| what’s the deal with financial firms like edward jones?

what’s the deal with financial firms like edward jones?

lizziegirly815 asked:


I’m trying to be a smart cookie and start saving/planning for my life (i’m almost 24) I really don’t have money, but I have money in Edward Jones in mutual funds. Does this mean I am paying the financial advisor/ Edward Jones a part of my interest or something? Should I be investing on my own? Being that I don’t have much money, I can’t afford to ask a professional financial advisor. Even if someone could recommend an easy to understand book about how to invest/save, etc. Believe me, I’m really good about not spending frivolously, and I”m not in debt, except for college loans. Please help :-/

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Comments

3 Responses to “what’s the deal with financial firms like edward jones?”

  1. fsfa on April 30th, 2009 9:58 pm

    Your broker is getting a commission every time you invest in a fund. Do yourself a favor and learn a little bit about fees, etc. The cheapest funds out there are from Vanguard. You can start with, for example, an S&P 500 and an International fund and you’ll be covered for now, but read up on some stuff on their website - (I think - do a search if that isn’t right). Get away from the broker - they don’t work for you. If you really need help, get an independant Registered Investment Advisor that has a Fiduciary duty to you and not some financial company.

  2. Derrivatives Spread Trader on May 2nd, 2009 7:07 am

    Your Edward Jones rep gets a hefty commission everytime he buys/sells on your account, and all for producing minimal returns which will hardly keep up with inflation over the long run. The entire mutual funds industry is built on commissions and fees. They don’t give a jack for producing great returns for their clients. You can do much better buying an ETF that tracks the S&P 500 index. Go to S&P’s website to learn more about what it is. You’ll have to learn about investing yourself if you want. The best book/audio program for a beginner would be “Buffettology” and “The New Buffettology”. It will teach you to think like the worlds richest investor, Warren Buffett.

  3. sheik_sebir on May 4th, 2009 5:38 am

    They certainly don’t handle your investments for free! It depends on what kind of mutual fund you bought. If you bought a front loaded MF then EJ got its commission up front, if not, then they’re going to charge you when you sell. Keep in mind that you’re not the only fool…

    Since the DJA is at its highest, it will either go higher or it’s the prelude to a crash, er, correction (sorry, that the truth hurts)! Most of the “smart money’ ppl put their money in CDOs, hedge funds, and real estate (or lending) derivatives ( insurance on insurance on insured debt or mortgages (packaging sub-prime mortgages into a bundle that they said held less risk than the morgages had individually), and now they’re not so smart anymore, as many of these “investments” have become illiquid - Wall Street talk for losing next to everything if their “investments’ can be sold, or losing everyhing when these companies go bankrupt and there’s NO market!!. Where do you think the billion dollar salaries of some of these funds managers came from?…