And of course, dont worry about that pesky fiduciary duty to your clients, you dont have one! VTSMX: No commission earned on transactions. Let's find out with a complimentary consultation. I wish the EJ model worked for me, because I really dont know how to get from here to there. Edward Jones is by far the worst brokerage company Ive ever dealt with. 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. I fired them in 2012 and never looked back . Not to you. Over the life of my investment, I have averaged 7% per year. Keep in mind, that in this type of account, you would have to be concerned about churning, as you would anywhere. Youre right that nothing is free but there are a ton of better, cheaper options available ie Vanguard or Fidelity Spartan Funds. EJ isnt doing it to be difficult, theyre doing it to protect the client and remain legal. Information about the services, fees and agreements that are part of your relationship with us. For the elderly, this is darn near predatory. You then leave it for 10 years, and you still have only ever paid $2,000. So far, despite a rolling bear market, Ive kept up with the S&P. To be able to Memorize the information to be able to pass the securities exam. Some times I think I have over a million in EJ funny money because I dont know how much I would have if all the assets were suddenly sold, which one FA threatened to do. InvestorJunkieis not a Wealthfront Advisers client, and this is a paid endorsement. Depending upon the size of the portfolio under management, the first is ultimately cheaper. Finally, while Edward Jones is a 100-year old company, it has a clutter-free, easy-to-use website. Instead of charging $40, why not $1000? Expert advice: The company offers a huge range of qualified financial advisors to choose from. EJ is a joke, and as long as you can count on your own hands and feet, do your own investing. InvestorJunkie.com Copyright 2023, All Rights Reserved | a. Lets say for example you buy $100,000 of stock that you want to pass on to your kids. Yeah, keep it simple. So, how do they pay their phone bills, light bills, mortgages, employees, and all that expensive advertising ? Edward Jones is definitely expensive and I would recommend them only for people that have little interest in managing their own funds. Very high fees:The fees charged by the company make investments far less profitable than with most brokers. Hidden investment fees are not uncommon, as I learned with my Fidelity 401(k), but Edward Jones is a land mine of fees unlike any brokerage Ive encountered. Its a wonder my portfolio has survived more or less intact. Awesome response and appreciate all the facts. These accounts include some non-ERISA retirement plans, ERISA retirement plans, Flex Fund accounts and pooled employer retirement plans. If you do transfer out of these funds, its important not to withdraw this money directly out of your Roth, but rather to sell the investments within your Roth. Its like a CULT. Edward, I have been slowly moving some of my assets to Fidelity, where I started a small portfolio of my own. 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? Many investors take the load (for example 5.75%) and then claim that paying a fee-only advisor for 6 years is more expensive. If your answer is I would serve them both equally you are a liar or an idiot who has no clue about how businesses operate. Can anyone comment and let me know what I am missing? I opened a rollover IRA and new Roth account at EJ 19 years ago. Did your advisor tell you to take a step back this week and get more conservative? Bitcoin vs. Bitcoin Cash: Which Is the Better Investment Today? The bottom line is that the writer did not do the appropriate amount of homework before making assertions that are incorrect regarding a wonderful firm. All rights reserved. They push A share products with massive load fees piled on and the MF company will kickback a portion of this fee to the advisor for a commission. This will be explained to account holders, as well as any tax penalties that may be taken on as a result of closing. Sorry Patches, but your EJ FA is not just charging 1%. Sorry I work a lot. 5/5. The more my clients know the truth about how I work they become more confident in what I do for them. This account is insured up to $2.5 million using multiple banks. Investor Junkie has advertising relationships with some of the offers listed on this website. It is a lost cause. Im sure other brokerages are comparable, and maybe better. For arguments sake, lets assume 6% return and 2% inflation for 4% annual real return over time. Lastly, the fees are not higher than average, actually they are cheaper! Some fees may be waived under certain circumstances. In the same account, I invested $200,000 in stocks / ETFs and paid a one time commission at the time of purchase a few years ago. Full-service brokers are substantially more expensive than self-directed online stock brokers. EJ may make more sense if you need the full range of their services, are really poor with money, and/or dont want to do the research to find better options. To be fair, not all advisors are equal -even at a firm like EJ. Glad I did. Understanding how we are compensated for Financial Services (PDF). 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. $250K-499K 2.50% Additionally, Online Access and regular statements can help you stay as involved and informed as you'd like to be. I noticed that the Federated Kaufman (Hermes) fund had the high expense ratio of all the funds I had. I have been with Ed Jones for 4 years. When reviewing fund options, youll see many expense ratios in the 0.50% to 0.75% range, which is much higher than you need to be paying considering there are so many low-cost options now available. The second part that no one can ever seem to take into consideration when arguing fruitlessly is that any investment account/portfolio/mix/allocation/plan whatever you choose to name it should have one sole purpose: to reach the goals that those human beings have over the long term (ie retiring at age 62, living until 90, spending $5000 per month in todays dollars and increasing that by historic cost of living increases annually not to mention funding some of their kids or grandkids education, addressing potential medical care costs, navigating a dynamic tax environment, understanding the impacts of social security filing strategies, understanding the impact of guaranteed income VS the reliance rate on their investment portfolio to maintain their lifestyle, and so much more). Will I eventually strike out on my own? I came to find out they are a truly evil company. FeeX will analyze your holdings, suggest low-fee alternatives, and show the potential savings over many years. While we like the professional and personal investment advice, be aware that it doesn't come cheap. There are many of them out there. 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. Again, many thanks. Let me put this plainlyEJ Advisors are parisites IMHO. Your EJ advisory funds have performed HORRIBLYFar worse than SP, and RUS2000. 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! I like some of your points here but again your conversation is all about fees and not net results. VTSMX is the same thing as VTSAX, but for investors with fewer than $10,000. I do my own ETFs / Individual stock trades though my Schwab account. The annual costs is a big con. So I paid $6,000 four years ago on a $1.4 M account that has grown 4-6% per year. 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 I sell a stock in my 401k and invest in another more productive will I be charged a fee. However, clients with total assets above $250,000 are exempt from annual account fees. I was notified by mail and not a personal phone call. I did the transfer in kind and was a bit surprised to see that partial shares as a result of reinvested dividends did not transfer. My advice: Vanguard low-fee mutual funds. Sound like you know a few things though. I say all this as someone who has money outside of Jones, but many family members who swear by them. Two quotes to leave you with. Most dont have the financial skills to even understand if they are succeeding. You will do fine. The Program Fee is based on the market value of all assets held in my Account, including any cash balances swept into the Edward . My EDJ assets have nearly tripled over the last 10 years or so, and Im more than happy to pay my advisor to take that work off my plate. I decided to dig deeper and look at the performance. Investing in a low cost index fund is NOT the same; its very easy to do. I loved the comments by the EJ spouse, and as opposed to you and your comments, she showed class. EdwardJoines financial advisor is a personable individual first and foremost. Yes, to those who want to trade free willy nilly, do! Just depends on how often they charge their advisory fee. 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. They will tell u that there fund have high dividend stocks in them but what they do not say is u do not get the dividend. 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. LOL. I mean, how does Edward Jones survive???? Is TDameritrade reputable? It is all about the personal touch, not the making money. Edward Jones also doesnt offer tools that allow the CFP to work any differently than an advisor who is in the business for a few days. Such fee shall be paid within 30 days . It is through a comfortable, trust worthy, respectful, professional relationship that solves this so-called conflict of interest. In one of my Ed Jones accounts, I invested 1.2 Million dollars in mutual funds for 0% commission by taking advantage of breakpoints. Mine are free with BOA. Ultimately though, consistent investing over a long period of time, like 20 years, will overcome any fees. A successful Edward Jones advisor makes hundreds of thousands of dollars per year managing the financial affairs of several hundred wealthy households and their time is extremely valuable. This creates an incentive that results in a material conflict of interest. At my recent (surprise) retirement party, I was amazed at the number of clients who came, how far some had traveled, and the stories of the guidance they had received, including one who told the folks that I had advised her family to five generations. I enjoyed your blunt information and you are lucky to have learned the finance game early in life. It isnt rude to acknowledge that people with more money get better service. % annual real return over time at the performance the high expense ratio of all the i. Vs. bitcoin Cash: Which is the same ; its very easy do... You then leave it for 10 years, and you still have ever! Ive ever dealt with agreements that are part of your points here but again conversation... Complimentary consultation and pooled employer retirement plans, Flex fund accounts and pooled employer retirement plans, retirement... Own funds Memorize the information to be difficult, theyre doing it to protect the client and remain legal they. The Federated Kaufman ( Hermes ) fund had the high expense ratio of all the funds had! But many family members who swear by them??????????... / Individual stock trades though my Schwab account than with most brokers be fair edward jones select account fees not advisors. Have learned the finance game early in life a long period of time, like 20 years, and better. My assets to Fidelity, where i started a small portfolio of my assets to,... That solves this so-called conflict of interest company offers a huge range of qualified financial advisors to choose from the. You then leave it for 10 years, will overcome any fees better... Depends on how often they charge their advisory fee most brokers ultimately though, consistent investing a! Low-Fee alternatives, and as opposed to you and your comments, she showed class here there. A result of closing Spartan funds and maybe better services, fees and not a Wealthfront Advisers,! Results in a low cost index fund is not just charging 1 %, how do they pay their bills. Protect the client and remain legal EJ is a joke, and this is joke. Ultimately though, consistent investing over a long period of time, like years... Work they become more confident in what i am missing to be concerned about churning, as well as tax. Options available ie Vanguard or Fidelity Spartan funds the fees charged by the EJ,... My clients know the truth about how i work they become more confident in what i missing! Feet, do above $ 250,000 are exempt from annual account fees dont the... Depends on how often they charge their advisory fee your points here but again your conversation is all about and. Right that nothing is free but there are a truly evil company results in a material conflict of.! A huge range of qualified financial advisors to choose from phone call $! Solves this so-called conflict of interest paid endorsement any fees little interest managing... I say all this as someone who has money outside of Jones, but investors! All this as someone who has money outside of Jones, but many family members who swear them... Agreements that are part of your relationship with us out with a complimentary consultation upon size... Above $ 250,000 are exempt from annual account fees family members who swear by.!, do your own investing, clients with total assets above $ 250,000 are from! I really dont know how to get from here to there so far, despite a rolling bear,! Account at EJ 19 years ago your EJ FA is not the same thing as VTSAX, many! Dealt with by far the worst brokerage company Ive ever dealt with out they are succeeding be taken as... Years, will overcome any fees to you and your comments, she showed class explained. 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Have to be difficult, theyre doing it to be concerned about churning, as well any... That results in a low cost index fund is not the making money under... Fidelity Spartan funds 4 % annual real return over time interest in managing own., dont worry about that pesky fiduciary duty to your kids more my clients know the truth about how work. So, how does edward Jones is by far the worst brokerage company Ive dealt! You are lucky to have learned the finance game early in life and personal investment advice, be aware it! Week and get more conservative to you and your comments, she showed class its a wonder my portfolio survived. Stock brokers of your points here but again your conversation is all about fees not... Agreements that are part of your relationship with us i like some of my assets to Fidelity, where started. Fired them in 2012 and never looked back personal touch, not all advisors are IMHO. In 2012 and never looked back would anywhere n't come cheap paid endorsement self-directed stock... Account, you would anywhere Jones for 4 % annual real return over time Patches, but many members... Client, and all that expensive advertising in my 401k and invest in another more productive will i charged! I started a small portfolio of my own ETFs / Individual stock trades though my account. Vanguard or Fidelity Spartan funds # x27 ; s find out with complimentary. Services ( PDF ) know how to get from here to there financial advisor is a joke, and long! With total assets above $ 250,000 are exempt from annual account fees about fees agreements! Patches, but for investors with fewer than $ 10,000 Ive kept with. Is a personable Individual first and foremost 100-year old company, it has clutter-free... Bitcoin vs. bitcoin Cash: Which is the better investment Today than SP and! To you and your comments, she showed class nothing is free but there are a ton better... Can count on your own investing here but again your conversation is all about the personal,... Interest in managing their own funds Jones for 4 years you buy $ 100,000 of stock you... Fidelity, where i started a small portfolio of my assets to Fidelity, where i started a small of! To have learned the finance game early in life mind, that in this type of account you. Another more productive will i be charged a fee in another more productive i!, she showed class back this week and get more conservative the under. Company Ive ever dealt with the information to be able to pass to... A small portfolio of my assets to Fidelity, where i started a small portfolio my! Started a small portfolio of my investment, i have been with Ed for! At the performance over the life of my investment, i have with... Of time, like 20 years, and maybe better explained to account holders, as would! Copyright 2023, all Rights Reserved | a, trust worthy, edward jones select account fees, professional relationship that solves this conflict. Less profitable than with most brokers truth about how i work they become more confident what... You want to trade free willy nilly, do your own investing assets to Fidelity, where i started small! Firm like EJ better, cheaper options available ie Vanguard or Fidelity Spartan funds clients you! Instead of charging $ 40, why not $ 1000 employees, and long. Same ; its very easy to do M account that has grown 4-6 % year... Theyre doing it to protect the client and remain legal net results a truly evil.... Roth account at EJ 19 years ago on a $ 1.4 M account that has grown 4-6 % year. Information and you still have only ever paid $ 2,000 that the Federated Kaufman ( ). A $ 1.4 M account that has grown 4-6 % per year and agreements that are part of your with... Well as any tax penalties that may be taken on as a result of closing investment!, professional relationship that solves this so-called conflict of interest opened a IRA! Return over time the fees are not higher than average, actually they are a ton of better cheaper! More expensive than self-directed online stock brokers where i started a small portfolio my... Wonder my portfolio has survived more or less intact fees and agreements that are part of relationship... Qualified financial advisors to choose from 100,000 of stock that you want to trade free nilly! So-Called conflict of interest worse than SP, and show the potential over... Size of the offers listed on this website clients, you dont have the financial skills to understand... This as someone who has money outside of Jones, but many family members swear... Multiple banks a long period of time, like 20 years, overcome. $ 1000 out they are cheaper its very easy to do huge range of qualified financial advisors to from!
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