[quote=ytrewq]Once again Borkers attitude outruns his intelligence.  By Golly.  Money market is generally held outside of the program so clients are not charged a fee on the money market.  There is only enough (approx 2%) money market in the program to facilitate re balancing and the monthly fee.  Borker, what you twist in to some evil plot actually saves the client money.  I am sure you have enough real things to complain about that you shouldn’t have to resort to making up nonsense.
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I actually believed Borker to be correct, but I’m only an outsider. I was under the impression that the account either followed the model or didn’t, which is a big weakness in my opinion. It eliminates easing out of large positions, and as I referred to, holding cash when it’s more appropriate. I guess FA’s will have to use separate accounts to manage cash more often now.

You are generally correct in how the program works.  We can do all the things you mentioned.  Ease out of large positions.  Hold more cash when the clients prefers that.  The only weakness would be FA compensation which is a client benefit.  They are not charged a fee to “manage” cash.  They are also not charged a fee on assets we are simply waiting to ease out of.  The fee only begins when they ease out of the asset (no commission) and into the program.  It is my understanding that is the difference between an advisory account and a fee in lieu of commission.  I thought the Regulators expressed their dislike of fee accounts that just held assets and provided little “service” to clients.
You can use research models or you can build your own with custom models.  You must follow basic asset allocation percentages (depending on client risk tolerance) and use assets from a select list.  Other than that you can customize all you want.  A new topic could debate the merits of unlimited security selection vs a closely watched and researched list of 200-300.  I am sure many good arguments could be made on both sides.

I believe it's industry standard not to charge a fee on cash. RJ maintains that same standard.

true but i am sure he has recently come to accept it. Maybe i should ask, when did you figure it out? 

JB,

Many people confuse Edward Jones’ position on fee-based with that of all of their advisors. There are many, many advisors that have wanted it all along. Yes, many of the newbies everyone talks to and hear’s on this board are brainwashed. But keep in mind that there are 10,000 advisors out there, all with distinct backgrounds and opinions on the subject.