Edward Jones Advisory Solutions account

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Edward Jones Advisory Solutions account

Postby rkdlib » Tue May 22, 2012 8:09 am

I'm considering putting my IRA in an actively managed Advisory Solutions account with EJ....any opinions, suggestions, etc? I will be charged a monthly fee of 1 +%. Thanks so much. Any suggestions for another firm to manage it that may charge less and still do a good job? I'm 62 and want to preserve my investment and reduce expenses.
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Re: Edward Jones Advisory Solutions account

Postby Johm221122 » Tue May 22, 2012 8:59 am

Checkout vanguard retirement funds,especially vanguard retirement income fund
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Re: Edward Jones Advisory Solutions account

Postby prudent » Tue May 22, 2012 9:06 am

I assume you mean a monthly fee that in total comes to 1%+ a year, and not 1+% per month. If you want to reduce expenses, you would not want to pay that kind of fee. Did the rep tell you what funds they would use in your IRA?
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Re: Edward Jones Advisory Solutions account

Postby ObliviousInvestor » Tue May 22, 2012 9:18 am

Portfolio Solutions (the firm of Rick Ferri, an author and frequent poster here) charges a fee that ranges from 0.25% to 0.5% of the total portfolio balance, depending on the size of the portfolio. More info can be found on their website: http://www.portfoliosolutions.com/

Or, depending on your account size and how much help you need, paying an hourly advisor for assistance with implementing a relatively simple do-it-yourself portfolio could end up costing less than 1% per year.

Alternatively, as John mentioned above, Vanguard has "all-in-one" funds that offer a pretty hands-off approach for a very low cost.
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Re: Edward Jones Advisory Solutions account

Postby ResNullius » Tue May 22, 2012 9:19 am

This is a joke question, right?
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Re: Edward Jones Advisory Solutions account

Postby BigFoot48 » Tue May 22, 2012 9:36 am

rkdlib wrote:I'm considering putting my IRA in an actively managed Advisory Solutions account with EJ....any opinions, suggestions, etc? I will be charged a monthly fee of 1 +%.

Sounds like a really, really bad idea. Why would you want to give 1% of your portfolio every year to someone to manage it, unless your situation is so complex, requiring teams of lawyers and CPAs to manage, that it cannot be done by the average person? You see, as many of us here in this forum have discovered, an average person can successfully manage an average portfolio without the need for expensive advisers.

You can learn how to do it yourself right here, and I suggest you start in the Wiki: http://www.bogleheads.org/wiki/Getting_Started
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Re: Edward Jones Advisory Solutions account

Postby SteveB3005 » Tue May 22, 2012 9:37 am

Crazy talk, must have something to do with that eclipse!
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Re: Edward Jones Advisory Solutions account

Postby rallycap » Tue May 22, 2012 9:42 am

I don't believe the 1% fee includes the expense ratios and/or loads for the mutual funds. I recently helped a family member get out of an EJ Advisory Solutions portfolio, and we estimated he was paying well over 2% when everything was included. He was invested in nearly 20 mutual funds with varying loads and expense ratios. I wouldn't consider it for a second.

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Re: Edward Jones Advisory Solutions account

Postby BigFoot48 » Tue May 22, 2012 10:08 am

rallycap wrote:...an EJ Advisory Solutions portfolio .... paying well over 2% .... nearly 20 mutual funds

Contrast with Taylor's Three Fund Portfolio which has an expense ratio of about 0.2%, with the added bonus of DIY simple and understandable! http://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005
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Re: Edward Jones Advisory Solutions account

Postby hoppy08520 » Tue May 22, 2012 10:16 am

rallycap wrote:I don't believe the 1% fee includes the expense ratios and/or loads for the mutual funds. I recently helped a family member get out of an EJ Advisory Solutions portfolio, and we estimated he was paying well over 2% when everything was included. He was invested in nearly 20 mutual funds with varying loads and expense ratios. I wouldn't consider it for a second.

rallycap

I'll second what he wrote.

Also consider the fact that Edward Jones (and other similar companies) will steer you into load mutual funds, most with a 5.75% load or sales charge on your initial investment. So, supposing you transfer $100,000 to then, the next day you'll have around $94,250 in your account. The other $5,750 will go to Edward Jones, with a large part of that as commission to your friendly, face-to-face, look-you-in-the-eye salesman (or saleswoman).

Also consider that the mutual funds your Edward Jones salesman selects for you will not necessarily be in your best interest but in the best interest of Edward Jones and your salesman. Edward Jones has "revenue sharing" agreements by which mutual funds companies peddling expensive mutual funds pay Edward Jones to pass off their garbage on EJ customers. With this arrangement, you are handing over your savings to Edward Jones, your salesman, and the mutual companies that you could have otherwise invested for you. Edward Jones used to try to hide that but after being fined $75 million by the Securities and Exchange Commission for these deceptive, anti-investor business practices, they are forced to disclose it on this webpage, which is very difficult to find:

https://www.edwardjones.com/en_US/produ ... index.html

Just read it for yourself and ask, "Whose interest is Edward Jones really looking out for?"

This reads:
Edward Jones wrote:For the year ended December 31, 2011, Edward Jones received revenue sharing payments of approximately $98.1 million from mutual fund and 529 product partners and $54.1 million from insurance product partners. For that same period, Edward Jones’ net income was $481.8 million.

If you do the math, you'll see that almost one-third of their income comes from these arrangements.

I agree with the others, DIY investing the Boglehead way is not that hard, but even if need an adviser, at least do yourself a favor and look for one who will work for your own interests and not theirs.
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Re: Edward Jones Advisory Solutions account

Postby livesoft » Tue May 22, 2012 10:26 am

@rkdlib, you've come to the right place if you want folks to tell you to stay away from all aspects of Edward Jones.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Edward Jones Advisory Solutions account

Postby ObliviousInvestor » Tue May 22, 2012 10:28 am

hoppy08520 wrote:Also consider the fact that Edward Jones (and other similar companies) will steer you into load mutual funds, most with a 5.75% load or sales charge on your initial investment. So, supposing you transfer $100,000 to then, the next day you'll have around $94,250 in your account. The other $5,750 will go to Edward Jones, with a large part of that as commission to your friendly, face-to-face, look-you-in-the-eye salesman (or saleswoman).

If I remember correctly, the managed account doesn't use A shares. (That's not to say the funds are inexpensive...)

Also, for anyone curious, of a typical 5.75% load, usually 0.75% goes to the fund company. 5% goes to Edward Jones, of which the broker gets 40% (or 2% of the overall amount invested).
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Re: Edward Jones Advisory Solutions account

Postby pkcrafter » Tue May 22, 2012 11:09 am

rkdlib, most investors ask how to get out of EJ, not get in. :happy There are many other advisors who would be a better choice. Vanguard has a management service, and that would certainly be worth looking into. Your best bet is to find an advisor who will put your best interests first, and that is not as easy to do as it seems.

Here's some information on how to choose a good advisor.

http://investingroadmap.wordpress.com/2011/02/22/chapter-10-on-your-own-or-hire-an-advisor/

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Re: Edward Jones Advisory Solutions account

Postby SpringMan » Tue May 22, 2012 11:28 am

I think the OP is just having fun with us.
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Re: Edward Jones Advisory Solutions account

Postby hoppy08520 » Tue May 22, 2012 11:41 am

SpringMan wrote:I think the OP is just having fun with us.

You could be right. Going to a Boglehead board and asking about a full-service broker is like going to a vegetarian board and asking for a hamburger recipe.

But I still answer because other people might stumble onto the thread, and who knows, maybe the OP is not just playing with us.
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Re: Edward Jones Advisory Solutions account

Postby rkdlib » Tue May 22, 2012 11:50 am

Thanks everyone for your great suggestions. What are your thoughts about Gen. Obligation Bonds & MUNIs in and IRA?
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Re: Edward Jones Advisory Solutions account

Postby Rob5TCP » Tue May 22, 2012 11:53 am

Judging from the other post, I believe the poster is genuine. Two reasons some DO need an adviser/broker:

If you will sell every time there is a major dip and you need to call someone to reassure not to sell, you may need one.
If your not willing to spend, literally a few hours, acquiring some basic ideas and investing knowledge, you may need one.

Almost all on this board, believe it is 1-2% of your money thrown away each year. While, there are some low cost advisers (not brokers)
that will manage your money for 1/4 - 1/2% a year and they MAY be worth it to you. They will recommend low cost funds held over long periods,
with strong diversification.

If you would spend some time on this board - asking questions like you are now and reading some basic books,
it could be very helpful to your long term wealth.

Welcome aboard.

PS The only time a question is stupid, is if you don't ask it.
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Re: Edward Jones Advisory Solutions account

Postby HomerJ » Tue May 22, 2012 11:55 am

How much money you plan on pulling out of that account in retirement? Most studies show that 4% a year is about all you can pull out safely to make the money last 30 years.

1% to Edward Jones
1% to the mutual funds Edward Jones buys for you.

Either you take out 4%, pay them 2% and risk running out of money in year 20.... or you play it safe and take out 2% for yourself, and pay them 2%.

Did you really work and save 40 years to give away 50% of your retirement income to some broker?
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Re: Edward Jones Advisory Solutions account

Postby BaldEagle39 » Sat Jun 02, 2012 12:51 pm

Another warning about Advisory Solutions.
You DO NOT own the underlying securities (or at least do have the typical control over them).
If you want out of Edward Jones as your broker, you are forced to sell all your assests in that account.
You CAN NOT do an in-kind transfer to another broker. Potential tax liabilities. It essentially locks you in to Edward Jones.
I've had it for 4 years and the CAGR has been about 1% less that the Vanguard Balanced Index Fund.
I'm trying to get out with the least pain.
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Re: Edward Jones Advisory Solutions account

Postby tetractys » Sat Jun 02, 2012 1:27 pm

rkdlib wrote:I'm considering putting my IRA in an actively managed Advisory Solutions account with EJ....

We need a smily for barfing.

rkdlib,

Please start here: <http://www.bogleheads.org/forum/viewtopic.php?f=1&t=6212>

Best regards, Tet
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Re: Edward Jones Advisory Solutions account

Postby SurfCityBill » Sat Jul 07, 2012 9:22 pm

I see these Edward Jones store fronts all over the place in the most unusual locations, usually mini-malls (adjacent to a dry cleaners, next to 7/11, etc) and always wondered if the foot traffic in a place like that is really any better than if the place was a harmonica store. Seriously do people walk into these places and say they want to buy some funds today while they're dropping off their laundry?

-B
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Re: Edward Jones Advisory Solutions account

Postby JDCPAEsq » Sat Jul 07, 2012 9:30 pm

rkdlib wrote:What are your thoughts about Gen. Obligation Bonds & MUNIs in and (sic) IRA?

Now I really don't think you're serious. Tax exempt bonds in an IRA? What next?
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Re: Edward Jones Advisory Solutions account

Postby edventure73 » Fri Mar 21, 2014 10:35 pm

JDCPAEeq tax free muni bonds can not be held in a tax sheltered account (IRA). You don't pay Federal taxes on the muni bond when you receive payments and of course when it is called or matures you pay no taxes at par.

Bald Eagle 39 the Advisory Solutions has no front or back load and correct it can't be transferred to another broker. It costs 1.33% annually which is the cost of an average c share expense ratio. Vanguard has some great funds, but if you could pay a team of researchers to pick the best income, growth, growth and income, aggressive and international mutual funds and ETFs while paying no load and 1.33% a year for a money manager to make any changes they see fit...not so bad. Then you can spend the rest of your time enjoying other things like golf, scotch and cigars. When you need your money you sell the amount that you need. If you are transferring it to another broker then it moves over as cash without taxes being paid. Any Mutual Funds (not advisory) in an Edward Jones IRA can be transferred in kind like all the other brokers. You can even move Vanguard over in-kind to an Edward Jones account. The dividends can be reinvested into Vanguard, but you can't purchase anymore Vanguard shares.

If investors have the time to research and want to manage their own investments then a Vanguard is a great way to save for retirement. If you die and your spouse is stuck with the responsibility then they better do some research or call a broker to assist. You and I put a lot of time into researching stocks, bonds, ETFs, mutual funds, etc. and not everyone wants to do it, has the time and frankly some are not good at it.

This is a great forum and I enjoy reading and learning new stuff every day. Thanks for all of the posts.

If investors want a team who are experts in finance then go with a broker. Remember that you get what you pay for.
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Re: Edward Jones Advisory Solutions account

Postby Beat The Street » Sat Mar 22, 2014 1:15 pm

If vanguard has great funds why doesn't Edward jones use them in any of their models?
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Re: Edward Jones Advisory Solutions account

Postby Greenie » Sat Mar 22, 2014 1:30 pm

"I'm 62 and want to preserve my investment and reduce expenses" There is so much pricing matching these days. Ask the Edward Jones if he can match the expense rate of .05 for Vanguard's Total US Stock Index, Admiral Shares and you will sign on :greedy
Last edited by Greenie on Sat Mar 22, 2014 1:34 pm, edited 1 time in total.
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Re: Edward Jones Advisory Solutions account

Postby supernova » Sat Mar 22, 2014 1:30 pm

Beat The Street wrote:If vanguard has great funds why doesn't Edward jones use them in any of their models?


Edward Jones gets a kick back from the companies that manage the mutual funds they use. For example, they push American Funds Awesome Investor Fund Class A, which has a 5.75% front load fee, and in return, Edward Jones and the advisor gets a part of that.

The load fees is the general reason why Edward Jones is not so good. American Funds in general don't have too bad of ERs (far worse than Vanguard and Fido, however), but the 5.75% load fee is a return killer
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Re: Edward Jones Advisory Solutions account

Postby dbr » Sat Mar 22, 2014 1:32 pm

edventure73 wrote:
If investors want a team who are experts in finance then go with a broker. Remember that you get what you pay for.


Actually John Bogle reminds us that "You get what you don't pay for.": http://www.vanguard.com/bogle_site/sp20050202.htm And William Bernstein reminds us in Four Pillars of Investing in Chapter 8 "Your Broker Is Not Your Buddy" and Chapter 9 "Neither Is Your Mutual Fund" where our interests actually lie.
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Re: Edward Jones Advisory Solutions account

Postby edventure73 » Sat Mar 22, 2014 4:01 pm

Vanguard index funds get beat by AS 9 out of 10 times. If you have the knowledge and time to invest without a broker then no load low ER mf are your best bet. If you want to pay 1.39% a year to have someone research, rebalance and prevent you from investing without emotions then AS is a great solution.

Vanguard has some great funds, but if you could own the best black rock, dodge & cox, franklin, American, fidelity, John Hancock funds, etc. for 1.39% why wouldn't you?

Owning only 1 fund family is like saying all proctor and gamble products are the best. I would rather shop online and have the best of the breed to deliver them to my house and pay a little more for a convenience.
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Re: Edward Jones Advisory Solutions account

Postby mnvalue » Sat Mar 22, 2014 4:58 pm

First off, let's be clear about potential conflicts: does your username mean you work for Edward Jones?

edventure73 wrote:If you are transferring it to another broker then it moves over as cash without taxes being paid.

Frankly, I don't believe you. How would liquidating the account not be a sale that realizes gains? Can you provide some reference to IRS publications or the Internal Revenue Code itself to support this unusual position?

edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times. If you have the knowledge and time to invest without a broker then no load low ER mf are your best bet.

These statements are clearly in conflict. If Edward Jones's Advisory Solutions choices beat Vanguard funds (for the same asset class) 90% of the time, then why would someone with the knowledge and time be better served by choosing what you claim is the objectively worse investment? They wouldn't. But your premise is literally backwards; the reality is that passive index funds beat active funds something like 90% of the time when comparing like asset classes on a net returns basis. And further, the 10% of active funds that do outperform in a given year do not outperform on an on-going basis; that is, they got lucky.

You separately claim that paying to have someone manage your investments may be better for some people than trying to do it themselves, either because they have better things to do (drink scotch, you say) or because they don't have the desire to learn how to do it. I can agree with this in the general sense. I hire out things all the time that I could do myself (e.g. oil changes on my car). So, for the subset of the population that wants to hire this out, sure. But then you have to address the next question in that line of thinking: To whom should they outsource this? It makes no sense to hire Edward Jones at 1.4% when they could hire someone else with the same or better services at 0.25-0.5%. Edward Jones would have to reliably generate alpha of more than 1.15%. If they could, then other advisors (and more importantly, Wall Street traders trading in billions of dollars of securities) would copy them until the arbitrage opportunity was eliminated.

edventure73 wrote:Owning only 1 fund family is like saying all proctor and gamble products are the best.

No, it's like a cereal company buying all their wheat from one supplier who is ruthlessly efficient at their business and mutually owned (so no costs due to their profit taking). If someone else starts selling the identical product (wheat, or U.S. total stock market investment) at a lower cost, you switch to them. If that supplier happens to also have the best deal on corn and rice (or international total stock market investment or U.S. total investment-grade bond market investment), then you buy those there too.

Also, while they're frequently the best and thus the default recommendation, it's not like we only recommend Vanguard. On this forum, we have no qualms about recommending the TSP over Vanguard for Federal workers, at least for everything but international. We also have no qualms about recommending other suppliers even if they're a little more expensive, if someone prefers their customer service (Fidelity, for example). But we can't really recommend that someone cut their lifetime spending power more than HALF, which is what they'd do if they pay an extra 1.15%. Nobody's customer service is worth that much premium.
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Re: Edward Jones Advisory Solutions account

Postby pjstack » Sat Mar 22, 2014 11:08 pm

I see "edventure" bumped up this post after it was almost two years old! That smells to me like an Edward Jones broker (or shill) that has implemented a search engine.

It reminds me of the old Morningstar forum days when "brownshoe" would persistently sing the praises of the now defunct (and unlamented) First Command, whose main mission was to fleece service members.

Congratulations to "mnvalue" for writing a comprehensive response.
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Re: Edward Jones Advisory Solutions account

Postby Random Musings » Sat Mar 22, 2014 11:30 pm

edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times. If you have the knowledge and time to invest without a broker then no load low ER mf are your best bet. If you want to pay 1.39% a year to have someone research, rebalance and prevent you from investing without emotions then AS is a great solution.

Vanguard has some great funds, but if you could own the best black rock, dodge & cox, franklin, American, fidelity, John Hancock funds, etc. for 1.39% why wouldn't you?

Owning only 1 fund family is like saying all proctor and gamble products are the best. I would rather shop online and have the best of the breed to deliver them to my house and pay a little more for a convenience.


You funny man. I almost crapped my pants.

Unfortunately, I know people that have used this service. They always don't choose the best funds for their clients. Seen them pick individual bonds with disregard for diversification. Costs are too high to boot. No alpha for the customer, risk adjusted. I would recommend other lower cost advisors before EJ.

RM
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Re: Edward Jones Advisory Solutions account

Postby NOLA » Sat Mar 22, 2014 11:41 pm

Yes, very well written response. Love it when people say their funds beat index funds 9 out of 10 times. They would lucky to beat index funds 3 out of 10 times during a single year.

Still waiting for the evidence!
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Re: Edward Jones Advisory Solutions account

Postby Beat The Street » Sun Mar 23, 2014 10:22 am

As an advisor I have come across a few advisory solutions account statements and it is usually 20-25 actively managed mutual funds. I am sure it has been proven somewhere that with that many active funds you essentially own the market and chances of outperformance are near zero. A simpler solution would be to own one fund, the total stock market index.
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Re: Edward Jones Advisory Solutions account

Postby JW Nearly Retired » Sun Mar 23, 2014 10:36 am

Beat The Street wrote: As an advisor I have come across a few advisory solutions account statements and it is usually 20-25 actively managed mutual funds. I am sure it has been proven somewhere that with that many active funds you essentially own the market and chances of outperformance are near zero. A simpler solution would be to own one fund, the total stock market index.

That 20-25 active managed funds is consistent with EJ escapees we hear from here on the BH forum. I always wondered if they start people right off with this number of funds as quasi-diversification, or if it grows to big numbers by them continuously adding the hot funds of the past year to it?
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Re: Edward Jones Advisory Solutions account

Postby dsos » Sun Mar 23, 2014 10:42 am

I was with Edward Jones for 6 years. One day I looked at all the fees I was paying. For the Advisory Solutions fund I had roughly $150K in it. I was paying roughly $150 a month in maintenance fees just for the Advisory Solutions fund. I closed all my accounts with EJ and haven't looked back. That is a lot of money each year that could have been invested instead of putting it into the hands of EJ. No thank you.
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Re: Edward Jones Advisory Solutions account

Postby ASUGrad » Sun Mar 23, 2014 10:57 am

edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times. If you have the knowledge and time to invest without a broker then no load low ER mf are your best bet. If you want to pay 1.39% a year to have someone research, rebalance and prevent you from investing without emotions then AS is a great solution.

Vanguard has some great funds, but if you could own the best black rock, dodge & cox, franklin, American, fidelity, John Hancock funds, etc. for 1.39% why wouldn't you?

Owning only 1 fund family is like saying all proctor and gamble products are the best. I would rather shop online and have the best of the breed to deliver them to my house and pay a little more for a convenience.


Image

92% of Vanguard funds have outperformed their peer groups over the past 10 years. I think you got it backwards. Vanguard beats their competitors 9 out of 10 times, not the other way around.

1.39%!!! Ok I know that is good for a C share, but you are comparing it to NO LOAD funds. Many of those no load funds are in the sub 0.13% range. 1/10 of the expenses. And who says the best blackrock over the past 10 years will still be the best blackrock over the next 10 years? Do you know how many funds have outperformed the S&P 500 since 1976 when Vanguard came out with its 500 index fund? I don't have my Bogle book on me, but I believe as of 2012 you can count them all on one hand... if I'm wrong its two hands. Out of the thousands of mutual funds how do you know in ADVANCE which handful of funds will outperform in coming decades and you really think you can build a portfolio using ALL those funds?

And your right, VG doesn't have to be your only fund family. They can be, but there are some good non-VG ETFs I would consider. But American funds? There is a VERY good reason that American Funds & Fidelity have seen their market share tanking in the same period of time where Vanguard has seen its market share take off.

Image


Now if you want to see the light I know a friend who use to work for EJ and works for Vanguard now. They will take you assuming you don't have FINRA complaints for making untrue statements....
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Re: Edward Jones Advisory Solutions account

Postby Random Musings » Sun Mar 23, 2014 12:00 pm

Beat The Street wrote:As an advisor I have come across a few advisory solutions account statements and it is usually 20-25 actively managed mutual funds. I am sure it has been proven somewhere that with that many active funds you essentially own the market and chances of outperformance are near zero. A simpler solution would be to own one fund, the total stock market index.


I have seen similar tactics with certain Fidelity advisors. Lots of funds, AUM fee and expense ratio's overall that are not attractive.

RM
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Re: Edward Jones Advisory Solutions account

Postby Novine » Sun Mar 23, 2014 1:53 pm

When I made the mistake of signing up for VALIC's Guided Portfolio Service for my 457 through work, they had me invested in 16 different funds in a portfolio that was at most, a low 5 figures in size. I don't recall the exact amount of the fee that was layered on top of VALIC's existing fee structure. But for the cost of this "professional guidance", no effort was made to determine whether the recommended portfolio fit in any way with my other retirement accounts. Everyone benefited from this arrangement except the investor. "Where are the customers yachts?" Indeed!
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Re: Edward Jones Advisory Solutions account

Postby grabiner » Sun Mar 23, 2014 7:40 pm

edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times.


I am assuming that you are a client, and you are quoting what your advisor told you, as I seriously doubt the truth of this statement as written, and an AS representative would include disclaimers in such a statement such as, "past performance is no indication of future results." (The Vanguard chart which someone else quoted has a similar disclaimer on Vanguard's site.)

And I suspect that what the advisor actually said and didn't say is, "9/10 of the funds we recommend outperformed the stock index over the last ten years. However, these were not the funds we recommended ten years ago; only 3/10 of the funds we recommended in 2004 beat the benchmark index over 2004-2014."

Alternatively, the claim could be, "9/10 of our stock funds beat the S&P 500 index. However, we are comparing the published value of the S&P 500 index, which does not include dividends, to the total return of our funds, with dividends reinvested."

Finally, the claim could have been made in 2010, "9/10 of our investors beat the Vanguard 500 Index (which lost money from 12/31/99-12/31/09). However, the S&P 500 Index is the wrong benchmark; most small-cap, international, and bond funds all outperformed the S&P 500 Index over the last ten years, and we recommended portfolios including those funds. Our recommended moderate-allocation portfolio of 40% US stock, 20% international stock, and 40% bonds underperformed a portfolio of Vanguard total-market index funds in the same proportions." (A claim like this would be unlikely to be true today, as the S&P 500 has outperformed bonds and international stocks over the last ten years, losing only to small-caps.)
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Re: Edward Jones Advisory Solutions account

Postby Stonebr » Sun Mar 23, 2014 7:53 pm

My ex-oil burner maintenance guy is an Edward Jones fan. He's told me twice that all his money is with Edward Jones. I'd say he's a nice guy anyway, but he isn't. I'm retired and all my money's with Vanguard. He's working and all his money's with EJ. 2+2=4.

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Re: Edward Jones Advisory Solutions account

Postby steve_14 » Sun Mar 23, 2014 8:57 pm

edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times.


Oh? Could you provide a link backing that up? Typing it on your keyboard doesn't make it true.

edventure73 wrote:Vanguard has some great funds, but if you could own the best black rock, dodge & cox, franklin, American, fidelity, John Hancock funds, etc. for 1.39% why wouldn't you?


Sure, if you can guarantee they'll outperform the market net of fees going forward. EJ and their ilk border on criminal enterprises in their fees, investment choices, and marketing, which is why Vanguard has grown to $2T+ in assets.
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Re: Edward Jones Advisory Solutions account

Postby Novine » Sun Mar 23, 2014 10:18 pm

I have a feeling we won't be hearing back from "ed".
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Re: Edward Jones Advisory Solutions account

Postby Jeff7 » Mon Mar 24, 2014 1:05 pm

edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times. If you have the knowledge and time to invest without a broker then no load low ER mf are your best bet. If you want to pay 1.39% a year to have someone research, rebalance and prevent you from investing without emotions then AS is a great solution.

Vanguard has some great funds, but if you could own the best black rock, dodge & cox, franklin, American, fidelity, John Hancock funds, etc. for 1.39% why wouldn't you?

Owning only 1 fund family is like saying all proctor and gamble products are the best. I would rather shop online and have the best of the breed to deliver them to my house and pay a little more for a convenience.
Please provide a written money-back guarantee that Edward Jones Advisory Solutions will consistently beat the performance of a low-cost whole-market index fund. If I'm going to be paying at least 20x more for a product or service than I would for a comparable competitor, I'm going to want something substantial to say that that high cost isn't going to waste.

The fund experts didn't meet or exceed the performance of a comparable market index? Didn't meet or exceed their own internal performance benchmarks? Darn, that's a shame. Sorry, no refunds. Better luck next time.




Novine wrote:I have a feeling we won't be hearing back from "ed".
Someone at Edward Jones is new to the Marketing team's social media division, and is very eager to get right to work.
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Re: Edward Jones Advisory Solutions account

Postby Dale_G » Mon Mar 24, 2014 1:28 pm

This is the best Ed Jones thread in a long time - and it was probably started by an EJ employee rather than a victim. Definitely worth bookmarking for the next potential victim who comes along :D

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Re: Edward Jones Advisory Solutions account

Postby edventure73 » Mon Apr 07, 2014 10:05 pm

Beat The Street wrote:If vanguard has great funds why doesn't Edward jones use them in any of their models?


Edward Jones Advisory does use Vanguard in their Advisory Solutions.
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Re: Edward Jones Advisory Solutions account

Postby edventure73 » Mon Apr 07, 2014 10:11 pm

Random Musings wrote:
edventure73 wrote:Vanguard index funds get beat by AS 9 out of 10 times. If you have the knowledge and time to invest without a broker then no load low ER mf are your best bet. If you want to pay 1.39% a year to have someone research, rebalance and prevent you from investing without emotions then AS is a great solution.

Vanguard has some great funds, but if you could own the best black rock, dodge & cox, franklin, American, fidelity, John Hancock funds, etc. for 1.39% why wouldn't you?

Owning only 1 fund family is like saying all proctor and gamble products are the best. I would rather shop online and have the best of the breed to deliver them to my house and pay a little more for a convenience.


You funny man. I almost crapped my pants. We don't want that.

Unfortunately, I know people that have used this service. They always don't choose the best funds for their clients. Seen them pick individual bonds with disregard for diversification. That was a bad choice. Costs are too high to boot. They are not the cheapest on the block. No alpha for the customer, risk adjusted. I would recommend other lower cost advisors before EJ. If I were not an analitical numbers geek I would use a broker that I trust, be it Edward Jones, Raymond James, Chuck, etc.



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Re: Edward Jones Advisory Solutions account

Postby edventure73 » Mon Apr 07, 2014 10:17 pm

Novine wrote:I have a feeling we won't be hearing back from "ed".
This is better than listening to Kramer or Suzie! I'm not going anywhere. Obviously everyone on this post loves to make money. Can we all agree that investing in an index fund is a great investment? I agree with that. There are some great funds out there with low expense ratios. I have a few different brokers that I use and I do own some Vanguard. To diversify my portfolio I also own Franklin, American, Blackrock, Dodge & Cox, Fidelity, John Hancock, Oppenheimer, individual stocks, and other investments.
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Re: Edward Jones Advisory Solutions account

Postby Novine » Mon Apr 07, 2014 11:25 pm

Owning funds from different firms doesn't guarantee a diversified portfolio. Whatever low cost options some of those companies might offer, only a fool would pay the EJ premium to get access to them.
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Re: Edward Jones Advisory Solutions account

Postby donall » Mon Apr 07, 2014 11:34 pm

edventure73 wrote:
Novine wrote:I have a feeling we won't be hearing back from "ed".
This is better than listening to Kramer or Suzie! I'm not going anywhere. Obviously everyone on this post loves to make money. Can we all agree that investing in an index fund is a great investment? I agree with that. There are some great funds out there with low expense ratios. I have a few different brokers that I use and I do own some Vanguard. To diversify my portfolio I also own Franklin, American, Blackrock, Dodge & Cox, Fidelity, John Hancock, Oppenheimer, individual stocks, and other investments.


I have no idea what you mean by the last two sentences. Are you saying that your idea of diversification is to own funds in different entities?
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Re: Edward Jones Advisory Solutions account

Postby vested1 » Tue Apr 08, 2014 8:36 am

I wouldn't be surprised if the OP and edventure73 were the same person. Go on Bogelheads and infer that investing with one of the highest cost firms is a good idea then come back as someone else and defend the decision. Who knows, you might get lucky and reel in a client or place a seed of doubt in an overly trusting rube.

Edit: I went back and looked at the OP's posts and found that she removed her funds from EJ in 2012. Congratulations, and please forgive me for my incorrect assumption that you were in cahoots with someone from the dark side.
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