Friend is an Edward Jones financial advisor -- should I drop him?

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doss
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Friend is an Edward Jones financial advisor -- should I drop him?

Post by doss » Tue Feb 02, 2016 6:29 am

Hello, a family friend of ours was recently laid off at his law firm and now just started working at a local Edward Jones as a financial advisor. He began reaching out to family and friends in order to build up his clientele. My wife and I are in our 20s/30s and recently married with a new house, baby on the way, etc., and we figured it would be good to have someone to talk to for financial advice and assurance that we are on the right track for retirement and other financial goals. We recently sat down with him in his office to go over our finances, investments, and retirement outlook and found it very refreshing and relaxing to have someone tell us how were were doing, how we could do better, what to watch out for, the various options and pots that we should contribute to (401ks, IRAs, etc). I liked how he could give us specific numbers and tell us how much to save for THIS and to do THIS with a goal of THIS. Meeting with him confirmed the things that I've learned on this forum over the years and stressed the importance of patience and calm for the long haul with trying to minimize expense ratios as much as possible (yea, an EJ guy said this!). But, after reading all the bad rap on this forum about EJ, I'm starting to wonder if I should break contact with him.

Yes, I know that he has to make money somewhere, but I am wondering if it's possible to keep a relationship with him as a mentor and not a broker of some sort?

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by supersharpie » Tue Feb 02, 2016 6:33 am

Mixing friendship and money generally leads to regret. You don't need advisor; just stick to Bogleheads tenets and manage your own finances.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by doss » Tue Feb 02, 2016 6:34 am

supersharpie wrote:Mixing friendship and money generally leads to regret. You don't need advisor; just stick to Bogleheads tenets and manage your own finances.
Yea, as someone whom has been in business with family friends, I learned the hard way.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Toons » Tue Feb 02, 2016 6:54 am

supersharpie wrote:Mixing friendship and money generally leads to regret. You don't need advisor; just stick to Bogleheads tenets and manage your own finances.
+3 :happy
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Herekittykitty » Tue Feb 02, 2016 7:20 am

Looks like he "reached out" to you and other family and friends to build up a clientele. Understandable from his perspective.

But it is a service that was marketed to you, not a service you sought.

Do you need it?
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Sheepdog » Tue Feb 02, 2016 7:34 am

I agree with all of the above. Plus I would add, I would not want a family friend to know my personal finances. If he is a friend, he should understand that. I don't think he would want to tell you his.
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by prudent » Tue Feb 02, 2016 7:40 am

I would ask myself what makes this person so wise about finance when up until just recently his career was in a totally different field. Whatever he has learned in this short time does not involve any secret sauce. You can do it yourself.

Don't try to keep him as a mentor for these reasons:
1. He's trying to build a business and he wants your money.
2. Your best interests will never be aligned with his.
3. Don't do business with friends or family.
4. If you keep talking to him about your situation, at some point you'll feel guilty and give him money to handle. At some later point, you'll wish you hadn't and the friendship will be strained.
5. If you really need a mentor, it shouldn't be someone who's income relies on converting that relationship into a business relationship.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by livesoft » Tue Feb 02, 2016 7:42 am

You should remain his friend and convince him that EdwardJones is not a good place for him to work nor a good place for him to invest his money nor the money of his family and friends.
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Leemiller » Tue Feb 02, 2016 7:45 am

For many people having a financial advisor is a great idea. If you're aware of fees while you work with him, I don't see any negatives. Yeah mixing friends and business can go poorly or it can go well. We used a family friend as our realtor, it went great she steered us away from certain homes and into a fantastic neighborhood. But I don't see how you can expect his services for free as a "mentor," without investing with him. That doesn't seem reasonable (or how you'd want to be treated). When he was an attorney, I doubt you'd expect free legal advice.

On the other hand I've read a few posts here lately where people who do investing on their own were panicking and in some cases sold in a panic - one guy realized something like 100k in losses by doing so. Having a financial advisor who will talk you off the ledge is a good thing. It isn't easy to see the drops we are seeing now.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by nisiprius » Tue Feb 02, 2016 7:51 am

I think it is a very, very bad idea to get professional services from friends. My parents did this twice--in one case, they had a friend who was a lawyer do work for them, in another case one of them had a friend who was a doctor, as their primary care physician. In both cases it turned out badly.
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Watty » Tue Feb 02, 2016 7:58 am

Part of the Edward Jones business model seems to be that it is pretty easy to become a salesperson with them and that they encourage you to sign up your family and friends.

After a new employee signs up any people that they know that they can, they are then depending on finding other customers to make commission off of. Most can't find enough fresh business to earn a decent living so they leave for some other job. Their family and friends that they signed up are then left with a bad EJ account with a new account manager.

In all likelihood your friend will not be working there a year or two from now.

Most people do not need a financial advisor but if you do then;
1) They should have a fiduciary responsibility to you.
2) Their costs should be clearly defined so you can decide if they are worthwhile.

Your friend is neither of these.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by radiowave » Tue Feb 02, 2016 8:08 am

Do you like this friend so much that you are willing to give him/her 1% of your investments each year (plus another .5 to 1% in high fees, high front/back end loads mutual funds)?
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by docbrown » Tue Feb 02, 2016 8:27 am

Do you like this friend so much that you are willing to give him/her 25% of your investments over the next 30 years?

Code: Select all

						Annual Fee Rate
Time Horizon	0.10%	0.25%	0.50%	1.00%	2.00%	3.00% 
3 years		 –0.3%	–0.7%	–1.5%	–2.9%	–5.8%	–8.5%
5 years		 –0.5%	–1.2%	–2.5%	–4.9%	–9.4%	–13.7%
10 years		–1.0%	–2.5%	–4.9%	–9.5%	–18.0%	–25.6%
20 years		–2.0%	–4.9%	–9.5%	–18.0%	–32.7%	–44.6%
30 years		–3.0%	–7.2%	–13.9%	–25.8%	–44.8%	–58.8%
40 years		–3.9%	–9.5%	–18.1%	–32.8%	–54.7%	–69.3%
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Clever_Username » Tue Feb 02, 2016 9:04 am

This mixes two questions, and while they have the same answer, it's for different reasons.

Question one: should you take on a friend as a financial advisor? My suggestion is absolutely not, regardless of who he works for. Even if you need one -- and some people do -- mixing friends and finance is a bad plan.

Question two: should you go to Edward Jones? Even if you wanted a financial advisor, I wouldn't suggest folks working for them because of the inherent conflict of interest of whose money they'd seek to maximize.
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by RadAudit » Tue Feb 02, 2016 9:12 am

This thread viewtopic.php?f=1&t=180992&newpost=2783444#p2741878 has a link to this delightful little saga.
This is my favorite - "The Edward Jones Saga" - :P
http://www.kronstantinople.blogspot.com ... -saga.html
The saga should answer your question for you. The larger question is should you tell your friend what's in store for him if he's just started.
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by goingup » Tue Feb 02, 2016 10:19 am

He'll probably wise up and exit Ed Jones before long. Then there you'd be with a complex, tax-inefficient, ponderous portfolio for us to untangle! :|

Every single EJ portfolio that has been posted on this forum has been ridiculously expensive--comprised of loaded funds with big ERs. It's just not worth to start down this path, even if your friend is a competent advisor. He'll have to put you in lousy funds in order to make a living.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by bloom2708 » Tue Feb 02, 2016 10:31 am

Keep your friend. Stay far away from EJ. Both will be good decisions.
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by kenner » Tue Feb 02, 2016 10:33 am

Seems to me that even if friend at EJ wanted to do right by OP, corporate pressure from EJ might dictate otherwise. I've never seen a properly diversified, low-cost investment portfolio yet from an EJ rep.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by barnaclebob » Tue Feb 02, 2016 10:54 am

Absolutely do not invest with him. When you tell him why say that its not personal and that you don't think the fees are a good value since they do not guarantee over performance. Tell him that if he can get you in a low fee index fund where the total charges are less than .2% per year and there are no loads or account closing fees you would invest with him. Since EJ does not offer these products he won't be able to meet your request.

Another way to go about it is say that you think that picking a proper asset allocation of low fee funds, sticking with it and rebalancing periodically is 98% of investing success over the long term and that you are capable of doing that yourself.
Last edited by barnaclebob on Tue Feb 02, 2016 11:05 am, edited 1 time in total.

doss
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by doss » Tue Feb 02, 2016 11:04 am

Thnks, guys. I knew this was the correct answer...arrghh... :oops:

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by ivyhedge » Tue Feb 02, 2016 11:14 am

doss wrote:Thnks, guys. I knew this was the correct answer...arrghh... :oops:
Doss, if you are inclined to adopt the sentiment that your acquaintance will not work there for long, then you can disentangle yourself from deliberation by responding that, given the flux in your and your wife's lives, you don't plan to make any major financial decisions in the next year. Your "oil tanker turns slowly" approach might outlast his employ. Then you can buy him a drink and wish him well in his next endeavor (which you won't be funding). ;)
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by joebh » Tue Feb 02, 2016 4:00 pm

doss wrote:Yes, I know that he has to make money somewhere, but I am wondering if it's possible to keep a relationship with him as a mentor and not a broker of some sort?
That depends on how close a friend he is, and what his contract with EJ requires.

If he will continue to give you free advice, it probably couldn't hurt. But almost certainly he will be under pressure at EJ to start bringing in commissions.

A free mentor could be good. A well-commissioned product broker could get expensive.

Personally, when I hire someone for their services these days, it is always a business arrangement, not done out of friendship. In our younger and more foolish days, we once hired one of my wife's patients as a financial advisor - when the surrender date for some of his investments hits this year, I'll be completely out of his sphere of influence.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by AWH_CPA » Tue Feb 02, 2016 4:07 pm

supersharpie wrote:Mixing friendship and money generally leads to regret. You don't need advisor; just stick to Bogleheads tenets and manage your own finances.
I love how the answer is ALWAYS "you don't need an advisor".

That wasn't his question. He's already explained that he found value in having someone to discuss specific issues with in a more personal forum. Can BH answer all the questions? Yes. Does that mean he knows exactly what questions he should be asking? Nope.

I would see if your friend would be willing to work with you only an a fee only basis. IE charging you an hourly rate for your meetings once a year etc. But to look here for your investment guidance. If you still feel you want someone to help with the investment guidance, I would look into finding a relationship with a different advisor who would charge much less than EJ and their A share front loads.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Rob5TCP » Tue Feb 02, 2016 4:14 pm

RadAudit wrote:This thread viewtopic.php?f=1&t=180992&newpost=2783444#p2741878 has a link to this delightful little saga.
This is my favorite - "The Edward Jones Saga" - :P
http://www.kronstantinople.blogspot.com ... -saga.html
The saga should answer your question for you. The larger question is should you tell your friend what's in store for him if he's just started.
Thanks - that was a fascinating read !!!

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by psystal » Tue Feb 02, 2016 4:30 pm

As others have said, never have financial relationships with friends, especially one this intimate (and, since it's EJ, expensive).

I used to carry insurance through an agency that was operated by the parents/brother of one of my childhood friends. Rates went up (not their fault, obviously), and after shopping around I realized I was losing a couple hundred dollars per year keeping their agency. I sucked it up for a couple years until I worked up the courage to get coverage elsewhere. They were incredibly gracious about the change, but it was an awkward experience and I feel odd when we see them to this day.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by barnaclebob » Tue Feb 02, 2016 4:32 pm

AWH_CPA wrote: I would see if your friend would be willing to work with you only an a fee only basis.
He works for EJ, he is bound by their fee structure...

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Doom&Gloom » Tue Feb 02, 2016 4:36 pm

bloom2708 wrote:Keep your friend. Stay far away from EJ. Both will be good decisions.
This!

DD's BIL went to work for EJ. Coincidentally, at the same time she was asking us about what to do with an anticipated inheritance when the time came. I strongly advised her that under no circumstances would I advise her to do business with EJ. She nodded as if we were speaking the same language.

Fast-forward a few months and she has established a retirement plan of some kind with her BIL and EJ.
:oops:

Fast-forward several more months and BIL has left EJ. DD is now mad at the paper losses and expenses of her retirement account. I did not inquire about her future plans for it. However, she has quit that job and is working elsewhere, so I am relatively confident that she is not investing new funds with EJ. All part of the financial learning experience. At least her exposure to EJ was limited and left a very bad taste in her mouth.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by bloom2708 » Tue Feb 02, 2016 4:38 pm

This forum is a superb place to "talk to a friend".

Let's say I wanted to ask my "friend", "Should I buy 500 shares of Target? They are really down and I like their PE and outlook."

:annoyed

Your Boglehead friends could give you some great advice about sticking with index funds, keeping it simple, keeping your costs low, etc. etc.

What are friends for? :sharebeer
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by dm200 » Tue Feb 02, 2016 4:46 pm

1. Not clear whether "drop him" means as a client or a friend or both?
2. I would NOT even try to dissuade him from working there; he will figure it out
3. Thank him for his spending time with you, but after full analysis of your situation, you feel you will stay with Vanguard. Invite him and spouse/partner/other to a nice dinner out (and pick up the WHOLE tab)
4. As another post states, he is bound by the rules of Edward Jones.
5. I do not know if this applies to Edward Jones, but sometimes folks work for this kind of company while getting required certifications/licenses/etc.
6. Be nice - now and in the future. After all, he has the "burden" of working for this kind of outfit.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by miles monroe » Tue Feb 02, 2016 4:46 pm

RadAudit wrote:This thread viewtopic.php?f=1&t=180992&newpost=2783444#p2741878 has a link to this delightful little saga.
This is my favorite - "The Edward Jones Saga" - :P
http://www.kronstantinople.blogspot.com ... -saga.html
The saga should answer your question for you. The larger question is should you tell your friend what's in store for him if he's just started.
that was very interesting!

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BL
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by BL » Tue Feb 02, 2016 4:48 pm

Don't invest with him.

Don't take advantage of him by discussing finances with him. You might even end up so guilty that you break down and invest even when you know it is not smart.

He is doing what he is supposed to do: round up as many friends, acquaintances, and relatives as possible. They will then be EJ clients in expensive multi-fund accounts even when he is gone.

Agree with dm200 above.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Taylor Larimore » Tue Feb 02, 2016 5:09 pm

Doss:

I understand your desire to help your friend. However, your "friend" must take a large part of your returns for himself and Edward Jones if he is to remain with them.

Vanguard takes no commission and has much lower expense ratios than the funds Edward Jones sells.

Personally, I would find any honest excuse to fend-off your friend. "I have no money to invest" might work.

GOOD friends will not persist with their sales pitch.

Best wishes.
Taylor
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Kajld » Tue Feb 02, 2016 5:16 pm

Explain to him that you value his advice but don't want to work with EJ. And you prefer to handle your financial matters yourself with some fee based advice from time to time.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by bayview » Tue Feb 02, 2016 6:43 pm

RadAudit wrote:This thread viewtopic.php?f=1&t=180992&newpost=2783444#p2741878 has a link to this delightful little saga.
This is my favorite - "The Edward Jones Saga" - :P
http://www.kronstantinople.blogspot.com ... -saga.html
The saga should answer your question for you. The larger question is should you tell your friend what's in store for him if he's just started.
Good God. That's worse than my ever-so-brief brush with real estate. :shock: :annoyed :oops:
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Crimsontide » Tue Feb 02, 2016 7:03 pm

I faced this exact situation a few years ago. The friend was also my former boss and mentor. He gave up an excellent career in program management to join Edward Jones as a FA/salesman. He tried for quite a while to convince me to move my hard earned money to Edward Jones (was very successful with some of my coworkers) but I had the previous life experience of being torched by AG Edwards (what is it with these Edwards??) and never really considered opening any accounts with him.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by munemaker » Tue Feb 02, 2016 7:59 pm

I had an elderly relative who was widowed years ago. "Family friends" in the investment business wanted to invest her money very badly. She had a hard time saying no. I told her if she liked them so much, just mail them a check at Christmas time but not let them manage her money. I helped her set up an account at Vanguard.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Artsdoctor » Tue Feb 02, 2016 8:02 pm

No, no, and no! There is nothing good that will come of this. By definition, he'll be making money off of you even with poor investment choices. And do you really want your friend to know your financial situation? It'll change the dynamic of the friendship and the chances are that this would end the relationship eventually.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by gclancer » Tue Feb 02, 2016 8:09 pm

doss wrote:I know that he has to make money somewhere, but I am wondering if it's possible to keep a relationship with him as a mentor and not a broker of some sort?
I used to get a good amount of client referrals from an EJ guy. I decided I would throw him a bone and buy something from him so he would keep the referrals coming. After meeting with him and going over what he had to offer, I honestly couldn't bring myself to buy anything from him (and I had a financial incentive to do so). I highly doubt you'll be able to find anything that will survive even a bit of scrutiny on your part as consumer.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Grt2bOutdoors » Tue Feb 02, 2016 8:58 pm

doss wrote:Hello, a family friend of ours was recently laid off at his law firm and now just started working at a local Edward Jones as a financial advisor. He began reaching out to family and friends in order to build up his clientele. My wife and I are in our 20s/30s and recently married with a new house, baby on the way, etc., and we figured it would be good to have someone to talk to for financial advice and assurance that we are on the right track for retirement and other financial goals. We recently sat down with him in his office to go over our finances, investments, and retirement outlook and found it very refreshing and relaxing to have someone tell us how were were doing, how we could do better, what to watch out for, the various options and pots that we should contribute to (401ks, IRAs, etc). I liked how he could give us specific numbers and tell us how much to save for THIS and to do THIS with a goal of THIS. Meeting with him confirmed the things that I've learned on this forum over the years and stressed the importance of patience and calm for the long haul with trying to minimize expense ratios as much as possible (yea, an EJ guy said this!). But, after reading all the bad rap on this forum about EJ, I'm starting to wonder if I should break contact with him.

Yes, I know that he has to make money somewhere, but I am wondering if it's possible to keep a relationship with him as a mentor and not a broker of some sort?
Absolutely not! Let's take a step back - your friend was employed in a law office, under what capacity? I would assume that one who is employed in the legal field is not in the business of dispensing financial advice or financial planning services or even selling or working with anything remotely related to financial products. Rather, they are actively doing something related to the field of law. Would you go to a doctor when you are ill or would you visit a friend of yours who just opened up a holistic healing shop after being laid off from working in a law office? The point is, I would only use competent, experienced individuals who are intimately familiar with products, services, techniques that could improve your financial well-being and are acting in a fiduciary manner. I fail to recall Edward Jones ever stating in their advertisements or on their office walls a sign indicating that they are fiduciaries. Have you seen that?
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by jackholloway » Wed Feb 03, 2016 12:45 am

Kajld wrote:Explain to him that you value his advice but don't want to work with EJ. And you prefer to handle your financial matters yourself with some fee based advice from time to time.
=1 - never work with friends, and remember that once you pay, you are no longer friends.

Don't be a jerk - just say you prefer not to mix business and pleasure, and that EJ products do not fit your current financial needs.

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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by cottonseed1 » Wed Feb 03, 2016 1:39 pm

Doss,

Perhaps, a way to think through this problem is to invert it. If you were going to design a adviser/mentor relationship with a client that is absolutely certain to provide the client with poor advice, how would you structure it?

Personally, I would do something as follows:

1) I would want the adviser to be personal friend of the client. The client will then be less likely to think critically about the "advice" he is receiving from the adviser and naturally trust him. Also, the social cost of extracting himself from the relationship would be higher this way. Perhaps, the client and the adviser have mutual friends, play golf together, wives or children are friends etc. All of these factors would make the client less likely to change course or to rationalize continuing down a path that he wouldn't otherwise.

2) I would want the adviser to have a strong financial incentive to not work in the clients best interest. A healthy does of incentive caused bias in the form of sales commissions, promotions within the organization, or other rewards like free trips should do the trick.

3) I would want the adviser to work for an organization that applies a strong selection pressure on its employees to not act in the best interest of the clients. When an adviser looks around the office and sees other employees acting not in the best interest of the clients and then getting rewarded/promoted it will be much easier for him or her to rationalize bad behavior.

4) I would want to keep the true cost of what the adviser is charging the client as obscure as possible. Front/back end loads, high expense ratios, or other account management fees are perfect for this. They feel small in relation to the amounts invested and never ever would come in the form of a monthly bill. They can simply be deducted from clients account on a monthly basis without any discussion. As the saying goes, "You can sheer a sheep many times, but can only skin him once."

The situation described in your original post meet most/all of the previous criteria. I think it would be unwise to expect a good result for yourself, the client.

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greg24
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by greg24 » Wed Feb 03, 2016 2:05 pm

doss wrote:Hello, a family friend of ours was recently laid off at his law firm and now just started working at a local Edward Jones as a financial advisor.
The first sentence answers the question.

likegarden
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by likegarden » Wed Feb 03, 2016 3:08 pm

Sure you should not go with EJ. He is not your friend when asking you to give EJ your hard-earned money and pay all these high fees.

Edward Jones financial 'advisers' work via affinity. As stories in this thread show they try to get money from friends and family. They also join churches to 'advise' other church members by taking their money, not a christian behavior. After retirement I looked for a part time engineering job, and an insurance office tried to hire me. They said that I would get their Medicare lists, probably to talk fellow retirees and family into buying inappropriate life insurance and annuities, there we have affinity again.

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Phineas J. Whoopee
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Phineas J. Whoopee » Thu Feb 04, 2016 11:11 pm

Continue a friendly relationship? Yes. Of course.

Become an EJ client? No, of course not.

Your friend is under enormous pressure to recruit you as a customer. It's worth taking that fact into consideration.

If the friend refuses to continue without stealing your money, it was h/er/is choice to end the friendship, not yours. Maybe later it will be possible to re-establish the prior relationship.

My friend: Your money or your friendship!
Me: Neither!
My former friend: Don't you at least want to think about it?
Me: No!

Then my former friend either shoots me, or goes away. Each outcome would be regrettable.

PJW

ShoogyBee
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by ShoogyBee » Fri Feb 05, 2016 12:37 am

Rob5TCP wrote:
RadAudit wrote:This thread viewtopic.php?f=1&t=180992&newpost=2783444#p2741878 has a link to this delightful little saga.
This is my favorite - "The Edward Jones Saga" - :P
http://www.kronstantinople.blogspot.com ... -saga.html
The saga should answer your question for you. The larger question is should you tell your friend what's in store for him if he's just started.
Thanks - that was a fascinating read !!!
Agreed, it took me a few days to finally get through this, but it was quite breathtaking! I've never seen EJ people knocking on doors around here, but I wouldn't be surprised if they held financial seminars at the several senior living facilities in this area, or at the neighborhood public library.

...

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BL
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by BL » Fri Feb 05, 2016 12:47 am

ShoogyBee wrote:
Rob5TCP wrote:
RadAudit wrote:This thread viewtopic.php?f=1&t=180992&newpost=2783444#p2741878 has a link to this delightful little saga.
This is my favorite - "The Edward Jones Saga" - :P
http://www.kronstantinople.blogspot.com ... -saga.html
The saga should answer your question for you. The larger question is should you tell your friend what's in store for him if he's just started.
Thanks - that was a fascinating read !!!
Agreed, it took me a few days to finally get through this, but it was quite breathtaking! I've never seen EJ people knocking on doors around here, but I wouldn't be surprised if they held financial seminars at the several senior living facilities in this area, or at the neighborhood public library.

...
Yes, it was interesting.
I see a local EJ is teaching a women's finance course at community ed. She seems like a very nice person, but... I am not going.

rakamaka
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by rakamaka » Fri Feb 05, 2016 9:20 am

Drop him instantly. Did he disclose comissions he will get out of your assets(even if assets are generating losses) every year after year..?
Try VG, Fidelity, Schwab free ETFs for 1 year, do it yourself. THEN talk to your NEWBIE friend, and see how much comission you save by DIY.

likegarden
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by likegarden » Fri Feb 05, 2016 9:43 am

Yes, we have an EJ office just next to a Starbucks! I had EJ advisers knock on my door, had zero interest, mentioned Index funds, lady said she did not know them.

fmzip
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by fmzip » Fri Feb 05, 2016 9:56 am

If he is a Certified Financial Planner, you could always pay him for his "advice".

From experience, I say no. My cousin used to handle my money. Once I found this forum our relationship turned sour very fast.

My cousin is also CFP and offered to provide advice if I wanted it even after we parted ways. I am on the fence about. I really like my cousin but family/ friends with business / finance can likely run into problems.

Herekittykitty
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Re: Friend is an Edward Jones financial advisor -- should I drop him?

Post by Herekittykitty » Sat Feb 06, 2016 10:32 am

fmzip wrote:If he is a Certified Financial Planner, you could always pay him for his "advice".

From experience, I say no. My cousin used to handle my money. Once I found this forum our relationship turned sour very fast.

My cousin is also CFP and offered to provide advice if I wanted it even after we parted ways. I am on the fence about. I really like my cousin but family/ friends with business / finance can likely run into problems.
Interesting. Your cousin used to handle your money and your relationship with him/her soured fast once you found this forum. Now your cousin offers to provide financial advice and you are considering it. (I can't figure out if a CFP is a fiduciary in every aspect of providing advice - without exception. Maybe you can.) And you really like your cousin. The cousin with whom your relationship turned sour over money.

Looks confusing to me. If you maintain a relationship with the cousin (with whom the relationship went sour over money before) I would do it only if said cousin agrees that any financial relationship or even discussion between you two regarding finances at all is strictly off the table - no discussing the subject further allowed. Of course, insisting on such an agreement and sticking to it (i.e. walking away for good should the cousin violate that agreement) could tell you how much your cousin values your personal friendship when there is no financial relationship.....

My guess is that the cousin is interested in a financial relationship with you in which money flows from you to him/her, and if you will not engage in such a relationship with him/her (i.e. essentially pay your cousin for his/her friendship), that will be the end of any relationship. Maybe I'm wrong.
I don't know anything.

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