Question about Edward Jones disapproval
Question about Edward Jones disapproval
Hi everyone,
I've recently been dedicating more of my time to learning about the best way to plan for and management my retirement assets. That's been going well and many posts here have been helpful. However, one thing I've seen here and in another popular forum is a nearly-universal "RUN AWAY!" response when people mention Edward Jones.
Why is this? It doesn't make much of a difference to me personally since I handle all my stuff on my own through Charles Schwab, but I'm just curious. I also question this because one of my coworkers was talking to me recently about wanting to start investing. Walking by his desk when I left a short while later, I saw an Edward Jones packet on his desk with appointment details on it. I didn't dig through it or anything of course, but the top page of the packet made it obvious what it was.
I'm still trying to decide if I should make an unsolicited recommendation to him about this at all, but if I do, what should I tell him? Is it that their advisors aren't as knowledgeable as they represent? Stupidly high fees for the work they're doing? History of under-performing client portfolios?
Thanks!
I've recently been dedicating more of my time to learning about the best way to plan for and management my retirement assets. That's been going well and many posts here have been helpful. However, one thing I've seen here and in another popular forum is a nearly-universal "RUN AWAY!" response when people mention Edward Jones.
Why is this? It doesn't make much of a difference to me personally since I handle all my stuff on my own through Charles Schwab, but I'm just curious. I also question this because one of my coworkers was talking to me recently about wanting to start investing. Walking by his desk when I left a short while later, I saw an Edward Jones packet on his desk with appointment details on it. I didn't dig through it or anything of course, but the top page of the packet made it obvious what it was.
I'm still trying to decide if I should make an unsolicited recommendation to him about this at all, but if I do, what should I tell him? Is it that their advisors aren't as knowledgeable as they represent? Stupidly high fees for the work they're doing? History of under-performing client portfolios?
Thanks!
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Re: Question about Edward Jones disapproval
You created a brand new account to post on BH just because your coworker had an Edward Jones packet on his desk?WesAck wrote: ↑Sun May 24, 2020 3:37 pm Hi everyone,
I've recently been dedicating more of my time to learning about the best way to plan for and management my retirement assets. That's been going well and many posts here have been helpful. However, one thing I've seen here and in another popular forum is a nearly-universal "RUN AWAY!" response when people mention Edward Jones.
Why is this? It doesn't make much of a difference to me personally since I handle all my stuff on my own through Charles Schwab, but I'm just curious. I also question this because one of my coworkers was talking to me recently about wanting to start investing. Walking by his desk when I left a short while later, I saw an Edward Jones packet on his desk with appointment details on it. I didn't dig through it or anything of course, but the top page of the packet made it obvious what it was.
I'm still trying to decide if I should make an unsolicited recommendation to him about this at all, but if I do, what should I tell him? Is it that their advisors aren't as knowledgeable as they represent? Stupidly high fees for the work they're doing? History of under-performing client portfolios?
Thanks!
I think you've already done more than enough. Don't get involved with your coworker's financial decisions.
Anakin
Re: Question about Edward Jones disapproval
Let It Be As It Is
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Re: Question about Edward Jones disapproval
The answer to that question is in those threads. Search Edward Jones and you'll get more answers than you wanted.
Re: Question about Edward Jones disapproval
I did a forum search and looked through the first couple pages of results, but most of the mentions of EJ were vaguely saying to stay away. I did see a mention or two of fees but nothing beyond that.
Re: Question about Edward Jones disapproval
Looks like using the phpBB search vs. the default Google site-search makes quite a difference. I got some much more detailed info from other threads. Thanks all.
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Re: Question about Edward Jones disapproval
@WesAck, Welcome to the forum. Now that you’ve mostly (self) answered your question, don’t be a stranger.
I get the FI part but not the RE part of FIRE.
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Re: Question about Edward Jones disapproval
OP, it is admirable you have concern about your coworker and Edward Jones. But, rarely does an "intervention" get rewarded, especially an unsolicited one.
I am batting .333 with family members. My two strikeouts were my brother and sister. My one hit is my BIL.
OTOH, if your coworker wants your opinion, steer them here, maybe they will listen. Probably not, though.
Broken Man 1999
I am batting .333 with family members. My two strikeouts were my brother and sister. My one hit is my BIL.
OTOH, if your coworker wants your opinion, steer them here, maybe they will listen. Probably not, though.
Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
Re: Question about Edward Jones disapproval
Welcome to the Forum.
Your coworker has an EJ packet on his desk. Why don’t you buy a “Bogleheads on Investing” book and put it on your desk.
Throw a fish hook into the water. See if anybody bites.
Your coworker has an EJ packet on his desk. Why don’t you buy a “Bogleheads on Investing” book and put it on your desk.
Throw a fish hook into the water. See if anybody bites.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
Re: Question about Edward Jones disapproval
Yes one is fees. They charge a lot. Then they put you in funds that have large upfront and unneccesary feesand also large ongoing fees.
Another is the sheer mess of a portfolio they construct. 30-50 random funds all to look like they are doing something positive. Some will have tiny % and others massive overlap. All it does is make it really hard to understand and really hard unwind should you wish to go it alone.
Investing doesn't have to be hard nor does it have to be expensive. Most would be better off just putting their money in a target retirement fund.
It is hard though to know what to do. You could email him the ifyoucan pdf. Just don't push things. Some people are open to advice but many aren't.
Another is the sheer mess of a portfolio they construct. 30-50 random funds all to look like they are doing something positive. Some will have tiny % and others massive overlap. All it does is make it really hard to understand and really hard unwind should you wish to go it alone.
Investing doesn't have to be hard nor does it have to be expensive. Most would be better off just putting their money in a target retirement fund.
It is hard though to know what to do. You could email him the ifyoucan pdf. Just don't push things. Some people are open to advice but many aren't.
Re: Question about Edward Jones disapproval
Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
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Re: Question about Edward Jones disapproval
Depending on the co-workers age, if you drop a hint now, it could save him/her tens of thousands of dollars.WesAck wrote: ↑Sun May 24, 2020 5:31 pm Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Question about Edward Jones disapproval
That was my biggest concern. We aren't exactly high earners to begin with, so I don't want him wasting away precious funds with a shady company. I'm not anywhere near an expert so I certainly won't be giving him any specific pointers, but I think I could at least say I've never seen a good review of EJ.retired@50 wrote: ↑Sun May 24, 2020 5:34 pmDepending on the co-workers age, if you drop a hint now, it could save him/her tens of thousands of dollars.WesAck wrote: ↑Sun May 24, 2020 5:31 pm Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
Regards,
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Re: Question about Edward Jones disapproval
Chances are, if you insert yourself into it they will think you have some sort of vested interest. Like maybe you're getting a commission from Vanguard, or something like that. Best to just stay out of other people's business.
Don't give people investment advice. Nothing to gain and much to lose. If you talk them into buying into the SP500 index fund, the next time the market crashes you will be blamed (at best) and sued or worse (at worst).
Besides maybe going with Edward Jones is better for this person who might otherwise lose all their money by buying and selling at the worst possible times (or stick with a 0% bank account and never build up the courage to invest at all). No way for you to know. Let them make their own decision. You can point them to bogleheads.org.
Anakin
Don't give people investment advice. Nothing to gain and much to lose. If you talk them into buying into the SP500 index fund, the next time the market crashes you will be blamed (at best) and sued or worse (at worst).
Besides maybe going with Edward Jones is better for this person who might otherwise lose all their money by buying and selling at the worst possible times (or stick with a 0% bank account and never build up the courage to invest at all). No way for you to know. Let them make their own decision. You can point them to bogleheads.org.
Anakin
Re: Question about Edward Jones disapproval
When I first began working someone offered me unsolicited investing advice, namely to invest in passive ETF's, which I had never heard of, and pointed me toward some books on behavioral finance. This was financial salvation and life changing for me.WesAck wrote: ↑Sun May 24, 2020 5:31 pm Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
I've offered advice to several younger friends/colleagues in a similar way, pointing them to this site and the usual books recommended here. Several of them have been very receptive, sometimes leading to follow up discussions, which I thought was great. No one took offense to this, as far as I am aware.
Anyway, I think you should try to help your friend and steer him away from Edward Jones. It may really help him. And for gosh sake, we're talking about Edward Jones. Would you pass someone bleeding to death on the street and not try to help?
Re: Question about Edward Jones disapproval
I would pick his/her brain, since you are looking to learn too, I imagine.
"Did you decide on a brokerage company yet and why did you pick the one you did?"
Other questions to help you help each other:
"Have you heard of an Investment Policy Statement?" (https://www.bogleheads.org/wiki/Investm ... _statement) [That will bring them to this site.]
"Have you found any good websites for investing beginners?"
"Did you decide on a brokerage company yet and why did you pick the one you did?"
Other questions to help you help each other:
"Have you heard of an Investment Policy Statement?" (https://www.bogleheads.org/wiki/Investm ... _statement) [That will bring them to this site.]
"Have you found any good websites for investing beginners?"
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Re: Question about Edward Jones disapproval
I had a coworker mention one of the high fee advisors and the amount of 800k. I am reading of fees in the 2% range to use those services plus 5% plus front end loads.
If those figures are true then on an 800k investment you may pay 16 thousand plus per year in fees.
At Vanguard they will let me buy their S and P 500 ETF for nothing and the fee would be $240 a year on 800k to have it with them.
If those figures are true then on an 800k investment you may pay 16 thousand plus per year in fees.
At Vanguard they will let me buy their S and P 500 ETF for nothing and the fee would be $240 a year on 800k to have it with them.
John Bogle: "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it."
Re: Question about Edward Jones disapproval
Just run a basic expense ratio calculator on funds charging 5.75% front loaded ( E.J loves using them) not to mention another 1.35% yearly base fee. Run it for 10-20 years and you'll see why most people here are in the "runaway as fast as you can camp."
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Re: Question about Edward Jones disapproval
Actually, depending on the co-worker's age, income, and savings rate, choosing B-heads over EJ could save him hundreds of thousands of dollars over the course of his/her investing career.retired@50 wrote: ↑Sun May 24, 2020 5:34 pmDepending on the co-workers age, if you drop a hint now, it could save him/her tens of thousands of dollars.WesAck wrote: ↑Sun May 24, 2020 5:31 pm Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
Regards,
Re: Question about Edward Jones disapproval
Prime candidate to share the “If You Can” free pdf by William Bernstein.
Very quick read and free online.
Very quick read and free online.
Mid-40’s
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Re: Question about Edward Jones disapproval
Why give any advice at all?
Just say you noticed the EJ material and ask about it. Ask about the costs? Ask if your co-worker thinks the EJ funds can outperform a low cost index after costs? And if they need management (for a spouse or children in case they die), just ask if they'd looked into something like Vanguard's PAS services?
I think you have to let your coworker decide, but you can let them know the questions you would ask.
Information is valuable and I think you can share yours without trying to tell them what they should do. Different people have different priorities, so sometimes what's right for you isn't right for someone else.
Hard to see who EJ is right for though ... anyway, it has to be their decision.
And I think you will look good in your co-workers eyes by bringing this stuff up if you do it right.
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Re: Question about Edward Jones disapproval
That's certainly possible. I was trying to undersell it just a tad...lawman3966 wrote: ↑Sun May 24, 2020 8:23 pmActually, depending on the co-worker's age, income, and savings rate, choosing B-heads over EJ could save him hundreds of thousands of dollars over the course of his/her investing career.retired@50 wrote: ↑Sun May 24, 2020 5:34 pmDepending on the co-workers age, if you drop a hint now, it could save him/her tens of thousands of dollars.WesAck wrote: ↑Sun May 24, 2020 5:31 pm Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
Regards,
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Question about Edward Jones disapproval
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Re: Question about Edward Jones disapproval
Just tell him it could be a $500k+ decision over 30+ years.
High fees and complex. Your best pal taking your money.
High fees and complex. Your best pal taking your money.
Last edited by bloom2708 on Tue May 26, 2020 8:39 am, edited 1 time in total.
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Re: Question about Edward Jones disapproval
You could show him this document from the SEC. See link below. Even the U.S. Government is trying to warn people about high fees.WesAck wrote: ↑Sun May 24, 2020 5:37 pmThat was my biggest concern. We aren't exactly high earners to begin with, so I don't want him wasting away precious funds with a shady company. I'm not anywhere near an expert so I certainly won't be giving him any specific pointers, but I think I could at least say I've never seen a good review of EJ.retired@50 wrote: ↑Sun May 24, 2020 5:34 pmDepending on the co-workers age, if you drop a hint now, it could save him/her tens of thousands of dollars.WesAck wrote: ↑Sun May 24, 2020 5:31 pm Thanks all for the advice. We work in a field where it's difficult not to get pretty close with our coworkers, so he and I are on very good terms and I know he wouldn't mind at all if I gave him advice. My uncertainty was in part just not being sure if he would take any of my advice to heart. I'll figure out that part!
And thanks for the welcomes. I didn't create my account today, but a few weeks ago. Regardless, I'm sure I will be around.
Regards,
https://www.sec.gov/investor/alerts/ib_ ... penses.pdf
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: Question about Edward Jones disapproval
I would steer clear of giving financial advice to this friend, at least if you value the friendship. The stock market has been volatile and there is the possibility, as always, that the market may continue to be turbulent and even experience further corrections. If you give advice and the friend follows said advice, then it will be you they blame if there is a market correction and they lose money. In their eyes, you will be at fault not them. That's my opinion for what it's worth. Best of luck to you.
Edit: I am not an advocate for Edward Jones. I actually don't care for them at all. However, I am an advocate of maintaining friendships.
Edit: I am not an advocate for Edward Jones. I actually don't care for them at all. However, I am an advocate of maintaining friendships.
Re: Question about Edward Jones disapproval
Wow.Vanguard Fan 1367 wrote: ↑Sun May 24, 2020 7:05 pm I had a coworker mention one of the high fee advisors and the amount of 800k. I am reading of fees in the 2% range to use those services plus 5% plus front end loads.
If those figures are true then on an 800k investment you may pay 16 thousand plus per year in fees.
At Vanguard they will let me buy their S and P 500 ETF for nothing and the fee would be $240 a year on 800k to have it with them.
And thanks, everyone, for the input!
Re: Question about Edward Jones disapproval
I believe I read here that you pay either management fees plus 12b-1 fees out of your ER (expense ratio) within the fund, or you pay a front load plus 12b-1 fees, not both charges.
These days, everyone has direct online access to low-cost brokerages with low-ER index funds (and sometimes other expensive choices) such as Vanguard, Fidelity, Schwab, and a few others.
It is "Buyer Beware", at most places. The nicest "advisor" (salesperson) is not your friend! That person usually has a conflict of interest between what is best for him/her and their company, and what is best for you. The advice in the Boglehead's Wiki has no conflict of interest and most of us here, at least, have nothing to gain from any advice we give.
I don't give investing advice, even to family, unless asked. I might mention a book or bogleheads.org. Also I have sent a link to If You Can: How Millennials Can Get Rich Slowly to some friends and family. It has the important things that every one should know, or a review for the rest of us. Available as the above link and as a very cheap little book on Amazon. Here is a link to more information on it:
viewtopic.php?f=10&t=137266
These days, everyone has direct online access to low-cost brokerages with low-ER index funds (and sometimes other expensive choices) such as Vanguard, Fidelity, Schwab, and a few others.
It is "Buyer Beware", at most places. The nicest "advisor" (salesperson) is not your friend! That person usually has a conflict of interest between what is best for him/her and their company, and what is best for you. The advice in the Boglehead's Wiki has no conflict of interest and most of us here, at least, have nothing to gain from any advice we give.
I don't give investing advice, even to family, unless asked. I might mention a book or bogleheads.org. Also I have sent a link to If You Can: How Millennials Can Get Rich Slowly to some friends and family. It has the important things that every one should know, or a review for the rest of us. Available as the above link and as a very cheap little book on Amazon. Here is a link to more information on it:
viewtopic.php?f=10&t=137266
Re: Question about Edward Jones disapproval
Where I live, they are very convenient. They always have an ad in the local paper with pictures of the agents. If I hadn't followed Bogleheads, I would think that that would be a great place to invest. Also local banks have investment arms; you would think that they would be great places to invest. A co-worker showed me his account statement from a local bank's investment arm. It showed him in 7% load funds. It looked like every quarter, they moved his investments to another load fund. I told him that he was being robbed, and that he should move his money. He said, "I think that my brother in law is doing a good job for me." That was the last time I offered investment advice.
Many profit making financial places operate only in their own best interests. With well researched exceptions, I only deal with non-profits like Vanguard and credit unions.
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Re: Question about Edward Jones disapproval
Welcome to the forum!
1. Many financial advisors are salesmen, not fiduciaries. They make money by “advising” you to purchase mutual funds from companies that pay them kickbacks/commissions. But many of these mutual funds have expense ratios that are 1% to 2% more than the expense ratios of comparable index funds. Some of these mutual funds also charge front- or back-end “loads” of 5% or more when you buy and/or sell them through your advisor. Many financial advisors also charge a yearly fee that is an annual percentage of your "assets under management." This AUM fee can range from 1% to 2%.
2. At first glance, an extra 2% to 4% might seem like a small price to pay for the benefit of having someone walk you through the process of how to invest your money. But over time, these extra fees can drastically reduce your returns. Let’s say you start with $10,000 and save $200 a month for 40 years. Assume a 7% rate of return, with three possibilities:
- In the 1st scenario, you invest in zero-cost index funds on your own.
- In the 2nd scenario, you pay an extra 2% in fees every year—1% for your advisor + 1% for the higher-cost mutual funds that your advisor sells you.
- In the 3rd scenario, you pay an extra 4% in fees every year—2% for your advisor + 2% for the higher-cost mutual funds that your advisor sells you.
How much will you end up with after 40 years?
- In the 1st scenario, you’ll end up with $628,869.
- In the 2nd scenario, you’ll end up with $360,319, or 43% less than the 1st scenario.
- In the 3rd scenario, you’ll end up with $213,583, or 66% less than the 1st scenario.
And this doesn't even include any front end loads that you may have to pay at Edward Jones.
1. Many financial advisors are salesmen, not fiduciaries. They make money by “advising” you to purchase mutual funds from companies that pay them kickbacks/commissions. But many of these mutual funds have expense ratios that are 1% to 2% more than the expense ratios of comparable index funds. Some of these mutual funds also charge front- or back-end “loads” of 5% or more when you buy and/or sell them through your advisor. Many financial advisors also charge a yearly fee that is an annual percentage of your "assets under management." This AUM fee can range from 1% to 2%.
2. At first glance, an extra 2% to 4% might seem like a small price to pay for the benefit of having someone walk you through the process of how to invest your money. But over time, these extra fees can drastically reduce your returns. Let’s say you start with $10,000 and save $200 a month for 40 years. Assume a 7% rate of return, with three possibilities:
- In the 1st scenario, you invest in zero-cost index funds on your own.
- In the 2nd scenario, you pay an extra 2% in fees every year—1% for your advisor + 1% for the higher-cost mutual funds that your advisor sells you.
- In the 3rd scenario, you pay an extra 4% in fees every year—2% for your advisor + 2% for the higher-cost mutual funds that your advisor sells you.
How much will you end up with after 40 years?
- In the 1st scenario, you’ll end up with $628,869.
- In the 2nd scenario, you’ll end up with $360,319, or 43% less than the 1st scenario.
- In the 3rd scenario, you’ll end up with $213,583, or 66% less than the 1st scenario.
And this doesn't even include any front end loads that you may have to pay at Edward Jones.
Last edited by snailderby on Tue May 26, 2020 10:16 am, edited 1 time in total.
Re: Question about Edward Jones disapproval
WesAck wrote:
Take a look at EJ fees
https://www.edwardjones.com/disclosures ... index.html
https://www.nerdwallet.com/blog/investi ... gs-impact/
You can also do a Google search on "impact of investing costs" and find a lot more.
Paul
This would seem to be your lead-in.I also question this because one of my coworkers was talking to me recently about wanting to start investing
Take a look at EJ fees
https://www.edwardjones.com/disclosures ... index.html
https://www.nerdwallet.com/blog/investi ... gs-impact/
You can also do a Google search on "impact of investing costs" and find a lot more.
Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Re: Question about Edward Jones disapproval
Broken Man 1999 wrote: ↑Sun May 24, 2020 4:52 pm OP, it is admirable you have concern about your coworker and Edward Jones. But, rarely does an "intervention" get rewarded, especially an unsolicited one.
Unsolicited advice, especially concerning finances, is rarely received well.
The Sensible Steward
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Re: Question about Edward Jones disapproval
Wow. I read through much of that link and it's VERY telling.Gadget wrote: ↑Sun May 24, 2020 8:09 pm Edward Jones saga
(Link formatted by moderator oldcomputerguy)
I have a friend that invests through Edward Jones. I happen to know his accounts are in the high 7 figures. I've attempted to 'nudge' him towards this site - or, to Vanguard. He defends his choice to be with EJ. I REALLY do not understand it. But, hey, it's his money. Horse … water.
Re: Question about Edward Jones disapproval
If your friend has "high 7 figures" with EDJ, he's paying maybe $100k-$200k per year in excess fees and fund costs.Rosencrantz1 wrote: ↑Tue May 26, 2020 4:58 pmWow. I read through much of that link and it's VERY telling.Gadget wrote: ↑Sun May 24, 2020 8:09 pm Edward Jones saga
(Link formatted by moderator oldcomputerguy)
I have a friend that invests through Edward Jones. I happen to know his accounts are in the high 7 figures. I've attempted to 'nudge' him towards this site - or, to Vanguard. He defends his choice to be with EJ. I REALLY do not understand it. But, hey, it's his money. Horse … water.
That may be the largest expense in his household budget.
But it's his money to blow, I guess
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
Re: Question about Edward Jones disapproval
I was about to suggest this, but Gadget beat me to it. Tell your friend to read this.Gadget wrote: ↑Sun May 24, 2020 8:09 pm Edward Jones saga
(Link formatted by moderator oldcomputerguy)
Slow and steady wins the race.
Re: Question about Edward Jones disapproval
I've had exactly one successful "advisor intervention" not EJ, with a co-worker about to retire. He is not usually too receptive, but he was already leery of the sales pitch and I caught him at the right time. Most people don't even want to talk about it. I let em be.
Re: Question about Edward Jones disapproval
I have a friend paying Fisher $50,000 a year in fees and in 10 years that's $500,000 in fees. I pointed that out to him. He said as long they are making me money, he doesn't care. I left it there. You can't confer a benefit on an unwilling recipient.....
Dave
Dave
"Reality always wins, your only job is to get in touch with it." Wilfred Bion
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Re: Question about Edward Jones disapproval
My dad passed away and was left 1/3 of his accounts. The accounts were split up into thirds and we all three reinvested with EJ. My only experience was company FIDO accounts and few VG funds in a scottrade account. Then I find out about EJ front end load fees, 4% i think maybe a little less rate the more you invest. I couple of years ago they changed and wanted to charge a fee to manage the account but i said NO and was going to move but was told i was grandfathered but would have to pay on new money. I have to take my dads RMD and i never invest it. EJ sends it to me and invest in my FIDO account. I have never been able to see where i am charge any fee but there may be some hidden like when i get a dividend and they buy a few shares. Most of my money is invested in American and Franklin funds. They have really performed pretty good even through all this.
If I knew now back in the day i would have never bought the EJ funds. Since the Front end load fees have been paid and the FUND's have not really done that bad I have left them at EJ. I look every month at the statements and i never see anything under "Fees and Charges" to my account except for the $40. yearly fee. If EJ is hiding the fees somewhere else please let me know.
I would not buy anymore EJ funds but since the damage was done i will leave the funds for now.
If I knew now back in the day i would have never bought the EJ funds. Since the Front end load fees have been paid and the FUND's have not really done that bad I have left them at EJ. I look every month at the statements and i never see anything under "Fees and Charges" to my account except for the $40. yearly fee. If EJ is hiding the fees somewhere else please let me know.
I would not buy anymore EJ funds but since the damage was done i will leave the funds for now.
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Re: Question about Edward Jones disapproval
I know - it's crazy. He tells me he's aware of the expenses and "they're not too high". But, I don't think he's aware of all the various ways EJ makes money from their clients - including 'kickbacks' from their preferred mutual fund companies. They don't have children and they travel the world. I get the feeling he's really not that interested in 'managing' their investments.... oh well, I have gently tried to get him to look at alternatives... IF he were my brother, I'd come right out and tell him what a mistake EDJ is... but, he's not (and, I won't).Stinky wrote: ↑Tue May 26, 2020 5:03 pmIf your friend has "high 7 figures" with EDJ, he's paying maybe $100k-$200k per year in excess fees and fund costs.Rosencrantz1 wrote: ↑Tue May 26, 2020 4:58 pmWow. I read through much of that link and it's VERY telling.Gadget wrote: ↑Sun May 24, 2020 8:09 pm Edward Jones saga
(Link formatted by moderator oldcomputerguy)
I have a friend that invests through Edward Jones. I happen to know his accounts are in the high 7 figures. I've attempted to 'nudge' him towards this site - or, to Vanguard. He defends his choice to be with EJ. I REALLY do not understand it. But, hey, it's his money. Horse … water.
That may be the largest expense in his household budget.
But it's his money to blow, I guess
Re: Question about Edward Jones disapproval
Please remember, when it comes to financial advice or assistance to friends, family, or co-workers, no good deed goes unpunished and the road to hell is paved with good intentions.
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Re: Question about Edward Jones disapproval
The question to ask about EJ is what would the person do if he doesn't invest with EJ?
If his alternative would be to become a disciplined boglehead investor, than he should avoid EJ like the Covid-19.
If his alternative would be to keep his money in a bank savings account earning .005% interest, or chasing hot stock tips and trying to time the market, he would likely be better off with EJ. They will charge him very high fees, but the portfolios will be invested in reasonable things.
Not everyone can be a boglehead. Not everyone can resist a sales pitch. Not everyone can do nothing when things get scary.
If his alternative would be to become a disciplined boglehead investor, than he should avoid EJ like the Covid-19.
If his alternative would be to keep his money in a bank savings account earning .005% interest, or chasing hot stock tips and trying to time the market, he would likely be better off with EJ. They will charge him very high fees, but the portfolios will be invested in reasonable things.
Not everyone can be a boglehead. Not everyone can resist a sales pitch. Not everyone can do nothing when things get scary.
Re: Question about Edward Jones disapproval
I know at least one person whom has taken the advice of friends and move their allocation from mostly bonds to S&P500 and TSM pre-COVID crash having been in bonds for safety since the 2008/2009 crash..... He's in mostly good spirits, all things considered. But, I'd guesstimate his portfolio was sub-$100k so he didn't lose that much relative to his salary.
I don't want your friend to be the guy I know above.... otherwise, he may be less amiable and blame you for the losses as opposed to going with "his gut" and letting the experts at EJ handle the money.
I don't want your friend to be the guy I know above.... otherwise, he may be less amiable and blame you for the losses as opposed to going with "his gut" and letting the experts at EJ handle the money.
Last edited by Helo80 on Fri May 29, 2020 5:25 pm, edited 1 time in total.
Thank God for Wall Street Bets.