Most people cannot handle the volatility an all equity portfolio entails (and most shouldnt have to). The hitch, though, is knowing what you think you know . They wrote it in relation to their own advisors, but youll see that it applies to all advisors. They just sold my American Funds and want to put me right bck in them after I told him I didnt want any loaded funds. So in a down market of 10% you would lose an additional 3% or more. But now, they are horrible, pushy salesmen. Are you up from the begging of this year? This comes in the way of front-end load fees (which can be north of 5% of your contributions before they invest a dime of your money). Again, full service brokerage is for someone that just does not want the extra hobby of managing their money. In a transactional account, you pay a cost when you buy or sell an investment. Here are the facts as I read them off the statement . Look into Vanguard, Fidelity, T Row Price, and other low cost mutual funds/ETFs. To get a piece of that time, you have to pay. I do sometimes use some as a core but would never use entirely. In financial advising, you get what you pay for, like most things in life. Im guessing that if you dont know, then maybe you havent had the conversation with the FA, which sucks. I didnt know much about investing, but at this point I knew I had to learn. Learn More. sorry but the cons outweigh the pros for me. Also, on their fee-based accounts, EJ advisors are held to fiduciary standards -as is the firm. All products are presented without warranty. Kudos to you for sharing this. This is my question at this point. You will do fine. When I phoned the advisor to ask about it, he said it was likely closing fees. I must have struck a nerve with this one as it is far more read/commented than anything else on this here site haha. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Commissions arent cheaper. I have no clue where you came up with 1.1% max but obviously you have no clue what you are talking about. The advisor gets paid for a service, and in your case you didnt get much service. The market is down 7% this year so far and you are mentioning getting out. This is just the tip of the iceberg when it comes to bad stuff about Edward Jones. EJ has worked great for me, though. 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. IMO the firm is shady, the trust department is dishonest and there are many better firms. C Shares-No fee to get, but will cost to get outhigher exp ratios and will convert to A shares at year 8. They can generate in 2 seconds and send to you. And Edward Jones' compensation disclosure admits that some of its advisor incentives could lead to conflicts of interest. pros Not me I am out! An yes if you own the index 13 years ago u still would be way ahead of any Edward Jones funds. Use a low cost managed account if you need assistant and financial planning advice. My wife and I have Roth accts at EJ. As a more traditional brokerage, Edward Jones charges comparatively high fees on trading and account management. Edward Jones Credit Card Login is to sign in online account Edward Jones, advisory and guided solutions, enrollment. After four long years in which I got moved from one advisor to another (usually after refusing to buy something they wanted to sell me), I ended up with a trainee. Nope, the only thing that youll pay for is your next trade or whenever you sell off positions. I have been through four advisors in the last year, including our trusted family advisor. Our agent looks not only at investments, but insurance coverage, various retirement funds, my wifes small business, taxes, tax accounting, college account for baby and so on. your total cost would be 1.35 plus Fund Expense Ratio (They usually average about .6%) so 1.35 + .61 = 1.96% plus the 40 annual fee. Note: Data is loaded on a monthly basis and should be available by the 5th business day of the month. Why Do California And New Jersey Tax HSAs? about the services, fees and agreements that are part of your relationship with us. And being charged $3,375 per year for your hard work saving money doesn't feel great. Create an account to follow your favorite communities and start taking part in conversations. Investor Junkie has advertising relationships with some of the offers listed on this website. Check out how often the SEC has fined them for not disclosing kickbacks they get from the mutual fund companies. The fees listed in this article are misleading and incorrect. The thing that the writer is probably most incorrect about is the fees. U got to be joking. Take the lose n wait until the next bull market 10 year from now. Buddy, I hate to tell you but the advisory fee for a $500k account is 1.35% + the expense ratio of the mutual funds which come out to around 0.50%so that is an annual fee of 1.85%.. These same people also tend to be very defensive of their (ignorant) choice to go the easy route, probably because they have realized since investing with EJ that they cant even get out without paying high fees or trailing loads. Pay a visit to PaulMerriman.com Hes an older, retired financial person whos advice may resonate with you. b. First $250,000. The lo-cost investing environment in America today, is ONLY Vanguard, Schwab and Fidelity. I cant speak to any of their full-service broker offerings and fees but certainly the company is reputable and on par with Fidelity/Vanguard/Schwab. By the time she could liquidate and move to Vanguard, she has paid over $1,000 in transaction fees which, by the way, are not showing up on her statement AT ALL! Since Im not greedy, this works for me. I hope you do get a second set of eyes on your investments, and perhaps consider some cheaper alternatives, but ultimately you are going to be fine! Mine did he actually rebalanced my portfolio in 2007 before the crash and then we started buying again when the market was down. Plans provided by Edward Jones. The only way to lose money is to sell investments when they are down. Thats not true. Best of luckyoure in great shape! You then leave it for 10 years, and you still have only ever paid $2,000. Along with what EJ provides advises on and sells, thats 3 out of 4 thats wrong. We switched from Fidelity to EJ b/c EJ advisor helped my wife create 401k for her private business. Also fees are listed in black and white on your account forms when you set it up. 3. 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. First it depends on your relationship with Edward Jones. For one, the loaded funds also have higher than average expense ratios. I have tried several. Im also faced with creating tax-efficient strategies to pass on my wealth to loved ones down the road. Personal financial success is directly correlated to asset allocation and risk management. Overall, Edward Jones has an impressive setup for matching you with an advisor. The reality is that these fees wont prevent us from retiringthe habit of saving money and the power of compound interest will overcome an unnecessary 1% fee. Interestingkeep us posted! I havent even touched on how maintaining the proper allocation (mix of stocks vs bonds AND exposure to the different asset classes among those) is crucial to maintaining your proper investment mix to reach your goals with the least amount of volatility (some call this risk) in the interim. You dont have to like Edward Jones but I find the people that I work with and for to be very conscientious, hard working and honest people. Buffett even went so far as to wager $500,000 of his own money that such an index fund would outperform a basket of hedge funds over a 10-year period a bet he handily won. They compete with early ETF fee pricing before they broke below 0.1%. I have the same experience. Ive been with EJ and the same adviser for 12 years and am happy with the performance and my portfolio. (I looked at it line by line the only thing that signals the fee is a small print labeled CHRG 4.5% on the transaction. FOR IMMEDIATE RELEASE 2015-166. This is not investment advice, but merely my own experience with Edward Jones services. Definitely a buying opportunityas it is every two weeks when I DCA into the market! Unfortunately, our EJ advisor lives a few houses down from my mom and our kids are in school together.But several hundred thousand in thirty years? A good investor knows when to speak up and when to allow the adviser to lead. 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. Also ask what they pocket quarterly while you are in the fund (12b-1 fees too). Where did my money go? 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. The Edward Jones account will cost you over $20,000 more than Vanguard! I interviewed with them and RAN out the door when I heard what they do. Unfortunately, we've got more fees to consider before examining whether this claim holds up. Trust, Investment Advisory & Trusteed IRA Accounts. Most people need an Advisor and many are wise enough to admit it. Edward Jones Advisory Solutions Fund Models Fee Schedule . It's much safer than many newer platforms that haven't been tested. This is certainly the case with Edward Jones, which has a number of fees. You can also take a financial quiz to get matched with the best overall advisor for your needs, even if they aren't necessarily located in your geographic area. But Im good for now. The key question is whether the quality of investing decisions makes up for it. The cons provided are not accurate. Copyright 2023 Edward Jones. Break away brother.you are just throwing good money away with the fees. If she had 500k she was paying closer to 1.1% max. No, EJ isnt perfect. 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. These represent the most hands-off investment option. Brother. Great work! Edwards Jones' customers service hours are 7 AM to PM (CT) on Monday through Friday and 8 AM to 4 PM (CT) on Saturday and Sunday. People who day-trade for a living are rarely successful at it. Thats what she had. No matter what your returns are you are losing 2% every year plus any expenses if you are invested in mutual funds and efts. 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 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. If your investment goals include being ripped off then Edward Jones is the place for you. 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. Most people would be very happy with a long term average annual rate of return around 10% (historic equity returns give or take dividend reinvestment). 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. You know is loaded on a monthly basis and should be available by the 5th business day of offers. Mutual fund companies or whenever you sell off positions advises on and sells, 3... Budgeting, saving, getting out of debt, credit, investing, and you mentioning! Sell off positions of that time, you pay for is your next trade whenever. 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