Schwab versus Edward Jones - Bogleheads.org (2024)

FAQs

How does Charles Schwab compare to Edward Jones? ›

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 Program Fee is 1.35% and the Portfolio Strategy Fee begins at 0.19%. These fees are tiered so additional invested assets are subject to lower fees.

Is Edward Jones a Fiduciary? 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.

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average.

A good return on investment is generally considered to be about 7% per year, based on the average historic return of the S&P 500 index, and adjusting for inflation.

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.

A year after Edward Jones suffered its first loss in U.S. financial advisor headcount in a decade, the firm's attrition rate is tapering off and it's deploying an ambitious hiring plan.

Does Schwab have hidden fees? ›

Schwab doesn't have any annual or inactivity fee, and the fee to transfer some assets out of the account is $25, while a full transfer is $50.

The success rate for an advisor in the Goodknight plan (the firm started 636 Goodknight partnerships last year) is about 80 percent compared to about half that when advisors start from scratch at the firm.

Is Charles Schwab a fiduciary? Yes, at Charles Schwab, a financial advisor has the fiduciary duty to work in their clients' best interests at all times, putting them above their own interests and the interests of the firm.

Fiduciaries are obliged to act in your best interest, whereas the title “financial advisor” implies no legal obligation. When looking for a financial advisor to help you develop your custom financial plan, you should ensure that your financial advisor is a fiduciary.

According to J.D. Power, Edward Jones did particularly well in the investment adviser and investment performance factors while Fidelity did well with account information and account offerings.

It was ultimately forced to close down the PAC in the aftermath of the January 6, 2021 Capitol riots, when the Charles Schwab Corporation was featured in a Lincoln Project campaign taking aim at businesses that donated to Trump or other politicians who asserted the election was stolen.

Charles Schwab's provides customers with detailed information on the costs for its collection of products and services. An added benefit is that customers have access to a wealth of educational resources, news, and research that is free, including access to third-party research.

It's relatively simple: You add up all of your investments, and withdraw 4% of that total during your first year of retirement. In subsequent years, you adjust the dollar amount you withdraw to account for inflation.

Key Takeaways. BlackRock, Vanguard, Fidelity, State Street Global Advisors, and J.P. Morgan Asset Management are the five largest financial advisory firms in the United States, ranked by assets under management (AUM).

What is an average amount to pay a financial advisor? ›

Depending on the size of your investment, financial advisors typically charge a fixed-rate fee between $7,500 and $55,000, or 1.02% of assets under management (AUM) for ongoing portfolio management, according to a 2021 study by Advisory HQ.

High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.

ROI of 50% can be considered good, but there are other factors to consider to understand if your investment was a good one.

Industry studies estimate that professional financial advice can add between 1.5% and 4% to portfolio returns over the long term, depending on the time period and how returns are calculated.

Generating sufficient retirement income means planning ahead of time but being able to adapt to evolving circ*mstances. As a result, keeping a realistic rate of return in mind can help you aim for a defined target. Many consider a conservative rate of return in retirement 10% or less because of historical returns.

Yes, CD rates are currently on the rise. In March 2023, the Federal Open Markets Committee (FOMC) raised the target range for the federal funds rate by 0.25%, bringing the benchmark range to 4.75% to 5.00%. Banks generally use the federal funds rate as a guide when setting rates on savings and lending products.

What is the downside of Edward Jones? ›

Cons: Edward Jones' fees are higher than the national median advisory fee. The firm has brokerage partnerships established with the mutual funds, 529 programs, and annuities it represents. That means it'll receive revenue sharing payments when it makes purchases on behalf of its clients.

Christopher Van Buren, CFA - Principal and Chief Risk Officer - Edward Jones | LinkedIn.

Goldman Sachs (also known as The Goldman Sachs Group) is an investment banking, securities, and investment management company. Vanguard is an investment management company. BlackRock is an investment management company providing investment and technology services to institutional and retail clients.

Its closest competitors in the discount brokerage sector include Fidelity and Interactive Brokers. Schwab's asset management and advisory services pit it against firms such as Goldman Sachs. Its mutual fund offerings are increasingly competitive on cost versus well-known players like Vanguard.

Your securities are protected at Schwab.

Your segregated assets are not available to general creditors and are protected against creditors' claims in the unlikely event that a broker-dealer becomes insolvent.

Schwab has an industry leading cost position and enjoys investor trust, a vital competitive advantage in any financial business. The shares trade for about the market multiple."

Does Edward Jones have a good reputation? A 2021 J.D. Power study ranked Edward Jones above average in overall investor satisfaction, with customers praising the firm's people, products, and fees. 8 However, customer complaints frequently center on difficulties accessing funds and receiving company support.

What is the average client balance at Edward Jones? While Edward Jones advises clients across a variety of portfolio sizes, the average client balance is currently $173,144. In total, Edward Jones manages $593.1 billion in assets.

Competitors to Edward Jones are Vanguard, Fidelity Investments, Schwab, Morgan Stanley, Wells Fargo, Merrill Lynch, Raymond James, Franklin Templeton, TD Ameritrade, E*TRADE.

Compensation Financial Consultants receive a base salary for serving clients. Depending on their professional experience and past work performance, some Financial Consultants also receive Relationship Pay. In addition, Financial Consultants receive Solutions Pay.

What does Charles Schwab charge for a financial advisor? ›

Schwab Intelligent Portfolios Premium®

Get unlimited 1:1 guidance from a CERTIFIED FINANCIAL PLANNER^™ professional, interactive planning tools, and a personalized roadmap for reaching your goals. $25K to start. Pay a one-time planning fee of $300, and just a $30/month advisory fee after that.

Your assets are protected at Schwab. We work hard to make Schwab a secure and safe place for your money. Whether you hold securities like stocks, bonds, mutual funds, exchange traded funds, or money market funds in a Schwab brokerage account, or cash deposits in a Schwab Bank account, we have your assets protected.

A good starting point for determining whether someone is a fiduciary advisor is by looking them up through the SEC's adviser search tool. If their firm (and by extension they themselves) acts as a Registered Investment Adviser, they will have what is called a Form ADV Part 2A filing available to be viewed online.

Not everyone needs a fiduciary.

While the fiduciary designation is a good sign of an advisor's good intentions, many nonfiduciaries have long and trusting relationships with clients and may be a better fit for your financial needs. Fiduciaries typically charge a percentage of assets annually.

While there are many brokerage houses in the United States, the largest are companies like Charles Schwab and Fidelity. These are huge asset managers with millions of customers investing assets worth hundreds of billions of dollars.

A year after Edward Jones suffered its first loss in U.S. financial advisor headcount in a decade, the firm's attrition rate is tapering off and it's deploying an ambitious hiring plan.

Your financial advisor generally receives between 36% and 40% of the compensation Edward Jones receives from asset-based fees, transactional revenue, ongoing 12b-1 fees, trail commissions and revenue from premiums generated by activity in your financial advisor's clients' accounts.

What brokerage firms do billionaires use? Many very wealthy individuals use the top brokerage firms, such as Fidelity, Schwab, Vanguard, and TD Ameritrade, among others. They invest in private equity and hedge funds.

On April 1^st, 2021 in the annual Real Trends 500 report, Lamacchia was reported to be the fastest-growing Leading Real Estate Companies of the World® affiliate over the last five years. This growth was for both transactions and sales volume for all LeadingRE affiliates in the United States.

What is the fastest-growing brokerage in the world? ›

10, 2022 (GLOBE NEWSWIRE) -- eXp Realty^®, the fastest-growing real estate brokerage on the planet and the core subsidiary of eXp World Holdings, Inc. (Nasdaq: EXPI), today announced it has exceeded 85,000 agents globally, representing an increase of 30% when compared to 65,286 agents at the start of October 2021.

All of the deposits at Schwab Bank are protected by FDIC insurance. That includes all of our investor checking accounts and savings accounts and CDs.

Schwab and Fidelity offer similar customer experiences. As a result, most types of investors can find benefits to working with either. The choice between the two may prove a matter of preferred trading instruments: Schwab is better equipped for futures (and international) trading, and only Fidelity offers forex.

Charles Schwab: Online and Mobile Experience. Charles Schwab offers a generally more robust and well-designed user experience than Vanguard. As full-service brokerages, both platforms offer many ways to contact the firm if you have questions or need support. You can call, email, or chat with either Vanguard or Schwab.