Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-15-2015, 10:48 AM   #21
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
Quote:
That is one cynical, manipulative piece of BS.
Do you need any more evidence that they cannot be trusted and you should move your accounts away from them as soon as possible.
__________________

__________________
growing_older is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-15-2015, 11:02 AM   #22
Recycles dryer sheets
TeeRuh's Avatar
 
Join Date: Oct 2007
Posts: 248
My experience with EJ (like OP an inherited account) is that they pretty much exclusively sell American Funds. Definitely not as bad as most other investment companies. The agent in the office (they are pretty independently ran) actually did pretty well for my parents who had no clue regarding investments.

t.r.
__________________

__________________
Life is a Holiday!
TeeRuh is offline   Reply With Quote
Old 08-15-2015, 12:56 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,283
Quote:
Originally Posted by panacea View Post
I'm not an advocate for Ed Jones- actually don't like them at all. But they're not really talking about index funds at all. The point of the article is that you shouldn't compare your own portfolio returns to a broad market index. For example, if your portfolio is 5% cash, 45% bonds, 10% international stocks and 40% US, then you shouldn't compare your returns to the DOW. It's like comparing apples and oranges. Last year was a good example, if you had everything in US Large caps, you would have done well and the S&P 500 Index would have been a good benchmark. But if you had a diversified portfolio, then you didn't do as well because some asset classes lagged... like international, real estate, etc. Their point about the fees was simply that a benchmark (index) like the S&P 500 doesn't actually have an expense ratio because it's not a mutual fund. So fees need to be considered.


I do not read that the comparison is between the whole portfolio and the S&P.... I think it is between the stock fund they got you into vs the S&P.... and if it does bad, do not get all excited....


I also think that the fee part is also a strawman.... a good S&P fund is very close to the S&P... the fees are not that bad... now, if they put you into a fund with 1% or even 2% fee.... it will not be close... fees do matter... and if you actually compound the fees over a couple of decades it make a HUGE difference....
__________________
Texas Proud is offline   Reply With Quote
Old 08-15-2015, 06:22 PM   #24
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by Tailgate View Post
2. Indexes are generally not diversified across different types of investments. This means they often can have wider swings in value. And to realize the extreme highs of an index, you must also be willing to accept the extreme lows.

wow...
They are right about that. Most people do not have stomach/plan for it....that is why fund investor returns are almost always lower then fund returns.
__________________
eta2020 is offline   Reply With Quote
Old 08-15-2015, 06:27 PM   #25
Recycles dryer sheets
 
Join Date: Jan 2015
Location: Toronto
Posts: 179

Quote:
A couple of times a year DH is also invited to come in and talk with the agent about refining his strategy. I guess EJ can point out that Vanguard doesn't do that either.
And that the nub of it. If you want advice, as many people do, you have to pay for it. You can do your own plumbing, but I hire a plumber because I don't have those skills. I am glad that when it comes to money, I can buy wholesale instead of retail, but I get that a lot of people can't. I think what makes the financial industry more difficult to take is that the fees are often not transparent.
__________________
Davis65 is offline   Reply With Quote
Old 08-15-2015, 07:16 PM   #26
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 1,826
Fidelity has a local office about ten miles from my house where you can meet in person with an advisor if you wish. And it is possible to buy their Spartan index funds with fees about the same as Vanguard.

However, if you know nothing about investing and rely on one of their local office people, I wonder if they would advise to you go with index funds, or a bunch of their actively managed funds. I've never explored it because I have no interest in talking to them in person. It would be an interesting experiment.

My guess is they would look for ways to make more money than their low cost index funds alone, but would not rip you off nearly as badly as EJ would.
__________________
Ready is offline   Reply With Quote
Old 08-15-2015, 08:00 PM   #27
Full time employment: Posting here.
jjquantz's Avatar
 
Join Date: Jan 2014
Location: Northern Virginia
Posts: 848
Quote:
Originally Posted by Ready View Post
Fidelity has a local office about ten miles from my house where you can meet in person with an advisor if you wish. And it is possible to buy their Spartan index funds with fees about the same as Vanguard.

However, if you know nothing about investing and rely on one of their local office people, I wonder if they would advise to you go with index funds, or a bunch of their actively managed funds. I've never explored it because I have no interest in talking to them in person. It would be an interesting experiment.

My guess is they would look for ways to make more money than their low cost index funds alone, but would not rip you off nearly as badly as EJ would.
I can tell you that, at least at this local office, they will steer you to a bunch of higher fee funds. I went in a few years ago and they created a set of recommendations for me. The portfolio was probably worth about $300K at that time and their suggested list must have had 30 different funds - none of them index, all of them with higher expense ratios. Needless to say, I didn't follow their advice. At least they didn't push to actively manage my account for an additional percentage.
__________________
jjquantz is offline   Reply With Quote
Old 08-16-2015, 01:37 PM   #28
Dryer sheet wannabe
 
Join Date: Aug 2008
Posts: 22
Perhaps I am missing something, but I don't see the issue here. If anything, it looks like the OP is just confusing indices with index funds. It all looks accurate to me, and a big part of my job is selecting appropriate indices for institutional investors... Just my 2 cents.

Would it be better if the article was discussing how to construct an appropriate index for your particular investment mix, instead of basically saying, its too hard to do, so don't bother? Sure, but that seems a bit farfetched to cover in a 1-2 page "report" like this, especially when considering the degree of financial knowledge of the clientele audience this was intended for.

Before I am accused of being biased, I think my Dad's Ed Jones advisor should be in jail for having a 65 year old retired man 100% in equities in 2008. Plenty of lower hanging fruit to grill them on than this IMO.
__________________
uofmbish is offline   Reply With Quote
Old 08-16-2015, 02:54 PM   #29
Full time employment: Posting here.
 
Join Date: Apr 2015
Posts: 903
Quote:
Originally Posted by uofmbish View Post
Perhaps I am missing something, but I don't see the issue here. If anything, it looks like the OP is just confusing indices with index funds. It all looks accurate to me, and a big part of my job is selecting appropriate indices for institutional investors... Just my 2 cents.

Would it be better if the article was discussing how to construct an appropriate index for your particular investment mix, instead of basically saying, its too hard to do, so don't bother? Sure, but that seems a bit farfetched to cover in a 1-2 page "report" like this, especially when considering the degree of financial knowledge of the clientele audience this was intended for.
I think one problem with the article is it equates to or at least implies indices and index funds are the same and only stock-based indices at that (primarily the S&P 500). The article makes it seem as if index investing is bad due to lack of diversity and risk management when you can easily get the benefits of diversification by investing in different index funds.

As someone has mentioned it's not so much the factual content, it's the way they were spinned that's quite crafty. Someone receiving that explanation and has limited or no investing know-how will probably happily accept 1-2% in EJ advisor fees as well as a portfolio of high ER funds that perform poorly compared to a similar stock/bond allocation using index funds.
__________________

__________________
hnzw_rui is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Merrill Lynch or Edward Jones?? rdjrn FIRE and Money 95 07-23-2012 10:09 PM
How Edward Jones advisors are compensated Helen FIRE and Money 3 10-18-2011 12:38 PM
Mom, Edward Jones, and a CIT Bond region2 Other topics 7 08-16-2009 04:55 PM
Things must be slow at Edward Jones... Gonzo Other topics 10 10-04-2006 11:09 AM

 

 
All times are GMT -6. The time now is 03:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.