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Investing is all the buzz these days, with people of all ages looking for ways to invest their money.
With the birth of automated systems and robo advisors, there is now more competition than ever, forcing some traditional investment firms to revise their strategy.
One group of financial advisors that’s still in the game is Edward Jones, a group that has a bit of a rocky presence online.
We’ll take a look at this love/hate relationship and see if it’s worth investing your time (and money of course).
What Is Edward Jones?
Since 1922, Edward Jones has been in the business of helping individuals and companies invest their money wisely.
Throughout the years, they’ve served more than 7 million clients around the United States and Canada, making them one of the longest-running investment firms around.
They have a long list of services that include investment management services and personal financial advising.
Unlike some of the new tech-heavy firms online, Edward Jones is sticking with the human aspect and providing one-on-one customer care for all of their current and future clients.
How Does Edward Jones Advisory Services Work?
Because there is a human element involved, the first thing potential clients will do is meet with their advisor.
During this time, the client’s financial goals are assessed along with their financial situation.
The aim is to find options that help clients reach their goals and build up a financial portfolio that is feasible to maintain yet effective for building up revenue.
What Does Edward Jones Offer Investors?
Once a potential client has their first meeting with an advisor, they can expect a detailed outlook of options to help them reach their goals. A few key things that they do in the process include:
- Build a customized investment strategy
- Check out relevant stocks
- Determine the fair price of stocks
- Creates a long-term plan that caters to the client’s wishes.
Edward Jones Account Options
The investment group has a few account options, most of them catered to different types of investors.
These account types include:
1. Guided Solutions Funds
- Minimum Investment: $5,000
- Commission-Based
2. Guided Solutions Flex
- Minimum Investment: $25,000
- Asset-Based
3. Advisory Solutions Fund
- Minimum Investment: $25,000
- Asset-Based
4. Advisory Solutions UMA
- Minimum Investment: $500,000
- Asset-Based
Retirement Accounts
When it comes to planning what to do with one’s life’s savings, Edward Jones has a few options. These include IRAs and Roth IRAs on top of401k and custodial accounts.
These accounts come with estate planning and trust services. Both of which are put in place to assist with the financial future of their clients.
Brokerage Account Options
As far as brokerage accounts, Edward Jones offers a few options to those who like to be more hands-on with their investments.
Their accounts come with guided solutions and even some decision-making advisors that will take the guessing out of investing and allow clients to just get in and plan their financial future.
529 Plans
A 529 plan from Edward Jones is a tax-advantaged savings plan that is meant to build up money over time for college.
There is no minimum contribution and parents, or guardians can feed money into this type of account over time to grow it with help from collected interest.
Cash and Credit
The investors offer several ways to access cash and even have a credit card that allows clients to earn Loyalty points.
Debit and credit cards are both Mastercard and are accepted wherever major credit cards are accepted and more.
In addition to cash and credit, customers have the option to get checks and savings account too.
Any of these accounts are perfect for getting ahold of investments, something that all investors want to do as quickly as they can.
Edward Jones Wealth Strategies
When it comes to wealth strategies, the investment group offers several.
When choosing a strategy, investors should look at their financial goals not only for themselves but for future generations as well, choosing a wealth strategy from the following options.
Guided Solutions
With this option, investors will still be able to dabble with their money but will have guidance along the way.
Financial advisors will work one-on-one with potential clients to help them build up the portfolio they want and give advice along the way.
Advisory Solutions
This solution is perfect for those that want to invest but don’t want to do the bulk of the work.
Instead, investors can pass the reins over to an analyst that will research the market and make all of the calls when it comes to investing money.
Client Consultation Group
Your financial advisor will not work alone on this type of account. With this account type, advisors will have a team of more than 5,000 investment professionals giving them expertise and advice on where to put their money.
This group will work for your money around the clock to grow it to higher levels than you might be expecting.
Does Edward Jones Have Any Fees?
Edward Jones does have fees. Fees are one of the biggest downfalls according to reviews online, making them something that you should check out before you decide to invest.
When you put them head-to-head with the competition, you’ll find that their fees are higher than most. Here, we’ll break down their fees to help you decide if this is the investment firm for you.
Edward Jones Fees Explained
The fees at Edward Jones are based on the deposit amount and decrease the more that’s deposited. For the first $250,000, investors will have an annual fee of 1.35%.
The next $250,000 goes to 1.30% and the next $500,000 goes to 1.25%. If accounts reach over $10,000,000, investors are looking at an annual fee of 0.50%.
Trading fees come in at $4.95 per trade, something that could add up over time.
Some other fees that you have to keep your eyes open for before investing include:
- Stocks – expect to pay 2.5% of the invested amount
- IRAs – There is an annual fee of $40 along with $20 for each additional account
There are other fees involved, most of which depend on the type of account you have and the amount that you have invested. The more you have, the less your fees.
Edward Jones Poor Customer Reviews
If you’ve ever surfed around the web for information about Edward Jones, you might have found that there a number of poor reviews.
These reviews often point out the high fees and the fact that some customers have lost money.
Still, when investing, that’s the name of the game and something that all investors should consider before signing up.
In some of the most common threads out there, a large number of those with negative things to say were typically using robo advisors.
When comparing robo advisors to investment groups like Edward Jones, there is one big thing they don’t have in common, fees.
Robo advisors are popular on the web for little to no fees, something that you don’t get with a face-to-face advisor.
Still, it’s worth noting that Edward Jones offers a human touch, something that robo advisors can’t.
Many of the financial advisors have been in the business for years and know how the market works forward and backward.
Edward Jones Pros and Cons
Pros:
- Lots of local offices
- Wealth management assistance from professionals
- A very passive platform
- Low fees for very high balances
Cons:
- High fees for low to moderate amounts
- Not keen on active trading
- They shy away from many popular investments
- The commission makes financial managers more ready to trade
How Does Edward Jones Compare to Other Financial Advisors?
When you throw up Edward Jones next to the competition, you’ll notice a few things. First of all, the presence of robo advisors smashes the high rate from Edward Jones.
On top of that, other firms have better reviews and different features, some of which make them more appealing. For a look at how they stand up to their top competitors, take a look below.
#1. Facet Wealth vs. Edward Jones
Facet Wealth is a lot like Edward Jones, adding that personal touch. Where they fall short is when it comes to annual fees, which go from $1,800 to $6,000.
#2. Betterment vs. Edward Jones
Betterment doesn’t have a minimum when it comes to opening an account plus, offers 410K. They crush Edward Jones when it comes to customer reviews, getting many positive ones from around the web.
#3. Edward Jones vs. Personal Capital
Personal Capital offers automated advice but comes with an account minimum of $100,000. That’s pennies compared to Edward Jones.
4. Ellevest vs. Edward Jones
With Ellevest, there is no account minimum and fees fall somewhere between $1 and $9 per month. This platform targets women and says to take all of the guesswork out of investing too.
#5. The Motley Fool vs. Edward Jones
Apart from a financial advisor, investors will have a long list of educational tools that they can use right from the website.
Returns are phenomenal and reviews are amazing making The Motley Fool a good one to look out for.
#6. Fisher Investments vs. Edward Jones
Fisher Investments is another wealth management firm that comes with high-fees and various solutions to help you manage your wealth.
However, like the case with Edward Jones, there are better alternatives listed above.
Frequently Asked Questions
Is Edward Jones a Good Investment Company?
The one downfall about Edward Jones is the fees. However, if you can get past that, they are actually a pretty solid investment firm, offering a unique experience with real human advisors. For those that like to invest with people and get their questions answered, Edward Jones is a solid choice.
Still, with the new trend of robo advisors, you might not want all these services and the fees, so it’s up to you to decide the type of investing you want to go for.
What Are the Fees for Edward Jones?
The fees that you have to pay when you invest with Edward Jones depend on the type of account you have and the type of investments you want to make. For instance, trades come in at $4.95 per trade. On top of that, you may be subject to fees with the minimum amount in your account.
For any amount less than $6,000, you can expect to pay about 2.50%. Take that up to the $10,000 range and you’re looking at paying about 1.50%.
How Do Edward Jones Advisors Get Paid?
Because there are no robo advisors, Edward Jones advisors generally get paid on straight commission.
That means that the more they trade, the more they collect in their pocket.
For each trade that they make, they are usually making a cut of about 36% to 40%, something that can be significant if they grow your money substantially.
Though many investors see this as a bad thing, it can be a good thing as they have an incentive to get in there and trade to make the most money possible.
Bottom Line: Edward Jones Review
As you can see, Edward Jones is a viable option; however, it is expensive and there are better alternatives. Moreover, the fees charged by Edward Jones are aggressive and a tad bit absurd.
We encourage you to explore other options, such as Facet Wealth or Betterment.
