Edward Jones is a better company to work for (it's usually listed among the top 10-100 best places to work in America) than to invest with, and you really don't want to pay somebody just to pick mutual funds for you. I realize that financial planning involves a lot more than that, but with planners who work on commission, that probably means selling insurance as well.

If you decide on a fee-only planner, make sure the person really is fee-only by having him or her putting that in writing and not using weasel terms like "fee based". About a decade ago, the Washington Post surveyed at least 100 financial planners who claimed to be fee-only, but 90% of them actually worked on commission. A comprehensive fee-only plan is likely going to cost $3,000-$8,000 at the start.

Offer to pay him a fee based on ROR. State that ROR should be calculated based on any money paid. So (his 40 + brokerage fees + cost of stocks/items) offer him 1% for market 2% for 5% above market 3% or 10% ect. Also state that if he will gain finical via a 3rd party payment, he must disclose that to you in writing. Failure to do so will result in some sort of fine.

This way he can't simply sell you stocks he is trying to dump. At the same time, you time is freed up minimal cost.

I'm assuming this was a private party thing and did not involve his company directly. If it does involve his company so much for my idea.

jakemoney said:Slightly off topic, but I really don't like door to door salesmen. Whether they're selling vaccums or church or whatever, they are just plain annoying.

Yeah, but there are SO many fun ways to annoy Jehovah's Witnesses who come to your door.

I believe in G_d, but am not deeply religious in the organized sense. I think organized religion is poppycock.

I am very moral, I think.

But I'd love for the Jehova's Witnesses to stop their door to door policy. Instead of 'do unto others,' I wish the bible instructed 'do not do onto others as you wish not to be done unto.'

Didn't mean to turn this into a JW thread ...

What credentials has this guy given you that makes you think he'd be any better than you at managing your money? Obviously he can talk a good game as he went from "neighbor" to your potential financial planner, but can he really back it up? Don't fall for the sales pitch. Beware.

lray said:Ask to see his schedule D.

OP, this should be the first cut off point for you. Get your prospective FP Schedule D for last 10 years. If he consistently outperforms you, there may be a reason to engage him. If he does not, show him the door.

destarr said:I had a gentleman stop by my door about a year ago wanting to just let me know that he had moved into the neighborhood and was a EdwardJones financial planner and would love to help me plan for my future. Well about every other month or so he called me back and, being a bit impressed with his perseverence and with a year already going by, I decided to meet with him.

My wife and I met with him tonight and the meeting went well. We discussed our overall financial status, and I gave him paperwork outlying our financial status and desires. He is looking over our information and we have another meeting scheduled for next tuesday, we did not discuss any specific products that he wanted to show us nor did he push any specific products.

What has me wondering about going with him as my financial planner is:

-Do I really need a financial planner or do I just need someone to handle my investments (currently I don't have any investments)

-The fees seem high to me, it was $40 for starting a fund and then he collected a small amount on monies earned in the fund-Is there anywhere online where I can see typical fees for the larger companies?

Thanks for the help - I have a minor in Insurance and really enjoy the financial scene, but I also appreciate those that have gone farther in their education to recieve their CFP and other designations.

I'm going to tell you not to use him, but for a very different reason than everyone else. An Edward Jones door knocker who is new to your neighborhood is probably brand new to the business. He probably doesn't have a CFP nor any other designation. He probably just has his Series 7 and his insurance licenses. He is a product salesman and not a financial planner. I don't mean that as a negative comment. You just need to understand that.

Personally, I think that a quality financial advisor is very important. The problem is that it is very difficult to know if you have one. From 20 years of experience, I don't think that it makes any difference whether the advisor is making his money from commissions, fees, or a combination of the two. It needs to be disclosed and understood.

ppatin said:Educate yourself and do your own financial planning. This stuff isn't rocket science, there's no reason to pay someone else to do it for you.

Actually, hiring someone else do do this may make sense - if that person really is good.

The big question that's hard to answer financially, is: "why this and not that?" Why would you rather have this type of insurance instead of that type of insurance? Why a Roth instead of a standard IRA? Why an index fund instead of an industry-specific fund?

If you're starting out, why is superseded by "what is all this stuff?" Having a vague idea of all the investment vehicles out there takes a while...and figuring out why one is better/worse takes even more time.

So...talking to a pro might be worth it, but you shouldn't pay them - maybe you can just take their recommendations, research the recommendations, then go back and ask more questions?

A Random Walk Down Wall Street by Burton G. Malkiel
Common Sense Investing by John C. Bogle
Fooled By Randomness by by Nassim Nicholas Taleb
The Black Swan by Nassim Nicholas Taleb

Use the library, you pay for it anyway.

Never hire someone who walks off the street and knocks on your door. I doubt he even lives in your neighborhood, and is just very aggressive.

Why not take him for a ride, and have him wine you, dine you, and buy you some H&B. When it comes down to sign the papers, tell him to F off, you found a better deal.