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Edward Jones Financial Advisor Review

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Edward Jones

Edward Jones, the St. Louis, Missouri-based full-service brokerage firm, is one of the most recognizable names in its industry. Providing a wide range of investment advisory services, brokerage services and other products, Edward Jones is a one-stop shop for those looking for personalized guidance and face-to-face interaction. While their fees may seem steep when compared to several discount brokers or robo-bankers on the market today, some may find the wide range of services and personalized approach of their financial advisors worth the money.

Edward Jones Background

Founded in 1922 in downtown St. Louis, Edward Jones has grown from a single office into a nationwide, full-service brokerage firm with branches all across the country. The firm works with just shy of 7 million clients, and it operates more offices than any other investment firm in the U.S. Founded by Edward D. Jones himself, the firm has seen five different managing partners, including the current managing partner, Jim Weddle.

What Types of Clients Does Edward Jones Accept?

Edward Jones works with individuals as well as business owners and their employees. It also provides business services to individuals who are self-employed.

Edward Jones Minimum Account Sizes

The minimum account size will depend on the type of account you open. For instance, the Guided Solutions Flex Account has a minimum of $25,000, but the Guided Solution Fund Account only has a minimum of $5,000.

Edward Jones Account Options

As a full-service firm, Edward Jones has a wide variety of options when it comes to accounts. You can have a regular taxable brokerage account, traditional IRA, Roth IRA, 401(k), custodial account, college savings account and more.

If you’re interested in wealth management services, Edward Jones has four main options:

  • Guided Solutions: For clients who prefer to be more hands-on with their investing, this option allows you to manage investments with the help of an advisor’s guidance.
  • Advisory Solutions: This option leaves daily decision-making to the advisor and is better for those who’d rather not deal with the details.
  • Client Consultation Group: With this option, a group of specialized Edward Jones professionals will assist your advisor in developing your wealth management plan.
  • Estate Planning and Trust Services: The trust services program is used by clients to develop and manage a lasting legacy and also assist with more present financial needs.

Edward Jones Investment Philosophy

Edward Jones selects stocks, bonds, CDs, mutual funds, exchange-traded funds (ETFs) and Unit Investment Trusts (UITs) for its clients based on a buy-and-hold philosophy. In other words, the firm prioritizes reliable, long-term growth over short-term plays.

Fees Under Edward Jones

The fees you pay will depend on the type of product you purchase. When using the investment advisory services like the Guided Solutions and Advisory Solutions programs, your fee rate will be based on the value of the assets in your account. The higher the asset value, the lower the fee.

Value of Assets in Account Annual Fee Rate
First $250,000 1.35%
Next $250,000 1.30%
Next $500,000 1.25%
Next $1,500,000 1.00%
Next $2,500,000 0.80%
Next $5,000,000 0.60%
Over $10,000,000 0.50%

In addition to this program fee, Advisory Solutions clients may also pay an administrative fee. An IRA at Edward Jones carries an annual fee of $40.00 per year. Clients may also pay a portfolio strategy fee, with fees based on the below rates.

Value of Assets in Account Annual Fee Rate
First $250,000 0.19%
Next $250,000 0.19%
Next $500,000 0.18%
Next $1,500,000 0.17%
Next $2,500,000 0.12%
Next $50,000,000 0.09%
Over $10,000,000 0.09%

The following is a comparison between advisory fees at Edward Jones and the national median. Please note that these are merely estimates and actual fees will vary. These estimates only take into account the base advisory fee.

Estimated Fee Comparison*
Your Assets Edward Jones National Median Advisory Fees**
$500K $6,625 $5,000
$1MM $12,875 $8,500 - $10,000
$5MM $47,875 $25,000 - $32,500
$10MM $77,875 $50,000
*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.

Awards and Recognitions

Edward Jones received the second-highest score in the J.D. Power 2018 Full Service Investor Satisfaction Study. The firm received first place in the same study in 2015. In 2017, the firm received an award from WealthManagement.com for corporate social responsibility.

Brokerage Partnerships

As mentioned previously, Edward Jones receives revenue sharing payments from virtually every mutual fund, 529 program and annuity that it purchases on behalf of their clients.

What to Watch Out for

If you have a brokerage account with Edward Jones and your portfolio includes mutual funds, Edward Jones likely is receiving revenue sharing for those products and therefore has a conflict of interest. The same is true if you’re in a 529 plan or you’ve purchased an annuity. Edward Jones does not receive revenue sharing payments for assets within investment advisory programs like Guided Solutions and Advisory Solutions.

Disclosures

In 2004, Edward Jones paid $75 million to the Securities and Exchange Commission (SEC) as part of a settlement after it was alleged that the firm failed to disclose revenue sharing payments it received from a group of mutual fund families.

Opening an Account with Edward Jones

To open an account, you can visit the Edward Jones website to find the advisor closest to you and schedule an appointment. At the first appointment, your advisor will ask you a series of questions to determine what’s most important to you in your investing. From there, your advisor will develop a tailored strategy that takes into account your risk tolerance and your investing goals.

Where Is Edward Jones Located?

The firm had 13,449 branch locations in the U.S. and Canada at the end of 2017, more than any other brokerage firm. Edward Jones has its headquarters in Des Peres, Missouri, just outside of St. Louis.

Tips for Finding a Financial Advisor

  • Using SmartAsset’s financial advisor matching tool can be a great way to take the hassle out of finding a financial advisor. After you answer a few questions about your financial goals and preferences, the tool will match you with up to three qualified financial advisors in your area.
  • If you find that you don’t have quite enough money to meet the account minimums of many traditional advisors, then you may be interested in a robo-advisor. Robo-advisors often have lower minimums and fees while also helping you reach your investment and retirement goals.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research