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Edward Jones Fees: Broker Commissions, Stock Trading Charges, IRA Rates, and Advisory Account Investment Costs for 2021



Edward Jones Fees and Commissions


The list of Edward Jones' fees on cash management solutions, business cash management solutions and on additional services is located under this link.


Edward Jones IRA Fees


Edward Jones' IRA fees are listed separately on their website in PDF file. Link to the file with Edward Jones IRA fees is located here.


Edward Jones Compensation & Fees


Edward Jones again decided to use PDF files to explain how their employees are compensated. You can read about it here.


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If you are looking for a professional money management service in your area, you can search for a Financial Advisor on this website.

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Edward Jones IRA Accounts

Edward Jones is making “sense of investing”. That is the slogan you will notice when visiting an office or surfing their website. An Edward Jones advisor can take the complications out of financial planning, investing or setting up a retirement plan.

Saving for retirement requires systematic savings and careful planning. Contributing to a retirement plan for your future has benefits that you can take advantage of today such as helping to lower your tax bill. Edward Jones offers a variety of IRAs and retirement savings plans.


Plans provided by Edward Jones

Individual plans provide individuals with an account into which they may contribute money that may be used for retirement. The annual account fee for individual plans is $40 per calendar year. Additional IRAs of the same individual are $20 per year. These fees can be automatically withdrawn directly from your IRA account.

- Traditional IRA: A tax-deferred account designed specifically for retirement. For 2021, anyone under the age of 70 ½ who has earned income may establish and contribute up to $5,500. If you are 50 years of age or older, you may contribute up to $6,500.

- Roth IRA: Allows for after-tax contributions in exchange for the potential for tax- free income in retirement. If you think you might be in a higher tax bracket when you retire, this might be the right option for you.

- Roth IRA conversions: Everyone is eligible to convert tax-deferred IRAs (traditional, SEP, SIMPLE) to a Roth IRA. Converting allows for tax-free accumulation as well as tax-free withdrawals in retirement. Conversions can also be undone if you discover you are in a higher tax bracket than anticipated.


IRAs for Business Owners


Business plans come with administrative and educational support provided by Edward Jones agents. The cost for Edward Jones to administer these plans differs and should be discussed with an agent. Plans for business owners without employees include:

Simplified Employee Pension IRA (SEPs): These can be set up for any type of business. Contributions are tax deductible and grow tax-deferred. SEPs might be referred to as “Super IRAs” since they allow contributions to exceed the annual IRA limits.

Edward Jones Owner K- An owner-only 401K plan: It is a retirement plan for businesses with no employees other than owners and their spouses. This plan allows for tax-deductible contributions while earnings grow tax-deferred.

Edward Jones Owner DB Plan: For business owners who are at least 45 years old, want to retire within 3 to 15 years and have no employees except a spouse. This plan is designed for business owners with a relatively stable income, typically over $100,000 per year.


IRAs for Business Owners With Employees


- Savings Incentive Match Plan for Employees (SIMPLE): Allows employees to make pre-tax salary deferrals. Plans must be established by the business between January 1 and October 1. The employer may not have more than 100 employees who have earned at least $5,000 for the previous year.

- Safe Harbor 401K: Allows maximum deferrals by business owners and highly compensated employees. The employer is required to either match employee contributions or provide non-elective contributions.

- 401K Plans: Designed to allow employees to defer salary for retirement savings. An employer can also make deductible matching contributions.


Account Management

Access to any of the Edward Jones accounts is available with their extensive online platform.


Comparison

Compare Edward Jones vs Ameritrade, Fidelity, Vanguard »


Personalized Customer Care

All Edward Jones advisors are different but one thing appears to be consistent; they care about their clients. As an Edward Jones client, they will be sure to communicate with you frequently. Scheduling an initial appointment to learn the best type of account for your needs is a requirement. Most advisors will call to schedule annual meetings with their clients to be sure their financial goals are still being met. They will also send periodic emails with financial information that is of interest to their clients.

If you are looking for personalized care and don’t want to be just another account number, Edward Jones does makes sense.


Alternatives to Edward Jones

If you are concerned about the potential conflict of interest, you might be able to find better priced Financial Advisor. Another option is a discount brokerage firm, such as TD Ameritrade, that doesn’t rely on revenue sharing might be a smart choice. If you want a professional portfolio management for a fraction of the cost charged by Edward Jones then M1 Finance robo advisor with their low 0.0% (zero) fee is a great option.