Northwestern Mutual vs. Edward Jones: Which is right for you?
Northwestern Mutual and Edward Jones both provide financial-advisor relationships, but they start from different client needs.
Northwestern Mutual vs Edward Jones: What’s the difference?
Feature | Northwestern Mutual | Edward Jones |
|---|---|---|
Service type | Advisor-led financial planning with investment, insurance, and annuity recommendations | Advisor-led brokerage, advisory programs and financial planning |
Fees | Planning, advisory, brokerage, and referral-related fees depending on the service used | Brokerage, advisory program, platform and planning fee may apply |
Minimum account size | No minimum for a financial plan | No minimum for the select account; advisory program minimums vary by account type |
Best for | Investors who want broader financial planning | Investors who want clearer account choices |
Northwestern Mutual vs Edward Jones: Key services
Northwestern Mutual:
- Financial planning: Advisors develop a plan based on the client’s current finances, goals, retirement, estate planning, long-term care, business needs, education planning, and tax considerations.
- Insurance and protection planning: Advisors can recommend life, disability income, and long-term care insurance as part of the planning process.
- Annuities: Northwestern Mutual offers income and variable annuities for retirement income and planning.
- Brokerage services: Clients can access investment vehicles and make buy, hold, or sell decisions based on advisor recommendations.
- Investment advisory services: Clients seeking hands-on investment advice and ongoing portfolio oversight can use advisory services.
- Private wealth management: Higher-complexity clients can access private wealth planning for broader asset, estate, tax, business, and multigenerational needs.
Edward Jones:
- Brokerage/Select account: Advisor guidance with client-directed buy and sell decisions. Investments can include stocks, bonds, CDs, mutual funds, ETFs, and annuities.
- Guided solutions: A client-directed advisory option with ongoing guidance and an asset-based fee.
- Advisory programs: Asset-based advisory options with ongoing monitoring; some programs allow Edward Jones or the advisor to manage day-to-day investment decisions.
- Financial planning plus: Planning across goals, cash and income, portfolio allocation, risk and protection, and estate and wealth transfer; eligibility applies.
Northwestern Mutual vs Edward Jones: Fees
Northwestern Mutual and Edward Jones both use advisor-led pricing, but their fee disclosures work differently.
Northwestern Mutual fees:
- Financial planning: The cost can vary by advisor and client situation. Clients with a higher net worth, more assets, or more complex planning needs should expect to pay more than clients with simpler planning needs.
- Insurance compensation: The advisor is generally paid by the insurance company through a commission, funded by the premiums the client pays.
- Investment commissions or sales loads: Clients may pay a fee when buying or selling investments such as stocks or mutual funds.
- Advisory fees: In an advisory arrangement, clients typically pay an annual fee based on assets under management. This is often around 1.5% or less of total assets each year.
Edward Jones fees:
Edward Jones breaks costs down by account type.
Edward Jones account type | Fees |
|---|---|
Select sccount | Commission-based and sales charges range from 0.75% to 5.75% |
Edward Jones advisory solutions/guided solutions | Annual program fee begins at 1.35%. The annual platform fee starts at 0.05%. |
Unified managed account (UMA) models' schedule of fees
Value of assets in the account | Program fee | Platform fee |
|---|---|---|
First $250,000 | 1.35% | 0.05% |
Next $250,000 | 1.30% | 0.05% |
Next $500,000 | 1.20% | 0.04% |
Next $1,500,000 | 1.00% | 0.03% |
Next $2,500,000 | 0.80% | 0.02% |
Next $5,000,000 | 0.60% | 0.01% |
Over $10,000,000 | 0.50% | 0.00% |
- SMA manager fees: Range from 0.00% to 0.40%, depending on the SMA strategy.
- Generations financial planning: The first-year annual fee typically ranges from $5,000 to $45,000 and can rise to $100,000 based on complexity. Business-interest planning can add up to $25,000.
Northwestern Mutual vs. Edward Jones: Minimum account sizes
Northwestern Mutual has no minimum to start a financial plan, while Edward Jones provides more specific minimums by account and advisory program.
Northwestern Mutual:
- No minimum to start a financial plan
Edward Jones’s account-level requirements:
Edward Jones service or account | Minimum account size |
|---|---|
Select Account | $0 minimum investment |
Select Account annuities | May require at least $10,000 |
Guided Solutions Fund | $5,000 |
Guided Solutions Flex | $25,000- $50,000 |
Advisory Solutions Fund Models | $25,000 minimum |
Advisory Solutions UMA Models | $300,000 minimum; $500,000 and $1 million for additional options |
Northwestern Mutual vs. Edward Jones: Pros and cons
Pros of Northwestern Mutual:
- Integrated planning: Integrates financial planning with insurance, annuities, and investment solutions.
- Goal coordination: Personalized advisor-led planning can help clients coordinate retirement, estate, protection, and investment goals.
- Accessible planning start: No disclosed minimum to start a financial plan, which makes the planning stage easier to access.
Cons of Northwestern Mutual:
- Variable costs: Costs can vary by advisor, planning scope, product choice, and advisory arrangement.
- Complex products: Financial products can be complex, especially when insurance, annuities, investments, and advisory services are combined.
- Insurance-linked model: The model is closely tied to insurance and protection planning, which may not suit investors who only want standalone investment management.
- Advisor dependency: The client experience depends heavily on the individual advisor.
Pros of Edward Jones:
- Clearer account choices: Including Select Account, Guided Solutions, and Advisory Solutions.
- Broad planning support for eligible clients: Financial Planning Plus is designed for clients who want ongoing financial planning across more of their financial life.
- More visible fees and minimum disclosures: Edward Jones publishes clearer account-level fee structures and minimums for several programs, making it easier to compare entry points and expected costs.
Cons of Edward Jones:
- Layered costs: Costs can be layered, especially in advisory accounts, which include program fees, platform fees, fund expenses, SMA manager fees, and potential transaction costs.
- Higher thresholds: Some advisory and planning options require higher minimums.
- Program complexity: Multiple strategies, account types, and fee layers require careful review.
- Less digital-first: The service is primarily advisor-led, so it may not suit investors who want a mostly self-directed or digital-first investing experience.
Northwestern Mutual vs. Edward Jones: Technology and security
Northwestern Mutual’s technology supports a broader planning relationship, while Edward Jones is more focused on investment account access, reporting, and advisor communication.
Category | Northwestern Mutual | Edward Jones |
|---|---|---|
Client access | Online account access and a mobile app | Online access and a mobile app |
Reporting | Tied to planning, policy, investment, tax, and account documents | Holdings, performance, activity, statements, and goals |
Client communication | Advisor-led support, general customer service, and advisor/office search by location | Advisor/team contact, online support, contact forms, and branch locations |
Asset custody | Does not have custody of client funds or securities; NMIS investment accounts are held through Pershing | Holds advisory assets through Edward Jones as a broker-dealer |
Security disclosure | Encryption, MFA, monitoring, testing, privacy controls, business continuity planning and FINRA and SIPC member | 24/7 monitoring, firewalls, intrusion detection, encryption, MFA, access controls, physical safeguards and SIPC member |
Final verdict: Northwestern Mutual vs Edward Jones
Northwestern Mutual may be better suited for investors who want an advisor-led planning relationship that connects investments to retirement, estate, insurance, and broader financial goals.
Edward Jones may be better suited to investors who want clearer account choices, more visible fees and minimum disclosures and advisor-led investment guidance through brokerage or advisory programs. Its costs can still be layered, but the account structure is easier to compare before getting started.
Get expert financial advice
If you're seeking professional financial advice, Unbiased can match you with a financial advisor who will help you manage your money and maximize your investments.