They are a full service broker/financial advisor service. Obviously some people still use them and other outfits like IG, etc. If they do, I expect their opinion will depend on the quality of advisor they happened to get, largely based on 'how well' their investments have done I would assume. Perhaps ignorant or unsure of the self-directed options that exist.
I think these outfits face stiff competition now and in the future as less costly etfs, couch potato, DIY, roboadvisors, and massive amounts of online financial information make investing without a full service advisor easier and equally successful.
I don't condemn them, but I and my larger family have no need of them. We'll keep the 1% plus that they would be taking.
Having about the highest cost structure (1 advisor per office, complete with a secretary has to be expensive) you should expect that they will need to be the highest when it comes to fees. I also worry about their knowledge growth, when they do not have other advisors in the office, to ask questions and run ideas past. I also worry why a person wants to be on there own and perhaps away from prying eyes. It is an expensive perk. They will, of course, have a compliance department but nothing suffices as much, to keep an advisor honest, as a Branch manager's watching, listening and asking questions and if necessary, implementing enforcement action.
I think it comes down to people and cost. Both are important. A number of years ago we decided to quit our bank's fee for service investment program. Why. Poor people, poor advice. We shopped for six months or so. The people part was as or more important than the firm or the fees to us. Assuming the people end is right, we would be looking for a firm that does not 'push' certain investments or investment plans because of high commissions or fees. This, among other reasons, was why we ended a 30 year relationship with our bank. I would be looking for an employer who allowed you to use your skills and advice while at the same time providing ancillary services that were of value to clients. Estate planning, tax planning, etc.
I agree. The right investment and planning for the right client and that's a case by case basis. The pressure at one of the Big 5 and at EJ is enormous. I don't agree with it.
I'd rather take less and know i'm doing the right investment and recommendation plan than be pushed into selling the latest product for whatever reason. I find it distasteful to but it gently. Plus the fact that it's referring as selling clients on this and that kills me. I want a corporate culture where that word isn't even used for clients.
I've worked with an Edward Jones advisor for 8+ years and I'm happy with the service. I hold mostly dividend paying stocks and trade little as I am a buy and hold investor. I moved my RRSP account from one of the big bank brokerages to EJ due to the fact that I was getting very poor advice and service. My big bank advisor was recommending risky, high MER investments, and clearly not looking out for my interests. This was when I started on the path of educating myself on learning how to invest myself. I trade very little and haven't added to my account with EJ in years, other than through the dividend reinvestment program. I don't pay an annual account management fee at EJ as I've opted to continue making my own investment decisions. So the only fees I pay are commission fees on new purchases and t I manage all my other investments through my trading account and have learned a lot. The benefit I get from EJ is their monthly investment recommendations which I'm able to leverage for my own self-directed investments. The bottom line is I have a good relationship with my advisor, which I think is key.
I helped a friend (small business owner) who asked me to review her investments. She's been with Edward Jones in the US for a long time. Mind you, each advisor is different, so her experience with one advisor probably has nothing to do with another person's experience with another advisor.
I reviewed her EJ docs and investments they got her into. It all looked very sensible and the performance was on par with standard index benchmarks. Of course there are the fees, which did seem high to me, but she's someone who will not manage her investments on her own. She absolutely needs a helping hand and given that, I think the fees were reasonable. The investments were reasonable. Overall, I found nothing to complain about.
That being said, each advisor is likely different, so I wouldn't read too much into her good experience.
To OP:you aren't going to get a lot of positive feedback about Edward Jones (or any other advisor) on a DIY forum, because of the natural inclinations of the regular participants. But, if a financial advisor is your choice, there are at least a couple of positive reviews above.
A forum community dedicated to Canadian personal finance enthusiasts. Come join the discussion about investing, stock portfolios, equities, frugality, real estate, market trading, taxation, retirement, and more!