Edward Jones Guided Solutions - Spouse is Employee

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buffalo88
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Edward Jones Guided Solutions - Spouse is Employee

Post by buffalo88 » Wed Dec 13, 2017 2:36 pm

Long-time lurker, first-time poster. Typically any question I've had, it's already been brought up and answered elsewhere, but I have a unique one. I've searched the rest of the forum and found a lot of discussion about Edward Jones' Guided Solutions accounts and the new fiduciary rule, but no one else that is employed with Edward Jones or has a spouse employed there. My wife works for them as an administrative assistant and is subject to FINRA Rule 3210, which gives her employer discretion to allow her or her immediate family to open accounts with brokerage facilities elsewhere. I have discussed it with the compliance department of Edward Jones, and they will not approve either of us to open accounts elsewhere (for now, I want to open Vanguard IRAs for both of us, though I will want to open additional accounts in the future).

I discussed my options with the advisor my wife works for, and he said that my only option is to open a Guided Solutions account (which sounds consistent with what others on here have been told by Edward Jones advisors). This contains a 1.08% annual fee or $120, whichever is greater, plus a $40 fee for each IRA. Also, I have to allocate my investments in line with what they believe my risk profile should be holding.

I know what funds I'd like to invest in and do not need advisor advice, but it doesn't sound like I have any other options than to go with this. I am 25 and plan to eventually have large balances held beyond my current 401k, HSA, and other accounts, so these investment fees will really start to hurt over time. Has anyone else faced a similar issue and/or have any advice? Thanks in advance.

IowaFarmWife
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by IowaFarmWife » Wed Dec 13, 2017 6:51 pm

Your wife needs a new job.

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David Jay
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by David Jay » Wed Dec 13, 2017 6:58 pm

Based on previous threads, I don't believe that EJ will be interested in working with you on this situation.

Every job is the totality of pay, situation (work schedule, commuting distance, COL...), benefits, and restrictions. Between the two of you, you need to look at the totality of your financial picture and decide if you are willing to give 1% of your profits away for the remainder of her employment there. If she is thinking about being there long term then you can do some math and understand the impact of those fees when compounded for 20 or 30 years.

Start by maxing out your 401K to minimize the amount at EJ. If this is seen as a relatively short-term position (say, less than 5 years) then go ahead and invest with EJ. You can transfer your funds to a low-cost brokerage after she leaves.
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livesoft
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by livesoft » Wed Dec 13, 2017 7:06 pm

I told the EJ guy that came to my house that he was ruining his chances for his family's retirement along with the the chances for any of their clients. He left white as a ghost and never came back.

Since this appears to be the first time this has come up, I also suggest that your spouse get a different job.
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BolderBoy
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by BolderBoy » Wed Dec 13, 2017 7:20 pm

IowaFarmWife wrote:
Wed Dec 13, 2017 6:51 pm
Your wife needs a new job.
This is the "better part of valor" advice and I completely agree with it.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

FrankLUSMC
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by FrankLUSMC » Wed Dec 13, 2017 8:32 pm

I interviewed with EJ in 2011 and the interview went well until I was informed that all of my accounts, including IRA accounts would be invested with them upon employment. I blew the interview after that information. This is before I knew about BH community, but I had Vanguard IRAs and Fidelity 401K and wasn't about to move them.

JBTX
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by JBTX » Wed Dec 13, 2017 8:46 pm

If she likes the job and it pays well chances are the benefits of her working there will outweigh the 1-2% you lose in returns....in the short term. If we are talking 20 years that is another story.

I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.

krow36
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by krow36 » Wed Dec 13, 2017 8:54 pm

I don’t know anything about the FINRA brokerage rule you are dealing with. For 5 or even 10 years, it probably would pay to use EJ’s Guided Solutions for retirement accounts. Are you aware of EJ’s ETF Focus List?
viewtopic.php?f=1&t=204277&start=50
Jan 25, 2017, millenialfalcon wrote:
I was provided with a document titled "Edward Jones ETF Focus List". It, to my surprise, has Vanguard ETFs. I think I will make a 2- or 3-fund VG ETF portfolio and leave it at that.

Any of the program fees or other nonsense I will chalk it up to being paid for out of the matching funds from my employer. But I reserve the right to ask my employer to make a 5304 plan later this year.

Edit to clarify, some of the representative VG ETFs: Vanguard Total Stock, Vanguard FTSE All-World ex-US, Vanguard Mid-Cap Value, Vanguard Mid-Cap Growth, Vanguard Total Bond Market, Vanguard Total International Bond.

and Mar 17, 2017, millenialfalcon wrote:
The ERs on the Vanguard ETFs are the same as at Vanguard. Only reason I'm bothering to transfer now is the bad taste in my mouth about the AUM fee. It's peanuts, but I also see it as voting with my dollars. Charge me $120 annually. But not a dollar more.

Also, it's not self directed. The GS program forces you to abide by their parameters. So I wanted to do a three-fund VG ETF portfolio. Couldn't do that because the max percentage allowed in any one fund is 25%. Didn't matter that these are index funds.

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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by radiowave » Wed Dec 13, 2017 8:55 pm

IowaFarmWife wrote:
Wed Dec 13, 2017 6:51 pm
Your wife needs a new job.
+1
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IowaFarmWife
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by IowaFarmWife » Wed Dec 13, 2017 8:57 pm

This is maybe a stupid question but how would they know if a spouse had an account at another brokerage firm?

Dottie57
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by Dottie57 » Wed Dec 13, 2017 8:59 pm

JBTX wrote:
Wed Dec 13, 2017 8:46 pm
If she likes the job and it pays well chances are the benefits of her working there will outweigh the 1-2% you lose in returns....in the short term. If we are talking 20 years that is another story.

I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
This does seem an area which should not touch a spouse of an EJ employee.

TheHouse7
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by TheHouse7 » Wed Dec 13, 2017 9:05 pm

This sounds really weird, and there is no way I would put up with that for an extended period of time(more than 3 years). Respect your wife and make a game plan you can both stick to.

P.s. before I became a boglehead, my DW set me up with a U.S. Bank advisor, needless to say I couldn't stop myself from laughing when reviewing the fees and/or load.
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.

Jack FFR1846
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by Jack FFR1846 » Wed Dec 13, 2017 9:10 pm

IowaFarmWife wrote:
Wed Dec 13, 2017 8:57 pm
This is maybe a stupid question but how would they know if a spouse had an account at another brokerage firm?
To go a step further......what if the spouse works at another firm?

Question 8

How should members address situations where both spouses in a marriage are associated persons of separate employer members and each spouse opens or otherwise establishes separate accounts that are subject to FINRA Rule 3210?

Answer

By its terms, the requirements of FINRA Rule 3210 would apply with respect to each spouse vis-à-vis his or her respective employer member and the relevant executing member or other financial institution. As a consequence, among other things, associated persons and employer members should be aware that the presumption of beneficial interest, as set forth in Supplementary Material .02 of the rule, would apply to each spouse with respect to the account or accounts of the other spouse.


http://www.finra.org/industry/faq-3210

Get a job at Fidelity. It would create a breach between Earth 1 and Earth 2 but would not create a new time line from the Flash point.
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fposte
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by fposte » Wed Dec 13, 2017 9:23 pm

JBTX wrote:
Wed Dec 13, 2017 8:46 pm
I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
There's no law that would stop them, if that's what you mean; your right to invest with Vanguard is not legally protected. I don't know the FINRA side of things and whether there'd be any consequences there, but they could and probably would fire the employee for cause, so no unemployment and no reference.

JBTX
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by JBTX » Wed Dec 13, 2017 9:25 pm

fposte wrote:
Wed Dec 13, 2017 9:23 pm
JBTX wrote:
Wed Dec 13, 2017 8:46 pm
I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
There's no law that would stop them, if that's what you mean; your right to invest with Vanguard is not legally protected. I don't know the FINRA side of things and whether there'd be any consequences there, but they could and probably would fire the employee for cause, so no unemployment and no reference.
I’m not a legal beagle but this just seems legally problematic.

3funder
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by 3funder » Wed Dec 13, 2017 9:52 pm

In all honesty, Edward Jones isn't a very respectable outfit. I wouldn't expect much, if anything, in terms of them looking out for you or your wife. Both of you should run like you've never run before.

buffalo88
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by buffalo88 » Wed Dec 13, 2017 10:31 pm

IowaFarmWife wrote:
Wed Dec 13, 2017 8:57 pm
This is maybe a stupid question but how would they know if a spouse had an account at another brokerage firm?
I can't really conceive of how they would find out, but when you open an account at another firm, they ask you if you or your spouse works for another FINRA member firm. If you answer yes, you have to get written permission from the employer to be able to open the account. Edward Jones refuses to give this permission unless it is for some sort of service that they don't offer. Answering no to that question would be my only way out of this predicament, but I don't want to lie on any forms if there's even the slightest chance my wife could get in trouble.

Jack FFR1846 wrote:
Wed Dec 13, 2017 9:10 pm
To go a step further......what if the spouse works at another firm?

Question 8

How should members address situations where both spouses in a marriage are associated persons of separate employer members and each spouse opens or otherwise establishes separate accounts that are subject to FINRA Rule 3210?

Answer

By its terms, the requirements of FINRA Rule 3210 would apply with respect to each spouse vis-à-vis his or her respective employer member and the relevant executing member or other financial institution. As a consequence, among other things, associated persons and employer members should be aware that the presumption of beneficial interest, as set forth in Supplementary Material .02 of the rule, would apply to each spouse with respect to the account or accounts of the other spouse.


http://www.finra.org/industry/faq-3210

Get a job at Fidelity. It would create a breach between Earth 1 and Earth 2 but would not create a new time line from the Flash point.
This is one of the scenarios that Edward Jones said it would approve: if I worked for another FINRA firm, they would approve me opening and maintaining accounts with brokerage capabilities at other firms. I posed this to them as a hypothetical when I read that exact same Q&A after reading the rule, so we're certainly thinking on the same wavelength.

3funder wrote:
Wed Dec 13, 2017 9:52 pm
In all honesty, Edward Jones isn't a very respectable outfit. I wouldn't expect much, if anything, in terms of them looking out for you or your wife. Both of you should run like you've never run before.
The more I read, the more concerned I get. It has taken multiple phone calls and weeks to finally get a clear answer from them on all this.

fposte wrote:
Wed Dec 13, 2017 9:23 pm
JBTX wrote:
Wed Dec 13, 2017 8:46 pm
I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
There's no law that would stop them, if that's what you mean; your right to invest with Vanguard is not legally protected. I don't know the FINRA side of things and whether there'd be any consequences there, but they could and probably would fire the employee for cause, so no unemployment and no reference.
This is also my understanding of the potential consequences, and it is all predicated on the FINRA rules.

Thanks again for all of your responses.

buffalo88
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by buffalo88 » Wed Dec 13, 2017 10:39 pm

David Jay wrote:
Wed Dec 13, 2017 6:58 pm
Based on previous threads, I don't believe that EJ will be interested in working with you on this situation.

Every job is the totality of pay, situation (work schedule, commuting distance, COL...), benefits, and restrictions. Between the two of you, you need to look at the totality of your financial picture and decide if you are willing to give 1% of your profits away for the remainder of her employment there. If she is thinking about being there long term then you can do some math and understand the impact of those fees when compounded for 20 or 30 years.

Start by maxing out your 401K to minimize the amount at EJ. If this is seen as a relatively short-term position (say, less than 5 years) then go ahead and invest with EJ. You can transfer your funds to a low-cost brokerage after she leaves.
This has been my plan so far, as I've fully maxed out the contributions to my 401k and to our HSA for 2017, but I have the money sitting there waiting to max out IRAs for both of us this year. I have some room left under my wife's 401k limit (which isn't subject to that Edward Jones fee), but with only a couple paychecks left in the year to contribute, I still have $11K I want to get into those IRAs this year.

I think like you and others have said, I probably don't expect her to spend decades working there, so it's probably best to just suck it up and live with it while I have to. She seems to like the job, so I don't want to mess with that.

mega317
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by mega317 » Wed Dec 13, 2017 10:44 pm

IowaFarmWife wrote:
Wed Dec 13, 2017 8:57 pm
This is maybe a stupid question but how would they know if a spouse had an account at another brokerage firm?
The same way the IRS would know about your blackjack winnings. They won't but if they do find out it would be bad for the wife.

My question is what is the theory behind including administrative assistants in this rule?

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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by Silk McCue » Wed Dec 13, 2017 11:04 pm

I'd like to see where this rule applies to an employee that is not a broker-dealer. I certainly don't expect an administrative assistant is licensed. Please point me to legal verbiage that says that someone who is not registered with FINRA is subject to 3210. I may be all wet but I'd love to see definitive proof that an unlicensed admin assistant is.

https://content.next.westlaw.com/Docume ... rue&bhcp=1

ThisTimeItsDifferent
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by ThisTimeItsDifferent » Wed Dec 13, 2017 11:06 pm

I think mutual fund accounts do not fall under FINRA rules. Unfortunately, Vanguard will not open new mutual fund accounts I believe. Do other companies like Fidelity or Schwab?

fposte
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by fposte » Wed Dec 13, 2017 11:09 pm

JBTX wrote:
Wed Dec 13, 2017 9:25 pm
fposte wrote:
Wed Dec 13, 2017 9:23 pm
JBTX wrote:
Wed Dec 13, 2017 8:46 pm
I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
There's no law that would stop them, if that's what you mean; your right to invest with Vanguard is not legally protected. I don't know the FINRA side of things and whether there'd be any consequences there, but they could and probably would fire the employee for cause, so no unemployment and no reference.
I’m not a legal beagle but this just seems legally problematic.
It may seem like it should be, and I should be clear that IANAL either. But In the U.S., you can be fired for any reason save a handful of exceptions. This isn't one of the exceptions. In fact, it's been an established condition of employment at financial firms for some time to keep them compliant.

JBTX
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by JBTX » Wed Dec 13, 2017 11:24 pm

fposte wrote:
Wed Dec 13, 2017 11:09 pm
JBTX wrote:
Wed Dec 13, 2017 9:25 pm
fposte wrote:
Wed Dec 13, 2017 9:23 pm
JBTX wrote:
Wed Dec 13, 2017 8:46 pm
I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
There's no law that would stop them, if that's what you mean; your right to invest with Vanguard is not legally protected. I don't know the FINRA side of things and whether there'd be any consequences there, but they could and probably would fire the employee for cause, so no unemployment and no reference.
I’m not a legal beagle but this just seems legally problematic.
It may seem like it should be, and I should be clear that IANAL either. But In the U.S., you can be fired for any reason save a handful of exceptions. This isn't one of the exceptions. In fact, it's been an established condition of employment at financial firms for some time to keep them compliant.
You are probably right. It just seems problematic that an employer can compel you to force non employee family members to take certain actions when they have no direct relationship with the employer.

I have to say I would have a big problem with this if I were the non employee family member.

buffalo88
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by buffalo88 » Wed Dec 13, 2017 11:32 pm

Silk McCue wrote:
Wed Dec 13, 2017 11:04 pm
I'd like to see where this rule applies to an employee that is not a broker-dealer. I certainly don't expect an administrative assistant is licensed. Please point me to legal verbiage that says that someone who is not registered with FINRA is subject to 3210. I may be all wet but I'd love to see definitive proof that an unlicensed admin assistant is.

https://content.next.westlaw.com/Docume ... rue&bhcp=1
This is from the rule itself:
(a) No person associated with a member ("employer member") shall, without the prior written consent of the member, open or otherwise establish at a member other than the employer member ("executing member"), or at any other financial institution, any account in which securities transactions can be effected and in which the associated person has a beneficial interest.

.02 Related and Other Persons. For purposes of this Rule, the associated person shall be presumed to have a beneficial interest in, and to have established, any account that is held by:

(a) the spouse of the associated person;
Employment qualifies as "association" with a member, and any account held by me (the spouse) is also subject to this rule.

buffalo88
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by buffalo88 » Wed Dec 13, 2017 11:33 pm

ThisTimeItsDifferent wrote:
Wed Dec 13, 2017 11:06 pm
I think mutual fund accounts do not fall under FINRA rules. Unfortunately, Vanguard will not open new mutual fund accounts I believe. Do other companies like Fidelity or Schwab?
Unfortunately, no. I have tried to open accounts with Vanguard, Fidelity, and Schwab, and all have asked me this question as part of their account opening process. If I answer yes, they have all stated that I must receive written confirmation from Edward Jones.

barnaclebob
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by barnaclebob » Thu Dec 14, 2017 12:11 am

How about strategic divorce? :shock:

maria00200
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by maria00200 » Thu Dec 14, 2017 2:38 am

The only logical solution is for your wife to get another job. Admin Assistants are in demand and this shouldn’t be a problem.

bberris
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by bberris » Thu Dec 14, 2017 7:23 am

JBTX wrote:
Wed Dec 13, 2017 8:46 pm
If she likes the job and it pays well chances are the benefits of her working there will outweigh the 1-2% you lose in returns....in the short term. If we are talking 20 years that is another story.

I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
Employer can't stop the spouse from investing elsewhere. The employer can fire the one working for them. Is this requirement in the employment contract or policy manual? Are all employees under this rule?

bberris
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by bberris » Thu Dec 14, 2017 7:36 am

maria00200 wrote:
Thu Dec 14, 2017 2:38 am
The only logical solution is for your wife to get another job. Admin Assistants are in demand and this shouldn’t be a problem.
This suggestion appears frequently in this thread, and maybe it's sarcasm or a little joke. I find it an extreme solution to a little problem, especially if the invested balance is fairly small. Low fees aren't an end in themselves. The reason for wanting low fees is for financial success. I wouldn't cut my nose off if a pimple appeared. How about asking for a raise equivalent to the fees?

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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by TomatoTomahto » Thu Dec 14, 2017 7:58 am

JBTX wrote:
Wed Dec 13, 2017 9:25 pm
fposte wrote:
Wed Dec 13, 2017 9:23 pm
JBTX wrote:
Wed Dec 13, 2017 8:46 pm
I guess i have a hard time how an employer could legally prohibit an employee’s spouse from going and buying an index fund somewhere else.
There's no law that would stop them, if that's what you mean; your right to invest with Vanguard is not legally protected. I don't know the FINRA side of things and whether there'd be any consequences there, but they could and probably would fire the employee for cause, so no unemployment and no reference.
I’m not a legal beagle but this just seems legally problematic.
My wife’s employer, for example, limits our (i.e., husband and wife) brokerage accounts to a handful (5, iirc) different firms. We also can continue having a Vanguard MF-only account that we had years before her employment there.

That seems to me to be a reasonable compromise of the employer’s need to monitor our family’s financial dealings and our family’s right to invest freely. They do often recommend their own brokerage, and RSUs vest through their brokerage, but they aren’t dictatorial.
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Watty
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by Watty » Thu Dec 14, 2017 9:05 am

One aspect that has not been mentioned is how working there might affect her long term career. Most people have twists and turns in their career that could never be predicted but putting yourself in a position where you might get a "lucky break" can be very important.

There has been a lot written about the impact that index funds and online investing is having on companie like EJ. Younger people like yourself are also a lot more comfortable with dealing with things like robo advisors so EJ's potential client base may be shrinking. Aside from all the other factors I would be concerned that just from a business standpoint the company might not have that bright of a future.

You are likely too young to remember it but up until around the year 2000 there were travel agent stores in pretty much every strip mall, possibly next to the EJ office, but technology changed and most of those travel agencies are long gone and only a few niche travel agencies are surviving. There is real risk that the same thing will happen to financial advisors like EJ.

This is important for your wife since it could make it hard for her to advance in that field. I have known people that started out with jobs like being an administrative assistant or warehouse worker and fifteen years later they had worked themselves up to be a manager with that company or with some other company in that industry. This is possible since as they are doing the lower level work they learn the business.

If she works there for five years then a lot of her skill set will be geared for investment companies which might not be very useful if she wants to then work at a company in some other field.

A big question is what you wife wants to be doing in 20 years and how the EJ job could lead to that.
buffalo88 wrote:
Wed Dec 13, 2017 2:36 pm
I discussed my options with the advisor my wife works for, and he said that my only option is to open a Guided Solutions account (which sounds consistent with what others on here have been told by Edward Jones advisors). This contains a 1.08% annual fee or $120, whichever is greater, plus a $40 fee for each IRA. Also, I have to allocate my investments in line with what they believe my risk profile should be holding.
It is very interesting, and telling, that they don't waive the annual fee for their employees.

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sunnywindy
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by sunnywindy » Thu Dec 14, 2017 9:42 am

Don't also forget that they will (most likely - if they act the same way as they do with their customers (I am just speculating)) charge you a fee for moving your account(s) out of Edward Jones once your wife decides she doesn't want to work there. It's a terrible decision, but I would recommend she starts looking for another place to work.
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JBTX
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by JBTX » Thu Dec 14, 2017 9:49 am

bberris wrote:
Thu Dec 14, 2017 7:36 am
maria00200 wrote:
Thu Dec 14, 2017 2:38 am
The only logical solution is for your wife to get another job. Admin Assistants are in demand and this shouldn’t be a problem.
This suggestion appears frequently in this thread, and maybe it's sarcasm or a little joke. I find it an extreme solution to a little problem, especially if the invested balance is fairly small. Low fees aren't an end in themselves. The reason for wanting low fees is for financial success. I wouldn't cut my nose off if a pimple appeared. How about asking for a raise equivalent to the fees?
I think they are serious. It really bothers me a lot also. I’d have a hard time with a spouses employer telling me I have to invest in their rotten fee riddled products when based upon her position they really don’t have to require that.

Since you don’t have that much at stake like you say you probably suck it up for a few years. For somebody who has substantial savings I would absolutely refuse to move my investments there.

I view it as a form of extortion. Move your assets here to our crappy products and exhorbitant fees or we will fire your spouse. Just thinking about it makes me angry. If they were doing it to comply with a law that is one thing but as you said they could easily make exception and still be within compliance but choose not to, and they choose to extract normal fees from employees family members.

Tomato gives an example a more reasonable approach by a more reasonable company that actually seems to care about their employees.

Raabe34
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Re: Edward Jones Guided Solutions - Spouse is Employee

Post by Raabe34 » Thu Dec 14, 2017 10:15 am

I can't believe the people on this board would die on this hill basically telling this guy he needs to force his wife to find a different job. I do believe administrative skills are fairly transferable that at some point it would make sense to look elsewhere but if she likes the guy that she's working with and the clients there is a huge value to enjoying life. If you have 200k in the ED Jones accounts you cant do anything about @ 1% that's 2k/yr. Happy wife happy life and I wouldn't die on that hill if she likes her situation for 2k.

likegarden
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Joined: Mon Feb 26, 2007 5:33 pm

Re: Edward Jones Guided Solutions - Spouse is Employee

Post by likegarden » Thu Dec 14, 2017 10:48 am

Perhaps I do not understand this correctly, but does EJ not permit that the poster has a 401(k) with his employer, but has to have am IRA with EJ instead? The right to a 401(k) is federal law and EJ does not permit that?

vested1
Posts: 1610
Joined: Wed Jan 04, 2012 4:20 pm

Re: Edward Jones Guided Solutions - Spouse is Employee

Post by vested1 » Thu Dec 14, 2017 10:49 am

Raabe34 wrote:
Thu Dec 14, 2017 10:15 am
I can't believe the people on this board would die on this hill basically telling this guy he needs to force his wife to find a different job. I do believe administrative skills are fairly transferable that at some point it would make sense to look elsewhere but if she likes the guy that she's working with and the clients there is a huge value to enjoying life. If you have 200k in the ED Jones accounts you cant do anything about @ 1% that's 2k/yr. Happy wife happy life and I wouldn't die on that hill if she likes her situation for 2k.
Actually, it's more than 1%. There is the lost opportunity to invest in better funds with no loads, no 12b fees, and no requirement to let EJ determine what your AA should be and to let them enforce that. I would imagine that EJ might say that a 25 year old should be in 100% stocks funds that are the most expensive.

If there isn't a law against this there should be.

huai
Posts: 6
Joined: Mon Jul 24, 2017 9:11 am

Re: Edward Jones Guided Solutions - Spouse is Employee

Post by huai » Thu Dec 14, 2017 2:51 pm

likegarden wrote:
Thu Dec 14, 2017 10:48 am
Perhaps I do not understand this correctly, but does EJ not permit that the poster has a 401(k) with his employer, but has to have am IRA with EJ instead? The right to a 401(k) is federal law and EJ does not permit that?
OP is talking about his non-401(k) accounts - IRAs & taxable brokerage accounts.

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flamesabers
Posts: 1757
Joined: Fri Mar 03, 2017 12:05 pm
Location: Rochester, MN

Re: Edward Jones Guided Solutions - Spouse is Employee

Post by flamesabers » Thu Dec 14, 2017 4:09 pm

huai wrote:
Thu Dec 14, 2017 2:51 pm
likegarden wrote:
Thu Dec 14, 2017 10:48 am
Perhaps I do not understand this correctly, but does EJ not permit that the poster has a 401(k) with his employer, but has to have am IRA with EJ instead? The right to a 401(k) is federal law and EJ does not permit that?
OP is talking about his non-401(k) accounts - IRAs & taxable brokerage accounts.
Would opening an IRA CD be an option for the OP? Surely that should be a temporary fix for being able to invest in a IRA and not being stuck with EJ's high fees?

In regards to taxable accounts, how about sticking the money in CDs and saving bonds for as long his spouse works for EJ?

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