Edward Jones and my remorse

[RobbieB]

No wonder they are so popular, lots of offices. Pretty good marketing ploy, have lot's of "help" where everyone can see them. The one I dealt with was a 2 person cubby hole. Front desk and the broker in the office next.

Right next door to Bank of America.

 

[djsander]

Lots of poisonous snakes in Louisiana and you can add these guys that that list.

We got out of there as soon as I retired. I noticed you are listed in The Woodlands. We lived in Conroe for awhile. I can see why there would be so many in the Woodlands area as it’s the high rent district. Although I would think the people would be smarter than that. I understand there is an overall lack of financial acumen in society and they seem to prey on peoples inability to do even the smallest of research. One of my former colleagues who i thought to financially smart even fell for their marketing ploys and rolled his 401k into them rather than with the fidelity 401k that the new company offered. Oh well to each his own. We got burnt once about 24 years ago by a “financial advisor” didn’t loose much, but knew we would never do that again.

 

[TheWizard]

Lots of poisonous snakes in Louisiana and you can add these guys that that list.

That was funny, really funny!!!

 

[aja8888]

We got out of there as soon as I retired. I noticed you are listed in The Woodlands. We lived in Conroe for awhile. I can see why there would be so many in the Woodlands area as it’s the high rent district. Although I would think the people would be smarter than that. I understand there is an overall lack of financial acumen in society and they seem to prey on peoples inability to do even the smallest of research. One of my former colleagues who i thought to financially smart even fell for their marketing ploys and rolled his 401k into them rather than with the fidelity 401k that the new company offered. Oh well to each his own. We got burnt once about 24 years ago by a “financial advisor” didn’t loose much, but knew we would never do that again.

The Woodlands wasn't a high rent district when we moved here in 1991!

But it is now and that's a good reason for the EJ folks to roost here.

Conroe, Willis and Magnolia are growing like gangbusters too!

 

[kgtest]

2% is absolutely horrible.

You should take the advice you gave to the OP.

Yeah we have 529s through a few organizations and they are doing much better then 2% this year.

I am up 21.5% this year and my 70 year old father is up over 30%. All of our money is invested in low cost high growth ETFs at Vanguard.

Fast Eddy took you to the cleaners this year. Lesson learned.

Just buy VTI or if you want growth, MGK.

 

[NW-Bound]

I just checked the EJ locations and there are three of their offices within a 2 mile radius of our house! But there are several 55+ communities around here for them to feed on.

I put in our zip and there are only 3 EJ within 5 miles. Put in our old address in Louisiana and there were 15 within 5 miles. I remembered they seemed to be on every corner in Louisiana, I knew multiple people that used them and when our company merged with another company the EJ coffee cups and business cards showered the kitchen in our office.

While reading these posts, it occurs to me that I have seen Edward Jones offices in small towns, where no way you would expect to see Schwab or Fidelity.

So, I go on Google Map, and holy mackerel, they are everywhere! Even in a little unincorporated town in upstate AZ with a population of 2000. Man, I wonder how many of the 2000 have accounts there to support a broker and perhaps his wife as his secretary.

 

[racy]

... In the small city where I live (under 100,000) there are two EJ offices.

There are 5 EJ locations in our town of 23,274.

 

[braumeister]

Their website says they have "over 15,000 locations" throughout North America.

Schwab has about 300 and Fidelity has about 200 so there is no real comparison.

 

[athena53]

DH and I saw one in Sitka, Alaska when we were there a few years ago. They truly are everywhere.

I am, however, the beneficiary of the work they funded to pave and maintain portions of the Katy Trail in MO- I've enjoyed many bicycle rides on the portion in Hermann. There's that.

 

[kgtest]

While reading these posts, it occurs to me that I have seen Edward Jones offices in small towns, where no way you would expect to see Schwab or Fidelity.

So, I go on Google Map, and holy mackerel, they are everywhere! Even in a little unincorporated town in upstate AZ with a population of 2000. Man, I wonder how many of the 2000 have accounts there to support a broker and perhaps his wife as his secretary.

Lol, I know a guy who hired his wife to be his "Flight attendant" on his $12MM jet. Guess what he does for a living... wait for it...

Financial Advisor for NFL players.

 

[MRG]

DH and I saw one in Sitka, Alaska when we were there a few years ago. They truly are everywhere.



I am, however, the beneficiary of the work they funded to pave and maintain portions of the Katy Trail in MO- I've enjoyed many bicycle rides on the portion in Hermann. There's that.

They're based in St. Louis.

 

[SumDay]

Be glad you didn't go on for decades paying for their new vacation homes and pools. What everyone else said: Vanguard, Fidelity or Schwab.

 

[1242Vintage]

I live in a city with a population of 14,000. Have 7 EJ offices in town!

A few years ago daughter was briefly dating a guy who was a new employee at an EJ office. I have an MBA and initially thought that might have something in common and tried to make some small talk about finance one afternoon when he was over.

Very nice and respectful guy, but It became apparent very quickly in our conversations that before joining EJ had zero background, experience or education in finance and consumer investment management. Found out he was a prison guard prior to joining EJ.

 

[athena53]

Question for all you "I-don't-need-no-stinkin'-advisor-it's-all-in-ETFs" people:

I did some research and it appears that the mutual fund companies have a lock on 529 plans and mutual funds are what you get. I easily max out the contribution to my state plan (MO) for which I can get a deduction on my state taxes so I can put the rest in any state's plan. Is there any way to invest 529 funds in ETFs? I'd have more flexibility with custodial accounts, of course, but then the kids own them, they have to pay taxes along the way and when they liquidate, they may affect eligibility for financial aid and they can spend it all on hookers and blow when they turn 21.

Recommendations wlecome.

 

[OldShooter]

Question for all you "I-don't-need-no-stinkin'-advisor-it's-all-in-ETFs" people:

I did some research and it appears that the mutual fund companies have a lock on 529 plans and mutual funds are what you get. I easily max out the contribution to my state plan (MO) for which I can get a deduction on my state taxes so I can put the rest in any state's plan. Is there any way to invest 529 funds in ETFs? I'd have more flexibility with custodial accounts, of course, but then the kids own them, they have to pay taxes along the way and when they liquidate, they may affect eligibility for financial aid and they can spend it all on hookers and blow when they turn 21.

Recommendations wlecome.

It's been a while, but when DW researched this she set us up on the Iowa plan because they offered VG funds. Probably conventional mutual funds but IMO to an investor in a tax-sheltered account the differences between the two flavors of mutual funds are negligible.

So I'd suggest that you just shop the current states' plans to see which of them offers things you like.

 

[tulak]

I would check the following two links regarding 529s:

https://www.bogleheads.org/wiki/529_plan
https://www.bogleheads.org/wiki/529_plans_by_state

The last link seems to be a good overview of what each state offers.

 

[Dash man]

Question for all you "I-don't-need-no-stinkin'-advisor-it's-all-in-ETFs" people:

I did some research and it appears that the mutual fund companies have a lock on 529 plans and mutual funds are what you get. I easily max out the contribution to my state plan (MO) for which I can get a deduction on my state taxes so I can put the rest in any state's plan. Is there any way to invest 529 funds in ETFs? I'd have more flexibility with custodial accounts, of course, but then the kids own them, they have to pay taxes along the way and when they liquidate, they may affect eligibility for financial aid and they can spend it all on hookers and blow when they turn 21.

Recommendations wlecome.

When I researched 529 plans I didn’t see any that offered ETFs, and I assume it’s because they don’t want you trading frequently. Most plans restrict how often you can move money between funds or strategies, but allow you to change for new money at anytime. I know Pennsylvania, Utah and Nevada all use Vanguard funds. I’m sure there are others. Each state has its own rules about deductibility of contributions. I’m fortunate in PA to be able to contribute to any state 529 plan and deduct it from my state tax bill. Fees are low in PA and Utah.

 

[Livin Large in MT]

Yes, EJ makes it clear that your job is to be a salesman. Don't think about anything else.

 

[Livin Large in MT]

In yet another part of my life, I ran the 529 plan for the State of Montana. I moved it all over to Vanguard funds, probably the best thing I have ever done.
Because the plans are administered by states, they are subject to all sorts of state laws and regs. Often that keeps ETF's out as most 529 administrators are not experts in financial instruments.
To get the state benefit, you must buy plans in your state. If the plan does not offer cheap funds, it's a dilemma.

 

[SecondCor521]

Question for all you "I-don't-need-no-stinkin'-advisor-it's-all-in-ETFs" people:

I did some research and it appears that the mutual fund companies have a lock on 529 plans and mutual funds are what you get. I easily max out the contribution to my state plan (MO) for which I can get a deduction on my state taxes so I can put the rest in any state's plan. Is there any way to invest 529 funds in ETFs? I'd have more flexibility with custodial accounts, of course, but then the kids own them, they have to pay taxes along the way and when they liquidate, they may affect eligibility for financial aid and they can spend it all on hookers and blow when they turn 21.

Recommendations wlecome.

The state tax benefits are one of the best features of 529s. Since you mentioned you're investing for your grandchildren, what I'd consider doing is checking the state tax benefits for the states where your children live.

If those state tax benefits are appealing, you could consider trying to set up an arrangement with your children that you would give them $X with the expectation that they would contribute that to 529s for their kids. Then your kids would be able to take advantage of their state tax benefits.

Aside from that, I believe the savingforcollege.com website evaluates all the 529 plans by state and ranks them for both residents and nonresidents. You could take a look at the nonresident ratings there.

 

[mhk7]

Just for fun I checked out how many EJ office are in my town of around 43,000 pop...17 offices...and my FA had a very nice office, and a nice Christmas box. Of course I know I paid for it in real dollars!

 

[OldShooter]

I ... To get the state benefit, you must buy plans in your state. ...

Not always. We get a state rebate for any 529 plan, regardless of the state. It's not a huge amount but it is free money.

 

[foxfirev5]

Yes, EJ makes it clear that your job is to be a salesman. Don't think about anything else.

Absolutely. Years ago I was told by my boss to let management worry about the high level stuff. My only job was to maximize my paycheck. Bulldozers or bonds it's all the same.

 

[travelover]

Lol, I know a guy who hired his wife to be his "Flight attendant" on his $12MM jet. Guess what he does for a living... wait for it...

Financial Advisor for NFL players.

I always though the ideal "job" would be to find 20 individuals with $5 million each and be their financial advisor at 1% AUM. Put their money in index funds and answer an occasional call.

 

[athena53]

The state tax benefits are one of the best features of 529s. Since you mentioned you're investing for your grandchildren, what I'd consider doing is checking the state tax benefits for the states where your children live.

Thanks to everyone for your advice! They live in Iowa, which offers Vanguard Funds. If EJ won't let me open an Iowa account, I'll do it directly.