When I was 20 I opened and a Roth IRA with Edward Jones and maxed it out. 12 years later, I just maxed it out one more time.
I've just started making good money and said he can invest in stocks and other stuff for me in an individual account.
I told him I just opened a Fidelity account and put some money in there. 80%VTI/20%QQQ. I plan on doing that every month. Same amount of money each time.
He said that's fine but he can make me more money because he knows more about stocks and he's following the market.
Is it really better to go with him at Edward Jones? I've read the fees are high.
I kinda just want to leave my Roth IRA with him and do the investing on my own. But idk if that's just me being ignorant on how easy it is.
I'm not asking for financial advice in the sense of what to invest in. More about is it better to invest like this on my own or give money to a FA?
Edward Jones advisor wants me to invest with him instead of on my own.
byu/Sour_Socks ininvesting
Posted by Sour_Socks
34 Comments
Whatever happens, do not let them suggest a gold IRA….
He just wants to get paid
He knows nothing and you should consider something other than the qqq’s for the long haul. You’re about to buy a bunch of space x, open ai, and every other mega ipo being rammed down our throats the rest of the year. Vti will buy early and often too.
Just VT and never hire anyone. When you get a bit older look at Vanguard target dated funds and never look again. It really is that easy
You talked to a salesman. His job is to make money. Where does that money come from?
Its generally not worth it when you can just invest into index funds.
No one can fully guarantee to make more money than the broad market. He wants your business because he wants your money. Im sure others in this sub would have different opinions on your allocation but I personally think an 80/20 split in VTI and QQQ is fine. You can always reallocate later based on your risk tolerance. Just my 2 cents
Almost nobody needs a financial advisor. Especially one that charges commissions or based on AUM.
Also, study after study shows that financial advisors do not consistently beat the market and that they especially don’t beat the market by enough to justify their fees.
*Is it really better to go with him at Edward Jones?*
No. Ask if he has a fiduciary duty to you. Don’t take financial advice from a planner that doesn’t. He wants to keep you as a customer because he makes a commission off of you. For your needs, the Boglehead 3 fund strategy is just fine.
As someone who’s been investing on my own for a long time, I’ve found that if your plan is to just buy index funds like VTI and QQQ, there’s no reason to pay someone to manage your money. My employer uses Edward Jones to manage our SIMPLE IRA plans and honestly while I do like my guy on a personal level, the returns he’s getting me aren’t that much better than index investing. I personally have my Roth IRA and brokerage at Fidelity that I self manage and buy mutual funds in. FSKAX (a Fidelity mutual fund version of VTI) being one of my primary holdings with other mutual funds to supplement my portfolio where needed consistently beating the returns my financial advisor is getting me in my SIMPLE IRA.
TLDR he wants to manage your money so he can make more on fees and MAYBE get you better returns. Returns are never guaranteed.
Its a personal choice. I have always said if you do not have a complicated situation and in the accumulation phase and buying for retirement , you probably do not need a RIA , just invest in broad based index funds and call it a day.
However I do not hold the option much of reddit has what is “RIA are all scams” . Well I think their benefits are other services they may help with outside of stock picking or picking funds
Asset allocation , tax planning , estate planning , and most importantly perhaps stop you from doing something dumb like panicking based on world news and selling all your assets and buying puts because you are convinced the world is ending, or betting it all on some meme stock because you read about the next short squeeze on twitter that will guarantee make you 100x richer in a few days.
However at the accumulation phase you really do not need much advise , just invest in your 401k/IRA/ROTH or whatever and buy index funds. If you are not prone to panicking or making decisions like to panic sell and go short or invest everything in the next meme stock, an RIA probably won’t offer much value.
Of course he wants to invest your money. He wants to get paid. Do research on Edward Jones and you’ll quickly learn why that would be a bad idea.
Edward Jones are the worst fucking leeches. RUN!
They put your money in a generic total market or S&P500 fund, charge a 1.5% expense ratio, *and* yearly flat rate management fees. Then brag about how great they are when their returns are trailing the market.
Seriously go with anyone but Edward Jones.
Of course he does. Tune out the noise.
Speaking as a financial advisor, our main contribution to a client is helping them make wise financial decisions along the way in life. Whether or not to save in a Roth. Backdoor Roth contributions. Roth conversions when it makes sense to. Having a strong process of investment selection matters too, but an advisor who lives by selling performance will die by that sword as well. Most of the value an average client will receive will come in the way of discipline to save in that Roth every year and tax savings from not screwing things up along the way or taking every advantage tax-wise everywhere they can
Why on earth are you leaving your Roth with them? You don’t want to look back years from now and realize how much you’ve paid them, for literally nothing. And even worse, most of the time they actually underperform. It’s a racket.
Run away.
lol. Lmao even.
Edward jones has a god awful reputation for a reason. Run, not walk away.
>car salesman wants me to buy a car every day
Okay? I want a unicorn while we’re at it, who cares what he wants?
Never Edward Jones.
Paying for someone better at managing money to manage your money is sometimes a good idea. Depends on the person and situation.
But never Edward Jones. By far the least qualified and most pushy “advisors” (salesmen) I’ve had to interact with.
Get all your money out of Edward Jones as soon as possible, there’s nothing they can do for you that you can’t do for yourself. Fidelity can help you move your IRA to them.
My wife has Fidelity for her brokerage and I have Vanguard, they’re both fantastic for DIY index investing.
Someone from Edward Jones will probably show up in this thread and start spouting nonsense, just ignore them.
I would skip Edward Jones for Fidelity on all of the accounts. They are more expensive in fees, and not adding any real value. If your broker knew how to make more cash, why is he working for them instead of day trading his own money. The reality is that most brokers don’t pick better funds, and he will be forced to sell you their funds that pay the biggest commision to them. Run to Fidelity.
[ Removed by Reddit ]
The guy at my street corner also wants me to give him money every morning
Basically he will lose his value add when the market slides. If he doesn’t bring anything else to the table besides supposed market insight then walk away. If he’s willing to help you plan for your financial goals then maybe.
Nope, waste of time and money. Almost guarantee he won’t make you more money.
these are sales guys
Even though overall I’ve done pretty good financially, Edward Jones was the biggest mistake I ever made.. they take the most money, while earning just average amounts..
If a used car salesman told you that you should buy a used car from him, would you be surprised?
I also want your money.
Yes. He know more about the market than you or at the very least will be watching the market 100% of the workday (and not speaking to new customer) while you’re out there working the factory line. That level of professional focus is indeed something of value. He will make about 10% more than you each year.
And that value will cost you about about 5% in brokerage fees every time you/he buys an investment, 5% every time you/he sells an investment, and a 1.35% management fee for him to be able to prove to you he can earn 10% more each year.
My favorite answer to these sorts of pitches is “then why are you working here? Just sit at home and put your money where you mouth is.”
I do not have a finance advisor however one thing worth considering is they can be helpful, especially down the road when managing the other side of the equation, withdrawal schedules and strategies, etc.
Edward Jones requires basically zero qualifications to be an “advisor” and charges some of the highest fees. If you want assisted investing, go to a real platform.
Few things:
1. They only make money if they invest yours. And whether you make or lose money, they still get paid. So they’re not truly incentivized to make you money – they’re only incentivized on investing your money.
2. Asking is they have fiduciary responsibility is like asking a doctor if they follow the Hippocratic oath. Yes, it’s important, but it’s such a low bar. It’s like going to a restaurant because they follow food safety laws. That still doesn’t tell you if they are experienced, competent, or ethical.
3. If you know how to, and can invest in index funds on your own, you’re golden.
They’re a middle man in the same light the insurance companies are- they exist to limit your potential and charge you out the ass for things out of your control all while making you sign a paper that absolves them of all responsibility.
I have never heard of an Edward Jones guy doing anything so exotic that they could get you better returns (after their fees) than you can get yourself, and Im not sure I would trust one that did.
You are right on the money with Fidelity. If you want advice, pay a fee only advisor. Edward Jones guy gets paid based on how much money you give him, a fee only advisor gets paid from the $250-$500 you give them for the consultation.