- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
I have an account with Edward Jones... am I an idiot?
Posted on 5/8/14 at 12:29 pm
Posted on 5/8/14 at 12:29 pm
I'm 32. Graduated college in 2007 and started working, I immediately started contributing to my work retirement plans. A year later, I had some money burning a hole in my pocket so decided I wanted to get some help with how to invest it.
I knew very little about investing then (and still consider myself pretty green, but I'm learning) so I just wanted someone to tell me what to do/how to invest. Made an appt with a local Edward Jones guy and decided to go with him. After my initial investment of about $22500, I didn't put any more money in until fairly recently. In total, my EJ account currently has about $57k in it ($15k in a Roth and $42k in a taxable account).
I've since read some people's opinions about EJ and their fees. But honestly if I didn't go to a place like EJ, I probably wouldn't have invested that money back in the fall of '08 when the market was pretty far down...so I came out ahead vs not investing at all obviously. Sure I could have found a better option, but I didn't know what I was doing to be honest.
Now I feel like I have a slightly better idea what I'm doing and was thinking of going the Vanguard route for my Roth (which I absolutely plan on making a priority now) and any additional investments outside of my work plans.
What is the MB's opinion on places like EJ? And more importantly, where should I go from here regarding my current EJ account?
I'm thinking:
1) Leaving the money I have in the EJ account, especially since most of it is in front-load fee (yeah, I know...) mutual funds. This would still have an advisor to occasionally meet with to discuss any other financial planning (just married, starting family soon), so I wouldn't feel like I'm completely on my own.
2) For additional investing, open a Vanguard account. Keep it fairly simple with index funds and such.
3) ?????????
4) Profit.
TL, DR version:
I have an EJ account I opened in 2008. What should I do with that account? Continue investing with EJ? Leave alone and just put new money in Vanguard? Other?
TIA
I knew very little about investing then (and still consider myself pretty green, but I'm learning) so I just wanted someone to tell me what to do/how to invest. Made an appt with a local Edward Jones guy and decided to go with him. After my initial investment of about $22500, I didn't put any more money in until fairly recently. In total, my EJ account currently has about $57k in it ($15k in a Roth and $42k in a taxable account).
I've since read some people's opinions about EJ and their fees. But honestly if I didn't go to a place like EJ, I probably wouldn't have invested that money back in the fall of '08 when the market was pretty far down...so I came out ahead vs not investing at all obviously. Sure I could have found a better option, but I didn't know what I was doing to be honest.
Now I feel like I have a slightly better idea what I'm doing and was thinking of going the Vanguard route for my Roth (which I absolutely plan on making a priority now) and any additional investments outside of my work plans.
What is the MB's opinion on places like EJ? And more importantly, where should I go from here regarding my current EJ account?
I'm thinking:
1) Leaving the money I have in the EJ account, especially since most of it is in front-load fee (yeah, I know...) mutual funds. This would still have an advisor to occasionally meet with to discuss any other financial planning (just married, starting family soon), so I wouldn't feel like I'm completely on my own.
2) For additional investing, open a Vanguard account. Keep it fairly simple with index funds and such.
3) ?????????
4) Profit.
TL, DR version:
I have an EJ account I opened in 2008. What should I do with that account? Continue investing with EJ? Leave alone and just put new money in Vanguard? Other?
TIA
7
Posted on 5/8/14 at 12:34 pm to That's BS
If you love front loaded American funds stick with Ed jones 
Posted on 5/8/14 at 12:35 pm to roguetiger15
quote:
If you love front loaded American funds stick with Ed jones
Posted on 5/8/14 at 12:42 pm to roguetiger15
quote:
If you love front loaded American funds stick with Ed jones
Ha, that's kind of my point.
Now I know better, then I didn't. I'm sure EJ has other fund options...maybe? If I stayed, I'd def be looking for other fund options for any future investments...but I'm sure the fees will still be there in some shape or form.Posted on 5/8/14 at 12:42 pm to Mr.Perfect
I can't tell you how many times someone come to me with statements from Ed jones looking to change because
A) the front load American funds and
B) they never hear from their advisor
I honestly get really upset when people get abused by advisors that know they are an easy target. I use A shares maybe 2 percent of the time. It takes 7 years for the client to make it worth their wild to buy an A share compared to a C share.
For that reason alone my first Impression of Ed jones advisors is simply crooks.
I would shop around honestly if I were you. I would be happy to help you but I'm all the way in lafayette
A) the front load American funds and
B) they never hear from their advisor
I honestly get really upset when people get abused by advisors that know they are an easy target. I use A shares maybe 2 percent of the time. It takes 7 years for the client to make it worth their wild to buy an A share compared to a C share.
For that reason alone my first Impression of Ed jones advisors is simply crooks.
I would shop around honestly if I were you. I would be happy to help you but I'm all the way in lafayette
This post was edited on 5/8/14 at 12:49 pm
Posted on 5/8/14 at 12:51 pm to roguetiger15
quote:
I would shop around honestly if I were you.
Any suggestions for the Hammond area?
Posted on 5/8/14 at 12:51 pm to roguetiger15
I have almost all of my investments in EJ in some American fund. It's just stuff I've accumulated over my lifetime (birthdays when i was 2, etc). Should I just leave it or what? I've also have a small amount in Vanguard for a short while now.
Posted on 5/8/14 at 12:54 pm to That's BS
I don't have any but I'm sure someone can direct you to someone if you changed your title a little to something like "want second FA opinion in Hammond"
Like I said before. Our profession is supposed to benefit the client. Just like any other business right?! As a client you expect to be treated by your FA like he has just as much on the line as you do yourself. The simple fact that 99 percent of funds used by Ed jones is A shares tells me they fall short with the most important aspect of our job so because of that I always tell people to get a second opinion when using ed jones
Like I said before. Our profession is supposed to benefit the client. Just like any other business right?! As a client you expect to be treated by your FA like he has just as much on the line as you do yourself. The simple fact that 99 percent of funds used by Ed jones is A shares tells me they fall short with the most important aspect of our job so because of that I always tell people to get a second opinion when using ed jones
This post was edited on 5/8/14 at 12:57 pm
Posted on 5/8/14 at 12:57 pm to roguetiger15
quote:
roguetiger15
How long have you been in the business? Who is your B/D?
Posted on 5/8/14 at 12:59 pm to Janky
I'm not answering those questions. I know the power of tiger droppings
Posted on 5/8/14 at 1:20 pm to That's BS
I hated EJ. I would get a call once a month from a different rep saying they are handling my accounts now. I don't know if they all got fired or quit. I move my accounts to NWM.
Posted on 5/8/14 at 1:28 pm to That's BS
I come across all manner of financial advisors in the daily course of my job (I'm a tax CPA).
In this day and age of open your own accounts at Vanguard, Fidelity, Ameritrade, etc... the only reason to use a broker house like Edward Jones is for the advise you are getting from advisor.
So, you need to decide if you are getting valuable and worthwile service from your advisor. Do you feel your investment return has been reasonable? How often does your advisor check in with you? Etc etc.
What concerns me about places like Edward Jones, WF Advisors, etc, is that I CONSTANTLY see them advertising for new advisors. I don't see much growth in them, so that tells me they have a high turnover. You have a high turnover when you suck at what you do, or, you can't bring in new accounts. If you have used the same guy since 2008, he probably doesn't suck too bad, otherwise, he wouldn't still be in the business.
The front-end fee is a sunk cost. That should have no bearing on your decision to cash out or not. I'm guessing based on your account value you probably have a nice capital gain your taxable account, so you do need to consider that before you cash out.
Here's what I reccomend to people in your situation (which is not all that uncommon)
1) Go talk to a financial advisor or two. I prefer the RIA type as opposed to the commissioned type, but that's just me.
2) Look at the index funds and any other funds you would get involved with, and compare their performance since 2008 to what your performance has been. If the index funds are better, get out of what you have... there is no excuse to pay a professional (or a fund company) for something that lacks an index fund.
3) If you really want to do index funds, there is no reason to keep an advisor. If you want to do anymore complex than that, you have to decide if you want to put the time in to research investment choices, or, to pay someone to do it.
Also front-load shares aren't absolutely bad... but they tend to be pushed by the seller. There are some investments out there that it's very hard to find shares that are not A shares. But by and large, especially over a 5-7 year horizon, A shares is not a great idea. Yet another reason to use an RIA, if you want a professional.
Good luck
In this day and age of open your own accounts at Vanguard, Fidelity, Ameritrade, etc... the only reason to use a broker house like Edward Jones is for the advise you are getting from advisor.
So, you need to decide if you are getting valuable and worthwile service from your advisor. Do you feel your investment return has been reasonable? How often does your advisor check in with you? Etc etc.
What concerns me about places like Edward Jones, WF Advisors, etc, is that I CONSTANTLY see them advertising for new advisors. I don't see much growth in them, so that tells me they have a high turnover. You have a high turnover when you suck at what you do, or, you can't bring in new accounts. If you have used the same guy since 2008, he probably doesn't suck too bad, otherwise, he wouldn't still be in the business.
The front-end fee is a sunk cost. That should have no bearing on your decision to cash out or not. I'm guessing based on your account value you probably have a nice capital gain your taxable account, so you do need to consider that before you cash out.
Here's what I reccomend to people in your situation (which is not all that uncommon)
1) Go talk to a financial advisor or two. I prefer the RIA type as opposed to the commissioned type, but that's just me.
2) Look at the index funds and any other funds you would get involved with, and compare their performance since 2008 to what your performance has been. If the index funds are better, get out of what you have... there is no excuse to pay a professional (or a fund company) for something that lacks an index fund.
3) If you really want to do index funds, there is no reason to keep an advisor. If you want to do anymore complex than that, you have to decide if you want to put the time in to research investment choices, or, to pay someone to do it.
Also front-load shares aren't absolutely bad... but they tend to be pushed by the seller. There are some investments out there that it's very hard to find shares that are not A shares. But by and large, especially over a 5-7 year horizon, A shares is not a great idea. Yet another reason to use an RIA, if you want a professional.
Good luck
Posted on 5/8/14 at 1:30 pm to LSUFanHouston
Oh, and you might want to look outside of Hammond if you seek professional advice. There are plenty of good professionals in Baton Rouge and New Orleans, and even good ones in Covington/Mandeville. Just not sure how many are in Hammond.
Posted on 5/8/14 at 1:40 pm to LSUFanHouston
quote:
LSUFanHouston
Good post.
quote:
Look at the index funds and any other funds you would get involved with, and compare their performance since 2008
Why would you exclude 2008. Isn't the tactical nature of an actively managed account built to help avoid 2008 scenarios?
Posted on 5/8/14 at 1:42 pm to That's BS
quote:
But honestly if I didn't go to a place like EJ, I probably wouldn't have invested that money back in the fall of '08
There may have been more efficient options, but this is the important part. You've used someones expertise to give you confidence and a foundation for learning.
You could have avoided the sales charge, and made nothing.
Paying a front load is not always a bad thing.
Posted on 5/8/14 at 1:45 pm to Cmlsu5618
It is if he could have just as easily put u in a c share instead of a share and got his commission over time instead of up front
With that being said most brokers including myself are going more to fee based accounts which is a positive for all parties involved. Especially the client.
With that being said most brokers including myself are going more to fee based accounts which is a positive for all parties involved. Especially the client.
This post was edited on 5/8/14 at 1:50 pm
Posted on 5/8/14 at 1:52 pm to roguetiger15
What if he held the same fund for the next 10 years?
Then your theory is false.
Then your theory is false.
Posted on 5/8/14 at 2:00 pm to Cmlsu5618
Well first off it's not a theory. If you look at the numbers on average you would have to keep it for around 7 years for it to be beneficial. I barely ever have someone stay In a fund for 7 years unless it's a very good index fund or something like frankin income fund. But even then I'll use a c share. Like I said before though. The majority of my book is fee based so even if I put you in a fund with a front loaded fee our platform reimburses you for that. Clients love that
Posted on 5/8/14 at 2:16 pm to roguetiger15
quote:
I barely ever
But this means some folks do hold funds for the long term, and an A share can definitely be suitable vs. a C share, right?
Posted on 5/8/14 at 2:22 pm to Cmlsu5618
quote:
But this means some folks do hold funds for the long term, and an A share can definitely be suitable vs. a C share, right?
Yes. Long Term, a shares usually cost less. Plus you get break points for being in the same fund family, which I do not believe you get with c-shares. There are plenty of reasons to go A-shares over C-shares.
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News