How To Withdraw Money From Edward Jones Account

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Unlike many discount brokerages available online, Edward Jones is a full-service broker. So what really comes with this type of service and is it worth paying more? To put it simply: no.

A full-service broker is someone who provides not only the capability to invest but also services like tax advice and retirement planning, as well as extensive research and knowledge. Unfortunately, being a broker also means they do not have to follow the fiduciary standard.

Commissions & Fees - 5

Customer Service - 10

Ease of Use - 9

Tools & Resources - 8.5

Investment Options - 7

Asset Allocation - 7.5

7

Edward Jones is a full-service investment firm that provides advisory and money management services. While we like the professional and personal investment advice, be aware that it doesn't come cheap. You might be better off using a robo advisor.

What Is Edward Jones?

Founded in 1922, and based in Des Peres, Mo., Edward Jones is a financial services company that focuses its business primarily on individual investors and small businesses. The company is a full-service investment broker, which means that it provides investment management services, much more so than brokerage services for self-directed accounts.

The company serves about 7 million investors and has $1.3 trillion in assets under management. With tens of thousands of branch locations throughout the U.S. and Canada, Edward Jones is one of the brokerage firms wi the most offices across the U.S.

How Does Edward Jones Work?

The main benefit of working with Edward Jones is the financial advisor. The company has 19,000 advisors who work with clients on a one-on-one basis to provide individual investment advice and management. Typically, Edward Jones assigns one financial advisor to each branch office, which is why the company has so many branches. The aim is to provide face-to-face services in as many locations as possible, in contrast to the growing industry trend of engaging clients with an all-online experience.

The financial advisor gets familiar with your financial situation and goals, then builds a customized investment strategy to help you. They construct a portfolio of stocks, bonds and mutual funds that are based on a long-term buy-and-hold strategy.

Investment selection strategy. Advisors filter stocks based on geography, track record, balance-sheet strength and company size, then narrow the field down to those that they believe have sustainable competitive advantages, and then use valuation analysis to determine a fair price for the stock.

Edward Jones uses four different wealth management services based on your own needs and preferences:

Guided Solutions. This service enables you to do your own investing and trading but provides you with investment guidance on stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
Advisory Solutions. This is comprised of fund models, and you can choose from more than 90 research models containing a variety of mutual funds and ETFs. You can have a brokerage account, in which Edward Jones will provide you with investment recommendations, from which you can make individual selections.
Estate Planning and Trust Services. Edward Jones Trust Company works in partnership with local professionals and your financial advisor to provide services.
Client Consultation Group. Your financial advisor has access to a team of more than 5,500 professionals at the company's home office, who provide deep expertise and extensive experience in specialized areas to help manage your investments.

Commissions and Fees

Unlike Edward Jones, a discount brokerage might be a better alternative to control your own investments. Although they might offer fewer service options, they'll no doubt also have lower fees.

With Edward Jones, you'll have to pay a yearly account fee of $40 for all retirement accounts, which can be withdrawn directly from either your investment account or your bank account.

This makes Edward Jones a comparatively expensive option, but if you need the extra guidance and full-service broker features, then this could be a good option until you learn the investing ropes for yourself.

Below are the fees for taxable accounts. It does not include the fees of the mutual funds/ETFs used within your account.

Deposit Amount	Annual Fee
First $250,000	1.35%
Next $250,000	1.30%
Next $500,000	1.25%
Next $1,500,000	1.0%
Next $2,500,000	0.80%
Next $5,000,000	0.60%
Over $10,000,000	0.50%

Additional Fees

Stocks: Buying through dollar-cost averaging — 2.5% of invested amount ($50 minimum)
IRAs: Annual Fee — $40 and an additional $20 for other IRAs held by the same individual.
Possible Investments: Individual stocks, fixed income securities (corporate, government, municipal bonds, CDs, etc.); ETFs; mutual funds — balanced, growth, growth and income, and aggressive funds; money market funds; FDIC-insured bank deposit program.
What they don't recommend: Penny stocks, individual junk bonds, options or commodities, or positions that are deemed to be investment fads.
Account Types: Regular taxable brokerage accounts (individual and joint), traditional and Roth IRAs, Roth IRA conversions, SEP IRAs, Solo 401(k) plans, single owner defined benefit retirement plans, 401(k) rollovers, custodial accounts, trust accounts, 529 college savings accounts and Coverdell education savings accounts.
Account Protection: The Securities Investor Protection Corporation (SIPC) provides $500,000 of coverage for missing securities, including $250,000 for claims of cash awaiting reinvestment. Edward Jones purchases additional protection from underwriters at Lloyd's. This policy covers only theft, misplacement, destruction, burglary, embezzlement or abstraction. Market losses are not covered by SIPC or the additional protection. The aggregate protection limit for all claims is $900 million. The FDIC provides insurance through the insured bank deposit program of up to $250,000 per depositor.

Clearing Agency: Depository Trust Clearing Corporation (DTCC).

Minimum Deposit: There is no minimum deposit to open or maintain a brokerage account. There is, however, a $5,000 minimum to open a Guided Solutions Fund Account.

Edward Jones Pros & Cons

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Edward Jones Alternatives

In today's investment world there are much better lower-cost options. We now have robo advisors that can manage your money for a fraction of the fees. Specifically, firms like Betterment or Wealthfront are more than suitable for individuals who don't have complex investment portfolios.

If you want access to a human advisor, we would recommend Personal Capital's service over Edward Jones. Not only can they manage your money, but Personal Capital has a free personal finance app that's top-notch.

Highlights
Rating	9.5/10	9/10	9/10
Minimum to Open Account	$100,000	$0	$500
401(k) Assistance
Two-Factor Auth.
Advice	Automated	Human Assisted	Automated
Socially Responsible Investing
	Sign Up Personal Capital Review	Sign Up Betterment Review	Sign Up Wealthfront Review

Summary

For investors with up to $10 million in investable assets, we cannot recommend Edward Jones (here's a list of recommended online stock brokers). In our opinion, Fisher Investments is a better option (full review here).
While at first glance you might not think Edward Jones' 1.35% starting fee per year is much, keep in mind that's not including additional mutual fund fees that in total can put you at 2% or more in fees.

It's been said you should invest like your milk and keep it under 1%. Otherwise, for the amount you are paying, you need to make that much per year in the market just to break even. And if you are doing much better than 2%, the fees are a significant drag on your returns. Jack Bogle, the founder of Vanguard, has been quoted saying over a 50-year timeframe this difference in fees could eat away up to 70% of your returns.

Kevin Mercadante is professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry. He lives in Atlanta with his wife and two teenage kids.