ED Jones

[frayne]

Anybody using Edward D Jones for managing a retirement portfolio, and if so, thoughts, returns, etc. ?

My neighbhor has been with EDJ for about five years and is withdrawing about 8% and his initial investment has grown even at the 8% draw rate.

 

[John Galt]

I have been using Edward Jones for years, although
they don't really manage my portfolio. They mostly
answer questions and do what I tell them; just like everyone else when I was a captain of industry
Anyway, I have been quite satisfied. Not an easy thing to accomplish.

John Galt

 

[JWR1945]

My neighbor has been with EDJ for about five years and is withdrawing about 8% and his initial investment has grown even at the 8% draw rate.

Here is an important technical clarification: we generally talk about withdrawal rates (of roughly 4% over 30 years) in real dollars based upon a portfolio's initial balance. There are other approaches. One of the better alternatives is 5% of the portfolio's current balance. Another is a combination of the two: withdrawing a minimal amount that meets all expenses and withdrawing another portion that varies with the investment returns.

It is likely that he is talking about 8% of the portfolio's initial balance without making adjustments for inflation. Or he may be talking about a time period shorter than 30 years. [There is also the possibility that he is talking about 8% plus inflation lasting indefinitely. If so, he is likely to encounter an unpleasant surprise in the future.]

He may have an annuity. If his life expectancy is substantially less than 30 years, his payout can be larger than we what would calculate because the insurance company absorbs the risk of his living longer than expected.

Have fun.

John R.

 

[Bob_Smith]

Hi frayne,

When you say that your neighbor is withdrawing 8%, and his investment has grown even at that draw rate, it appears that you may believe that you can shop around for the right brokerage company, give your money to that company, and let them work their magic. If that's what you're thinking, you're really asking for trouble. It's not that simple - not even close. You wouldn't want to cross the threshold of an EDJ office without completing a great deal of study.

I, too, have used EDJ. I bought some CDs there years ago and they were fine. But I would NEVER let them manage my money.

 

[John Galt]

Hello frayne! Bob-Smith is 100% right. I've used EDJ
for years but I agree with every word he posted.

John Galt

 

[BUM]

BINGO! Those selling the American Dream are keeping the profits for themselves. My neighbor tells a similar story. But he is pegging my BS meter.

I have a guy trying to get my account, saying that 15% per year is conserative. He wants me to establish a LARGE cash account and he will sell naked put options routinely. He says, "Hey, the worst that happen is that you might wind up with a 1000 shares of Home Depot for a while. But dont worry we can sell a few calls then dump it.!"

Forget these parasites. Develop a conservative balanced portfolio and stop worrying start living.

BUM

 

[db]

BINGO! BUM,

Stop worrying and start living is what's it's all about. I think a simple portfolio allocation divided between Vanguard's total stock market and bond indices (e.g. Scott Burns) or the slightly the more elaborate Coffee House allocation, coupled with a variant of a 4% draw rate meets the "stop worrying and start living" criteria. I enjoy reading these posts, but they don't change my strategy. I follow a path between the two in that I use Vanguard's TSM, TIS, REIT, and short-term bond indices, but aiming to move to TBM when interest rates rise. I try to stay below a 4% draw rate.

What, me worry?
db