Ready to Leave Edward Jones and control my destiny

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Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

I've been using Edward Jones for probably close to 10 years. Over the last couple years I've felt I can probably take over and do what they do. My agent did a good job explaining what he's done (the deversication thing they preach) and the bi-annual rebalancing. As I started digging in to my accounts I saw I have a number of mutual funds that have high expense ratios. I then decided to educate myself on what things look like if I took over.

I spent time looking at Dave Ramsey, Clark Howard and this site. Clearly I've learned that there are funds that are much cheaper than the ones I have. I'm ready to start to put into practice what I've learned here. Everything I have is at Jones except my current 401k which is at Fidelity. I know this site preaches Vanguard but Fidelity appears to have very similar funds with very low fees as well. I like the idea of having everything there. I've read a number of posts on this site and they roughly share that I can pick my new home and initiate the transfer from the new home vs asking Jones to move my money (less painful / personal breakup with Jones).

A couple questions:
1. Any reason I wouldn't move from Jones to Fidelity?
2. How can I ensure what I setup at Fidelity is controlled by me and I don't end up stuck with somebody at Fidelity controlling things like Jones? I don't want to ask for help from Fidelity to move my accounts and end up in a similar situation.
3. Follow-up to #2, or maybe just re-asking, because I'm nervous... What type of questions do I ask, or who do I need to talk to at Fidelity to ensure this goes well?
4. Do I need to go into a Fidelity branch or can I do this over the phone?

More background if it helps... I have a number of accounts at Jones:
- Roth IRA
- Trad. IRA
- Non-retirement Stock acct (not sure what to call this)
- Wife Roth IRA
- Wife Trad. IRA
- Minor son Roth IRA
- 3 529s (one for each kid)

Thanks in advance for any help!
student
Posts: 10763
Joined: Fri Apr 03, 2015 6:58 am

Re: Ready to Leave Edward Jones and control my destiny

Post by student »

1) You should move from EJ and Fidelity is good. Schwab is also good.
2) If you have a regular account, then you do your own trading. If you have a wealth management advisory account, then they will likely do the trading.
3) Do you want to your own trading or do you want an advisor? In general, members of this board prefer doing their own trading. If you want an advisor, Fidelity has different offers, you can choose robo advisor or wealth management type. https://www.fidelity.com/what-we-offer/overview
4) You can just do it online. If you are uncomfortable about this, I recommend going to a branch to talk to someone so that you have a contact person. I suppose you can do it over zoom.

One thing you should pay attention to is selling your holding at EJ is a taxable event for taxable account. Don't forget to ask for a transfer bonus.
backpacker61
Posts: 1613
Joined: Wed May 20, 2020 6:36 am

Re: Ready to Leave Edward Jones and control my destiny

Post by backpacker61 »

TX_Aggie wrote: Mon May 16, 2022 8:12 pm - Non-retirement Stock acct (not sure what to call this)
This is what would be referred to as a taxable brokerage account.

Fidelity can be a good choice. Just be certain to emphasize that you want it to be a self-directed account, and you shouldn't end up in an advisor-directed account. Most Fidelity representatives shouldn't "push" this too hard, although you can always wind up with an exception.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

student wrote: Mon May 16, 2022 8:31 pm 3) Do you want to your own trading or do you want an advisor? In general, members of this board prefer doing their own trading. If you want an advisor, Fidelity has different offers, you can choose robo advisor or wealth management type. https://www.fidelity.com/what-we-offer/overview
Yes, I definitely want to do my own investing. At least for now... I may change my mind after I get started but what I've read, if done right, I shouldn't have to put in too much work once things are setup and running.
marcopolo
Posts: 8445
Joined: Sat Dec 03, 2016 9:22 am

Re: Ready to Leave Edward Jones and control my destiny

Post by marcopolo »

Getting out of EJ is a great move.
Fidelity is a good option, as are Schwab and Vanguard.
I use Fidelity and have been very happy with their low cost products and helpful, efficient service.

It is good that you are reading more to understand investing. The basics are pretty straight forward, and the more complicated things that are worth doing (Roth Conversions, Tax Loss Harvesting, Backdoor Roth, etc) help some but the gains are marginal. You can learn about them if you are interested later. The important thing is to get the basics right, and not large expense ratios and advisory fees (if you are able to do it yourself), are a big part of that.

Having said that, I would highly recommend you stop listening to Dave Ramsey for investing advice. From what I understand, his advice is pretty good for getting out of debt. But, what I have seen of his investing advice is pretty terrible for most investors.
Once in a while you get shown the light, in the strangest of places if you look at it right.
student
Posts: 10763
Joined: Fri Apr 03, 2015 6:58 am

Re: Ready to Leave Edward Jones and control my destiny

Post by student »

TX_Aggie wrote: Mon May 16, 2022 9:21 pm
student wrote: Mon May 16, 2022 8:31 pm 3) Do you want to your own trading or do you want an advisor? In general, members of this board prefer doing their own trading. If you want an advisor, Fidelity has different offers, you can choose robo advisor or wealth management type. https://www.fidelity.com/what-we-offer/overview
Yes, I definitely want to do my own investing. At least for now... I may change my mind after I get started but what I've read, if done right, I shouldn't have to put in too much work once things are setup and running.
Then open a regular brokerage account.
student
Posts: 10763
Joined: Fri Apr 03, 2015 6:58 am

Re: Ready to Leave Edward Jones and control my destiny

Post by student »

marcopolo wrote: Mon May 16, 2022 9:33 pm Having said that, I would highly recommend you stop listening to Dave Ramsey for investing advice. From what I understand, his advice is pretty good for getting out of debt. But, what I have seen of his investing advice is pretty terrible for most investors.
I agree.
backpacker61
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Joined: Wed May 20, 2020 6:36 am

Re: Ready to Leave Edward Jones and control my destiny

Post by backpacker61 »

Dave Ramsey has good advice for managing lifestyle creep, paying off debts, and setting priorities in your life. I consider him a good guy that has helped many people.

Once you reach "breakeven", this site is better for managing your savings in an efficient way.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
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CyclingDuo
Posts: 6006
Joined: Fri Jan 06, 2017 8:07 am

Re: Ready to Leave Edward Jones and control my destiny

Post by CyclingDuo »

TX_Aggie wrote: Mon May 16, 2022 8:12 pm I've been using Edward Jones for probably close to 10 years. Over the last couple years I've felt I can probably take over and do what they do. My agent did a good job explaining what he's done (the deversication thing they preach) and the bi-annual rebalancing. As I started digging in to my accounts I saw I have a number of mutual funds that have high expense ratios. I then decided to educate myself on what things look like if I took over.
Congratulations on your learning and desire to take charge yourself in a lower cost environment! :beer
TX_Aggie wrote: Mon May 16, 2022 8:12 pmI spent time looking at Dave Ramsey, Clark Howard and this site. Clearly I've learned that there are funds that are much cheaper than the ones I have. I'm ready to start to put into practice what I've learned here. Everything I have is at Jones except my current 401k which is at Fidelity. I know this site preaches Vanguard but Fidelity appears to have very similar funds with very low fees as well. I like the idea of having everything there. I've read a number of posts on this site and they roughly share that I can pick my new home and initiate the transfer from the new home vs asking Jones to move my money (less painful / personal breakup with Jones).
Customer service is excellent at Fidelity. By the way, you can buy the Vanguard ETF's at Fidelity for no charge as a way to get around having to pay fees for purchasing any Vanguard mutual funds in your Fidelity account.
TX_Aggie wrote: Mon May 16, 2022 8:12 pm1. Any reason I wouldn't move from Jones to Fidelity?
I think you are ready for the move and would advise you to do it sooner, rather than later.
TX_Aggie wrote: Mon May 16, 2022 8:12 pm2. How can I ensure what I setup at Fidelity is controlled by me and I don't end up stuck with somebody at Fidelity controlling things like Jones? I don't want to ask for help from Fidelity to move my accounts and end up in a similar situation.
You do not need to accept the advice of a Fidelity advisor or commit to any sort of a managed account. However, I would allow them to advise you on which current higher expense holdings you have that might keep the same ER charge if you transferred them, and how best to unwind those and get into lower cost funds before and during the transfer to Fidelity. They will help you do the transfer from EJ to your newly created accounts at Fidelity and I would advise you to use their free services for that.
TX_Aggie wrote: Mon May 16, 2022 8:12 pm3. Follow-up to #2, or maybe just re-asking, because I'm nervous... What type of questions do I ask, or who do I need to talk to at Fidelity to ensure this goes well?
It's pretty self-explanatory as they will want all of the account holder particulars (SS #'s, forms filled out, information, etc...).
TX_Aggie wrote: Mon May 16, 2022 8:12 pm4. Do I need to go into a Fidelity branch or can I do this over the phone?
Either way works, but if you are close to a Fidelity branch I would vote for that.
TX_Aggie wrote: Mon May 16, 2022 8:12 pmMore background if it helps... I have a number of accounts at Jones:
- Roth IRA
- Trad. IRA
- Non-retirement Stock acct (not sure what to call this)
- Wife Roth IRA
- Wife Trad. IRA
- Minor son Roth IRA
- 3 529s (one for each kid)
Should be able to easily transfer all of it. Fidelity will inform you of which funds within your accounts would not transfer so that you could move them to cash before the transfer and then buy your lower cost funds/ETFs in your Fidelity accounts to replace your current holdings. The non-retirement stock account would have taxable implications if you had to sell any of your positions before the move. What are your holdings in this account currently invested in at EJ? Mutual funds, individual stocks, ETF's, etc....?

Kudos for stepping up and moving to a lower cost investing firm. Most of us who have invested for several decades or more have been there and done that. For example, we moved to Fidelity in the early 1990's from a higher expense company that we began with in Houston, TX. A few years after we started that account, we moved across the country and lived just a few blocks from a major Fidelity branch, so it was a no-brainer for us to walk over and get the ball rolling at the time.

In terms of "the heart of teacher"....you have now found that here at the Bogleheads.org website.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
greengates
Posts: 14
Joined: Wed Nov 04, 2020 7:18 pm

Re: Ready to Leave Edward Jones and control my destiny

Post by greengates »

I just made this this move 6 weeks ago myself . Not from Edward Jones but from another firm. I agree with the above comments. I plan on managing things myself on-line going forward, but I would add this. I went to a
branch office and had a representative help set everything up. I’m so glad I did! We had 6 different accounts and close to 30 funds being moved. There were a number of glitches and the help a their representative was huge. And free!
tashnewbie
Posts: 4283
Joined: Thu Apr 23, 2020 12:44 pm

Re: Ready to Leave Edward Jones and control my destiny

Post by tashnewbie »

Welcome to the forum!

You're making a good decision to take hold of the reins of your investments.

From what you've provided, the good news is that all but one of your accounts are IRAs or 529s, and you can buy and sell in them without any tax consequences. That means you can clean up much of your portfolio very easily.

Depending on the size and contents of the non-retirement account (what's known as a taxable brokerage account), you'll probably need to be more thoughtful about how to adjust this account. If you post your holdings and the unrealized capital losses/gains, members of this forum can help you strategize how to make adjustments. When you contact Fidelity, ask them which funds you can move to Fidelity. I would move each one that is portable in-kind so that you don't sell and incur potential capital gains before the transfer. If some can't be moved to Fidelity, then you'll have to sell them at EJ and you may have some capital gains (which hopefully could be offset by capital losses in other funds).
Vanguard User
Posts: 2191
Joined: Wed May 26, 2021 5:46 pm
Location: Sugar Land, Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by Vanguard User »

TX_Aggie wrote: Mon May 16, 2022 8:12 pm I've been using Edward Jones for probably close to 10 years. Over the last couple years I've felt I can probably take over and do what they do. My agent did a good job explaining what he's done (the deversication thing they preach) and the bi-annual rebalancing. As I started digging in to my accounts I saw I have a number of mutual funds that have high expense ratios. I then decided to educate myself on what things look like if I took over.

I spent time looking at Dave Ramsey, Clark Howard and this site. Clearly I've learned that there are funds that are much cheaper than the ones I have. I'm ready to start to put into practice what I've learned here. Everything I have is at Jones except my current 401k which is at Fidelity. I know this site preaches Vanguard but Fidelity appears to have very similar funds with very low fees as well. I like the idea of having everything there. I've read a number of posts on this site and they roughly share that I can pick my new home and initiate the transfer from the new home vs asking Jones to move my money (less painful / personal breakup with Jones).

A couple questions:
1. Any reason I wouldn't move from Jones to Fidelity?
2. How can I ensure what I setup at Fidelity is controlled by me and I don't end up stuck with somebody at Fidelity controlling things like Jones? I don't want to ask for help from Fidelity to move my accounts and end up in a similar situation.
3. Follow-up to #2, or maybe just re-asking, because I'm nervous... What type of questions do I ask, or who do I need to talk to at Fidelity to ensure this goes well?
4. Do I need to go into a Fidelity branch or can I do this over the phone?

More background if it helps... I have a number of accounts at Jones:
- Roth IRA
- Trad. IRA
- Non-retirement Stock acct (not sure what to call this)
- Wife Roth IRA
- Wife Trad. IRA
- Minor son Roth IRA
- 3 529s (one for each kid)

Thanks in advance for any help!
Were they American Funds with 5.75% starting load fee?

I have to warn you that if you leave EJ you will stop getting a free Christmas greeting card.
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

CyclingDuo wrote: Tue May 17, 2022 6:44 am What are your holdings in this account currently invested in at EJ? Mutual funds, individual stocks, ETF's, etc....?
The taxable brokerage account (@backpacker61 thanks for helping me with the proper "lingo") is very basic. It only has two stocks: AAPL and VWAGY.

I wasn't sure if you wanted the contents of all the accounts? I'd be happy to post that too.
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

greengates wrote: Tue May 17, 2022 7:27 am I went to a branch office and had a representative help set everything up. I’m so glad I did! We had 6 different accounts and close to 30 funds being moved. There were a number of glitches and the help a their representative was huge. And free!
Thanks for the recommendation / advice on going into a Fidelity branch! I'll definitely get an appointment and do that.
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

Vanguard User wrote: Tue May 17, 2022 4:12 pm Were they American Funds with 5.75% starting load fee?

I have to warn you that if you leave EJ you will stop getting a free Christmas greeting card.
Ugh... I most certainly do.... Having read a number of posts here before getting the courage to post this I now know that EJ pushes a lot of the American Funds. I currently have:
AEPGX
SMCWX
SMCWX
AMCPX
AEPGX
NEWFX
SMCWX
AWSHX
IGAAX
SMCWX
AWSHX

As you can see, some are in more than one account. That might even be worse. :x

And yes, I get the Christmas card *and* the birthday card.
secondopinion
Posts: 6011
Joined: Wed Dec 02, 2020 12:18 pm

Re: Ready to Leave Edward Jones and control my destiny

Post by secondopinion »

marcopolo wrote: Mon May 16, 2022 9:33 pm Having said that, I would highly recommend you stop listening to Dave Ramsey for investing advice. From what I understand, his advice is pretty good for getting out of debt. But, what I have seen of his investing advice is pretty terrible for most investors.
It is rather poor advice. Modify it slightly to what is the typical Boglehead's choice of funds, it is still risky if I remember his suggestions right. My parents love the program but they come to me for investing advice.
Passive investing: not about making big bucks but making profits. Active investing: not about beating the market but meeting goals. Speculation: not about timing the market but taking profitable risks.
secondopinion
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Joined: Wed Dec 02, 2020 12:18 pm

Re: Ready to Leave Edward Jones and control my destiny

Post by secondopinion »

TX_Aggie wrote: Tue May 17, 2022 6:01 pm
Vanguard User wrote: Tue May 17, 2022 4:12 pm Were they American Funds with 5.75% starting load fee?

I have to warn you that if you leave EJ you will stop getting a free Christmas greeting card.
Ugh... I most certainly do.... Having read a number of posts here before getting the courage to post this I now know that EJ pushes a lot of the American Funds. I currently have:
AEPGX
SMCWX
SMCWX
AMCPX
AEPGX
NEWFX
SMCWX
AWSHX
IGAAX
SMCWX
AWSHX

As you can see, some are in more than one account. That might even be worse. :x

And yes, I get the Christmas card *and* the birthday card.
Well, I guess that is where some of the fees have gone towards. :P

But yes, it is never fun to pay those fees. But I never regretted getting out of such funds (not same company but similar problems) from my previous employer.
Passive investing: not about making big bucks but making profits. Active investing: not about beating the market but meeting goals. Speculation: not about timing the market but taking profitable risks.
student
Posts: 10763
Joined: Fri Apr 03, 2015 6:58 am

Re: Ready to Leave Edward Jones and control my destiny

Post by student »

TX_Aggie wrote: Mon May 16, 2022 9:21 pm
student wrote: Mon May 16, 2022 8:31 pm 3) Do you want to your own trading or do you want an advisor? In general, members of this board prefer doing their own trading. If you want an advisor, Fidelity has different offers, you can choose robo advisor or wealth management type. https://www.fidelity.com/what-we-offer/overview
Yes, I definitely want to do my own investing. At least for now... I may change my mind after I get started but what I've read, if done right, I shouldn't have to put in too much work once things are setup and running.
Here is a link to the current transfer bonus from etrade. https://us.etrade.com/what-we-offer/how-it-works/promo Ask Fidelity to match it and to pay for any transfer fee that EJ charges you.
marcopolo
Posts: 8445
Joined: Sat Dec 03, 2016 9:22 am

Re: Ready to Leave Edward Jones and control my destiny

Post by marcopolo »

Vanguard User wrote: Tue May 17, 2022 4:12 pm
TX_Aggie wrote: Mon May 16, 2022 8:12 pm I've been using Edward Jones for probably close to 10 years. Over the last couple years I've felt I can probably take over and do what they do. My agent did a good job explaining what he's done (the deversication thing they preach) and the bi-annual rebalancing. As I started digging in to my accounts I saw I have a number of mutual funds that have high expense ratios. I then decided to educate myself on what things look like if I took over.

I spent time looking at Dave Ramsey, Clark Howard and this site. Clearly I've learned that there are funds that are much cheaper than the ones I have. I'm ready to start to put into practice what I've learned here. Everything I have is at Jones except my current 401k which is at Fidelity. I know this site preaches Vanguard but Fidelity appears to have very similar funds with very low fees as well. I like the idea of having everything there. I've read a number of posts on this site and they roughly share that I can pick my new home and initiate the transfer from the new home vs asking Jones to move my money (less painful / personal breakup with Jones).

A couple questions:
1. Any reason I wouldn't move from Jones to Fidelity?
2. How can I ensure what I setup at Fidelity is controlled by me and I don't end up stuck with somebody at Fidelity controlling things like Jones? I don't want to ask for help from Fidelity to move my accounts and end up in a similar situation.
3. Follow-up to #2, or maybe just re-asking, because I'm nervous... What type of questions do I ask, or who do I need to talk to at Fidelity to ensure this goes well?
4. Do I need to go into a Fidelity branch or can I do this over the phone?

More background if it helps... I have a number of accounts at Jones:
- Roth IRA
- Trad. IRA
- Non-retirement Stock acct (not sure what to call this)
- Wife Roth IRA
- Wife Trad. IRA
- Minor son Roth IRA
- 3 529s (one for each kid)

Thanks in advance for any help!
Were they American Funds with 5.75% starting load fee?

I have to warn you that if you leave EJ you will stop getting a free Christmas greeting card.
Ouch!
Do they charge both an AUM and the load on these funds?!?
I thought most AUM relationships at least waived the loads of funds they put you in.
Once in a while you get shown the light, in the strangest of places if you look at it right.
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

student wrote: Tue May 17, 2022 6:08 pm Here is a link to the current transfer bonus from etrade. https://us.etrade.com/what-we-offer/how-it-works/promo Ask Fidelity to match it and to pay for any transfer fee that EJ charges you.
Great tip / idea. I'll definitely ask for the match and for them to cover the fees.
User avatar
G12
Posts: 1598
Joined: Mon Apr 16, 2007 2:35 pm

Re: Ready to Leave Edward Jones and control my destiny

Post by G12 »

secondopinion wrote: Tue May 17, 2022 6:04 pm
TX_Aggie wrote: Tue May 17, 2022 6:01 pm
Vanguard User wrote: Tue May 17, 2022 4:12 pm Were they American Funds with 5.75% starting load fee?

I have to warn you that if you leave EJ you will stop getting a free Christmas greeting card.
Ugh... I most certainly do.... Having read a number of posts here before getting the courage to post this I now know that EJ pushes a lot of the American Funds. I currently have:
AEPGX
SMCWX
SMCWX
AMCPX
AEPGX
NEWFX
SMCWX
AWSHX
IGAAX
SMCWX
AWSHX

As you can see, some are in more than one account. That might even be worse. :x

And yes, I get the Christmas card *and* the birthday card.
Well, I guess that is where some of the fees have gone towards. :P

But yes, it is never fun to pay those fees. But I never regretted getting out of such funds (not same company but similar problems) from my previous employer.
I moved my wife's HSA, 403b, and Roth 403b investments from her former employer to Fidelity a few months ago and it went off without a hitch, just had to make certain to follow protocol especially with the Roth 403b money. We have long time taxable and retirement accounts at Vanguard, Schwab, Wells Fargo, and now Fidelity. I think I like Fidelity better than Schwab other than fees on some one-off investments (non-Fidelity) Fidelity charges for, yet Fidelity's HSA is free. One thing I will state is you have already paid the front end charges (loads) on the funds you currently hold. Multiple of them are 5* rated funds by Morningstar and may be worth retaining when moved as they have long histories of above average returns, go to M* and check. Yes, they may have higher annual expenses than some ETFs/mutual funds, especially index based, but that doesn't mean they won't continue to earn higher returns over time. I'm agnostic, I just always look at moderate to long term opportunities to grow wealth.
Dottie57
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Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Ready to Leave Edward Jones and control my destiny

Post by Dottie57 »

I moved my iras from American Funds to Fidelity 4 years ago. My 401k is there too. They hav been good. I have a Fidelity office within 2 miles. I walked in, was assigned an advisor and he helped me move the assets to Fidelity. Because it was a decent amount they did sell them for me for free. I manged my money from that point. I am in fidelities version of the three fund portfolio.
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

Dottie57 wrote: Tue May 17, 2022 6:45 pm I walked in, was assigned an advisor and he helped me move the assets to Fidelity. Because it was a decent amount they did sell them for me for free. I manged my money from that point. I am in fidelities version of the three fund portfolio.
1. Hmm... So no need for an appointment? I guess I'll just drive over to the nearest one to me.
2. Care to define decent amount? I think I have about $1.2M to transfer.
3. Would you care to share the 3 funds you have at Fidelity?

Thanks!
Vanguard User
Posts: 2191
Joined: Wed May 26, 2021 5:46 pm
Location: Sugar Land, Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by Vanguard User »

TX_Aggie wrote: Tue May 17, 2022 6:01 pm
Vanguard User wrote: Tue May 17, 2022 4:12 pm Were they American Funds with 5.75% starting load fee?

I have to warn you that if you leave EJ you will stop getting a free Christmas greeting card.
Ugh... I most certainly do.... Having read a number of posts here before getting the courage to post this I now know that EJ pushes a lot of the American Funds. I currently have:
AEPGX
SMCWX
SMCWX
AMCPX
AEPGX
NEWFX
SMCWX
AWSHX
IGAAX
SMCWX
AWSHX

As you can see, some are in more than one account. That might even be worse. :x

And yes, I get the Christmas card *and* the birthday card.
I was with EJ for 15 years. I left last year with the help of this site. I had Roth IRA. I had same funds as you and they make it sound very complicated by adding lot of funds. Their quarterly statements are complex too. They do this so you stay with them. My FA at the end told me I made a big mistake. LOL. I’d even be surprised if they actually invest in EJ funds themselves unless they get discount to beat a fund like VTSAX.

I moved it to Fidelity. They reimbursed me $135 worth of EJ fees.
Topic Author
TX_Aggie
Posts: 47
Joined: Mon May 16, 2022 7:42 pm
Location: Texas

Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

Vanguard User wrote: Tue May 17, 2022 7:17 pm I was with EJ for 15 years. I left last year with the help of this site. I had Roth IRA. I had same funds as you and they make it sound very complicated by adding lot of funds. Their quarterly statements are complex too. They do this so you stay with them. My FA at the end told me I made a big mistake. LOL. I’d even be surprised if they actually invest in EJ funds themselves unless they get discount to beat a fund like VTSAX.

I moved it to Fidelity. They reimbursed me $135 worth of EJ fees.
Yeah, I'm anticipating a lot of complaining from my guy at EJ but hopefully Fidelity can make it fairly painless for me. And *yes* their statements suck! I've complained before and he generated some custom reports but last year their software changed and he couldn't figure out how to do it anymore.

I'm fairly certain I could do his job with NO training.
bradinsky
Posts: 2295
Joined: Sat Jul 21, 2018 6:32 am
Location: Ohio

Re: Ready to Leave Edward Jones and control my destiny

Post by bradinsky »

I would start the process at Fidelity, or Schwab. A couple of day later, after everything is underway, send the EJ salesperson an email thanking them for their assistance & telling them you want to self-manage your accounts. Don’t bother talking with them. You don’t owe them anything, but they conceivably could owe you for all of your patience with them. When it’s all done, you will be much happier & probably wealthier too. Speaking from experience - DW & I left EJ a few years back. Good luck!
boomer543
Posts: 65
Joined: Wed Mar 17, 2021 6:09 pm

Re: Ready to Leave Edward Jones and control my destiny

Post by boomer543 »

Yay! LEAVE Edward Jones (EJ) and don’t look back. Expensive commissions on any trades at EJ and fees to EJ for even reinvesting dividends. In the last year my wife and I assisted my elderly but sharp father-in-law to move his EJ holdings to Schwab with zero on-line fees. The Schwab office manager in Georgetown Tx (a CFP) reviewed the entire portfolio and recommended adjustments using mostly Vanguard funds. I am sure Fidelity can do the same for you. If you are in the north Austin area and - if interested- please pm me and I will give you his name. He has been very helpful and Schwab on-line tools are very useful (as are Fidelity’s that you already know).
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CyclingDuo
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Re: Ready to Leave Edward Jones and control my destiny

Post by CyclingDuo »

TX_Aggie wrote: Tue May 17, 2022 5:38 pm
CyclingDuo wrote: Tue May 17, 2022 6:44 am What are your holdings in this account currently invested in at EJ? Mutual funds, individual stocks, ETF's, etc....?
The taxable brokerage account (@backpacker61 thanks for helping me with the proper "lingo") is very basic. It only has two stocks: AAPL and VWAGY.

I wasn't sure if you wanted the contents of all the accounts? I'd be happy to post that too.
No, was just curious about the taxable account. You can move Apple and Volkswagen over in kind without incurring any fees or capital gains for the taxable account.

Congrats on taking the initiative to improve your fee structure and thus your returns over the coming decades! :beer

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
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Re: Ready to Leave Edward Jones and control my destiny

Post by Vanguard User »

TX_Aggie wrote: Tue May 17, 2022 8:27 pm
Vanguard User wrote: Tue May 17, 2022 7:17 pm I was with EJ for 15 years. I left last year with the help of this site. I had Roth IRA. I had same funds as you and they make it sound very complicated by adding lot of funds. Their quarterly statements are complex too. They do this so you stay with them. My FA at the end told me I made a big mistake. LOL. I’d even be surprised if they actually invest in EJ funds themselves unless they get discount to beat a fund like VTSAX.

I moved it to Fidelity. They reimbursed me $135 worth of EJ fees.
Yeah, I'm anticipating a lot of complaining from my guy at EJ but hopefully Fidelity can make it fairly painless for me. And *yes* their statements suck! I've complained before and he generated some custom reports but last year their software changed and he couldn't figure out how to do it anymore.

I'm fairly certain I could do his job with NO training.
Just do an in-kind transfer online. It’s easy. That’s what I did for my Roth IRA.
helloeveryone
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Re: Ready to Leave Edward Jones and control my destiny

Post by helloeveryone »

TX_Aggie wrote: Mon May 16, 2022 9:21 pm
student wrote: Mon May 16, 2022 8:31 pm 3) Do you want to your own trading or do you want an advisor? In general, members of this board prefer doing their own trading. If you want an advisor, Fidelity has different offers, you can choose robo advisor or wealth management type. https://www.fidelity.com/what-we-offer/overview
Yes, I definitely want to do my own investing. At least for now... I may change my mind after I get started but what I've read, if done right, I shouldn't have to put in too much work once things are setup and running.
Congratulations! This is a decision that will greater alter your course going forward.

Do your own investing, learn about the two OR three fund portfolio - decide on an asset allocation - stick to that - stay the course - rebalance as per what you decide after learning about rebalancing.

BH forum is great to learn from and it helps remind you over and over and over again to stay the course.
mhalley
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Re: Ready to Leave Edward Jones and control my destiny

Post by mhalley »

If you want to manage your funds yourself, just say no if fidelity asks if you want an advisor. You will want to educate yourself before making any decisions. Just transfer everything in kind to start. The wiki here is a great place to start. Here are a few articles to start with:
https://www.bogleheads.org/wiki/Getting_started
https://www.bogleheads.org/wiki/Asset_allocation
https://www.bogleheads.org/wiki/Three-fund_portfolio
https://www.bogleheads.org/wiki/Fidelity
https://www.bogleheads.org/wiki/Investm ... atement%20(IPS,risk%20tolerance%2C%20and%20liquidity%20requirements.
Once you create your ips, then you can initiate trades. Remember you might have to pay taxes on any trades in your taxable account.
The cost basis should transfer over to fidelity, but you might want to print it out at EJ before the transfer to be safe.
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typical.investor
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Re: Ready to Leave Edward Jones and control my destiny

Post by typical.investor »

helloeveryone wrote: Wed May 18, 2022 9:12 am
TX_Aggie wrote: Mon May 16, 2022 9:21 pm
student wrote: Mon May 16, 2022 8:31 pm 3) Do you want to your own trading or do you want an advisor? In general, members of this board prefer doing their own trading. If you want an advisor, Fidelity has different offers, you can choose robo advisor or wealth management type. https://www.fidelity.com/what-we-offer/overview
Yes, I definitely want to do my own investing. At least for now... I may change my mind after I get started but what I've read, if done right, I shouldn't have to put in too much work once things are setup and running.
Congratulations! This is a decision that will greater alter your course going forward.

Do your own investing, learn about the two OR three fund portfolio - decide on an asset allocation - stick to that - stay the course - rebalance as per what you decide after learning about rebalancing.

BH forum is great to learn from and it helps remind you over and over and over again to stay the course.
+1000 (I completely agree!!!)
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TX_Aggie
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Re: Ready to Leave Edward Jones and control my destiny

Post by TX_Aggie »

Thanks for the advice / links. I'll definitely review them after getting things setup.

One question about this point. You mention to print out my "cost basis"
mhalley wrote: Wed May 18, 2022 9:34 pm Once you create your ips, then you can initiate trades. Remember you might have to pay taxes on any trades in your taxable account.
The cost basis should transfer over to fidelity, but you might want to print it out at EJ before the transfer to be safe.
I'm looking at my EJ taxable account. I see something called "Unrealized gain / loss" and another field "Cost Basis". I assume I just need the row of data for my two holdings. The "Estimated Current Value" is greater than the "Cost Basis" for both. I assume that means I would have a tax issue if they don't transfer?
dbr
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Re: Ready to Leave Edward Jones and control my destiny

Post by dbr »

TX_Aggie wrote: Mon May 23, 2022 9:44 pm Thanks for the advice / links. I'll definitely review them after getting things setup.

One question about this point. You mention to print out my "cost basis"
mhalley wrote: Wed May 18, 2022 9:34 pm Once you create your ips, then you can initiate trades. Remember you might have to pay taxes on any trades in your taxable account.
The cost basis should transfer over to fidelity, but you might want to print it out at EJ before the transfer to be safe.
I'm looking at my EJ taxable account. I see something called "Unrealized gain / loss" and another field "Cost Basis". I assume I just need the row of data for my two holdings. The "Estimated Current Value" is greater than the "Cost Basis" for both. I assume that means I would have a tax issue if they don't transfer?
Yes, cost basis means cost basis. Unrealized gain is the difference between current value and cost basis. It is the amount of capital gain you would have if you sold at the current value today. How much that might cost you in taxes can only be figured out by going through a tax return with those hypothetical numbers entered into the return. It can matter how much of the gain is long term and how much is short term depending on when the position was acquired. In any case it would be a good idea to go through a tax return with some hypothetical gains to see how it works.
RetiredAL
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Re: Ready to Leave Edward Jones and control my destiny

Post by RetiredAL »

TX_Aggie wrote: Mon May 23, 2022 9:44 pm Thanks for the advice / links. I'll definitely review them after getting things setup.

One question about this point. You mention to print out my "cost basis"
mhalley wrote: Wed May 18, 2022 9:34 pm Once you create your ips, then you can initiate trades. Remember you might have to pay taxes on any trades in your taxable account.
The cost basis should transfer over to fidelity, but you might want to print it out at EJ before the transfer to be safe.
I'm looking at my EJ taxable account. I see something called "Unrealized gain / loss" and another field "Cost Basis". I assume I just need the row of data for my two holdings. The "Estimated Current Value" is greater than the "Cost Basis" for both. I assume that means I would have a tax issue if they don't transfer?
A correction like we are currently in is a 'gift' when you need to sell something high expense replacing it with something low expense. You will have less gain to be taxed on. KEY though, is to sell then buy the replacement quickly and not try to time the market hoping/wishing for a better price. If the market continues down, you can consider tax loss harvesting (sell) the new replacement and it's loss is applied against the gains from the selling of the high expense item.

Several year back, I was straightening out my elderly Dad's managed account and happened to catch a market dip. Near $30,000 in gains went poof, I sold and re-bought, and the the total net gain was just a few $1000. Sometimes luck is on our side.
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