Edward Jones’ advisors will soon provide their clients with their own financial planning services for a fee and a new proprietary SMA offering.
“What we’ve been hearing from our financial advisors and from clients is that what they really want is financial planning that matches the depth of the personal relationships that many clients and advisors already have,” Lena Haas, head of wealth management advice and solutions at Edward Jones, said in an interview.
Investors, in particular younger ones, want more from their advisors beyond asset management, she said. Edward Jones is seizing on that paradigm shift by offering clients five key components, Including goal planning, cash and income planning, investments and portfolio allocation, risk and protection, and estate planning and wealth transfer, Haas said.
Advisors will be charging a fee of $3,600 per year, but they can offer a discount, Haas said.
As for the SMA, Edward Jones has offered the product before but it launched what it hopes will be the first of several proprietary separately managed accounts, the first of which invests in equity securities managed by the firm’s research team.
“We know from our financial advisors that they see a lot of value in Edward Jones giving opinions on stock research,” said Russ Tipper, general partner of products at Edward Jones. “This was just a natural evolution in offering choice, flexibility, and sensibility without compromising personalization and how to consume that advice.”
The SMAs are currently available with a $50,000 minimum.
“We have made no decisions at this time, but it would be logical of us offering additional choice in how our clients and advisors consume our advice and guidance so there is the potential that this would be the first of a few,” he said.