Moving away from Edward Jones to Vanguard (2024)

FAQs

Is Vanguard better than Edward Jones? ›

assuming no risk whatsoever. Just buying a target retirement date fund through vanguard and never looking at it again would probably be a better strategy than using Edward Jones if simplicity, diversity and low fees are your goals.

You can transfer your IRA or non-retirement account held at another investment firm to an account at Vanguard using our simple and clear online process.

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.

If you buy directly through Vanguard, you may benefit from lower fees, better customer service, and additional product research. Buying a Vanguard fund through a broker may involve commissions, loads, or other charges that are imposed by the broker, and not Vanguard directly—although this is not always the case.

Since its founding in 1975 by John C. Bogle, Vanguard Brokerage has become synonymous with low-cost investing. 2 From the onset, Vanguard was built to serve buy-and-hold investors with a long-term philosophy. It was not and has never been, designed for frequent traders or short-term investors.

In general, a 10% early withdrawal penalty applies if you take money before age 59½. When will I need to start taking money out?

4 Beginning May 1, 2019, at the time of total transfer or termination of an account we will waive the total transfer or termination fee and the annual individual retirement account fee, if due but unpaid, for accounts that meet the following criteria: (1) the account must be open for at least 24 months prior to the ...

Yes, you can transfer your IRA to another provider at any time without tax consequences or tax reporting as long as the assets move directly from your current IRA provider to your new IRA provider.

The annual fee for a Vanguard Roth IRA is $20. However, you can easily avoid this fee by opting in to electronic statements and notifications instead of having Vanguard send you everything in the mail. You can also avoid the fee by having at least $1 million in qualifying assets at Vanguard.

The common ground is that they all want more control—over how they are compensated, how they service clients and how they live their business lives.

Why do advisors leave Edward Jones? ›

Edward Jones advisors and their culture are known for a specific setup, a specific type of trainee, and a small town emphasis. As the industry continues to adjust (most importantly adjusting to include bigger and bigger teams) the Edward Jones model is seen as outdated by some of their larger producers.

On the surface, the figures seem to indicate an impressive comeback for Edward Jones, which had been rapidly losing both profits and advisors in recent years. In 2021, the firm — which operates in both the U.S. and Canada — suffered a net loss in its U.S. advisor headcount for the first time in a decade.

Rest easy knowing the cash in your Vanguard Cash Plus bank sweep is eligible for FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts. You can keep all your money in the bank sweep or diversify into 5 available Vanguard money market funds (each with a $3,000 minimum investment).

The securities that underlie the funds are held by a custodian, not by Vanguard. Vanguard is paid by the funds to provide administration and other services. If Vanguard ever did go bankrupt, the funds would not be affected and would simply hire another firm to provide these services.

1 in national survey of financial advisors.

Edward Jones has been named to Fortune magazine's 2023 list of the World's Most Admired Companies, a recognition of the most respected and reputable companies globally. The firm ranked No. 5 in the Securities/Asset Management industry category.

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.