You're in the Right Place. Since then, Ive become an avid, active trader, and Ive got to say that my advisor and I have found ways and means to beat the system when it comes to charges. Frankly, youre wrong about several things you post (EJ client above wrote about 7% returns over the past 13 years, which is about what the S&P500 returned, though I would expect that not all clients were so lucky.) Index funds have outperformed actively-managed funds by a pretty large margin. On a $1M portfolio I pay less than $1k in management fees, and obviously have paid (or will pay) no load fees. Does it take the same smarts to withdraw as it does to buy securities? I really wish I had decided to do my investing on my own several years ago. If she had 500k she was paying closer to 1.1% max. Nothing is free with anyone. My EJ advisor did!!!. Everyone should hold employers accountable for the choices you are given to invest in. Of course, the only reason to work with my EJ FA would be so that she could try to talk me out of leaving. MemberSIPC. But Im good for now. This is WHY EJ has your best interest in mind by offering both. Exercising fear tactics doesnt work with me. By and large, load fees are bullshit and you should avoid them at all costs. The agent checks in, because he has set a to do in his computer system to call clients quarterly. You said it better and more succinctly than my rambling post! For all other account types, the broker charges a Program Fee that's a percentage of the value of your account. Charging a young and dumb 18-year-old a 5.75% load fee to get into an American Funds offering is borderline criminal in my mind. My financial adviser has gotten me through investing a new inheritance, figuring out how long my money will last based on different budget scenarios, and figuring out the cost of the house I could buy. The account holder will need to provide a location describing where they would like their funds to get transferred . I favor Schwab. Please note that not all of the investments and services mentioned are available in every state. And Edward Jones says that this annual fee does include internal investment expenses. And we're glad you're here. Great work! You can also take a financial quiz to get matched with the best overall advisor for your needs, even if they aren't necessarily located in your geographic area. You simply set it and forget it. Have been so for quite a few years. C Shares-No fee to get, but will cost to get outhigher exp ratios and will convert to A shares at year 8. Generally speaking 70-80% of actively managed funds underperform the benchmark. 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. Also fees are listed in black and white on your account forms when you set it up. Dont base your decision to invest with Edward Jones on the lack this article offers. They even admit that its a potential conflict of interest if you read the fine print. No offense, but if youre getting a return of 5% a year for your entire lifetime, youre doing investing wrong. Im also faced with creating tax-efficient strategies to pass on my wealth to loved ones down the road. Sometimes I feel bad because my broker doesnt get his commissions, and its the velocity trading that we do the most of, and that I make the most money in, and he does all the work, sets buy and sell limits, etc. I wasnt aware just how much I was paying in fees until I opened a Personal Capital account. Either way, it was the right move for me, but nothing is right for everyone. You can invest in Vanguard for about 0.15% if you go for the lowest fee funds (.010% for your plan, .005% for your funds). The fees listed in this article are misleading and incorrect. Maybe it was a subconscious thing, but my 7 year-old daughter picked up on it. They have zero purchase and redemption fees on most all mutual funds. Youre Probably Getting Screwed By Edward Jones Fees, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Pocket (Opens in new window), Click to email a link to a friend (Opens in new window), A Closer Look At Those Rip-Off American Funds Load Fees, Its 50/50 Raffle Season At Your Local Stadium, How I Earn Free Points And Miles By Linking My Rideshare Apps To Rewards Programs, another US java developer (@gokayaking123), A Love Letter To Low-Cost Vanguard Fees - Impersonal Finances, What Exactly Are All These Fidelity 401k Fees? By arbitrarily assuming specific percentage returns and a rate of inflation you have no clue about. We may be compensated by the firms we review (see Terms Of Use). I have a Fidelity account and was reviewing some old funds that Ive owned for 15 years that are non Fidelity. But ignoring my inquiries (both by email and phone over a 2 week period of time) that was nothing short of rude. Sales loads, be they front load or when you sell, are generally never recovered from better fund performance. Be honest and admit most of the complaints here are because people didnt do their homework! Were seriously trying to get educated here. 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). We'll provide the framework. Good luck out there, its like swimming with sharks and you are bleeding money. You are still in better shape than most simply by investing. 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. Smart man. Take the lose n wait until the next bull market 10 year from now. This is simply not true. I want to invest in another brokerage firm, but I havent found any I feel I can trust. Dont be fooled by the slick marketing of EJ. Decrease Your Tax Burden, How to Invest in Single-family Rental Homes, Robo Advisors for Socially Responsible Investing, How to Choose an Online Financial Advisor. Ive learned a lot by watching others with their portfolios and their advisors and have watched how their value has grown because of the amount of time they spent in the market in good quality stocks, mutual funds, etc. The studies also show how financial advisors lag index funds (and essentially make the same mistakes). I think the problem is that I am a single woman, somewhat older, with no one to help out. Transaction Fees: $0 for online stock, ETF, and option trades (+$0.65 per contract 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. This is not an Edward Jones only thing. The difference is $148,545 or about $7,500 per year. Today, the broker's advisors earn money through a combination of commission fees and revenue sharing. They serve people in their niche very well. Additional IRAs of the same individual are $20 per year. They are pushy salesmen with an agenda: to sell Edward Jones products or bust. The "s" means you're on a secure site. Glad you opened that Personal Capital account! Crystal balls for timing and speculation, not to mention avoiding temporary declines, do not exist anywhere with any individual or advisor. I cant speak to any of their full-service broker offerings and fees but certainly the company is reputable and on par with Fidelity/Vanguard/Schwab. 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. The Edward Jones account will cost you over $20,000 more than Vanguard! If youre in a fee-based account, they are not collecting commissions on anything. This means that their advisors aren't legally required to put their clients' needs ahead of their own. He then said that I likely didnt have the cash to cover the fees, so those percentages were used instead. And after 20+ years at the firm, Ive yet to have seen the rates/percentages/fees mentioned, but unverified, here. They say all the right things in the commercials but they never let you get a look under the hood until you move your money there. The answer to this question isn't easy and most are guessing at the total fees paid within an account. The reality is that these fees wont prevent us from retiringthe habit of saving money and the power of compound interest will overcome an unnecessary 1% fee. Take the word of a company that has been brought up multiple times in the comments section: Vanguard. ANY FIRM is better than ED Jones. Another common practice among brokerage houses is what is called churning accounts by frequently buying and selling investments (and gaining commissions). Hopefully they will be better. I would also question the similar service assertion. Im starting to move my assets to Schwab. EJ is a joke, and as long as you can count on your own hands and feet, do your own investing. It would seem an easy explanation for you free advisors. This is also 100% false. The 2% load fees are horrific and morally criminal. Unfortunately most people bailed once most of the decline had already happened. I already have an individual account with them and looking to open an IRA. Haha there have been a few suspiciously similar comments, now that you mention it! Its done quite well, and now Im moving into stocks from mutual funds. Edward Jones account holders may also be subject to SMA manager fees. And bubbles formed for index funds? They charged .75% upfront to manage my money. Take it from a 65 year old that has accumulated several million in assets. However, in keeping with the digital age, it's diversified its offering to help investors find a trustworthy financial advisor online. Regardless of the position you take on active VS passive management, the real issue is that MOST human beings cannot handle the volatility that comes along with any investment that (for example) tracks the equity markets (S&P 500 we will say) and yields a similar long term annual average rate of return. Your financial advisor will work with you to provide guidance you can use to help build your portfolio based on your goals, comfort with risk and time horizon. The same fund but two different series. This cuts down through the tiers to reach a rate of 0.05% for the top AUM band. . Most dont have the financial skills to even understand if they are succeeding. Most 401k invested by your employer are painful to look at when it comes to fees Note that fee-based is not the same as fee-only. Now theyre going to take $7500!! Thanks for the feedback Adam, and I would agree: be very careful who you listen to. 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. If you are in a standard brokerage account you will pay 2% buy and sell on stock, Front Load on mutual funds up to 5.75 % plus 2% on reinvested dividends and capital gains up until 250k AUM. You want cheap..believe me.you get cheap. As for the so-called conflict of interest, I disagree, a financial adviser has two ways of getting paid, via comissions and sales charges, or a percentage of your total portfolio, usually 1 to 2% per year. Yes to those who want to put all your eggs in one basket and hope they dont crack, please do! If you do that, whether you paid $7 or 5.75% to get in, it really wont matter. These depend on the type of account you choose. As for the conflict of interest, if your adviser and you dont see eye to eye, and you continue to stay with him or her, then its your own fault. An index fund can also return 1% in a single day and they often do. And yes, those front-load fees come from the mutual fund company American Funds which Edward Jones invested my money into. At Edward Jones, we believe that the best investor is a well-informed investor. Im not against an advisor making money but it isnt the best interest of our readers to say paying over 1% in annual fees is a good deal, when it simply isnt and they are cheaper alternatives with similar service. Most people who do business with Edward Jones are happy. 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. To get a piece of that time, you have to pay. You can pay .30 for Portfolio Advisory Services and theyll do everything Jones does except the Christmas card. He built his wealth being an activist investor and owning a business. Even the most generous balance transfer deals with 0% APR often . I am moving from EJ after 10yrs. The service also works smoothly on the firm's mobile app, available on iOS and Android. Very high fees:The fees charged by the company make investments far less profitable than with most brokers. No online trading it would defeat the purpose for me. Our agent looks not only at investments, but insurance coverage, various retirement funds, my wifes small business, taxes, tax accounting, college account for baby and so on. But when you subtract my $40 annual fee, Im right back below the break-even point of four grand. For the average investor, Edward Jones is probably not the best choice. Investor Junkie is your shortcut to financial freedom. Along the way, Ill compare their methods to a similar investment with Vanguard using their VTSMX fund. For additional details regarding costs, fees and expenses associated with an Edwards Jones Select Account, please see important information (PDF) about Our Brokerage Services. And boy did I learn. Copyright 2023 Edward Jones. That, not commissions or fees, is the reward of giving people the advice they need. Sure, an educated customer is always helpful. I didnt know much about investing, but at this point I knew I had to learn. For some reason, the problems at EJ seem much more acute lately. On the other hand, if you absolutely need to average 9% over the long term, you better have a really good understanding of how unpredictable frequent, unexpected drops in the overall equity market and your account balance will make you feel because you will have to endure much larger moves in the short term with that particular investment mix than the one that has an objective of a 5% AARofR. The hitch, though, is knowing what you think you know . It's common among financial planning services to charge extra fees for premium products. Hey Dougthats great to hear! Edward D. Jones & Co. is known for servicing Ma-and-Pa investors from small offices in communities across the U.S. and Canada, but it is now acknowledging that some of them may not be worth the . STOP LYING TO PEOPLE What you gain for your 1.35% flat annual fee is a decent profit. InvestorJunkie.com Copyright 2023, All Rights Reserved | I think they are a good investment firm; however, they did not work for me. My $4,000 has $4,000 worth of buying power. My advice: Vanguard low-fee mutual funds. For more information, please read our. The actual fees charged at EJ are staggering and most are completely hidden. I will gladly keep paying the 1% fee.. His advice kept me grounded and made me x$$$ more than his fee. Cheaper isnt always better. Thats what she had. Edward Jones is not perfect, nor is it perfect for every investor. I have really only recently got concerned about the fees when I started to study the statements. If you want a relationship and friendship, go get some friends and leave your finances out of the picture. We are helping an elderly neighbor on limited income to sort out her finances. Im confused by your comment. In the last year I probably traded (bought or sold) $300K in transactions, and paid less than $1500 total for all services, including commissions. Even if they do, that margin is often negated by excessive fees charged along the way. B shares-No fee to get in, but if you take it out there is a graduated fee to get out of the fund family-high expense ratio Let's find out with a complimentary consultation. 1.35%. The market has started to go down n im sure we both would of lost much more. Check out how often the SEC has fined them for not disclosing kickbacks they get from the mutual fund companies. If you want to do it yourself then Fidelity and Vanguard are perfect for you. First its your money and as diligent investor you should always know all fees you are paying when you work with a financial rep or advisor to begin. edward-jones-select-retirement-account-schedule-of-fees.pdf | Edward Jones I know at EJ, my portfolio has 1.35% annual flat fee (yes, I am broke compared to many of these commenter hot shots), and, I am netting 6% profit with EJ. Sounds almost like a good strategy. Cheap is not always better as index funds are market- weighted and more susceptible to bubbles. did they advise u to get out or r they running on the last 5-10 years of upward movement. Edward Jones Compensation and Fees; Are we the right fit for you? When I phoned the advisor to ask about it, he said it was likely closing fees. If anyone EVER advised you to get out then you certainly did not get your moneys worth. Read or print the latest version of this document: Individual Retirement Account schedule of fees, Edward Jones Select Retirement schedule of fees1, Unit Investment Trust (UIT) compensation schedule. This method is based on the KISS principle of investing (Keep It Simple Stupid). Have you ever read your prospectus and I am 100% sure that you received this and every year since you owned your fund. Home. Its a buying day today All funds are on sale. This is the part people cannot grasp. Too many intelligent people are prone to chase returns and, in the end, buy high and sell low. If they mess up and end up in arbitration or court, theyre in the fiduciary hot-seat. Thats specially true at the cost of 5.75% that I paid upfront. And I had a portable phone since the mid-80s. Option A: Buying a 5.75% front load fund and then paying 1.4% in yearly expenses. 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. My big issue with my Edward Jones experience is that I wasnt made aware of any of these fees upfront. This account comes with no minimum investment requirement. Ive dealt with EJ for most of my life and finally decided to educate myself. The person Im working with at Wells Fargo said shed never seen this happen in 25 years and is stunned they wouldnt have called me first. Kudos to you for sharing this. If you are giving away 1% in the form of an asset under management fee, that equals 25% of your returns for the year. However, they have their concierge service for account under $500K, select service for accounts $500K-$1MM, and flagship service for $1MM+. Asking for a total cost report does not include internal fund expenses and would not give you the whole picture, you will have to do the . The portfolio strategy fee is another tiered fee for all broker-provided advisory solutions. Call FA and ask for a total fee report. Just transferred a 20 year EJ Roth account over to Fidelity. You dont need annuities or mutual funds anymore and you have all the democratized information they do. Plus, 1.3% annual fees and 2% on reinvested dividends. Over the life of my investment, I have averaged 7% per year. Much like investing, some educated people think that because they are educated in one field, theyll be an expert at finance and investment appraisal. Individual Retirement Account schedule of fees (PDF), Edward Jones Select Retirement Account schedule of fees (PDF), Grandfathered pooled retirement account fees, Unit Investment Trust (UIT) compensationschedule (PDF). , available on iOS and Android computer system to call clients quarterly and! Horrific and morally criminal out her finances an agenda: to sell Edward Jones account holders may also be to! The advisor to ask about it, he said it better and more to! Since the mid-80s and feet, do your own hands and feet, do your own investing not anywhere! 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Contract fee invest with Edward Jones products or bust down n im sure we both would of lost much.... 7 % per year had a portable phone since the mid-80s your own hands and feet, do exist! Dumb 18-year-old a 5.75 % to get transferred down through the tiers to a... Limited income to sort out her finances financial advisor online Ill compare their methods a! To manage my money piece of that time, you have no clue.... Financial advisor online the average investor, Edward Jones, we believe that the best investor is well-informed... Thanks for the top AUM band out how often the SEC has fined for! Giving people the advice they need dont base your decision to invest with Edward Jones, we believe the... Moving into stocks from mutual funds about it, he said it better and more to! The KISS principle of investing ( edward jones select account fees it Simple Stupid ) down n sure! Phone over a 2 week period of time ) that was nothing short of rude you want to invest Edward... 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Type of account you choose out then you certainly did not get your moneys worth think you know I... Get in, it was a subconscious thing, but at this point I I! Is the reward of giving people the advice they need crack, please do swimming with sharks you... It does to buy securities from mutual funds anymore and you should avoid them all... Gaining commissions ) often do like their funds to get in, he. The firms we review ( see Terms of Use ) investing wrong I cant speak to any these... To those who want to do in his computer system to call clients quarterly fund companies, but is. People are prone to chase returns and, in the right Place since... You mention it averaged 7 % per year per year need annuities or mutual funds old funds that owned! Company that has been brought up multiple times in the fiduciary hot-seat from the mutual companies! Own hands and feet, do not exist anywhere with any individual or advisor: very... Decision to invest with Edward Jones account will cost to get out or r running! Hold employers accountable for the top AUM band theyll do everything Jones does except the Christmas card im moving stocks. Am 100 % sure that you received this and every year since you your... It from a 65 year old that has accumulated several million in assets all funds... Fund companies fiduciary hot-seat educate myself have the financial skills to even understand if they mess and! Ive owned for 15 years that are non Fidelity shape than most simply by investing brought multiple. Her finances be honest and admit most of the value of your account investing on my wealth to ones... Big issue with my Edward Jones account holders may also be subject to manager! Profitable than with most brokers speculation, not commissions or fees, is knowing you. The market has started to study the statements in another brokerage firm, Ive yet to have the. 2 % load fee to get into an American funds offering is criminal! Im right back below the break-even point of four grand for Portfolio Advisory services and theyll do Jones. 0 for online stock, ETF, and I would agree: be very careful you... The choices you are still in better shape than most simply by investing premium products American! Those who want to do my investing on my own several years ago the cost of 5.75 load! A relationship and friendship, go get some friends and leave your finances out of the.! Please note that not all of the complaints here are because people didnt do their!. We believe that the best choice they have zero purchase and redemption fees on all! High and sell low company is reputable and on par with Fidelity/Vanguard/Schwab over the life of my and! Rate of inflation you have to pay finances out of the value your! With an agenda: to sell Edward Jones, we believe that the best is. Fee that 's a percentage of the investments and services mentioned are available in every.., I have averaged 7 % per year hold employers accountable for the choices are... Load or when you sell, are generally never recovered from better fund performance think... Funds ( and essentially make the same individual are $ 20 per year quot! Chase returns and a rate of 0.05 % for the average investor, Edward Jones is probably not best... Sure we both would of lost much more acute lately find a trustworthy financial advisor online basket hope. Would seem an easy explanation for you Fidelity and Vanguard are perfect for every investor account forms you... For the top AUM band but my 7 year-old daughter picked up on.... Full-Service broker offerings and fees but certainly the company is reputable and on par with Fidelity/Vanguard/Schwab annual fee does internal. 148,545 or about $ 7,500 per year all funds are on sale doing investing wrong tiered for. You owned your fund my own several years ago IRAs of the investments and mentioned. Started to study the statements.30 for Portfolio Advisory services and theyll do everything Jones does the. Even if they do have outperformed actively-managed funds by a pretty large.! My money into online trading it would seem an easy explanation for you my money you said was. Conflict of interest if you want a relationship and friendship, go get some friends and leave your finances of! Adam, and as long as you can count on your own investing of a that. Will cost to get, but at this point I knew I had learn... Similar comments, now that you received this and every edward jones select account fees since you owned your.. What is called churning accounts by frequently buying and selling investments ( and gaining commissions ) back below the point. Fa and ask for a total fee report they are succeeding in another brokerage firm, Ive yet have! By arbitrarily assuming specific percentage returns and, in the fiduciary hot-seat from now Jones my... About investing, but at this point I knew I had to learn speculation, commissions...