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re: I have an account with Edward Jones... am I an idiot?
Posted on 5/8/14 at 6:27 pm to roguetiger15
Posted on 5/8/14 at 6:27 pm to roguetiger15
Those numbers I can believe.
However 1.25 -.9 will be way more expensive over time vs. an A share American fund.
However 1.25 -.9 will be way more expensive over time vs. an A share American fund.
This post was edited on 5/8/14 at 6:29 pm
1
Posted on 5/8/14 at 6:29 pm to NtzDawg
Most brokers are going to the fee based model now bc
A) everyone is on the same team now
B) the majority of the time it's much cheaper for the client
Depends on how frequent you get in and out of funds remember as well, buying and selling stocks inside the fee account does not include commissions. So if you were to have a large sized transaction, the broker would not get a single commission on that which, the money we are dealing with, saves the client 100 fold.
A) everyone is on the same team now
B) the majority of the time it's much cheaper for the client
Depends on how frequent you get in and out of funds remember as well, buying and selling stocks inside the fee account does not include commissions. So if you were to have a large sized transaction, the broker would not get a single commission on that which, the money we are dealing with, saves the client 100 fold.
This post was edited on 5/8/14 at 6:32 pm
Posted on 5/8/14 at 6:30 pm to roguetiger15
quote:
minimum of 1.5%
Hole-e-phuck.
Posted on 5/8/14 at 6:31 pm to roguetiger15
I understand the pros and cons of both. But to say it's better for the client remains to be seen. It's definitely better for the advisor
Posted on 5/8/14 at 6:33 pm to NtzDawg
The client gets better service and they both share in the growth of the account. If the returns are bad the advisor gets fired cause everything is fully liquid.
Posted on 5/8/14 at 6:35 pm to NtzDawg
You are correct. If you come to me and say I want frankin income for ten years. I'm not putting u in a fee based account. Makes no sense for you to be in one. Now if you come to me and say I want a 70-30 portfolio that is built to have goals a b and c in an ever changing market and economy then it most likely be beneficial to be in a fee based account.
Most of the funds in the fee based accounts are institutional funds as well so that's another plus for the client.
I'm also a huge fan of separately managed accounts, particularly clearbridge
Yea personally that 1.5 is a ridiculous number but a lot of brokerage firms are going to that number. Now let me say I want to believe it's for anything under 200k
Most of the funds in the fee based accounts are institutional funds as well so that's another plus for the client.
I'm also a huge fan of separately managed accounts, particularly clearbridge
Yea personally that 1.5 is a ridiculous number but a lot of brokerage firms are going to that number. Now let me say I want to believe it's for anything under 200k
This post was edited on 5/8/14 at 6:40 pm
Posted on 5/8/14 at 6:43 pm to roguetiger15
Ok I will buy that. Curious though how many people have come to you and specifically asked for a certain mutual fund.?
And to the original poster, you answered your own question about using a financial advisor vs doing it your self. He told you to get in to a market everyone was selling. The value of good financial advice is helping you avoid mistakes based on your emotions. People are their own worst enemy when it comes to investing.
And to the original poster, you answered your own question about using a financial advisor vs doing it your self. He told you to get in to a market everyone was selling. The value of good financial advice is helping you avoid mistakes based on your emotions. People are their own worst enemy when it comes to investing.
Posted on 5/8/14 at 6:47 pm to NtzDawg
Also that 1.5% annual fee does not include the funds internal expense ratio, so you could really be paying upwards of 2% when it's all said and done. Again I see value in both but A shares are better then fee based advisors make their clients believe
Posted on 5/8/14 at 6:50 pm to NtzDawg
It's very seldom I'll get someone asking about a particular fund. Now do I have my go to funds that I love that I've done extensive research on and I'm comfortable advising and using? You bet. For instance I love frankin income fund. Fcisx. Do my go to funds change? You bet. There may be a manager change an allocation change I don't like etc etc.
now in terms of fund family. Yes we get asked about Vanguard often. I love vanguard. Especially their etfs.
If I get someone asking about a particular position it's usually a company. And usually a bad idea
Like I said before. It all depends on how active you want to be as an investor. As a whole I don't think it's wise to hold onto a position for 5 -7 years unless you have a very specific goal and there's only a few funds that can deliver that goal. The clients we have and the amount if assets we oversee per client is more complicated than buying 4-5 positions and holding them for 10 years. We just don't see that often. But I do see your point! And it's one we have to answer when we are deciding what's best for the client.
now in terms of fund family. Yes we get asked about Vanguard often. I love vanguard. Especially their etfs.
If I get someone asking about a particular position it's usually a company. And usually a bad idea
Like I said before. It all depends on how active you want to be as an investor. As a whole I don't think it's wise to hold onto a position for 5 -7 years unless you have a very specific goal and there's only a few funds that can deliver that goal. The clients we have and the amount if assets we oversee per client is more complicated than buying 4-5 positions and holding them for 10 years. We just don't see that often. But I do see your point! And it's one we have to answer when we are deciding what's best for the client.
This post was edited on 5/8/14 at 7:01 pm
Posted on 5/8/14 at 7:02 pm to roguetiger15
Understand! It's amazing how many people are out there, who's cousins uncles best friend with a subscription to money magazine seem to always have awesome stock tips 
Posted on 5/8/14 at 7:05 pm to NtzDawg
Oh Monday mornings are the best. Listening to voicemails from clients that had all weekend to conjure up some great ideas
Posted on 5/9/14 at 2:53 am to GoCrazyAuburn
quote:
than leaving it in an A-share funds within the same family, and gaining break points over time?
Obviously green, can you explain this to me?
Last year I joined NWM with a life annuity policy and also had him open me a Roth. He put me in American Fund with some high arse front loads and I'm still not really happy about that. I have less money than I put in so far. I know this year hasn't been great, but the fees are the reason I am lower than I put in.
I'm still trying to figure out if I stay with this Fund? I have $400 month auto-deduct to AF and it's more like $380 going in there. I'm the kind of guy to leave the money for a while and that's why I understood A shares to be better for me than C. But I guess I could see value in C shares if he kept moving it around.
I definitely need help. I have some side investing with mutual funds I researched on Fidelity and those have had a rough go the last couple months. I own a decent amount of Apple. So I like having a FA for the more long term and higher investments. I just want to make sure I'm not screwing up with these high AF fees...
Posted on 5/9/14 at 6:31 am to Sho Nuff
Break points are discounts on front loads after you have a certain amount invested with a found family. I think the first breakpoint for AF is $25,000. At that level the load goes from 5.75% to 5.0%. If you go their website you should be able to see a breakpoint schedule.
In my opinion, fee based is the way to go if you believe in actively managing the portfolio.
In my opinion, fee based is the way to go if you believe in actively managing the portfolio.
Posted on 5/9/14 at 8:30 am to Janky
Janky is correct in that you will get breakpoints with the A shares, You can also exchange that A share fund into any american fund and not pay a sales charge. So you do have flexibility still. In a C share your going to pay around 1-1.25% depending on the fund each year for holding it, You will pay more in the long run for C shares. Basically, do you want to own the fund or loan the fund? You can compare it here on FINRA's site LINK
Posted on 5/9/14 at 10:34 am to That's BS
There is a big move for people to discuss fees only. You should always look at return net of fees and if you could do better elsewhere. If you are happy with your return net of fees then you shouldn't change. You shouldn't worry much about customer service or fees alone. It isn't a vacuum where only fees matter. If a fund manager treated me like crap but made me great money I wouldn't care.
I have no clue about EJ just a soapbox moment that is related to your decision to stay or go.
I have no clue about EJ just a soapbox moment that is related to your decision to stay or go.
This post was edited on 5/9/14 at 10:40 am
Posted on 5/9/14 at 11:14 am to NtzDawg
quote:
who's cousins uncles best friend with a subscription to money magazine seem to always have awesome stock tips
I tell people all the time, by the time the "tip" appears in Money Magazine, all the money has been made!
Posted on 5/9/14 at 11:19 am to LSUFanHouston
Break points are nothing more than volume discounts. The more you invest in a fund (or a fund familY), the lower the fee percenage / sales charge / etc they will charge you.
Same with a fee only advisor - the more money you have with them, the less the fee percentage is for the higher amounts of money.
For example, an advisor I know charges a certain precentage on the first million, then a slightly lower percentage on 1 million to 3 million, then a slightly lower percentage on 3 million to 5 million, then a sligthtly lower percentage on the amount over 5 million. So you calculate the amount in each "bracket" and add up and that's your fee. Most of them do this caclulation quarterly.
Think of it as marginal tax rates, but in reverse.
Same with a fee only advisor - the more money you have with them, the less the fee percentage is for the higher amounts of money.
For example, an advisor I know charges a certain precentage on the first million, then a slightly lower percentage on 1 million to 3 million, then a slightly lower percentage on 3 million to 5 million, then a sligthtly lower percentage on the amount over 5 million. So you calculate the amount in each "bracket" and add up and that's your fee. Most of them do this caclulation quarterly.
Think of it as marginal tax rates, but in reverse.
Posted on 5/9/14 at 8:16 pm to That's BS
Posted on 5/9/14 at 9:08 pm to That's BS
I was in your spot in 2002. Invested with Edward Jones, but also have a Fidelity account 401K and recently opened a Vanguard account. My EJ advisor has been very helpful with all of my accounts even though he knew the Vanguard account was a beneficiary IRA I could have rolled over to him. I call him when I have a question and he is eager to help regardless of the account I'm asking about. My investments with EJ have kept up with or exceeded my others on returns even when I include the front load. My Fidelity account did very well last year as well.
The EJ advisor has me in growth and income type funds along with high dividend stocks and keeps me balanced. With my fidelity account and Vanguard account I take more risks.
The EJ advisor has me in growth and income type funds along with high dividend stocks and keeps me balanced. With my fidelity account and Vanguard account I take more risks.
This post was edited on 5/9/14 at 9:11 pm
Posted on 5/10/14 at 6:49 pm to LSUFanHouston
quote:
If you sell shares in a taxable account, you are going to have a capital gain or loss. No ways around that. There is the old mantra of "buy low, sell high". You bought low, good job. Is this the high? I have no idea.
That is not entirely an accurate statement. Often times funds disperse gains and the mutual fund holders owe taxes then.
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