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Started By
Message
re: Edward Jones
Posted on 8/22/24 at 3:01 pm to HeartAttackTiger
Posted on 8/22/24 at 3:01 pm to HeartAttackTiger
Where you located?
John Dawes in Gonzales is a good dude. That’s all I got
John Dawes in Gonzales is a good dude. That’s all I got
0
Posted on 8/22/24 at 3:03 pm to slackster
quote:
their offices being a strip mall are hard to shake for some.
Another thing is when you have 1,200 clients you just cannot be focusing on that many and the bottom 800 or so are stuck in A share American Funds because they paid a sales load and it's a compliance issue to move them to fee based at that point. I know some EJ advisors that haven't even met a good portion of the book they inherited. Not a knock, but if you don't own your book you're not going to treat it the same way.
And about the 800 bottom clients, I'm likely being generous because one advisor is pretty tapped out by 200 clients on the high end. Any advisors here disagree with that?
Posted on 8/22/24 at 3:06 pm to UpstairsComputer
You’re spot on about the veteran bunch but for the most part, advisors that have been hired within the past 10 years do not adopt to that strategy, they’re much more modern and fiduciary based.
Nonetheless, the group mentioned is what the spotlight is on.
Nonetheless, the group mentioned is what the spotlight is on.
Posted on 8/22/24 at 4:04 pm to Rize
quote:
I’ve got a decent amount with them and have no problems. I do remember when I started with them that I waited until June of a certain year because they had a new program they came out with that had much lower fees.
How much are their fees for you?
Posted on 8/22/24 at 4:40 pm to LSUFanHouston
quote:
They are entry level financial advisors. Nothing wrong with that, it just is what it is.
Yeah
They generally have entry level advisors who don’t have large sums under management.
Advisors have to rent space and pay for use of the office supplies.
They offer cookie cutter money management so if you want individual portfolio management, it won’t be your place.
Posted on 8/22/24 at 6:01 pm to SlidellCajun
quote:
They offer cookie cutter money management so if you want individual portfolio management, it won’t be your place.
That’s simply not true at all.
They have investment models like everyone else, but I’ve seen full fledged management account statements too.
Again, like my first post in that thread says, there are 19,000 something advisors there, so extrapolating a single experience across the whole firm is ill-informed.
Posted on 8/22/24 at 6:15 pm to HeartAttackTiger
I don't think the issue is with Edward Jones. It's more about the service they are charging you for.
I self manage my 401k but I've kept my IRAs at a Managed broker for more than 20 years.
Today I asked my managed broker how much I was paying to them in fees each year (1.5%). That's roughly $5,000 a year on that account.
I enjoy dealing with them (not Edward Jones) but I can put my own money in SPY or VOO or QQQ and save $5000 a year off the top.
Bottom line is get yourself a self directed brokerage and manage it yourself and save lots of $.
**Edit** The 1.5% is what I was paying the brokerage on TOP of any Fund fees.
I self manage my 401k but I've kept my IRAs at a Managed broker for more than 20 years.
Today I asked my managed broker how much I was paying to them in fees each year (1.5%). That's roughly $5,000 a year on that account.
I enjoy dealing with them (not Edward Jones) but I can put my own money in SPY or VOO or QQQ and save $5000 a year off the top.
Bottom line is get yourself a self directed brokerage and manage it yourself and save lots of $.
**Edit** The 1.5% is what I was paying the brokerage on TOP of any Fund fees.
This post was edited on 8/22/24 at 6:16 pm
Posted on 8/22/24 at 6:39 pm to WM88
quote:
It's more about the service they are charging you for.
Always.
First of all, 1.5% is crazy steep anywhere.
Second, if all you’re getting is some asset allocation tips, you’re grossly overpaying.
Look, I’ve got clients that are getting way more bang for their buck than they pay, just as I’ve got clients that pay and don’t get any significant value (not for a lack of trying on my part, some people simply don’t care enough to meet and/or follow any plans). I’d prefer to have neither, but that’s the way of the business for most. However, I think most of my clients would say they find value in the very clear fees that they pay. They’re getting tax planning and efficiency, behavioral coaching, comprehensive financial planning, generational wealth advice, etc, AND they simply don’t want to do it themselves.
This board, and many like it, are full of DIYers, so it’s completely understandable why people here generally dislike FAs anywhere. That doesn’t bother me at all - there are professionals that do a lot of things that I choose to do myself, so I get it.
This post was edited on 8/22/24 at 6:41 pm
Posted on 8/22/24 at 7:19 pm to Rize
quote:
1.35%
Yikes
Posted on 8/22/24 at 7:30 pm to HeartAttackTiger
They are product salesmen, not really money managers. Nothing wrong with that but you can buy a bunch of mutual funds in a cookie cutter 60/40 allocation and underperform for free instead of overpaying a Jones broker. Hire an RIA instead.
Posted on 8/22/24 at 7:56 pm to slackster
quote:
I think EJ and the similar firms can do all of the above.
They can’t, and they have disclosures that tell you to consult with your tax and legal advisor before making any investment decision.
They are also rife with conflicts of interest, charge high fees and commissions, and also are limited in investment options.
They are sales focused and not expertise focused.
Posted on 8/22/24 at 7:58 pm to CougarBait
quote:
Nothing wrong with that but you can buy a bunch of mutual funds in a cookie cutter 60/40 allocation and underperform for free instead of overpaying a Jones broker. Hire an RIA instead.
No RIA is going to outperform with any regularity or predictability either.
Source - I’m an RIA
Posted on 8/22/24 at 8:16 pm to TigerGrad2011
quote:
they have disclosures that tell you to consult with your tax and legal advisor before making any investment decision.
As does everyone. You’re not getting legal advice and tax advice from non legal or tax professionals anywhere for the layperson. Obviously some firms have attorneys and tax professionals on staff, but they give the advice, not the advisor.
quote:
They are also rife with conflicts of interest, charge high fees and commissions, and also are limited in investment options.
They don’t do options. Thats about the only truth in this statement in my experience. I also think they’re a little more limited in how low they can go on management fees, but otherwise the rest of it is hogwash.
I guarantee you can find plenty of EJ advisors that will manage/plan/etc $1,500,000 for you for for 1%. I know 1% around here is blasphemy, but that’s perfectly competitive in the industry.
I’m sure there are niche things they don’t do, along with most other firms, but I don’t really understand the broad brush people paint with around here.
Posted on 8/22/24 at 8:26 pm to slackster
quote:
They don’t do options.
It’s on the table for certain clients now
Posted on 8/22/24 at 8:34 pm to slackster
quote:
As does everyone. You’re not getting legal advice and tax advice from non legal or tax professionals anywhere for the layperson. Obviously some firms have attorneys and tax professionals on staff, but they give the advice, not the advisor.
False, not everyone has to have that disclosure. Only firms that can’t give tax or legal advice and who do not have tax or legal professionals on staff analyzing decisions for clients through that lens as well.
Isn’t investment advice inherently also tax advice when thinking about the purchase or sale of an investment and the effect on both your net worth and effective tax rate?
Posted on 8/22/24 at 8:38 pm to TigerGrad2011
quote:
Isn’t investment advice inherently also tax advice when thinking about the purchase or sale of an investment and the effect on both your net worth and effective tax rate?
Sure, and that advice doesn’t run afoul of the rules of most firms in my experience.
I’m 100% on board with you in regards to tax efficiency being a huge component of competent financial plans, but that can be done without giving explicit tax advice. As you mentioned, if the advisor is using that lens on his own or with a team, then it can still be accomplished.
ETA- I said “everyone” when I meant almost everyone. I’ll concede that, but for the vast majority of EJ alternatives, that still holds true.
This post was edited on 8/22/24 at 8:40 pm
Posted on 8/22/24 at 8:41 pm to slackster
quote:
They don’t do options. Thats about the only truth in this statement in my experience.
Also not true.
Limited investment options that they can SELL you or give advice on. They are not open architecture and are not supposed to give advice on investments off platform. Think VC, PE, Real Estate, etc.
They can’t source the best investment option for you at all times.
The conflicts of interest also exist and you can find them in their disclosures as well. They are incentivized to sell you certain products. That is 100% the truth.
Posted on 8/22/24 at 8:48 pm to TigerGrad2011
quote:Yes, but I think in your quoted sentences, "options" was referring to options strategies to enact low-base stock hedges and the like.
Limited investment options that they can SELL you or give advice on. They are not open architecture and are not supposed to give advice on investments off platform. Think VC, PE, Real Estate, etc.
They can’t source the best investment option for you at all times.
The conflicts of interest also exist and you can find them in their disclosures as well. They are incentivized to sell you certain products. That is 100% the truth.
Posted on 8/22/24 at 8:53 pm to Big Scrub TX
“
quote:
Yes, but I think in your quoted sentences, "options" was referring to options strategies to enact low-base stock hedges and the like.
Here is what I wrote:
“They are also rife with conflicts of interest, charge high fees and commissions, and also are limited in investment options.”
What I’m referring to as being limited in investment options is that they are not open architecture and can neither source nor give advice outside of the restricted choices the firm allows them to utilize, not “options” specifically as in trading options.
Posted on 8/22/24 at 9:31 pm to TigerGrad2011
quote:
Limited investment options that they can SELL you or give advice on. They are not open architecture and are not supposed to give advice on investments off platform. Think VC, PE, Real Estate, etc.
We’re starting to compare apples to oranges here. I’m talking about EJ within the traditional retail investor space that’s typically discussed on this board. You’re not really getting any of this with a couple million dollars anywhere. You and I are probably talking past one another at this point, but you’re also right on that point.
quote:
The conflicts of interest also exist and you can find them in their disclosures as well. They are incentivized to sell you certain products. That is 100% the truth.
They still offer best interest products but they act in a fiduciary capacity on investment advisory platforms. It’s all in their CRS on their website. Also, you’d be hard pressed to find good advisors that WANT to do commission based business in 2024. Nearly every top advisor, including EJ advisors, has moved to fiduciary management fee structures.
This post was edited on 8/23/24 at 6:24 am
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