Is Edward Jones losing financial advisors?
By the end of 2023, Edward Jones employed 19,232 financial advisors. That's a 2% increase from 2022, when the firm had 18,796 advisors. Advisor attrition in 2023 was 4.7%, down from 5.8% in 2022.
Verdict — Is Edward Jones worth it? For the average investor, Edward Jones is probably not the best choice. You could spend more time learning about making investment decisions by yourself and choose a platform with lower fees.
For this reason, the success rate here is probably 20-30%, and that includes those lucky enough to inherit assets. Furthermore, the company does not offer a 401k match to financial advisors, instead offering partnership bonuses to those who reach profitability (typically 3-6 years in).
In addition to ranking No. 1 overall, Edward Jones ranked No. 1 in professional development and compensation. Edward Jones has been the top performer among employee-channel firms in 13 J.D. Power advisor satisfaction studies, which were completed in 2007, 2008, 2010, 2012-2015, 2017-2022.
The growth comes as Edward Jones' attrition rate fell to 4.5% in the third quarter, down from 6.4% in the prior year, according to the earnings report.
By the end of 2022, its 100th anniversary as a firm, Edward Jones counted more than 8 million clients in the U.S. and Canada. Despite slumping stock and bond values, net new assets jumped 10% year over year to $98.6 billion in 2022.
Why was Edward Jones Under Investigation? The recent Securities Exchange Commission (SEC) investigation into financial advisory firm Edward Jones centers around overcharging.
Your financial advisor generally receives between 36% and 40% of the revenue Edward Jones receives from asset- based fees, transactional revenue, ongoing 12b-1 fees, trail commissions, and revenue from premiums generated by activity in your accounts.
Since inception in January 1993, the Edward Jones Stock Focus List has provided an average annual total return of 9.6% compared to 9.5% for the S&P 500. Total returns assume reinvestment of dividends, capital appreciation and an annual management fee of 0.30% (prior to 2009 a transaction fee of 1% was assessed).
The wealthy also trust and work with financial advisors at a far greater rate. The study found that 70% of millionaires versus 37% of the general population work with a financial advisor. Moreover, 53% of wealthy people consider advisors to be their most trusted source of financial advice.
Why not to invest with Edward Jones?
Edward Jones fees are tiered, so they decrease as your account grows in value. Still, a 1.35% fee is high, even compared to other financial advisory firms. These fees are especially high considering most people can create similar portfolios with a little bit of research and a desire to learn more about investing.
Edward Jones does not serve as a fiduciary except for at the Plan level of retirement plans. This means that their advisors aren't legally required to put their clients' needs ahead of their own. Advisors at Edward Jones are not bound to the fiduciary standard at the brokerage level.
Is Edward Jones good? While Edward Jones fees are higher than those from many robo-advisors, clients enjoy the benefits of having a dedicated financial advisor working with them on the details of their investments and managing their finances with the bigger picture in mind.
The firm reported an attrition rate of 4.7% for the second quarter compared to the 6% it reported for the same period in 2022. Edward Jones this year gave all advisors the option to work in teams or share real estate after piloting the program for around a year.
The estimated total pay range for a Financial Advisor at Edward Jones is $123K–$230K per year, which includes base salary and additional pay. The average Financial Advisor base salary at Edward Jones is $85K per year.
Short answer: NO, we suggest you invest with a fee-only fiduciary Advisor who charges less than 1% on the first $1M. (please note, this information was developed from SEC ADV frim brochure information filed in 2023)
For the 11th consecutive year, financial services firm Edward Jones appears on the Fortune 500® list. Edward Jones ranks No. 333, with more than $12.3 billion in net revenue for 2022.
- Top financial advisor firms.
- Vanguard.
- Charles Schwab.
- Fidelity Investments.
- Facet.
- J.P. Morgan Private Client Advisor.
- Edward Jones.
- Alternative option: Robo-advisors.
Edward Jones centers its services around personalized financial advice, so its fees may be a little higher than Fidelity Investments' fees. Fees change depending on which service you choose and how much you invest.
As our 2022 “Advisor Transition Report” noted, of the 371 experienced advisors (those with LOS < 3 years) who left Jones in 2022, 237 of them (more than 63%) went independent in some capacity.
How many clients do Edward Jones Advisors have?
Our impact
We employ 50,000 people, including nearly 19,000 dedicated and passionate financial advisors to serve, educate and support more than 8 million clients in achieving what matters most to them.
Edward Jones financial advisors offer clear, thoughtful guidance tailored to help you achieve the future you want.
Edward Jones advisors are generally compensated in a variety of ways. Advisors receive commissions when you buy and sell a security and they are compensated through a product mark-up, when you buy a security like a bond. Investors using either service will also pay the expense ratios of any mutual funds they invest in.
The reason for the high rates is that Edward Jones is a broker that buys CDs in bulk from other banks and resells them at competitive rates. Because Edward Jones offers brokered CDs, there are a few elements that work differently than CDs from traditional banks.
It's recommended that you use a fiduciary financial advisor in most scenarios. Not only are they usually more affordable, they are legally and federally held to high ethical standards. Their role, by nature, is designed to serve your best interest and maximize your financial benefit and not their own.
