Not sure if this article is outdated but I have never paid front end loads at EDJ. Advice from TRUSTED friends or TRUSTED business associates can be of utmost importance in the selection of a financial advisor. VTSMX -18.1% YTD, AWSHX 8.58 YTD. The expense ratio is slightly higher for VTSMX than VTSAX, but still very cheap relative to the competition. I opened a rollover IRA and new Roth account at EJ 19 years ago. The only discussion so far has been a $300 transfer fee. Let's find out with a complimentary consultation. I get that advisors at these types of brokerage houses need to stick together as their model of client services is phased out of the marketplace, but from where I sit, individual investors are much better off seeking alternatives. Lets talk expense ratios. Then I can decide from there to approve or disapprove the suggestion. find a Financial Advisor on the Wiser Advisor website. (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. recommendation or solicitation to invest in any security. Until these accounts reach $5,000, they are limited in the number and types of investments that may be purchased or held. $2000 fee for one trade? Once it is known what the goals are and the resources available to put towards them, a general average annual rate of return on the assets earmarked towards those individual goals can be established. Long story short, this co-workers husband knew an upperclassman in college who came back to visit after graduation and getting a job at EJ and got their entire social circle to sign up with them. For perspective, the aforementioned $40 annual fee on my initial $4,000 investment is equivalent to a 1% expense ratio. It by FAR outperformed the rest of my funds and that is with the much higher expense ratio. Please note that not all of the investments and services mentioned are available in every state. They have both said I could sue, but it would involve arbitration. the kicker is they still take the fee. My broker and I have talked about it, and hes willing to set me up so that I can play some riskier gambles if I like. My Edward Jones guy told me a few years ago I was being switched to a format where he get paid for performance and it was going to save me money. The agent checks in, because he has set a to do in his computer system to call clients quarterly. Mine are free with BOA. Thats loyalty for you. The writer incorrectly says that EJ doesnt provide investment advice on penny stocks, junk bonds, options or commodities. If you do that, whether you paid $7 or 5.75% to get in, it really wont matter. American Funds Balanced Important information: 1 For Edward Jones Select Retirement accounts opened on or after June 9 . This is my question at this point. 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. Theres nothing wrong with the Wal-Marts of the world. Check out AOA and AOR. . Fast forward 20 years, and theyre all-in with EJ and yes, did end up moving the 401k assets to them. We actually have a vested interested and huge responsibility to our clients. A Free 1,000 Southwest Rapid Rewards Points For TurboTax Users, Incurring Annoying Non-Chase ATM Fees, $2.50 At A Time, Home Is Where The Paycheck Is With Geographic Arbitrage, Analyzing The All-Time Results Of The Super Bowl Indicator, How To Tax-Loss Harvest Your Way To Positivity. Again, full service brokerage is for someone that just does not want the extra hobby of managing their money. In this back-and-forth between everyone in this thread are not even being discussed.If you people are going to argue about fees and performance, and passive VS managed, and DIY VS an advisor, you must understand that there are simple, timeless truths at the foundation of the argument that you are failing to integrate here. I was a Financial Advisor for over 40 years, Dr. and can say that its a very rare person who can educate themselves well enough to handle their own investments. about the services, fees and agreements that are part of your relationship with us. My 2nd EJ guy (branch keeps getting passed along) used to send me birthday cards of his kids on the annual week-long Disney World vacation. Generally speaking 70-80% of actively managed funds underperform the benchmark. I thought they were amazing and I recruited 14 and trained 9 of them. He then referred me to my current one who Ive been with for a while. In fact, it takes me more than a year just to cross back into positive territory on this investment. The brokerage business in general is going away. . But of course, past performance is no guarantee of future results. Commission-based advisor compensation for "Select Accounts" Expensive management fees for asset-based fee accounts; 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. not just any fee they take the fee off the money I already have invested every single month. The EJ fee structure is very well hidden and very hard to find. did they advise u to get out or r they running on the last 5-10 years of upward movement. Ive lashed out at the corporate office from time to time when they start interfering with my success (they mean well, but they pressure me to behave and that aint going to happen.) You'll get a high level of customer service and your investment decisions will be informed by experts. You'll have a range of investment choices to work with and flexibility in how you manage them and how active you want to be. Id never do business with this firm again. Interesting. Great work! Get educated and do it yourself with a discount firm like Vanguard. Call FA and ask for a total fee report. The fee, I was told, very minimal and prevents another crash, in case of market issues. Watch out for the smooth talkers and get to know your FA on a personal level and the trust factor will begin to show itself. Its my belief that Vanguard is the best place for the average, above-average, and below-average investor. To get a piece of that time, you have to pay. If you dont know how to fix it you need to figure out how to find a good mechanic who will do a good job, with good parts for a fair price and stand behind his work. With advisory solutions, your advisor will also serve as the executive decision-maker for your investments. I do not study my statements but maybe there are hidden fees? You could spend more time learning about making investment decisions by yourself and choose a platform with lower fees. Do you need a background in finance or economics to be an Edward Jones broker? Investor Junkie does attempt to take a reasonable and good faith approach to maintain objectivity towards providing referrals that are in the best interest of readers. Over the last 13 year the market has gone straight up. Regardless of the firm its all about the adviser and your relationship to that adviser. I could go on further, but I know this is already a long post. This article needs to be updated to be correct if people are going to consider it when making an investment choice. I recently asked him to sell an asset. FYI.. others are correct though. I would challenge the writer to challenge his own assertions. The cost to us is worth it and in this sense, they do a great job. If they dont get you results OK, but Jones seems to outperform in down markets regardless. The assertion that accounts under $10M are paying too much is ludicrous. So far, despite a rolling bear market, Ive kept up with the S&P. I invest in four funds, Total US Market Index, Total International Index, Total US Bond Index, and money market. We invest to gain NET results not to avoid fees. Between the three advisors they should pick similar models. More importantly, does all Edward Jones advisors add 1-2% alpha in their returns? Are you up from the begging of this year? However, I will say this. He is calm, well versed, explains everything to me and I consider him a good, trusted friend. Ironically, this error presents itself without prejudice. They FA all have wonderful lives kids in private schools vacations in Bali and perfect retirement packages. We look at this full service as retirement planning for the long haul and money management for the entire family. From what year to what year? From the end of December 2021 to 11/04/2022 (they will just quote Edward Jones research, which you could do on your own). Individual plans provide individuals with an account into which they may contribute money that may be used for retirement. 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. At Edward Jones the planning is what you pay for. They cost me thousands in horrible customer service and bad advice. I invest on my own and am conservative and safe. Hey, thats the American way. In today's investment world there are much better lower-cost options. Under the new changes, if you use the fee based accounts all of those cons go away except the annual cost. I am happy to set it on autopilot with a low-cost index fund, as you mention. These people arent financial advisors. 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. For some, a 6% average annual rate of return is sufficient over the long term for others, 8% may be required (unless working longer or spending less is an option they are willing to budge on). For me, I would consider that a VERY steep price to pay. Read about its products, services, fees and more with ConsumerAffairs. Swimming with the sharks and bleeding money is a perfect analogy. The culture of a firm can lean toward or against misbehavior. Id wager that these fees are screwing you over just the same. You can work with your financial advisor to review your account and determine when and how you will rebalance or make changes to keep your portfolio on track. I will gladly keep paying the 1% fee.. His advice kept me grounded and made me x$$$ more than his fee. I just meet with a financial advisor today and he said his charge is 1%. The problems came after my dad died and I lost my family EJ advisor. Yet, your average millionaire will be paying that bill to a full service brokerage firm like Edward Jones, Merrill Lynch or UBS. Let's find out with a complimentary consultation. Thanks for the comment, Johnny. Do you invest with Edward Jones? 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. But say for 1% of a $1 million dollar account I am still out $10K for that year plus whatever investment losses I suffer. So in my opinion its really all dependent upon the individual investor, and not the firm in which you go with. The hitch, though, is knowing what you think you know . Since most offices are in small towns, you cant continue in business if you are ripping people off. And bubbles formed for index funds? 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. 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. Absolutely correct that any firm can have scoundrels. Your EJ FA probably has BMW or Benz, thanks to you. Sorry I work a lot. 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