one! Mine are free with BOA. An Advisory Solutions Account Starts off at 1.44% annually. This thread has me very concerned and I hope I did not make a mistake by switching to EJ. Edward Jones account holders may also be subject to SMA manager fees. The culture of a firm can lean toward or against misbehavior. Its incredibly common for the local EJ advisor to be someone you know in the community, but I dont think avoiding the inevitable awkwardness should be the reason to continue to pay that community member a percentage of your assets every year. All they say when the market gos down is now is the time to add more to your account. Important information about fees and other charges that may apply to your account. make the need for high fee charging firms like EJ a dinosaur. Say your car needs repair AND you know how to fix it. People have mentioned that the 1-2% fees dont make that much of a difference. Please note that not all of the investments and services mentioned are available in every state. What matters is the all in cost. I agree with the pharmacist. 1/5. Investor Junkie strives to keep its information accurate and up to date. Investments always carry risks and there are no guarantees when investing. Ill defer to JL Collins stock series or his excellent book, The Simple Path to Wealth, for a much better explanation than I can provide. The question is, what are you getting in return for the costs? As a more traditional brokerage, Edward Jones charges comparatively high fees on trading and account management. Haha there have been a few suspiciously similar comments, now that you mention it! If you invested $100,000 with Edward Jones and purchase American mutual funds at 4.5% front end load and an expense ratio of 1.0% versus a comparable Vanguard mutual fund at 0% front end load and 0.2% expense ratio and left it invested for 10 years. 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. How has it done since the start of this year? It is too time consuming and I would rather do something else than read Money magazine, WSJ and watch PBS Money Hour. Knowing nothing about money, I assumed I was handing my hard-earned income over to the most capable and reputable folks in the business. Sadly I have been with EJ for decades so I will not be sleeping tonight. Just transferred someone away from those thieves. Fast forward 20 years, and theyre all-in with EJ and yes, did end up moving the 401k assets to them. If youre comfortable with what youre getting from Edward Jones, so be it. You need to study your accounts better. I do my own ETFs / Individual stock trades though my Schwab account. Sales loads, be they front load or when you sell, are generally never recovered from better fund performance. Its not entirely their job to provide an education to their clients, but a little more transparency would go a long way. They are ruthless, in it for themselves and EJ, EJ should have gone under as a company a long time ago. So in a down market of 10% you would lose an additional 3% or more. It's much safer than many newer platforms that haven't been tested. Let's take a look at the brokerage account options from Edward Jones. In actually think the percentage payment to an advisor is more of a conflict of interest per say. Now thats a power play. For example, robo advisors can manage your money for a fraction of the fees. Now EJ is having to have a fiduciary relationship with its clients who have IRA(s). MemberSIPC. This buy-and-sell process is one that Edward Jones has been in trouble for in the past. Call their customer service number. But Ill likely stay with EJ for awhile. I think Im qualified for posting this post, so give me your 2%. My advisor wants me to move it. So, once a good advisor articulates to you the timeless, simple truths of 1 and 2 above, 1% per year to get you to where you want to be in the most efficient way possible shouldnt sound too bad. People can invest online now and dont need a broker. While you have access to high-quality advice, the high fees will be charged as long as your account is open. Get to know your advisor. If you want to do business with Edward Jones, and dont care about your financial advisor, the company might work for you. I feel that I can clarify some mistakes that the writer made as I am very familiar with the firm as both a spouse of an advisor and as a client as well. I did it because I liked the guy I met with. Guessing you'll find them on those. On a $400,000 trust we paid $15,500 in administrative costs n one year which works out to almost FOUR PERCENT. B shares-No fee to get in, but if you take it out there is a graduated fee to get out of the fund family-high expense ratio Edward Jones mutual fund offerings will include higher expense ratios, but thats the least of our concerns. Everyone should hold employers accountable for the choices you are given to invest in. But I know people who panic sold during covid crash at older ages that had control of their stuff directly. So, how do they pay their phone bills, light bills, mortgages, employees, and all that expensive advertising ? However, you can actually invest in both junk bonds (i.e. edward-jones-select-retirement-account-schedule-of-fees.pdf | Edward Jones Vanguard gets very deep. My EJ advisor did!!!. Vanguard doesnt call me with the latest hot deals, but they have provided a very good return on my investments at low cost. What Exactly Are All These Fidelity 401k Fees? Ive learned a lot by watching others with their portfolios and their advisors and have watched how their value has grown because of the amount of time they spent in the market in good quality stocks, mutual funds, etc. pros We are helping an elderly neighbor on limited income to sort out her finances. Thanks! E J is a business not your close friend. Socrates, The expense ratio is slightly higher for VTSMX than VTSAX, but still very cheap relative to the competition. 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. Even then, your advisor could technically move you into a Guided Solutions account when you start liquidating, if the monthly fee breakdown ends up being lower than your selling costs. My $70,000 dwindled to $55,000 in just over a year. When you sit down and have a look at all the ways in which theyre profiting off of your investments, it can feel like a betrayal. Have a great day Nan. It is what it is. For the elderly, this is darn near predatory. Ive been dropped by two EJ advisors and shuffled along to someone else. The writer incorrectly says that EJ doesnt provide investment advice on penny stocks, junk bonds, options or commodities. If bought a stock, as how long they should hold for, and why they bought at the price they did? Stifel is in negotiations to buy Edward Jones, and that will change everything. Collecting a fee for management and then not doing anything. Edward Jones certainly isnt for everyone! Note that the costs you pay in a Guided Solutions accounts are fee-based, not fee-only. 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. There is also no potential to churn accounts. The average expense ratio at Vanguard is 0.18%. I guess thats the difference between a broker and an advisor..haha. 25 000 $. Can someone please explain to me how to identify the completely hidden fees that EJ charges? Im amazed when people think Edward Jones is a viable alternative. I was not aware of Vanguard being open to solitary investers. If you are Socrates, you should be able to figure it out. 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. 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. 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. Nope, they are still selling those American Funds Mutuals with the 5.75% upfront load fees. Around October of 2019 I started to get nervous. On a $1 mil account thats 40K real return 10K in fees, year in and year out. EdwardJoines financial advisor is a personable individual first and foremost. Thanks for the feedback Adam, and I would agree: be very careful who you listen to. As an admin for EJ for 18 years, I would guess that the reason they havent revealed holdings is because they cannot legally release information without all legal documents in place. Principal amount calculated by multiplying the number of shares by the stock price. Select Retirement Account: $5,000 in individual retirement assets or $10,000 for purchases of annuities; Advisory Solutions Fund Model: $25,000; . The commission varies depending on the type of asset that you buy. I was with EJ for 2 years and never got any sound financial advice from my broker. $750K-999K 1.50% sorry but the cons outweigh the pros for me.

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