Edward Jones Bashing

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Mar 1, 2006 7:35 pm

OK, so I got a new client who has about 450K.  I am not even going to get into what the original guy did to them during the last bear, but the new rep cashed out all of their positions in 05, started with a clean slate.  Every single one of them in a taxable account.   What the f***? Clients tax bill is a mess - what do you usually do about basis, any thoughts...

Mar 1, 2006 10:01 pm

Wow that really stinks.. Since its 06 one would be screwed, right. I look forward to experienced people talking more.

Mar 1, 2006 11:10 pm

EZ, what is your point? I could slam every firm represented on this forum, including Jones. You thnk only Jones has bad brokers? Get a life. Enjoy your new 450k relationship. Let me guess, fee based??

Mar 2, 2006 7:41 am
bankrep1:

OK, so I got a new client who has about 450K.  I am not even going to get into what the original guy did to them during the last bear, but the new rep cashed out all of their positions in 05, started with a clean slate.  Every single one of them in a taxable account.   What the f***? Clients tax bill is a mess - what do you usually do about basis, any thoughts...


Jones doesn't provide an end of year summary statement with cost basis info? If not, have the client contact the broker (you may want to write the letter for their signature) asking for this information.

Mar 2, 2006 8:07 am
Guest1:

EZ, what is your point? I could slam every firm represented on this forum, including Jones. You thnk only Jones has bad brokers? Get a life. Enjoy your new 450k relationship. Let me guess, fee based??


Ohhhhh, the eeevvviiilllllll fee based account. Sounds like another victim of Jones brainwashing 

Mar 2, 2006 8:30 am

You may not like fee-based accounts, Guest1, but wouldn't it be nice knowing that it's there if you need it?

Mar 2, 2006 10:20 am
mikebutler222:
bankrep1:

OK, so I got a new client who has about 450K.  I am not even going to get into what the original guy did to them during the last bear, but the new rep cashed out all of their positions in 05, started with a clean slate.  Every single one of them in a taxable account.   What the f***? Clients tax bill is a mess - what do you usually do about basis, any thoughts...


Jones doesn't provide an end of year summary statement with cost basis info? If not, have the client contact the broker (you may want to write the letter for their signature) asking for this information.



I don't recall that Jones provided any cost basis info on the statements.  Hopefully the client kept the confirms of trades.


As I stated before, I was appalled at the lack of any real training, other than selling the bond, stock or mutual fund d'jour, that the new reps got at Jones.  The concept of cost basis and the tax effect of switching mutual funds within a fund family was never brought up.  Most of the new Jones IRs were completely clueless in finance having changed from unrelated careers. 

Mar 2, 2006 11:03 am
babbling looney:
mikebutler222:
bankrep1:

OK, so I got a new client who has about 450K.  I am not even going to get into what the original guy did to them during the last bear, but the new rep cashed out all of their positions in 05, started with a clean slate.  Every single one of them in a taxable account.   What the f***? Clients tax bill is a mess - what do you usually do about basis, any thoughts...


Jones doesn't provide an end of year summary statement with cost basis info? If not, have the client contact the broker (you may want to write the letter for their signature) asking for this information.



I don't recall that Jones provided any cost basis info on the statements.  Hopefully the client kept the confirms of trades.




Wow, do you think Jones is still so far behind the times that they don't provide cost basis and gain/loss for clients? I had no idea they were that far out of the mainstream....

Mar 2, 2006 12:59 pm

I've seen cost basis info on Jones statements...some positions which transferred in or were old may not have it, but I have seen cost basis on at least some things.


Since this is a Jones bashing thread, I'll share an idea for their current slogan..."making SENSE of INVESTING"


...in light of what I'm used to seeing in my market, how about..."making CENTS out of DOLLARS"


...just my two dollars...

Mar 2, 2006 1:05 pm
Guest1:

EZ, what is your point? I could slam every firm represented on this forum, including Jones. You thnk only Jones has bad brokers? Get a life. Enjoy your new 450k relationship. Let me guess, fee based??


Jones may not be the only firm with bad brokers, but from what I've seen, Jones is the firm with the WORST brokers.  Hands down.

Mar 2, 2006 1:11 pm
mikebutler222:
babbling looney:
mikebutler222:
bankrep1:

OK, so I got a new client who has about 450K.  I am not even going to get into what the original guy did to them during the last bear, but the new rep cashed out all of their positions in 05, started with a clean slate.  Every single one of them in a taxable account.   What the f***? Clients tax bill is a mess - what do you usually do about basis, any thoughts...


Jones doesn't provide an end of year summary statement with cost basis info? If not, have the client contact the broker (you may want to write the letter for their signature) asking for this information.



I don't recall that Jones provided any cost basis info on the statements.  Hopefully the client kept the confirms of trades.




Wow, do you think Jones is still so far behind the times that they don't provide cost basis and gain/loss for clients? I had no idea they were that far out of the mainstream....



They will put on the statment "Amount Invested" but no cost basis gain or loss information.  Transfered in positions don't even have that information.  Maybe it is something that can be done now?  I don't know


My current b/d for a mere 25.00 a year will provide the cost basis of not only current purchases but also multiple purchases in the past. For instance I have one client who has 5 different cost basis figures for several positions.  They bought some in 1970 and inherited 4 other positions with different date of death cost basis figures.  We can input all this into the program and when it comes time to sell we can determine which block of stock to use for cost basis tax accounting.  All of this information shows up on their statements too.  I never had that ability at Jones.

Mar 2, 2006 1:13 pm

Sorry to disappoint, but Jones does provide cost basis info.  If you make a purchase through Jones, it is automatic.  If you transfer in the asset, it has to be added manually by the rep. 

Mar 2, 2006 1:35 pm

Knowing how much you paid for a position is only part of the cost basis information.  Does it provide the cost per share of the position and can you enter multiple prices for positions purchased at different times? 


The client sees each block of stock or mutual fund with its own separate cost basis gain or loss information and the information includes all the following for each block:


Date of purchase, share price then, cost basis then, current share price, current position value, gain or loss calculated.


For instance  CVX  currently about  $56.70  with different cost basis information so you can help the client decide which block they may want to designate for tax purposes.  It can make a big difference for example:


03-06-2003     32.76 


12-20-2002     33.33


12-12-2001     42.93


07-29-1980       9.93 


If you can do this I am surprised.

Mar 2, 2006 1:56 pm

I believe brokerbook @EDJ will do it.  But, it doesn't show on statements just on the brokerbook section of the acct.


Mar 2, 2006 3:24 pm

What is up with EJ's principals. They are supposed to review each trade or is this just a 7 myth?


Tax issues are so huge... A good advisor/broker has to take these into account.

Mar 2, 2006 4:53 pm

BTW, LPL puts EVERY tax lot on the monthly statement...with acquisition date, etc., and then provides total overall position information at the bottom in bold for each investment.


...and it doesn't cost me or the client a dime.

Mar 2, 2006 6:51 pm
Indyone:

BTW, LPL puts EVERY tax lot on the monthly statement...with acquisition date, etc., and then provides total overall position information at the bottom in bold for each investment.


...and it doesn't cost me or the client a dime.



Shhhhhh.   Don't tell my clients.  Same here on the statements except for the $25 fee.

Mar 2, 2006 7:02 pm

Your secret is safe with me...unless one of your brethren sets up shop in my market...

Mar 3, 2006 10:22 pm

Come on folks, ease up. My branch partner was working on some cost basis for a couple of clients today because their former broker's didn't provide cost basis. I am constantly amazed at the stuff that gets slung at Jones. In my neck of the woods some of the worst brokers are assocated with LPL and RJFS. Does that mean those are bad companies? Far from it, I respect the companies but certainly not the individuals associated with them in my area.


Indyone and babbles- Which 1099 do you trust from your broker? How can you trust the cost basis when they are having trouble with the 1099?

Mar 4, 2006 12:11 pm

Hey, Nog...I defended Jones on the cost basis stuff and I'm with you on the individual being more important than who they represent, although I do believe that folks on the EJ platfom are at a technological disadvantage (not to mention the fact that I have a couple of real idiots on the Jones platform in my neck of the woods).  As far as the 1099 goes, I think that much of the correction issues are due to information coming in late from fund companies.  In every instance where I've looked, that has been the cause of the changes.  I haven't seen any cost basis problems as of yet.


...sorry...couldn't help myself on the slogan crack...that was aimed at the locals...