$100K-250K 3.50% 0.60%: Over $10 million: 0.50%: For clients who choose the hands-off Advisory Solutions accounts, giving Edward Jones discretionary authority to make transaction decisions, you'll owe an additional fee, with the rate depending on the size and type of account . Overall, Edward Jones has an impressive setup for matching you with an advisor. They have always been encouraged to follow that standard even when it wasnt the law. Then visit the Expense tab and look under Maximum Sales Fee. Glad you opened that Personal Capital account! I think you need to elaborate on your process and show proof or stay off this site. I like some of your points here but again your conversation is all about fees and not net results. So as an Edward Jones advisor do you give clients to new advisors as my wifes does? But ignoring my inquiries (both by email and phone over a 2 week period of time) that was nothing short of rude. Home. No it is finding the right person to fix it. Do they charge load fees? I opened an IRA with EJ in 2002; all in American Funds mutual funds. The average investor looking to set up a regular taxable brokerage account or a college savings account will often find more value elsewhere. That this guy had the audacity to send me a card of his kids in the WDW stockade from a vacation they took each year just galled me! I see from this rude post, from an Edward Jones salesman, that Ive made the right decision. So overall I agree with Jim Jones. There is a huge difference. Criticizing the cost of doing business with them relative to other more qualified, less expensive managers is warranted. For all they know, EJs fees are completely normal. Disclaimer: TopRatedFirms.com reviews of companies is our personal opinion. 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. Thats $13,500 over ten years. Founded in St. Louis in 1922, it built a reputation through the 20th century as a portfolio manager that was deeply invested in its clients. No matter where you put your money i.e. There is simply not enough time in the day for an Edward Jones advisor with 3-400 clients to actively manage clients investment portfolios. This means that their advisors aren't legally required to put their clients' needs ahead of their own. Index funds have outperformed actively-managed funds by a pretty large margin. Hey Genethank you for your service! Sorry I work a lot. As their costs skyrocketed they had to develop Advisory Solutions in order to charge clients 1.35% on their accounts which were invested into American Funds earning .025% 12b1 fees. It just doesnt show up as fees anywhere. Lost a lot of money at EJ 2 ways, heavy fees and bad funds. For the elderly, this is darn near predatory. Have fun on your ed jones paid for vacation to the Bahamas this year. DO NOT put your hard earned money with Edward Jones or other similar investment firms that charge well over 1% annually. If someone is paying you $10,000 per year in consulting fees, and another person is paying you $10 per year in consulting fees, who are you going to serve better? Am changing going to Fisher Investments lower fees less complaints and a good track record. Theyre both included in your fee. If you dont then shame on you for not doing your homework before doing business with them. No one fund company is good in all categories just look at any top fund list and youll see all different names as the top performers. I was notified by mail and not a personal phone call. All rights reserved. Thanks for being harsh on EJ, they deserve to be called out anywhere and everywhere. Information about the services, fees and agreements that are part of your relationship with us. I invested all my savings with him. In reality. He is horrible, calls me every day when he has something to sell. 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. Now theyre going to take $7500!! If so, take a look at their fee structure. I qualified finance 3yr degree (like CFP) in UK been in US for 20 years now. I am so glad now that I am taking my investments out of Edward Jones and moving them to Vanguard. I might have gotten a little bit more attention this way, but maybe not. This is an example of one reason why the rich are rich and the poor are poor. Its the mutual fund company, not the advisory firm. Kudos to you for sharing this. Your EJ advisor will help you with more than just portfolio management. I like that EJ will not offer or sell stocks that are substandard, hedge funds, etc. And bubbles formed for index funds? Just transferred IRA from Edward Jones to Vanguard and of course Jones slapped me with a $135.00 fee. The portfolio strategy fee is another tiered fee for all broker-provided advisory solutions. 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. On a million dollar portfolio, thats $10,000 annually to your broker (and more as the money grows). is sort of fraudulent because their clients probably arent aware of the low returns and high fees. Let's find out with a complimentary consultation. That just seems very high considering each acct is about $125k. Get new Impersonal posts to your personal email! Collecting a fee for management and then not doing anything. That does not sound like a 7% return over 20 years of your initial investment of $22,000. (like credit cards, loans, automatic deposit), Ask the advisor, and I use that term very loosely, why they recommend the funds that they do? 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). The local EJ person is not your friend (just like the friendly car salesman is NOT your friend). You are still in better shape than most simply by investing. The following document explains how we are compensated because we want you to be fully aware of the costs and fees you pay, and the compensation we receive, for the products and services we provide. Its your money and you allowed yourself not to do your homework from the start. First $250,000. Copyright 2023 Edward Jones. You sound like one of these people that brags about winning $500 at the casino but forgets to tell everyone about the $5,000 you have lost before finally winning your $500. Good advice. They have both said I could sue, but it would involve arbitration. Thanks for your feedbackyou are correct that the transparency of the advisor can vary from branch to branch, though generally speaking I find some of their fees to be egregious either way. 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. Custodial Individual Retirement Accounts. The revenue sharing program they have with the mutual fund companys is another conflict of interest to clients. These big company processes never favor your returns, they favor their returns. The only way to lose money is to sell investments when they are down. How many people do you think piled into the technology euphoria in the late 90s (not to mention, companies with no earnings) only to soon witness a collapse of that particular sector and then decide to sell what they owned at a staggering loss of 40, 50, 60%, etc? Good luck out there, its like swimming with sharks and you are bleeding money. What did they do instead? I think you can get by with 3-5 index funds and not pay a financial adviser. Its easy to enjoy robo-advisers and low cost indexed ETFs when the market has been on a record bull run. All products are presented without warranty. If you see yourself knowing and understanding better than any adviser, then its pointless to have a financial adviser. Your best advice is free. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the . What does financial adviser even mean? For Heavens sake.use a little common sense here people! Here's a full list of other nickel and dime fees you might incur at Edward Jones. And after 20+ years at the firm, Ive yet to have seen the rates/percentages/fees mentioned, but unverified, here. 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. Referrals from those you trust, with nothing to lose or gain if you do or dont follow their advice, is the best kind of referral. He or she will build a personalized strategy to help you achieve your financial goals and will partner with you throughout your life to help keep you on track. the kicker is they still take the fee. Trademark Serial Number is a Unique ID to identify the EDWARD JONES SELECT RETIREMENT ACCOUNT mark in USPTO. 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. I worked for Jones for 12 years. You could spend more time learning about making investment decisions by yourself and choose a platform with lower fees. American Funds Balanced Drill deeper. There are plenty of other options in the world of mutual fundsand EJ chooses to invest their clients money in these garbage load-funds. Even better, VTSAXthe same fund but for investments with more than $10,000, charges just 0.04% in an expense ratio. Depending upon the size of the portfolio under management, the first is ultimately cheaper. 5/5. Im no authority of any kind on the stock market ins and outs. In my case, though, it was more than worth it because I know next to nothing about money in general, and have no interest in learning. My intent isnt to worry people who have their money with EJ, but rather to help bring to light some of their hidden fees. Edward Jones Guided Portfolios. Are you really diversified? After 14 years, my advisor reassigned me to someone in his office (someone I did not like) and refused to return my calls when I wanted to discuss my concern. Youre right about those feeseven with the market down 20+%, the fund managers are getting paid an extra percentage out of your pocket. Regardless of the firm its all about the adviser and your relationship to that adviser. Its more important to look your financial goals and what displine and strategy will you have to get there. Dale, I am transferring my iPad. I am currently employed in Federal Govt and have $200K in TSP in over 5 years. If you are giving away 1% in the form of an asset under management fee, that equals 25% of your returns for the year. Look at their BUY rating stocks vs. any other making recs. Also try Jim Cramer Action Alert Plus. While you have access to high-quality advice, the high fees will be charged as long as your account is open. People can invest online now and dont need a broker. 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. Today, the company advises individual investors in the U.S. and Canada and offers a wide variety of investments, With VTSMX, the only fee youll pay is the very low expense ratio on the fund itself. Good to know that others had similar experiences. The fees for a full-service broker like Edward Jones tend to be higher. IF, do find same IP of some of the commentators on here? Dont base your decision to invest with Edward Jones on the lack this article offers. 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. For perspective, the aforementioned $40 annual fee on my initial $4,000 investment is equivalent to a 1% expense ratio. However, within a year, the pipeline investments had melted down to about 0. Thats another one wrong in the Cons section. STOP LYING TO PEOPLE How Edward Jones Select Financial Advisors: Edward Jones selects its financial advisors through a rigorous recruitment and training process. Have been so for quite a few years. The following table breaks down estimated base advisory fees for Edward Jones' Guided Solutions and Advisory Solutions programs: My family made a lot of money with EJ. Id stick with low cost passively managed funds. And for all the reasons you mention, I dont want to let them off the hook. This account is insured up to $2.5 million using multiple banks. That fund you mentioned is 9% YTD my Roth IRA through a FA I pay 1% on is doing 15% after fees. You hire Edward Jones because they have an established process to create a personalized strategy to help you reach your financial goals. Youre right that nothing is free but there are a ton of better, cheaper options available ie Vanguard or Fidelity Spartan Funds. From what year to what year? Thats loyalty for you. The rates for these charges vary from 0.15% to 0.40%. Get the facts, you are kind of missing an important point. EJ Clients should start to find other cheaper places to invest their funds and not get caught up in the ahh shucks good ol boy FA in their local town. But when you subtract my $40 annual fee, Im right back below the break-even point of four grand. In fact, it takes me more than a year just to cross back into positive territory on this investment. If you are in a good mix of funds and stocks you will out perform those low cost vanguard funds even after the fees. And boy did I learn. This is the one fee youll also find at Vanguard, albeit for a significantly smaller bite of the apple. However, clients with total assets above $250,000 are exempt from annual account fees. This buy-and-sell process is one that Edward Jones has been in trouble for in the past. Again, many thanks. My little town of 13,000 people has 8 EJ Financial advisor offices. This is fact not opinion. If one is never going to tell u when to move you money out then you are not getting you moneys worth. They also pay more. Edward Jones does not serve as a fiduciary except for at the Plan level of retirement plans. So back I go as they double dip. It is what it is. This method is based on the KISS principle of investing (Keep It Simple Stupid). In financial advising, you get what you pay for, like most things in life. If you are in a Guided Solutions account you will pay 1.35% on your first 250k and the fee tiers down from their. At Edward Jones you can be in either a transactional account or a fee based account. If accounts reach over $10,000,000, investors are looking at an annual fee of 0.50%. Then sign up for a free account at feex.com and add your Edward Jones account (or any other account where you have mutual funds or ETFs). Overview. There are many of them out there. I could write a book about the pitfalls of investing with a firm like EJ. I have no clue where you came up with 1.1% max but obviously you have no clue what you are talking about. You said it better and more succinctly than my rambling post! But keeping my mutual fund in addition to the stock for diversification. I understand how easy it is too get close to your advisor, my clients are like family but I always remind them I have to earn and keep their business through my daily management. Depending on how long you hold on to your load funds, the drag could be an additional 1-2% on top of your advisory fee and underlying expense ratios. They arent worth paying. In the last year I probably traded (bought or sold) $300K in transactions, and paid less than $1500 total for all services, including commissions. Im retired. 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. stocks, mutual funds, bonds, life insurance, annuities, etc etc etc etc, you always pay the piperOver the last 20 years the craze has been no load index funds all the way..now the tide is turning towards active management funds.Show me a reputable firm, and I will show you brokers/financial advisors that will take your money and help you lose it..Be it Edward Jones, Raymond James, Merril Lynch Wells Fargo etc etc.. 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. So its the poor clients who are complaining? Access to fewer markets:Advisory accounts permit only mutual funds and ETFs. Thanks for the comment, Alan. Essentially, this allows you to choose the best MF in each category, instead of being incentivized into putting everything with one MF company that may be lacking in certain areas. You will do fine. Edward Jones to Pay $20 Million for Overcharging Retail Customers in Municipal Bond Underwritings. 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. I wish I could find someone I could trust. You must have added to your account of over 1 to 1.5 million of your own money during that period of time. Its actually protecting the assets and the beneficiaries, by not allowing anyone access until all legal documents are in to prove who has legal rights to the information. At any given time, 75% of passive funds will outperform. For more information, please read our. Stocks and etf trades create a commission of about 2%. I opened a rollover IRA and new Roth account at EJ 19 years ago. Four Edward D. Jones & Co. customers have filed a class-action lawsuit against the company and its executives, asserting that its aggressive promotion of fee-based advisory accounts is an illegal . The industry average is over 1%. "https://" at the beginning of the website address, or URL. But, if you do your due diligence in interviewing advisors (anywhere), youll find someone who actually knows what theyre doing, utilizes the research team and CFAs, and sets you up for bigger long-term wins than most people will get with their indexing. I tried Edward Jones an as the market went up over 1000 points it moved up very little when the market went down 500 point I was at a lose. Shes beenmoved to 2 different people because her advisor is too busy and the new people need accounts. Theres nothing wrong with the Wal-Marts of the world. In actually think the percentage payment to an advisor is more of a conflict of interest per say. Interesting. American Funds is one of the most respected fund companies. And that is $230 that is no longer working for me and compounding over time like the rest of my investment. Declines are temporary and unavoidable and are part of your overall long term average rate of return. However, the strategy fee seems a little gratuitous with the amount you're already paying in management fees, especially at an opening rate of 0.19% for the UMA Model. 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. If you want/believe in the face to face value of having an advisor to talk to then pay the higher fees. I just met with an edward jones financial adviser yesterday the quote that I got was 5.75% fee to purchase a mutual fund We were talking specifically about setting up a roth IRA, but I am pretty sure she said the 5.75% applies to basically all purchases of mutual funds. One thing that I believe is glossed over in the article is that within EJ (and most other) fee-based accounts you pay 0 up front sales charges on mutual funds. Not sure if this article is outdated but I have never paid front end loads at EDJ. First, you can use their website's search tool to find a financial advisor near you. They cost me thousands in horrible customer service and bad advice. If anyone EVER advised you to get out then you certainly did not get your moneys worth. hbbd```b``6] L6`ne`, I mostly binge listen to the Ritholtz stuff (Animal Spirits, Portfolio Rescue, The Compound) but none of it is hyper-focused on the fiduciary industry. Her prediction: the market was going to have a giant correction soon. Edward Jones is one of the worst possible brokerage firms around. I closed my account. It was at the time the market was still going up. Still waiting for his return call with explanation. Made a lot of money with him, he tells you what and when. VTSMX: No commission earned on transactions. From the end of December 2021 to 11/04/2022 I had to tell him that his definition of fees sounded more like my definition of theft. Seems like a lot of money to spend for financial advice especially when very, very few managed funds beat the broad market index over 10 year period. The down side of Vanguard is you do not sit across the table from them like Edward Jones. PS: In all fairness to EJ, when I asked several years back exactly what % I paid in fees, the response was For those that believe this is a reasonable arrangement, I wish you luck. These represent the most hands-off investment option. So what should you do instead Hire a fee-only advisor who signs a fiduciary oath in your contract to act in you best interest. I better not be paying for NO management. Their research is subpar, the advisors lack the ability to even read a balance sheet. Then wonder why people dont hire their own money managers. All rights are reserved. statements to two lawyers who independently came up with the figure of $150,000 for commissions over four years, $200,000 worth of sketchy investments that melted down, and ultra-low returns of three percent in years when the stock market made double-digit returns every year. Just switched to Vanguard. Id make a lot more money selling annuities to old people but my parents raised me with a conscience. 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. More than likely, the expense ratios in your funds via Edward Jones are too high. My managed Roth IRA that I pay 1% on is up 15% after fees. Focusing on a single KPI, (fees), in the absense of other context will result in a very poor outcome. Personally, I think E.J. ! At Edward Jones, we're very selective about the types of investments we make available for purchase in your account. You get sold on the process of Edward Jones, which makes everyone feel good, but does nobody any real good except for the company, and the advisor, in that order. Is that something we could do with any broker as well? My buddys wife that worked there called it The FIRM as in you had to drink their Koolaide. 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. She stated out loud what I had been fearing. Commission in the IRAs can vary, depending on the securities purchased. They explained that this is common at EJ. I have Americsn Funds and am pleased with it. At Edward Jones the planning is what you pay for. Best Budgeting & Money Management Services, Net Worth Trackers: 7 Best Apps & Tracking Services, How Taxes Affect Your Investment Portfolio, How to Pay Less Taxes on a Six-Figure Income, How to Offset Capital Gains Tax On Your Investments, Short-Term vs. My third advisor told me he was going to selll all of my assets because I refused to buy an annuity fruom him. Theyre no longer stock-brokers like youre treating them. The firm has around $1.7 trillion in assets under management (AUM) and serves seven million clients. In the first case we are talking about HUGE sums of money that eventually will finance every area of a persons life. This is not an Edward Jones only thing. Hey ShanaIm not sure which article you are referring to in regards to the 1% fee for someone with over one million. Hopefully they will be better. EdwardJoines financial advisor is a personable individual first and foremost. 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. We have added the most popular Fiat Currencies and Crypto Currencies for our Calculator/Converter. I dont think anyone would want their being eaten by an advisor thats really not looking after your best interest because hes making a killing off you and your high net worth portfolio. For details please visit the official Edward Jones website. As for the $300 transfer fee, that sounds like the Transfer on Death fee that your father had signed up for. Lot of EJ shills on here. (see headline above), All Corporate wants their financial advisors to do is to bring in new business and meet the required sales and marketing call goals. 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. And I love that all you CFPs talk about FREE accounts (but mention you are also fee-based). You need to study your accounts better. You arent going to do business with a successful financial advisor who is good at what they do for free, or cheap. Their business model is going away. I have never shelled out anywhere near $10K in tips to waitresses in a single year or even over some multiple of years. Then be specific on which model you want them all to use. That would be nearly double my original investment. At least she escaped before the eventual estate sale profit they were lined up for. Maybe too much in one holding for most people? Keep in mind, you get what you pay for, folks. There is also no potential to churn accounts. Its not entirely their job to provide an education to their clients, but a little more transparency would go a long way. Also, on their fee-based accounts, EJ advisors are held to fiduciary standards -as is the firm. My friend n I both got sucked into Edward Jones both lost money. Buddy, I hate to tell you this but your mother-in-law was not paying 2% at Edward Jones. I have tried several. That is, you either pay a front-load fee upfront when you buy an investment, a back-load fee when you sell the investment, or a level-load fee throughout the duration of the investment. I own a seat at the CME an make my money by getting in an out most every day. You can get someone who is not successful who works in a cubicle at a call center but then dont be suprised when the quality of service is really low. I was not aware of Vanguard being open to solitary investers. Its like a CULT. Its YOUR money! Ive been dropped by two EJ advisors and shuffled along to someone else. The expense ratio is slightly higher for VTSMX than VTSAX, but still very cheap relative to the competition.