How to Read an Edward Jones 1099 Statement
Some people want to save on investment advice by using free or low-cost services such as robo advisors. In that location's nothing incorrect with that.
But if you lot want to speak with a human being, financial advisor, that will price more. If you want to exist able to step into your local counselor'southward office, where you lot deal with the same counselor on every visit, that will toll withal more than.
For the latter, there is Edward Jones. Edward Jones gets a lot of negative reviews on its fees. Is information technology really a terrible deal? In this commodity, we'll go over who Edward Jones is really for, and if the loftier fees and bad reviews are justified.
Quick Summary
- Local offices for an in-person experience
- Loftier fees in exchange for high level of service
- Best for people who want completely hands-off investing
| Edward Jones Details | |
|---|---|
| Product Proper noun | Edward Jones |
| Min Investment | $0 |
| Merchandise Transaction Fee | $4.95 |
| Merchandise Commissions | Up to two.50% |
| Management Fee | 0.50% to 1.35% |
| Account Type | Roth, Traditional, SEP, SIMPLE, 529, Taxable |
| Promotions | None |
Who Is Edward Jones?
Edward Jones provides investment services to individuals of all sizes and small businesses. It was established in 1922. Edward Jones serves most 7 meg investors and has the largest retail footprint of any fiscal services visitor in America. It also serves clients in Canada.
The CEO of Edward Jones is Penny Pennington. She is also the sixth managing partner. "Edward Jones was built for our clients, and our purpose is to make a difference in their lives and the lives of their families" said Pennington on the Edward Jones History page.
What Do They Offering?
Edward Jones (EJ) is a full-service investment brokerage firm. That means it does estate planning, fiscal planning, retirement planning, 529 plans, life insurance, long-term care planning, and annuities. EJ is available to investors of any net worth.
This article will focus on the many bad reviews that EJ gets and the perception that it has high fees. High fees are relative; simply those that EJ charge are undoubtedly higher than online-just disbelieve brokerages or robo advisors. Even compared to some financial services companies that provide human, financial communication, EJ's fees are still higher.
What's going on here? Are they but scamming people? In brusk - no. Nosotros need to dig a trivial deeper to understand what's going on.
Loftier Fees
Some of the products Edward Jones sells come with high fees, such as life insurance and annuities. But that will be true at any other firm for those same financial products.
What about trading stocks? If you're comfortable with cocky-directed trading, y'all probably don't demand a total-service firm. Just should y'all choose EJ and you open a "Select Account," you'll certainly pay a loftier price. In addition to a $four.95 trade transaction fee, you'll pay the following commissions:
EJ says that 36% to 40% of these commissions go directly to the advisor. It should be noted that y'all can avoid paying the merchandise commissions above by choosing ane of EJ's 5 asset-based fee pricing models. However, as we'll see subsequently, the percentage of assets under management that yous must pay in guild to avert these hefty merchandise commissions is also high.
It'southward clear that EJ is solely intended for people who want hands-off financial and investment direction. Meaning, these people don't accept the time to research stocks, rebalance their portfolios, or fifty-fifty know how to manage their portfolios. EJ can do all of this for them.
Additionally, EJ provides human interaction that is much different than what other firms offer. At many firms, y'all're limited to speaking on the phone with an advisor, or in the best case, you tin video conference with your advisor. But you may as well not work with the same counselor every time, leaving little take chances to build rapport.
Edward Jones is much unlike in its approach to human interaction. While you can certainly call your EJ advisor on the telephone, you can too go into their local office and sit down downward with the advisor. As well, this is the same advisor every fourth dimension. The EJ model allows its advisors to build rapport and establish long-term relationships with a small group of clients.
Related: Best Gratis Investing Apps
Poor Reviews
You can read a big number of poor reviews most Edward Jones from across the web. Most people complain about the loftier fees, losing money, and not getting anything in render for what they are paying.
The mutual thread with poor reviews seems to come up from people who compare EJ management fees to that of robo advisors. But it'southward important to point out that these are two completely different services for two very different types of investors. In other words, a comparing between the two isn't really "apples to apples."
Other customers complain about the commissions and fees that EJ charges for stock trades. To exist clear, Edward Jones is non a practiced fit for DIY investors. Information technology exists for people who desire an advisor they can sit down with in-person who can help them preserve capital and hopefully generate a decent return.
Business relationship Types
Edward Jones offers half-dozen different account levels. Come across a quick comparison of the account minimums, investment choices, and back up levels of each in the nautical chart below.
| Investment Minimum | Investment Choices | Who Makes Final Trade Decisions? | Advisor Compensation | |
|---|---|---|---|---|
| Select Account | $0 | Stocks, bonds, CDs, mutual funds, ETFs, annuities | You | Commission |
| Guided Solutions Fund Account | $5,000 | Common funds, ETFs | You | Asset-Based Fee |
| Guided Solutions Flex Account | $25,000 | Stocks, bonds, CDs, mutual funds, ETFs | You | Asset-Based Fee |
| Informational Solutions Fund Models | $25,000 | Portfolio models (Mix of common funds and/or ETFs) | Advisor | Asset-Based Fee |
| Advisory Solutions UMA Models | $500,000 | Portfolio models (Mix of mutual funds, ETFs, and/or separately managed allocations) | Advisor | Asset-Based Fee |
Are There Any Fees?
For "Select Accounts," you only pay trade commissions whenever you lot purchase or sell investments. For all other accounts, Edward Jones will charge a pct of assets under management that varies by account size.
| Value of Assets | Advisory Fee |
|---|---|
| Kickoff $250,000 | 1.35% |
| Next $250,000 | ane.30% |
| Side by side $500,000 | 1.25% |
| Adjacent 1,500,000 | 1.00% |
| Side by side 2,500,000 | 0.eighty% |
| Adjacent 5,000,000 | 0.lx% |
| Over 10,000,000 | 0.50% |
For EJ's two highest account tiers (Advisory Solutions Fund and UMA Models), information technology also charges a "Portfolio Strategy Fee." Again, this fee varies by account size as shown below.
| Value of Assets | Advisory Fee |
|---|---|
| Get-go $250,000 | 0.09% |
| Next $250,000 | 0.09% |
| Next $500,000 | 0.08% |
| Next 1,500,000 | 0.07% |
| Next 2,500,000 | 0.06% |
| Next v,000,000 | 0.05% |
| Over x,000,000 | 0.05% |
You'll pay a $40 annual fee for your offset retirement business relationship with Edward Jones and $xx for additional IRAs (waived for account values above $250,000). Retirement accounts are too charged dividend reinvestment and dollar-cost averaging fees. See the full retirement account fee schedule.
| Header | | | |
|---|---|---|---|
| Rating | |||
| Trade Fees | $iv.95 | $0 | $0 |
| Advisory Fee | Upward to 1.35% AUM | Up to i.fifty% AUM | 0.xxx% AUM |
| Min Investment | $0 | $250,000 | $50,000 |
| Banking | |||
| Cell | Jail cell |
How Do I Open An Account?
You tin visit your local Edward Jones co-operative to open up an account. Using their "Find a financial advisor" tool, you can search by null code to find the closest EJ office to you.
Is It Worth Information technology?
There's no question that Edward Jones charges some hefty fees. But again, it offers an experience that you tin can't get at every firm. If yous adopt working with a single advisor who can build a long-term, in-person human relationship with you, EJ could be worth because.
When choosing a financial advisor, it'due south oftentimes all-time to go references from trusted friends and colleagues. If such people in your inner circle apply EJ and are happy with it, that might piece of work for yous. Only know that in that location may be other local fiduciary financial advisors almost y'all that charge lower fees.
If you lot're comfortable with having your investments managed by a estimator algorithm, it'south admittedly true that most robo-advisors are significantly cheaper than EJ. And, finally, if you lot want the freedom to make your own merchandise decisions, you should probably compare disbelieve stock brokers instead.
Edward Jones Features
| Account Types |
|
| Minimum Investment |
|
| Management Fees |
|
| Portfolio Strategy Fees |
|
| Merchandise Transaction Fee | $4.95 |
| Merchandise Commissions |
|
| Access to Human being Counselor | Aye |
| Automatic Rebalancing | Yes, for Advisory Solutions accounts |
| Taxation-Loss Harvesting | Yeah, on Advisory Solutions UMA Models accounts |
| Customer Service Number | 1-800-441-2357 |
| Customer Service Hours | Monday-Friday, 7 AM – 7 PM (CT) |
| Mobile App Availability | iOS and Android |
| Promotions | None |
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Source: https://thecollegeinvestor.com/35050/edward-jones-review/
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