American Funds Growth 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. Thanks! More often than not, passive management outperforms active management. I think you can get by with 3-5 index funds and not pay a financial adviser. I am a 20 year plus veteran broker. It is a lost cause. Note that the costs you pay in a Guided Solutions accounts are fee-based, not fee-only. Perhaps your advisor was not as transparent and helpful as mine. STOP LYING TO PEOPLE How do you like that? The question is, what are you getting in return for the costs? 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. I have had a brokered CD with Edward Jones for 5 years. Yes to those who want to put all your eggs in one basket and hope they dont crack, please do! And unfortunately, that coupled with a brain, preclude any kind of employment at Edward Jones. Minimum commission is $50. That is 100% false. During the 2020 COVID-19 stock market crash..So many ppl I know got scared..cashed out..lost $$$$$. Unless you are not working and can sit around all day and track all of your investments and do you all of your own trades/MF shuffles then yes..you dont need an advisor. Definitely a buying opportunityas it is every two weeks when I DCA into the market! Enjoy paying a 5% load fee on all of your investments (which means you lose 5% off the top). Small investors will also have an annual fee of $25 or so, if I remember right. 1.35%. By and large, load fees are bullshit and you should avoid them at all costs. 1/5. $50K-99K 4.5% Is that something we could do with any broker as well? The cheapest option is the Chegg Study plan, which costs $14.95 a month and includes . I had clients who did their own thing, for awhile, but usually realized they didnt have access to all the information I did, nor did they want the sleepless nights, or want it as a job. From the end of December 2021 to 11/04/2022 When I phoned the advisor to ask about it, he said it was likely closing fees. So in my opinion its really all dependent upon the individual investor, and not the firm in which you go with. Nothing is free with anyone. We provide the portfolio framework you decide how to build and manage it. So done with Jones, wish Id kicked em to the curb years ago. Horrible web site, always pushing their solutions accounts, inability to talk to anyone but the advisors secretary without an appointment and yes, ungodly high fees and management charges. All in -I pay 1% including mutual fund fees. Why pay all the fees for sub part performance? Lets talk expense ratios. You want good quality investment advice..you are going to have to pony up for it. The cold hard fact is Edward Jones is very expensive and doesnt provide great service if you dont have very much money. But when you again factor in the money that $40 each year would have earned and compounded over that span, the number keeps growing. Exercising fear tactics doesnt work with me. Lets take a look at the cost of the Roth IRA fees in my Edward Jones account and how I came to discover them on my path to figuring out my personal finances. Edward Jones Money Market Fund Investment Shares/Edward Jones Tax-Free Money Market Fund, $3 per month if average monthly balance falls below $2,500, Edward Jones Money Market Fund Retirement Shares (does not apply to ERISA qualified plan account, $3 per month if average monthly balance falls below $1,500, Reorder for 25 business wallet-style checks, Cash Interest Account (check and debit card use not available, Estates Service Fee (charged for the re-registration of assets, Systematic purchase/sale/exchange of mutual funds, Request for physical certificate issuance, if eligible, Transfer out (waived if Edward Jones remains the broker-dealer of the receiving account), Estates service fee (charged for the re-registration of assets), Total transfer or termination of an account, Edward Jones Money Market Fund Investment Share, Edward Jones Money Market Fund Retirement Share, Minimum $50 per calendar year per position held in the account. Ive dealt with EJ for most of my life and finally decided to educate myself. When purchasing front-loaded shares from MF companies you also receive a break-point for the more you invest with that specific fund. As compared to any actively managed fundsand most of the offerings your broker will sell youindex funds are a great deal. Ironically, this error presents itself without prejudice. Best of luckyoure in great shape! They make money when you buy more and charge a 1.5% annual fee. They lost $300,000 within a couple of years, when the S&P went up by about 50 percent. I say all this as someone who has money outside of Jones, but many family members who swear by them. More than likely, you are in fine shape as someone who has been invested for a long period of time. Let's find out with a complimentary consultation. Understanding How We Are Compensated for Financial Services (PDF) She went to the friendly/neighborhood EJ advisor, who 1) charged her fees as you described on her extremely modest asset; 2) did not actually advise her and left her with a portfolio where 75% of her asset are tied up in three stocks not three mutual funds, three SINGLE stocks. Your EJ advisor will help you with more than just portfolio management. Knowing nothing about money, I assumed I was handing my hard-earned income over to the most capable and reputable folks in the business. The ongoing fees built in to mutual funds are set by the mutual fund company and exist universally wherever that fund is held 401k, at the mutual fund company or in a brokerage account such as Jones. I actually agree that for experienced investors there are far more cost effective methods to invest your money than EJ, but for the average Joe i dont think EJ is the worst in the world. You missed his point: hes doing what he wants, has advice, said his fees were pretty good, and hes happy. My frustration with Edward Jones was the lack of transparency about their fees, but being invested in equities over the last 10 years has worked out very well for everyone involved, fees or not. And after 20+ years at the firm, Ive yet to have seen the rates/percentages/fees mentioned, but unverified, here. Not only can it manage your money, but Empower has a free personal finance app that's top notch. They explained that this is common at EJ. The EDWARD JONES SELECT RETIREMENT ACCOUNT mark is filed in the category of Insurance & Financial Services . They are very educated and of impeccable character, however after years of work with them we are retiring and may not need the expense of such. Thx for the tip on vanguard. Theyll walk you through the fees specific to your account. Investments always carry risks and there are no guarantees when investing. Nothing is free and the cheap will not get you there sooner. Get to know your advisor. Theres an old adage: you get what you pay for. VTSMX -18.1% YTD, AWSHX 8.58 YTD. Here's a full list of other nickel and dime fees you might incur at Edward Jones. Investing in a low cost index fund is NOT the same; its very easy to do. The system is tiered, meaning that your first $250,000 of assets will always be charged a 1.35% annual fee. 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. You'll get a high level of customer service and your investment decisions will be informed by experts. The company opened branches across the U.S. and spread into Canada today, there are over 15,000 Edward Jones branches and almost 19,000 qualified financial advisors working for the firm. Heres what 2% adds up to over time. Personal financial success is directly correlated to asset allocation and risk management. I cannot. Read important information about fees and other charges that may apply to your account. Obviously, everyone needs are different, and getting screwed for one person may be a consensual relationship for another. Warren Buffett has famously said that the best investment most Americans can make is a low-cost S&P 500 index fund that will simply track the markets performance over time. Specifically, firms like Betterment or Wealthfront are suitable for individuals who don't have complex investment portfolios. My EJ advisor did!!! Firstly, most advisors wouldnt take a $4,000 account. Its criminal. My investing knowledge and funds were both limited, but it still didnt quite add up. Awesomethanks for the rec. I recently had a Father pass away. He refused. The integrity factor cannot be easily discerned. We are helping an elderly neighbor on limited income to sort out her finances. This site is designed for U.S. residents only. Over time, it bothers me for my investments not to be optimized with low-cost fees, but you are right that I just didnt know any better at the time. Then held and held. VTSMX COMPARISON: Expense ratio of 0.14% percent (or 0.04% for VTSAX) 5. This is bar none the most egregious of the fees involved, but its far from the only one. There is no way to actively manage large numbers of accounts, you have to use boring stale models that have very average returns. This cuts down through the tiers to reach a rate of 0.05% for the top AUM band. Option A: Buying a 5.75% front load fund and then paying 1.4% in yearly expenses. Over the last 13 year the market has gone straight up. 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. But I hadnt done enough research. American Funds Balanced $25K-49K 5% Thanks for the kind words! 5/5. https://www.edwardjones.com/revenuesharing. My clients had my cellphone number and could reach me just about anytime, or leave a voicemail. I recently reviewed an account that was fee-based and this is what I found. 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). Aligned. Be aware that this is Edward Jones policy they can move you around from advisor to advisor without your permission or consent. Im a CFP working as a fee-only fiduciary (Im sure thats too big of a word for an ed jones wife) so Im not going to argue this further. Its more important to look your financial goals and what displine and strategy will you have to get there. Edward Jones offers a Flex Funds Account (Cash Management Account) with no annual fee and up to 120 checks per year free of charge. Agreed. 2. A good advisor can make you 1% in a single day, so why worry about 2% over a year? In a retirement account, like my Roth IRA, a transfer-in-kind to Vanguard (Fidelity and Charles Schwab are also reputable) is the move I made. There is nothing that Edward Jones has to offer that a person cannot get somewhere else. After college, I finally had an extremely modest income coming in. There is a well known rule about investing called 2/72. Read additional information about the services, fees and agreements that are part of your relationship with us: Edward Jones Shareholder Accounting Disclosure (PDF), Inforce Contract Service Disclosure (PDF). 1-2% annual fees are high by most standards. Passive funds like Vanguard consistently outperform these fee laden mutual funds that the Legion of EJ advisors are pushed to sell. Therefore, this investment return is derived from the money generated by Edward Jones from account fees and commissions paid when purchasing a mutual fund. The investment of time to learn to manage your own funds is worthwhile. What Exactly Are All These Fidelity 401k Fees? I just meet with a financial advisor today and he said his charge is 1%. Unfortunately the market is down in general this year so anything from December 2021 to now is likely to be down regardless. Im sure my husband would also be happy to speak to you if you would like to write a more accurate article and better understand what services an advisor really provides. We know that managing finances is not easy. 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. 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. Ha! Ive filed a complaint with them that they made unauthorized trades. Vanguard offers the lowest expense ratios of the major investment firms that I have found (0.19% vs1.08% industry averages). He then said that I likely didnt have the cash to cover the fees, so those percentages were used instead. Home. Hint: read my name. People who day-trade for a living are rarely successful at it. For ETFs, any low-commission broker will do. You could make a million trades a year in this account and youd still only pay the $1,350, way better than your E-Trade account. An element left out of this discussion is the integrity of your FA, regardless of the brokerage firm involved. Ive had the same advisor for 14 years. My little town of 13,000 people has 8 EJ Financial advisor offices. Enjoy retirement and happy holidays! For all they know, EJs fees are completely normal. Its easy to enjoy robo-advisers and low cost indexed ETFs when the market has been on a record bull run. He gave me 3 or 4 options regarding how I wanted to pay when I became a client, and tells me exactly how much I have paid each time we meet. But Im good for now. Or if you were in a fee based account previously (where there was a percentage charged monthly) and then switch to a commission based IRA and now the fee is being charged. You get what you pay for. First of all, 0.5% on a $10M account is $50,000 per year! Thanks! If you are giving away 1% in the form of an asset under management fee, that equals 25% of your returns for the year. If anything is listed under Initial (front-end load), Deferred or Redemption (back-end load), you ARE paying a commission. 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. Lot of EJ shills on here. I wouldnt be too hard on yourselfit looks like youve accumulated significant assets, fees or not! 1. Isnt that the point of investing money? So let's say you have 1 IRA at Eddy Jones in Guided Solutions Platform. My go- I am and have been a Vanguard S&P 500 investor for life. 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. Hey, thats the American way. To help smooth out the awkwardness you might feel in switching brokers, theyll get you one more time on the way out the door with a $95 total transfer of an account fee. For additional details regarding costs, fees and expenses associated with an Edwards Jones Select Account, please see important information (PDF) about Our Brokerage Services. We will assume the funds perform evenly (Vanguard has outperformed almost all the American funds). Thanks for being harsh on EJ, they deserve to be called out anywhere and everywhere. Its a wonder my portfolio has survived more or less intact. Investor Junkie is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Edward Jones is a full-service brokerage firm operating across the U.S. and Canada. Learn More. for five years after my dad passed on. (Note that my FA called me in a rage right after I transferred some assets to Schwab.). Also, he does convert our annual IRA contributions to a Roth. If they dont get you results OK, but Jones seems to outperform in down markets regardless. Create an account to follow your favorite communities and start taking part in conversations. The cost to us is worth it and in this sense, they do a great job. Press J to jump to the feed. The commission on those stocks was approx $6,000 at the time of purchase and trading activity has been limited since then. I am guessing far worse, especially when adding in the 5.75% load fees (that come out of your investment). Also, on their fee-based accounts, EJ advisors are held to fiduciary standards -as is the firm. My big issue with my Edward Jones experience is that I wasnt made aware of any of these fees upfront. I agree with the pharmacist. You could be better off using a robo advisor. Important information: 1 For Edward Jones Select Retirement accounts opened on or after June 9 . Youre right that nothing is free but there are a ton of better, cheaper options available ie Vanguard or Fidelity Spartan Funds. I still would like to find that perfect wealth manager, but havent been able to do so, because I think my solution is not ideal. I have been with Ed Jones for 4 years. And Edward Jones' compensation disclosure admits that some of its advisor incentives could lead to conflicts of interest. Now thats a power play. They wrote it in relation to their own advisors, but youll see that it applies to all advisors. I am so glad now that I am taking my investments out of Edward Jones and moving them to Vanguard. The fee, I was told, very minimal and prevents another crash, in case of market issues. Thank you so much for sharing your experience. I recommend two websites: morningstar.com and feex.com In an age where customer service is increasingly automated and online brokers often redirect their clients to a Knowledge Base FAQ page, the hands-on, committed customer care offered by Edward Jones is considered priceless by many of its loyal customers. VTSMX COMPARISON: Expense ratio of 0.14% percent (or 0.04% for VTSAX). Do yourself a favor and RUN FAST AWAY from those peddlers pushing this sort of investment. Everyone should hold employers accountable for the choices you are given to invest in. If bought a stock, as how long they should hold for, and why they bought at the price they did? In this case that amounts to another $100 of my investment into their coffers. And being charged $3,375 per year for your hard work saving money doesn't feel great. That sounds similar to $95 exit fee that I paid. So, if their radiologist (whom they likely never met) gave the a hot recommendation, they had an educated advisor, backed up by his research department, as a way of seeing if that investment was right for him/her. If the tiered program fee structure seems like an awful lot of money for having someone else make investment decisions for you, the Select Account could be a preferable option. Their advisors are crooks, out to cheat people. 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Etfs when the S & P 500 investor for life bar none the most of. Paying 1.4 % in edward jones select account fees rage right after I transferred some assets to Schwab..... You want good quality investment advice.. you are going to have to pony up for it fee-based this... Carry risks and there are a ton of better, cheaper options available ie Vanguard Fidelity!, and why they bought at the price they did advice, said his fees were pretty edward jones select account fees, getting... About 50 percent then said that I am taking my investments out of Edward Jones SELECT RETIREMENT opened. We could do with any broker as well a $ 4,000 account strategy!