The whole point of having someone manage your money is to help you better understand whats going on with it and why, and those lies of omission from the broker (not being upfront regarding load fees & expense ratios) lead to a lot of resentment once you find out what those fees have cost in compounding growth. (Deep Dive on the Risks in 2022), How to Cash Out Bitcoin on Various Platforms & Apps. So in a down market of 10% you would lose an additional 3% or more. These accounts include some non-ERISA retirement plans, ERISA retirement plans, Flex Fund accounts and pooled employer retirement plans. EJ isnt doing it to be difficult, theyre doing it to protect the client and remain legal. Let's take a look at the brokerage account options from Edward Jones. Not a great start! Take that 0.59% expense ratio and subtract what I would be paying for VTSMX (0.14%). You pay less because you get less. They also pay more. Four Edward D. Jones & Co. customers have filed a class-action lawsuit against the company and its executives, asserting that its aggressive promotion of fee-based advisory accounts is an illegal . These people arent financial advisors. As an aside, I left my EF FA because she had me transfer a Deferred Comp account which was costing me about $200 a year in fees, to Edward Jones, where I was then paying about $2,700 a year. But you are right that the most important person in the relationship is the client. If all a financial advisor does is portfolio management, why would a millionaire pay that much money when they could just go to Vanguard? Let me preface this by saying that I am biased insofar as I am the spouse of an Edward Jones advisor. (it will be a company rehearsed answer) Do they know the managers tenure without looking, what high concentration of stocks are in the fund? Making your average fee percentage, a whopping 0.2%. The fees and expenses that an investor pays better be worth what the returns are given the context of the market etc etc etc.Edward Jones is a good firm and has some of the best long term investors in the market today. Theyll tell you exactly what you want to hear. That is, you either pay a front-load fee upfront when you buy an investment, a back-load fee when you sell the investment, or a level-load fee throughout the duration of the investment. After reading the complaints on this site and several others, it seems like the dissatisfied clients are overwhelmingly the ones who dont have very much money. First its your money and as diligent investor you should always know all fees you are paying when you work with a financial rep or advisor to begin. At any given time, 75% of passive funds will outperform. An investor can easily make a 2% per year (or much more) mistake by not being in the proper investments at all times. Edward Jones's fees. 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. It just take a simple click to see where the market was 13 years ago n where it is know. I agree wholeheartedly with your final sentence. So, you are paying 1.05% to get advice from someone you can trust who will never have an incentive to sell you a certain product. etc. Over the life of my investment, I have averaged 7% per year. I told him that those fees were itemized on the statement. EJ is a joke, and as long as you can count on your own hands and feet, do your own investing. The problem is that people CANNOT deal with the inherent and recurring temporary declines, even though those declines are simply a means to an end of their long term performance. You dont want to know. I cant say I wasnt warned, just to stunned to react or comprehend. When it comes to customer feedback for Edward Jones, reviews tend toward the negative on some sites. My advisor now wants to move and sell. The fees at Edward Jones are based on the deposit amount and decrease the more that's deposited. I better not be paying for NO management. Read important information about fees and other charges that may apply to your account. . Its done quite well, and now Im moving into stocks from mutual funds. This is contradictory. Commission-based advisor compensation for "Select Accounts" Expensive management fees for asset-based fee accounts; Or you dont want to ruin a relationship with a close friend or even family member. Edward Jones is one of the worst possible brokerage firms around. If you dont have a large portfolio, avoid EJ. I cannot imagine how much of my portfolio would have been lost this last year had I left it with E.J.. so have u got your moneys worth since the start of this year. I decided to dig deeper and look at the performance. You set there and bitch because you pay a 1.5 or 2.0 % fee for whatever..yet you eagerly head down to some greasy hash house and pay 15-20% (or more) tip for a 2 bit chopped steak and a side of steamed broccoli! Get the facts, you are kind of missing an important point. Investor Junkie is your shortcut to financial freedom. While these fees are charged only at the upper end of the broker's services and won't apply to lower-value investors, they still take a substantial chunk out of a portfolio. This year, for the first time, I owe a $40 fee for having a self-directed IRA. So who should you invest with if not Edward Jones? Interesting. Haha you are right that not doing my homework was part of my problem! I think you can get by with 3-5 index funds and not pay a financial adviser. 1. They thought the sky was falling and that the world was ending just like those before them had thought so many times over the history of the markets (who were wrong every single solitary time, mind you).Thats human nature and thats why people dont achieve the long term returns that they SHOULD, regardless of investing in index funds or managed funds without a good advisor even if only to keep them from making disastrous mistakes. Edward Jones account holders may also be subject to SMA manager fees. In the first case we are talking about HUGE sums of money that eventually will finance every area of a persons life. Thus I moved the remaining $1,000,000 over to Fidelity. Its a 10 year CD that was picked by my financial adviser. I understand that this is in exchange for the 1.35% you may pay annual, but it doesnt tell the whole story. - Impersonal Finances, The Sunday Best (2/28/2021) - Physician on FIRE, A Closer Look Those Bullshit American Funds Load Fees - Impersonal Finances, Using Mint Is The Secret To Budgeting Success - Impersonal Finances. Over the last 13 year the market has gone straight up. On a $1M portfolio I pay less than $1k in management fees, and obviously have paid (or will pay) no load fees. 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. Moving my money out. Learn More. Edward Jones is a traditional brokerage firm. Hands-on. If youre comfortable with what youre getting from Edward Jones, so be it. However, they have their concierge service for account under $500K, select service for accounts $500K-$1MM, and flagship service for $1MM+. Plus, 1.3% annual fees and 2% on reinvested dividends. Bitcoin vs. Bitcoin Cash: Which Is the Better Investment Today? Keep in mind, you get what you pay for, folks. In the writers column, he list IRA fees and stock fees as additional costs and thats a bit of a misnomer. But thats a fee that youre gonna eat no matter how you own the mutual fund as its a fee taken directly out of the fund. Many good advisors dont even do that at all anymore, and simply delegate the management to someone else using a program like Advisory Solutions so they can focus on what they are good at and what adds value to clients. Honestly, I am not sure I would have done as well as i have without an Edward Jones broker. In this case that amounts to another $100 of my investment into their coffers. Guess I didnt have enough money in to rate his attention. My mother-in-law, an EJ client, just passed away. I cannot wait to get the assets away from them! I was young and didnt even know what doing my homework even entailed. 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. Edward does just enough to make sure you never become independent of them . The down side of Vanguard is you do not sit across the table from them like Edward Jones. Mgmt fees are also listed on your statements. I enjoyed your blunt information and you are lucky to have learned the finance game early in life. You and your financial advisor will build and maintain a portfolio that aligns with a portfolio objective you . Being invested is the most important thing, period. Percentage-based fees are always going to hurt you more in the long run than flat fees, which is not to excuse the aforementioned $40 annual flat fee. Id way rather pay a guy 1.25% if my money makes 76.9% in one year. Criticizing the cost of doing business with them relative to other more qualified, less expensive managers is warranted. 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. My $3,770 (following the load fee), gaining seven percent in the first year, comes to $4,033.90. I just a sales guy who understands this stuff. Load fees can work in three ways: before, during, or after. Awesomethanks for the rec. But you should be aware of the high fees involved with your accounts, which EJ doesnt exactly advertise. Just one more thing: as has been pointed out over and over in this column, EJ has fees, but if they were as exorbitant as some have claimed, and if all their clients lose money, how come the firm is now 100 years old? 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. 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.) the kicker is they still take the fee. Vanguards customer service is fantastic. So what should you do instead Hire a fee-only advisor who signs a fiduciary oath in your contract to act in you best interest. Im happy with what Ive done. I much prefer EJ where I can walk down the street to see my guy. How Edward Jones Select Financial Advisors: Edward Jones selects its financial advisors through a rigorous recruitment and training process. The FAs are not investors; they are salesmen who do not have clients best interests at heart. Despite the fact that I hadnt heard from an Edward Jones rep in a decade before finally reaching out to them on my own, EJ collected an annual $40 fee out of my investment account for the service of managing my portfolio. If you want to do it yourself then Fidelity and Vanguard are perfect for you. Look at their BUY rating stocks vs. any other making recs. If someone says they only charge a flat fee, they have no skin in the game to make your account worth more, or to lessen the downside. For customer service questions or complains, you can call 800-441-5203 or email complaints@edwardjones.com. An adviser is not the final say or word, your word is final, and if you allow an adviser to have that, then you have lost control over your investments. Edward Jones company slogan claims that they are Making Sense of Investing. They sell their clients with a friendly spiel of Hey dont worry, well figure out all this financial mumbo-jumbo so you dont have to worry about. Thats what theyre doing: selling. With advisory solutions, your advisor will also serve as the executive decision-maker for your investments. So its the poor clients who are complaining? So, I moved to a fourth. MemberSIPC. Word would get around, right? I agree with the pharmacist. So as an Edward Jones advisor do you give clients to new advisors as my wifes does? 10 year annualized return of 14 percent. 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. Im willing to bet a heck of a lot of people saying use a discount broker dont understand those critical terms. Can anyone comment and let me know what I am missing? How Edward Jones decrease the more that & # x27 ; s deposited I edward jones select account fees. Mind, you get what you want to hear joke, and now Im moving into stocks from mutual.! 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