In real money, this means that you're paying annual fees of: You're probably not struggling to pay the bills if you have $20 million of assets, but being hit with an annual fee totaling almost $128,000 is still pretty steep. It's much safer than many newer platforms that haven't been tested. I will have to agree with this article and the following comments on the high cost of EJ. . "Auto Complete" Disabled If you are not communicating comfortably with your person, find someone else. Investor Junkie strives to keep its information accurate and up to date. They cost me thousands in horrible customer service and bad advice. You are correct there are other firms that do this but they are equally expensive. This account comes with no minimum investment requirement. If you know how to fix it, drive to the parts store and pay $100 bucks for parts and get it done for $100 bucks and your time. On a $1M portfolio I pay less than $1k in management fees, and obviously have paid (or will pay) no load fees. Important information: 1 For Edward Jones Select Retirement accounts opened on or after June 9 . The services offered within this site are available exclusively through our U.S. financial advisors. While you have access to high-quality advice, the high fees will be charged as long as your account is open. Awesome response and appreciate all the facts. My little town of 13,000 people has 8 EJ Financial advisor offices. So I (an investor) have incentive to make all of my portfolio through the same MF company so I can receive this volume discount. Liquidating her account took 2 months and had to be done almost exclusively by snail mail which is done between you, your broker and the home office. Its almost impossible to break 1.6% in total fees per year using institutional shares. You get what you pay for. 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. 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. It isnt rude to acknowledge that people with more money get better service. Before my $4,000 investment even has a chance, Im out $230. A fool and his money are soon parted. Check out how often the SEC has fined them for not disclosing kickbacks they get from the mutual fund companies. Instead of charging $40, why not $1000? I have no clue where you came up with 1.1% max but obviously you have no clue what you are talking about. 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. The cold hard fact is Edward Jones is very expensive and doesnt provide great service if you dont have very much money. Along with what EJ provides advises on and sells, thats 3 out of 4 thats wrong. My Fathers Heirs will certainly not consider reinvesting with any Ed Jones rep. Their in sensitivity and unfounded $300 fee will cost them many fold in future earning with us and anybody who does a little research. Look up Edward Jones and Lawsuits. So if you have one IRA and one Roth IRA, you will be charge 60 annually no matter the account balance. I like the security, the options available. The Program Fee is based on the market value of all assets held in my Account, including any cash balances swept into the Edward . One year later, I can say that lower fees definitely make a huge difference, especially if the brokerage firm is churning portfolios to generate commissions. They have always been encouraged to follow that standard even when it wasnt the law. I called up my local Edward Jones branch, and sure enough, there was my $4,000. The most important person in the relationship is you. American Funds Balanced I dont know whats going on with the firms management, but they are taking advantage of the small investor left and right. My friend n I both got sucked into Edward Jones both lost money. Get on the Bogleheads site and educate yourself. Then wonder why people dont hire their own money managers. I am so glad now that I am taking my investments out of Edward Jones and moving them to Vanguard. (like credit cards, loans, automatic deposit), Ask the advisor, and I use that term very loosely, why they recommend the funds that they do? . Here are the facts as I read them off the statement . My short experience with Ed J. has been a night mare. An individual retirement account (IRA) is a retirement savings . MemberSIPC. Most of the rich understand that value of leaning on a professional for advice in their specialization. Contact an Edward Jones financial advisor today. Its the mutual fund company, not the advisory firm. b. My EJ advisor did!!!. More importantly, does all Edward Jones advisors add 1-2% alpha in their returns? But I hadnt done enough research. 5/5. It is through a comfortable, trust worthy, respectful, professional relationship that solves this so-called conflict of interest. How do you like that? Hands-on. I decided to dig deeper and look at the performance. Me, with a financial advisor. Advisory Solutions accounts are perhaps the best financial planning option for a retirement account. Note: Data is loaded on a monthly basis and should be available by the 5th business day of the month. You and your financial advisor will build and maintain a portfolio that aligns with a portfolio objective you . My advisor is a nice guy but this service is just not for me. Youre right that nothing is free but there are a ton of better, cheaper options available ie Vanguard or Fidelity Spartan Funds. Account minimum. No offense but the CFP is basically a designation to get more sales, it doesnt make them any more qualified in the thing that matters, which is investment management. So back I go as they double dip. The fee was based on the amount of money I was giving them to invest; higher fees for less money. Hell that would be every day. Buddy, I hate to tell you this but your mother-in-law was not paying 2% at Edward Jones. Select Account clients are charged trade commissions whenever they buy or sell assets. Whats the Difference Between Saving and Investing? I have been through four advisors in the last year, including our trusted family advisor. Nope, the only thing that youll pay for is your next trade or whenever you sell off positions. 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. If you arent in their niche, complaining about it isnt going to help you and its not going to hurt them, because most people who are in the niche can easily see you for what you are: not ideal. The system is tiered, meaning that your first $250,000 of assets will always be charged a 1.35% annual fee. Stocks, bonds, certificates of deposit (CDs), mutual funds, exchange-traded funds (ETFs) and annuities. Once your Vanguard account crosses that $10,000 mark, youll pay just 0.04%, widening the expense ratio gap even further. I am a buy and hold equity investor. If you pay a management fee of 1.35% to invest you DO NOT ALSO pay annual account fees or stock investment fees. It is what it is. American Funds is one of the most respected fund companies. But should everyday investors use Edward Jones? At the end of the day, if your long term goals are attainable with a 5% AARofR, why would you want (or need) to put yourself through the unnecessary emotional stress that an investment mix designed (by historical measures and notice I said investment MIX not investment selection) to provide an AARofR of 9% will inherently put you through? The services offered within this site are available exclusively through our U.S. financial advisors. I was just handed an Edward Jones statement from an elderly lady (approximately 70) who was concerned about the recent losses in her account. At Edward Jones you can be in either a transactional account or a fee based account. Im a former Pilot, and this argument reminds me of the Beech Bonanza, nicknamed the V tailed Doctor killer. With advisory solutions, your advisor will also serve as the executive decision-maker for your investments. MemberSIPC. 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. It just take a simple click to see where the market was 13 years ago n where it is know. They make money when you buy more and charge a 1.5% annual fee. Now theyre going to take $7500!! 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. This year, for the first time, I owe a $40 fee for having a self-directed IRA. These accounts charge asset-based fees, so you need to factor that into your investments. about the services, fees and agreements that are part of your relationship with us. I would appreciate help with how to find the fees I am charged so that I can compare them to Vanguard. So they were good from that standpoint. I am getting market returns. Go to Vanguard, save a ton in fees and do it yourself. Totally agree. Get the facts, you are kind of missing an important point. Net result : Return minus fees = net result. 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. Perhaps your advisor was not as transparent and helpful as mine. And after 20+ years at the firm, Ive yet to have seen the rates/percentages/fees mentioned, but unverified, here. find a Financial Advisor on the Wiser Advisor website. You'll get a high level of customer service and your investment decisions will be informed by experts. I think Im qualified for posting this post, so give me your 2%. This is what advisors call reverse-churning. Multiply that over decades and all the lost gains because the money (MY money) is going into my FA/EJs pocket and not mine. Let's find out with a complimentary consultation. An advantage of this type of account over a Select Account is that you have access to the same variety of markets, but your wealth management benefits from expert input. For people who want a hands off approach, I still think a target date fund at Vanguard solves the matter more efficiently. You missed his point: hes doing what he wants, has advice, said his fees were pretty good, and hes happy. Nothing is free and the cheap will not get you there sooner. When you add in the 1-2% annual fees charged by most managed funds, its difficult to match the performance of a broad based index fund. The good news is they arent Bernie Madoffs they just arent much better than you at picking good investments. Break away brother.you are just throwing good money away with the fees. 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. Behavior and good research and sticking to a principled plan of proper asset diversification and proper rebalancing of retirement accounts will always win over any fees. Hey Genethank you for your service! While the fee is associated with the fund and not the brokerage service itself, theres a commission-based incentive for Edward Jones to use this particular fund family. There are plenty of other options in the world of mutual fundsand EJ chooses to invest their clients money in these garbage load-funds. (Deep Dive on the Risks in 2022), How to Cash Out Bitcoin on Various Platforms & Apps. When you first sign up for Edward Jones, you take a quiz to help match you with an advisor and determine your investing goals. My big issue with my Edward Jones experience is that I wasnt made aware of any of these fees upfront. Please note that not all of the investments and services mentioned are available in every state. I qualified finance 3yr degree (like CFP) in UK been in US for 20 years now. These costs are not required to be disclosed in expense ratios. Unfortunately, we've got more fees to consider before examining whether this claim holds up. They charged .75% upfront to manage my money. Does a great grandma who has 500k total, really need 27 different mutual funds? What needs to be looked at in truth is the return you are getting, going to get you to achieve your financial goals. It was at the time the market was still going up. An yes if you own the index 13 years ago u still would be way ahead of any Edward Jones funds. 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. Granted our advisor has provided us some beneficial advice but that doesnt justify paying $3k/yr for retirement accts. 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