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Edward Jones is becoming a pioneer among large wealth managers with a business model allowing its advisors to offer a comprehensive financial plan in return for a flat, annual fee.
The St. Louis-based firm announced last week roughly 600 of its advisors will be able to start providing certain clients with comprehensive financial plans for $3,600 a year. The services will go beyond the usual investment recommendations paid for by asset management charges and extend to estate and tax planning, wealth transfers, protections against risk and advice on general life goals.
"For the first time, Edward Jones financial advisors will be able to deliver comprehensive financial planning and will be compensated accordingly for their time and effort to build and maintain a financial plan," said Lena Haas, Edward Jones head of wealth management advice and solutions.
Moving away from AUM
Industry reformers have long promoted the business model of offering a specific planning service for a flat fee, seeing it as a way to bring financial planning to a broader swath of the public. But Edward Jones views its new offering as a supplement to the advice clients are already paying for through asset under management fees, which are set at a percentage of the assets held in client accounts.
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Edward Jones' new offering was first tried out in 2023 through a service allowing investors to pay for a one-time financial plan provided through the firm's headquarters. Haas said Edward Jones' goal is to have the service rolled out to all of its more than 19,500 advisors by next year.
Financial planning for a fee is now available only to clients with $250,000 or more in their accounts, although that could change with time.
"Because of the comprehensive nature of this initial offering, we believe that clients with $250,000 or more in...