Investing with Edward Jones?

[WyoArcher]

Hi everyone, I need some help here. I think I may have made a terrible mistake this week. If not terrible then unnecessary at the very least. I just recently teemed up with an Edward Jones financial advisor for my future investments. As usual, due to ignorance I recon, I am only now researching Edward Jones and their company's strategy for investing. I'm reading some not-so-great things about them online. Could be true, could be BS. I sought their help with investing because I know very little about it and my goal is to retire early. According to several retirement calculators I am on track to achieve this...IF I don't commit financial/investing suicide along the way. I am having second thoughts about utilizing Edward Jones to achieve my investment goals. Two major complaints of their disgruntled clients have been high fees and that Edward Jones' FA's do not have their client's best interest in mind. Iow if you aren't one of their $1M investors they show little concern for your future. The overall sentiment is that I would be better off investing on my own w/o the use of ANY financial advisor. I am hesitant to do any investing on my own for lack of personal investing knowledge. I've heard many discuss investing in Vanguard index funds, but how exactly...and which ones? I want my money to grow and work for me as much as possible, but I am having buyer's regret over my new relationship with Ed Jones. Dang it! I wish I would do more research before jumping in to things like this. I'm not suggesting EJ is a bad company or that they're incompetent, I'm just not sure they would be my best option. Any advice or guidance would be greatly appreciated. Should I stay the course and hope my FA is trustworthy, or should I get out of the contract ASAP? If there's anyone out there that can help guide me with personal investing I would very much be open to listening. Thanks!

[SaintM]

My parents helped me get an Edward Jones account when I was 18. I left them by the time I was 20. This was I the mid-90s. After my initial purchase of BRKB, for which Buffett paid the commission, EJ only offered me high cost Unit Investment Trusts. I couldn't thank them enough, as it was a valuable lesson in the game of how to get screwed and how not to get screwed.

[Dodge]

Hi everyone, I need some help here. I think I may have made a terrible mistake this week. If not terrible then unnecessary at the very least. I just recently teemed up with an Edward Jones financial advisor for my future investments. As usual, due to ignorance I recon, I am only now researching Edward Jones and their company's strategy for investing. I'm reading some not-so-great things about them online. Could be true, could be BS. I sought their help with investing because I know very little about it and my goal is to retire early. According to several retirement calculators I am on track to achieve this...IF I don't commit financial/investing suicide along the way. I am having second thoughts about utilizing Edward Jones to achieve my investment goals. Two major complaints of their disgruntled clients have been high fees and that Edward Jones' FA's do not have their client's best interest in mind. Iow if you aren't one of their $1M investors they show little concern for your future. The overall sentiment is that I would be better off investing on my own w/o the use of ANY financial advisor. I am hesitant to do any investing on my own for lack of personal investing knowledge. I've heard many discuss investing in Vanguard index funds, but how exactly...and which ones? I want my money to grow and work for me as much as possible, but I am having buyer's regret over my new relationship with Ed Jones. Dang it! I wish I would do more research before jumping in to things like this. I'm not suggesting EJ is a bad company or that they're incompetent, I'm just not sure they would be my best option. Any advice or guidance would be greatly appreciated. Should I stay the course and hope my FA is trustworthy, or should I get out of the contract ASAP? If there's anyone out there that can help guide me with personal investing I would very much be open to listening. Thanks!

Yes you can do it on your own. Yes you will be better off doing it on your own.  I would start by watching these short videos:

http://www.bogleheads.org/wiki/Video:Bogleheads%C2%AE_investment_philosophy

Yes the guy is over the top silly, but the information is spot on. Once you've watched, come back to us with any questions. You can even give us your numbers, and we can make some recommendations for you, but I think it's important to have a base understanding first, and the videos will provide that.

[wrkirk]

I've been using EJ for a couple years and am planning my exit strategy. The fees on the recommendations they make are insane and negate any actual growth their funds achieve. I think my investments with them made 3% annual over the last two years...what did the S&P 500 return? Just find an S&P 500 index fund.

[pdxvandal]

My cousin whom I am fairly close with has worked for EJ since graduating college in 2001. He's done VERY well. But he hasn't asked me to buy EJ investments, nor would I ever inquire.

[Riff]

A great place to start educating yourself about investing is by reading the book, "Bogleheads' Guide To Investing."

I just transferred my accounts over to Vanguard, and started my Roth as well.  Simple as a phone call.

[WyoArcher]

Yes you can do it on your own. Yes you will be better off doing it on your own.  I would start by watching these short videos:

http://www.bogleheads.org/wiki/Video:Bogleheads%C2%AE_investment_philosophy

Yes the guy is over the top silly, but the information is spot on. Once you've watched, come back to us with any questions. You can even give us your numbers, and we can make some recommendations for you, but I think it's important to have a base understanding first, and the videos will provide that.

DODGE,
Great videos, Thanks!
So, let's say I have $10k to invest right now plus an additional $2k/month. I've looked at Vanguard Index Funds before, but which one should I dump this money into? And since I already max out my 403b and my Roth, would I have to open a personal IRA through Vanguard then? Do I invest all $10k+ into one (ex: VGSAX) or mix it up? Which Vanguard Index Funds would you recommend and what allocation?
Btw I am in my mid 40s and looking at 10+ years for growth and I fall into the moderate-high risk group...apparently.
Thanks!

[jmusic]

Edward Jones probably has thousands of storefronts, with overhead to match.  Guess who's paying for them?

How many does Vanguard have?

[MDM]

So, let's say I have $10k to invest right now plus an additional $2k/month. I've looked at Vanguard Index Funds before, but which one should I dump this money into? And since I already max out my 403b and my Roth, would I have to open a personal IRA through Vanguard then? Do I invest all $10k+ into one (ex: VGSAX) or mix it up? Which Vanguard Index Funds would you recommend and what allocation?
Btw I am in my mid 40s and looking at 10+ years for growth and I fall into the moderate-high risk group...apparently.
Thanks!

You could do much worse than putting it all into VBIAX.  It has a 60/40 stock/bond allocation already.  Not saying that's the best ('cuz nobody knows what the best will be) but it is defensible.

[Dodge]

DODGE,
Great videos, Thanks!
So, let's say I have $10k to invest right now plus an additional $2k/month. I've looked at Vanguard Index Funds before, but which one should I dump this money into? And since I already max out my 403b and my Roth, would I have to open a personal IRA through Vanguard then? Do I invest all $10k+ into one (ex: VGSAX) or mix it up? Which Vanguard Index Funds would you recommend and what allocation?
Btw I am in my mid 40s and looking at 10+ years for growth and I fall into the moderate-high risk group...apparently.
Thanks!

Have you watched the videos?

Seriously, it's better to have the knowledge, than have us tell you what to do. Otherwise at the first sign of trouble you might bail. It's much easier to stay the course when you understand the reasoning behind the advice.

Watch the videos, come back with a plan, then ask for advice on it. The videos are maybe 30 minutes in total. It won't take long, and it will help us help you.

[Scotch & CPA]

Agreed with everything that is said above. My parents have an Edward Jones advisor, because it's their cousin. Everytime we talk about it, I always ask them, where they think the money that their cousin makes comes from? EJ has some of the highest fees in the business. You're better off learning now, and keeping your fees low, versus paying the high fees for the foreseeable future.

[kpd905]

They will probably put you into some funds with front-end loads to immediately pad their own wallets.

[Knapptyme]

Two cents here--my brother is an EJ FA. Clearly, he's my brother, and I trust him, but only with some of my money. That being said, he is very straight-forward and tells me not to invest with EJ at certain times and pull some investments and redirect them elsewhere, even away from EJ. He was rerouting a bunch of funds for many of his clients through a loophole that paid the mutual funds fee rate (a nominal $10/year) and not the five-times-as-high rate EJ would charge to have the same mutual funds in their name. EJ called him on it wondering why so many of his clients had a third-party mutual fund. He told corporate that it saved his client's money, which was the best advice he could give them, so he did it. Corporate changed the rates for that mutual fund for only his clients, and he transferred them (me included) over.

That being said, yes, EJ is not necessarily who you want to partner with to safeguard steal your money. I, however, feel like I can trust my brother.

[dungoofed]

Kennon took aim at Edward Jones about a year ago:

http://www.joshuakennon.com/executives-edward-jones-feel-humiliated-mutual-fund-practices/

[Holyoak]

WyoArcher, you can do it...  Please, as others have mentioned, learn about the process as best you can, and KNOW you can do it.  Investing, as with so many other things is thought to only be in the realm of "professionals"...  Even well meaning friends and family will tell you, you better get a "pro" to do something so important...  BUNK!

The one time I contemplated using a wealth manager, the results were a 50 page plus hodge podge of fancy bright charts, heavy bond paper, and a nice binder.  All of it generated as easily by yourself, without all of the way too expensive proprietary funds...  Also not costing around 2%+ a year, and in my case, that's about $27,000 off the top!...  Hell, I live on less than $20k now!

Play around with retirement calculators, compounding websites, and feel confident that you can do this, and have a plan.  As for me, almost 70% of my stache is with Vanguard, and most of it is in VTSAX and VTIAX (70%), 20% in a bond fund (VBTLX), the last 10% in a REIT, healthcare and energy fund.  I'm wishing you the very best of luck, and the satisfaction of steering your own ship.

[MarciaB]

They will probably put you into some funds with front-end loads to immediately pad their own wallets.

And maybe some pricey annuity products as well.

I've got a friend who invests with EJ and he occasionally asks my advice about what's going on with his money. Somehow I always manage to use the phrase "...those f*ckers at Edward Jones..."

[innerscorecard]

Edward Jones is extremely disreputable. Even if you wanted a full-service broker, there are much better ones out there.