They serve people in their niche very well. We had $70,000 in savings. Under "Account Services", select "Spend Analysis". I discovered that Edward Jones fees were eating away at my returns. I cannot wait to get the assets away from them! I may be naive but I really dont understand why so many people are commenting on Ed Jones high fees and commissions. Feeling like youre getting a raw deal can be the loneliest place on Earth, but clearly I am not alone in that with regards to my EJ experience. Hate to change have been friends with advisor for years at EJ but its about the dollar.. that was the biggest lie Ive heard on this entire site. You made a balanced argument against EJ without bias or vitriol. Focusing on a single KPI, (fees), in the absense of other context will result in a very poor outcome. All in -I pay 1% including mutual fund fees. WOW. One fund to rule them all. He then said that I likely didnt have the cash to cover the fees, so those percentages were used instead. Made a lot of money with him, he tells you what and when. I invest on my own and am conservative and safe. Unfortunately most people bailed once most of the decline had already happened. Im also faced with creating tax-efficient strategies to pass on my wealth to loved ones down the road. Edward Jones' U.S. financial advisors may only conduct business with residents of the states for which they are properly registered. There are 5 Edward Jones offices there, more EJ offices than Starbucks. Brokers do better when their clients are in the dark. The cost to us is worth it and in this sense, they do a great job. According to you that would be no. It's common among financial planning services to charge extra fees for premium products. No matter what your returns are you are losing 2% every year plus any expenses if you are invested in mutual funds and efts. Because they make 50-90% commissions on the front-end load fees. It's much safer than many newer platforms that haven't been tested. Theyll walk you through the fees specific to your account. Related: How to Know if a Company or Fund Is Really ESG. Do you invest with Edward Jones? 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. At the end you lose. What would you suggest if we rolled the funds into another broker? How do you like that? They explained that this is common at EJ. They will work with your CPAs to develop specialize tax plans, your estate attorney to create the legacy that you want for your family, hold your hand through down markets to keep you from making mistakes, knowing and caring for your family, etc. He once called me in the hospital. Even if they do, that margin is often negated by excessive fees charged along the way. He or she will build a personalized strategy to help you achieve your financial goals and will partner with you throughout your life to help keep you on track. You get sold on the process of Edward Jones, which makes everyone feel good, but does nobody any real good except for the company, and the advisor, in that order. If thats not true in your situation then leave. Im older now and am getting into tax free munis and large CDs. I just meet with a financial advisor today and he said his charge is 1%. Check out AOA and AOR. Copyright 2010-2023 TopRatedFirms.com. They have always been encouraged to follow that standard even when it wasnt the law. Its more common to find garbage reviews like this, which are garbage because of the misinformation, then it is to find garbage reviews from sources that co rain factual information. I use both websites to analyze accounts for friends and family. non-investment-grade bonds) and commodities at EJ through mutual funds or ETFs. True, I could fire the FA. I take issue with the fees associated with Edward Jones that eat away at returns in the long run, but those fees are pretty minimal relative to the YTD market losses. But I know people who panic sold during covid crash at older ages that had control of their stuff directly. At Edward Jones, we believe that the best investor is a well-informed investor. Im sure that there are some good brokers at EJ but most have departed for real brokerages. Cheap is not always better as index funds are market- weighted and more susceptible to bubbles. You need to study your accounts better. You also cannot Churn in a fee-based account because you do not pay commissions in a fee-based account. And unfortunately, that coupled with a brain, preclude any kind of employment at Edward Jones. If you are not communicating comfortably with your person, find someone else. Do you get monthly or quarterly statements? Criticizing the cost of doing business with them relative to other more qualified, less expensive managers is warranted. Thank you for mentioning that option, which I neglected. Let's find out with a complimentary consultation. EDWARD JONES IS A GIANT RIP OFF Investing in a low cost index fund is NOT the same; its very easy to do. 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. Helping make finance easy. Wow! The integrity factor cannot be easily discerned. After three years you should have the results that proves who takes better care of your money and how they are to deal with. I might have gotten a little bit more attention this way, but maybe not. It just take a simple click to see where the market was 13 years ago n where it is know. Jones doesnt have account minimums to have a physical advisor, and the local branches mean youre not calling a 1-800 #. EJ is a joke, and as long as you can count on your own hands and feet, do your own investing. If the market returns 5% a year on your investments and you pay 1%, simple math you are paying 20%, One percent compounded is HUGE over a lifetime of investing. One for Fee-based accounts and one for Commission based accounts. Please note that not all of the investments and services mentioned are available in every state. Edward Jones does not serve as a fiduciary except for at the Plan level of retirement plans. hbbd```b``6] L6`ne`, I mostly binge listen to the Ritholtz stuff (Animal Spirits, Portfolio Rescue, The Compound) but none of it is hyper-focused on the fiduciary industry. I am moving from EJ after 10yrs. He never really pressured me, only gave me encouragement from time to time to reinvest. However, I usually find people saying they have high fees but they don't say how they found them. EdwardJoines financial advisor is a personable individual first and foremost. This is what advisors call reverse-churning. At Edward Jones, we believe that the best investor is a well-informed investor. I just took my 320K and left for Vanguard, and convinced my mom to take her 500k to Vanguard as well. It should have been a thank you card! MemberSIPC. Simple explanation: If you pay Vanguard .10 for an index fund and the fund gets a 10% 1 yr return you net 9.90%. One post you said I am a 20 year plus veteran broker then you said I am a 20+ year Edward Jones advisor I dont go around saying Im a CFP when Im not so if you are a fiduciary over your clients assets then you can call yourself an advisor. Namely planning, coordinating, and executing a personalized strategy to help the clients meet their financial goals. Edward Jones Guided Portfolios. PS: In all fairness to EJ, when I asked several years back exactly what % I paid in fees, the response was You would also pay a percentage when you buy a stock in this type of account. An index fund can also return 1% in a single day and they often do. My advisor wants me to move it. Am I misreading that? However, you can actually invest in both junk bonds (i.e. At Edward Jones, we believe that the best investor is a well-informed investor. Again, full service brokerage is for someone that just does not want the extra hobby of managing their money. This effectively consolidates breakpoints. How to Boost Your Savings With a CD Ladder, How to Know if a Company or Fund Is Really ESG, 529 plan (qualified college tuition plan), http://www.jdpower.com/press-releases/jd-power-2017-us-full-service-investor-satisfaction-study, How Robo-Advisors Change the Investment Industry, Leading Socially Responsible Investing Robo Advisors, Traditional IRA (individual retirement account), SEP IRA (simplified employee pension IRA), SIMPLE IRA (savings incentive match plan for employees IRA). He is a CPA also ..and was a broker since the 1980s and has been through all of these cycles. More importantly, does all Edward Jones advisors add 1-2% alpha in their returns? Im no authority of any kind on the stock market ins and outs. I simply put everything into low-cost index funds and some high-dividend-yielding mutual funds. Pshh. The key question is whether the quality of investing decisions makes up for it. Lastly, the fees are not higher than average, actually they are cheaper! Haha you are right that not doing my homework was part of my problem! The commission on those stocks was approx $6,000 at the time of purchase and trading activity has been limited since then. Either way, it was the right move for me, but nothing is right for everyone. Not to you. Are you really diversified? . Its the mutual fund company, not the advisory firm. Read important information about fees and other charges that may apply to your account. THEY CANT HANDLE IT. FYI with Edward Jones my cost was 7.95% he had us in two funds that lost 11 and 15% over 5 years, take out those funds and the cost was 3.68%. For all other account types, the broker charges a Program Fee that's a percentage of the value of your account. Im sure there are plenty of who do. That would fluctuate up or down with account balance, but lets assume the balance stays exactly the same. Absolutely you get what you pay for! This is what Jack Bogle called the tyranny of fees. 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