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I'm thinking of moving TO Edward Jones, not FROM Edward Jones.
That was my point. You are the first I've seen asking for advice on moving TO Edward Jones. The many nightmare threads from EJ clients asking for advice about moving FROM Edward Jones should be lighting up your radar. Why have so many asked for advice on getting away from Edward Jones? The chances of you not regretting this decision are slim.
yep , swimming against the tide rarely is the right thing to do . when you read about so many fleeing than staying and being satisfied a red flag should go up and alarms should go off .
FWIW, I do find some EJ consultants to be too pushy.
Like I said earlier EJ is moving to an AUM model, if you think being charged 1.25% of AUM is fair and you like your advisor go for it. I think Fidelity and Vanguard provide the same services for a fraction of the cost.
If I'm reading EJ's account changes correctly, it's going to be interesting to see what the average Ed Jones IRA looks like after this month and their advisors are forbidden from including ETFs, UITs and mututal funds. Will they try to simulate index funds by buying dozens of stocks and individual bonds or just load clients up on annuities? I'd hate to think I had to create a retirement account without using any funds or ETFs.
"As industry executives strategize on how to best meet the requirements of the fiduciary rule, Edward Jones jumped out of the gate first, unveiling details on how its 14,000 advisers will comply with the new regulation. Among other changes, the St. Louis-based brokerage firm will create a transaction-based IRA using the rule's best interest contract exemption. The IRA will exclude ETFs, UITs and mutual funds, according to a company spokesman.
The firm is eschewing those funds because the price variability within and between mutual funds is at odds with the requirements of the contract exemption, according to Edward Jones. Clients using the new IRA will have access to stocks, bonds, CDs and variable annuities."
If I'm reading EJ's account changes correctly, it's going to be interesting to see what the average Ed Jones IRA looks like after this month and their advisors are forbidden from including ETFs, UITs and mututal funds. Will they try to simulate index funds by buying dozens of stocks and individual bonds or just load clients up on annuities? I'd hate to think I had to create a retirement account without using any funds or ETFs.
"As industry executives strategize on how to best meet the requirements of the fiduciary rule, Edward Jones jumped out of the gate first, unveiling details on how its 14,000 advisers will comply with the new regulation. Among other changes, the St. Louis-based brokerage firm will create a transaction-based IRA using the rule's best interest contract exemption. The IRA will exclude ETFs, UITs and mutual funds, according to a company spokesman.
The firm is eschewing those funds because the price variability within and between mutual funds is at odds with the requirements of the contract exemption, according to Edward Jones. Clients using the new IRA will have access to stocks, bonds, CDs and variable annuities."
Huh, I hadn't heard that. I was talking to my friend that is an EJ advisor and was actually asking him how he was going to handle this change and he didn't mention that the IRAs would not be allowed to hold ETFs and mutual funds. I know that under the new changes even employees have to pay the AUM fee, although slightly reduced to .9%. So employees are going from commission free investing to being forced to pay .9% on all funds and are required to have all their funds with the company. One thing that I was wondering about is isn't this model essentially enticing people to day trade? The new rule is just AUM, no commissions, so you could essentially make trades all day at no additional cost.
That was my point. You are the first I've seen asking for advice on moving TO Edward Jones. The many nightmare threads from EJ clients asking for advice about moving FROM Edward Jones should be lighting up your radar. Why have so many asked for advice on getting away from Edward Jones? The chances of you not regretting this decision are slim.
Well, briefly, what went wrong with EJ and their retirement funds?
Like I said earlier EJ is moving to an AUM model, if you think being charged 1.25% of AUM is fair and you like your advisor go for it. I think Fidelity and Vanguard provide the same services for a fraction of the cost.
Fidelity and Vanguard (I have both) usually won't even talk to me on the phone. I know almost nothing about investing money. I could be losing money in my accounts right now because if my lack of knowledge. I do have a 529 accounts with EJ and they will talk to me and give me all kinds of information and advice. Sure, some of it might be slanted towards their own benefit, but at least they will talk to me.
Fidelity and Vanguard (I have both) usually won't even talk to me on the phone. I know almost nothing about investing money. I could be losing money in my accounts right now because if my lack of knowledge. I do have a 529 accounts with EJ and they will talk to me and give me all kinds of information and advice. Sure, some of it might be slanted towards their own benefit, but at least they will talk to me.
Then go with them. I honestly have nothing against EJ, like I said I have a friend that is an advisor. I think this DOL rule is doing a disservice to the majority of their client base in an effort to stop the very small minority of churners and I think 1.25% AUM is a high fee to charge. But I think you are right having an advisor that you can talk to is very important psychologically, especially if the market takes a turn. I know a lot of people that have sold out of their 401ks on 10%-20% corrections and waited until the market hit new highs to get back in. Those people lost a lot more than 1.25%. Just go in knowing the AUM fee they are charging for their guided solutions service is pretty high.
One thing that you mentioned and could be important is that you have both fidelity and vanguard. You could technically put in 5-10k of your retirement funds with EJ and get advice on your entire portfolio, which would drastically mitigate the overall fees you will have to pay. They are financial advisors, obviously they will tell you they would prefer your money to be with them, but they should give you an entire portfolio and financial review, which would include assets not held by them. I mean they do this all the time with 401ks, they don't ignore those assets when talking about client portfolios.
Then go with them. I honestly have nothing against EJ, like I said I have a friend that is an advisor. I think this DOL rule is doing a disservice to the majority of their client base in an effort to stop the very small minority of churners and I think 1.25% AUM is a high fee to charge. But I think you are right having an advisor that you can talk to is very important psychologically, especially if the market takes a turn. I know a lot of people that have sold out of their 401ks on 10%-20% corrections and waited until the market hit new highs to get back in. Those people lost a lot more than 1.25%. Just go in knowing the AUM fee they are charging for their guided solutions service is pretty high.
One thing that you mentioned and could be important is that you have both fidelity and vanguard. You could technically put in 5-10k of your retirement funds with EJ and get advice on your entire portfolio, which would drastically mitigate the overall fees you will have to pay. They are financial advisors, obviously they will tell you they would prefer your money to be with them, but they should give you an entire portfolio and financial review, which would include assets not held by them. I mean they do this all the time with 401ks, they don't ignore those assets when talking about client portfolios.
Well thanks. That gives more a more balanced perspective. I definitely don't care for the high fee that EJ charges but it could be offset by sound financial advice that would help my 529s and retirement funds earn more money in the long run. But I'm still going to think about it long and hard.
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