Where do I find the fees in my Edward Jones accounts?

[MountainLakeMama]

Hi everyone! I recently an article:

https://impersonalfinances.com/edward-jones-fees/

and I want to find out just how badly I'm getting screwed in my EJ account. The problem is, I only can find the $40 annual fee on my statements and in my online access. My EJ advisor told me about this fee, but he also told me that's the only fee they charge. I've had a Roth IRA with them for a while, but obviously I don't know much about investing (yet!). I also have a 403(b) there.

Can anyone tell me where, specifically, to look for the fees??

Thanks!

[seattlecyclone]

Many of the fees will be embedded in the mutual funds you own. Check the expense ratios. That's a fee you pay every year to own that investment. Also check if there are loads, fees they charge to get in or out of the investment. Your salesman may be technically correct that the small annual fee is all that Edward Jones charges you, but their business model relies on commissions out of the fees the mutual funds charge you.

[Metta]

Not all fees will be transparent on your statement (unfortunately). In particular transaction fees, which are assessed every time something in your account is bought or sold often disappear. It can be maddening to find all the fees even with a transparent organization like Vanguard. With Edward Jones it’s frustratingly difficult.

However, here is where you should start: https://www.edwardjones.com/us-en/disclosures/account-fees/our-compensation-fees

There are some things to be aware of. First how your holdings are bought and sold within your account matters. Every time an equity or bond is bought or sold, someone is being paid along the line. Usually several somebodies. They can charge you by presenting a higher price when you are buying or a lower price when you are selling (see Robinhood for an example of this) or they can charge you a flat fee or a percentage. Lots of fees are disguised in this way.

Some firms (and it looks like Edward Jones is one of them) gets what is essentially a kickback when they choose certain financial products from one company vs another. That’s built into the price and passed on to you.

Take a look at this document from Edward Jones: https://www.edwardjones.com/sites/default/files/acquiadam/2021-03/understanding-how-ej-fas-ccompensated-for-financial-services.pdf

If you are wondering why it is so difficult to read and why it is written in passive voice, well there is a reason for it. They want you to call your broker/agent who has been trained to comfort you and wipe away your fears. Instead you need to power through the documents they are required to offer and research each one. Or you can look at one of the companies that rates mutual funds. I used to use Morningstar but they are behind a paywall.

Here is an article I found for you that goes into more detail on the fees for Edward Jones:

https://investorjunkie.com/reviews/edward-jones/

Lots of people here know more than I do and hopefully they will offer advice. But I think the best advice is to find a different investment service before you have too much money involved. (Because EJ charges you if you take your money elsewhere.) You can also leave your money there and start an account with someone else. I recommend Vanguard. That way you can watch for a while to see which accounts are more successful overall.

[RWD]

Find your funds' ticker symbols and look them up on a site like Morningstar. This will tell you the expense ratios and any front load fees. Expense ratios can appear invisible (won't show up in your transaction history) because its taken right out of the fund's performance.

[MustacheAndaHalf]

From that article mentioned earlier:
DEPOSIT AMOUNT   ANNUAL FEE
First $250,000   1.35%
Next $250,000   1.30%
Next $500,000   1.25%
Next $1,500,000   1.0%
https://investorjunkie.com/reviews/edward-jones/

Once you have $10,000 at Vanguard, they charge no annual fees (and $20/yr for balances below that).  Switching from EJ to Vanguard or Schwab or Fidelity will save you a lot of money - especially over time.

Over 20 years, investing in the stock market will probably triple your investment.  That makes it harder to notice when EJ eats up 1/4th of your assets with their fees.

[EvenSteven]

From that article mentioned earlier:
DEPOSIT AMOUNT   ANNUAL FEE
First $250,000   1.35%
Next $250,000   1.30%
Next $500,000   1.25%
Next $1,500,000   1.0%
https://investorjunkie.com/reviews/edward-jones/

Once you have $10,000 at Vanguard, they charge no annual fees (and $20/yr for balances below that).  Switching from EJ to Vanguard or Schwab or Fidelity will save you a lot of money - especially over time.

Over 20 years, investing in the stock market will probably triple your investment.  That makes it harder to notice when EJ eats up 1/4th of your assets with their fees.

Only if you insist on getting statements snail mailed to you. If you select e-delivery that fee is waived.

[MountainLakeMama]

This is all such good info! Thanks everyone! I mean, I instinctively knew there must be more than $40 in fees, but since I didn't see them on my statement... out of sight, out of mind! Luckily, I am already using Vanguard moving forward. Now I have to figure out how to get my old accts out of EJ.

[Metalcat]

This is all such good info! Thanks everyone! I mean, I instinctively knew there must be more than $40 in fees, but since I didn't see them on my statement... out of sight, out of mind! Luckily, I am already using Vanguard moving forward. Now I have to figure out how to get my old accts out of EJ.

That's be design.

I can't tell you how many people I've spoken to who don't think their financial advisors cost them anything, because very technically, they don't, the investment products cost them a fee, and that fee largely goes towards paying the advisors, but technically, the advisors don't directly charge you a fee, so they don't disclose it on your paperwork and can honestly tell you that they don't charge you a fee when you ask.

However, if you ask them what kind of fees you are paying on your specific investments, that's a different question.

[Travis]

This is all such good info! Thanks everyone! I mean, I instinctively knew there must be more than $40 in fees, but since I didn't see them on my statement... out of sight, out of mind! Luckily, I am already using Vanguard moving forward. Now I have to figure out how to get my old accts out of EJ.

Talk to Vanguard about moving assets. They should be able to do most of the work for you. You don't even need to tell your EJ person.

[secondcor521]

This is all such good info! Thanks everyone! I mean, I instinctively knew there must be more than $40 in fees, but since I didn't see them on my statement... out of sight, out of mind! Luckily, I am already using Vanguard moving forward. Now I have to figure out how to get my old accts out of EJ.

Talk to Vanguard about moving assets. They should be able to do most of the work for you. You don't even need to tell your EJ person.

+1.  Also just as a heads up, EJ will probably charge you an account closure fee (will be somewhere between $75 and $200).  And it could be per account, I'm not sure.  You'll have to pay them, but Vanguard may reimburse you depending on how much you're moving to Vanguard.

[Sandi_k]

This is all such good info! Thanks everyone! I mean, I instinctively knew there must be more than $40 in fees, but since I didn't see them on my statement... out of sight, out of mind! Luckily, I am already using Vanguard moving forward. Now I have to figure out how to get my old accts out of EJ.

Talk to Vanguard about moving assets. They should be able to do most of the work for you. You don't even need to tell your EJ person.

+1.  Also just as a heads up, EJ will probably charge you an account closure fee (will be somewhere between $75 and $200).  And it could be per account, I'm not sure.  You'll have to pay them, but Vanguard may reimburse you depending on how much you're moving to Vanguard.

Make sure you have all the info on the account before you close it. Once it's closed, you won't be able to get info on basis for purchases - so make sure to copy and archive it all first.