Edward Jones to Vanguard - about to make the move

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Green_98
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Edward Jones to Vanguard - about to make the move

Post by Green_98 » Wed Nov 30, 2016 8:44 pm

Age 33.
Singe.
No Debt. Frugal and comfortable with risk.

My Roth @ Edward Jones:
MFS Allocation A Shares. MAGWX. $25,000. 5.75% load plus other fees. Return over last +/-5 years is -0.24%. :annoyed

My proposed move to Vanguard:
Move 100% of Edward Jones assets to Vanguard and split:
70% Vanguard Total Stock Market VGSAX
20% Vanguard Total Int'l VGSTX
10% Vanguard Total Bond VBMFX

I am recently digging into the whole "Edward Jones" thing, and I am quickly figuring out that I am getting ripped.
I will address my Fidelity 401K and cash savings in another thread.

Thoughts and advice?

Thank you

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dwickenh
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Re: Edward Jones to Vanguard - about to make the move

Post by dwickenh » Wed Nov 30, 2016 8:52 pm

Hello,

Roth space is very valuable and giving 1.5 to 2.0 percent to Edward Jones may not make sense. You are on the right track with moving to a low cost provider and using a diversified index portfolio. I think the Total Stock Market fund at Vanguard would be VTSAX for the admiral shares.

You could also do some reading on the Wiki on asset allocation. https://www.bogleheads.org/wiki/Asset_allocation

Best of luck with your investments,

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

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Green_98
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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Wed Nov 30, 2016 8:57 pm

VTSAX is correct. Typo. I will check out your link. Thank you.

imabeliever
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Re: Edward Jones to Vanguard - about to make the move

Post by imabeliever » Wed Nov 30, 2016 8:59 pm

I think OP you are about to get flooded with responses that say essentially:

- Welcome!
- Yes

You already figured out the answer to your own post, now just follow through and don't look back. And the next time those sappy EJ commercials come on TV, you can sit there with that "I know better you sons of..." look that I enjoy having every time I see them :)

Happy smart investing, good for you! :beer
yes you can do this!

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elgob.bogle
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Re: Edward Jones to Vanguard - about to make the move

Post by elgob.bogle » Wed Nov 30, 2016 9:58 pm

Are there any penalties for getting out of your current funds?

elgob

tamuag
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Re: Edward Jones to Vanguard - about to make the move

Post by tamuag » Wed Nov 30, 2016 10:09 pm

I know someone who is trying to do something similar right now actually. Do they require a Medallion signature for that?

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Re: Edward Jones to Vanguard - about to make the move

Post by radiowave » Wed Nov 30, 2016 10:13 pm

OP welcome.

I'm a recovering EJ client (actually I inherited my dad's account). Pull your EJ account from the Vanguard side and try not to interact with EJ so you won't have to listen to the nonsense why you should stay. You will get hit with a account closure fee, I think taxable is $75. Move the funds in-kind to Vanguard then liquidate them there and execute your plan. The admiral shares for the 3 funds is $10K minimum. You may want to consider only the two equity funds in taxable and change your asset allocation in your tax deferred account to adjust for bonds.

You'll sleep better at night once you get your funds over to Vanguard.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

magicj
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Re: Edward Jones to Vanguard - about to make the move

Post by magicj » Wed Nov 30, 2016 10:20 pm

I just recently moved from EJ to Vanguard. No medallion signature necessary.

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knpstr
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Re: Edward Jones to Vanguard - about to make the move

Post by knpstr » Wed Nov 30, 2016 10:42 pm

Made the same move about a year ago. Never looked back

:beer
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Green_98
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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Thu Dec 01, 2016 11:27 am

I have been running backtests this morning, comparing the (3) Vanguard funds listed above against the MAGWX. I feel :oops: stupid.
They're right on top of each other, however, MFS has the 5.75% load with 1.05% annual expense. Good thing I dug into this.

I just set up my online Vanguard account, and am making the call now.

OutInThirteen
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Re: Edward Jones to Vanguard - about to make the move

Post by OutInThirteen » Thu Dec 01, 2016 11:54 am

Have you considered consolidating your accounts at Fidelity? I did that a number of years ago when my employer contracted with Fidelity to administer their 403(b) and 457(b) plans. Sure makes it a lot easier.

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Green_98
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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Thu Dec 01, 2016 12:13 pm

OutInThirteen wrote:Have you considered consolidating your accounts at Fidelity? I did that a number of years ago when my employer contracted with Fidelity to administer their 403(b) and 457(b) plans. Sure makes it a lot easier.
Yes I have, but a couple of things are steering me toward Vangaurd:
1. Lower Expenses.
2. Diversifying (not having all of my eggs with a single broker)

I do agree that it would make it much easier to manage and evaluate though, if everything was with Fidelity.

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Earl Lemongrab
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Re: Edward Jones to Vanguard - about to make the move

Post by Earl Lemongrab » Thu Dec 01, 2016 2:44 pm

Green_98 wrote:MFS Allocation A Shares. MAGWX. $25,000. 5.75% load plus other fees. Return over last +/-5 years is -0.24%.
I support leaving EJ (in spite of the fact that two nieces work there) but your assessment of that fund is incorrect. The growth of 10k for the past five years has been close to 50%. Are you ignoring the dividends and only looking at share price?

Chart

You would have done better with other funds, and the load will further reduce your return, but it has not been negative.

Earl

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Green_98
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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Thu Dec 01, 2016 3:10 pm

I was simply going off of the paper statement that I got from Edward Jones during my last visit, roughly a month ago. I started contributing in 2013 ($458/month), and as of last month, I had a -0.24% cumulative(net) return. It shows a cost basis of $1,000 more than the current value.

The fund has a 5.75% front load, plus expenses, plus Edward Jones fee. I think this is where any gains have been going perhaps.

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Re: Edward Jones to Vanguard - about to make the move

Post by catdude » Thu Dec 01, 2016 3:21 pm

radiowave wrote:I'm a recovering EJ client
Maybe the proper expression should be "EJ refugee"...
catdude | | "As much as cats fight, there always seems to be plenty of kittens." (Abraham Lincoln)

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Re: Edward Jones to Vanguard - about to make the move

Post by oldcomputerguy » Thu Dec 01, 2016 4:02 pm

johnny wrote:
radiowave wrote:I'm a recovering EJ client
Maybe the proper expression should be "EJ refugee"...
Or maybe "escapee"?
:)
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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Re: Edward Jones to Vanguard - about to make the move

Post by catdude » Thu Dec 01, 2016 6:05 pm

smartinwate wrote:
johnny wrote:
radiowave wrote:I'm a recovering EJ client
Maybe the proper expression should be "EJ refugee"...
Or maybe "escapee"?
:)
That's pretty good. :) Maybe somebody should do a poll -- there needs to be an official BH expression for people fleeing Edward Jones.
catdude | | "As much as cats fight, there always seems to be plenty of kittens." (Abraham Lincoln)

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Re: Edward Jones to Vanguard - about to make the move

Post by radiowave » Thu Dec 01, 2016 10:13 pm

smartinwate wrote:
johnny wrote:
radiowave wrote:I'm a recovering EJ client
Maybe the proper expression should be "EJ refugee"...
Or maybe "escapee"?
:)
Please don't get me started about EJ. I was very angry, and still am, how poorly my dad was treated. The funds in his IRA and taxable account were as horrible as anything I've see posted here and just about everything had 4-5% front end loads, high expense ratios and the 1+ % AUM fee. To add insult, his FA was my nephew in law. Yeah, he has a nice house on the 9th hole of a gated community, goes on several nice international trips each year with his wife and kids, etc. My sister says they are living large. If she only knew that's at the expense of a lot of retirees who trust their EJ advisor to do the right thing and manage their money.

Maybe the proper expression should be EJ survivor.

Thanks for putting up with my rant.
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Re: Edward Jones to Vanguard - about to make the move

Post by OutInThirteen » Fri Dec 02, 2016 8:19 am

Green_98 wrote:
OutInThirteen wrote:Have you considered consolidating your accounts at Fidelity? I did that a number of years ago when my employer contracted with Fidelity to administer their 403(b) and 457(b) plans. Sure makes it a lot easier.
Yes I have, but a couple of things are steering me toward Vangaurd:
1. Lower Expenses.
2. Diversifying (not having all of my eggs with a single broker)

I do agree that it would make it much easier to manage and evaluate though, if everything was with Fidelity.
The majority of my equities are in FSTVX, Total Market, and FTIPX, Total International. The expense ratios for both of these Fidelity funds are slightly lower than Vanguard. I also hold the institutional class of the Vangurd REIT index, VGSNX, in my 403(b). When I held REITs in my Fidelity IRA I used Vanguard's ETF VNQ. No other equities needed IMO.

I don't see a problem with having all of my equities at one brokerage (all of my bond allocation is in the Thrift Savings Plan G Fund).

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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Fri Dec 02, 2016 8:48 am

This site has me really thinking about approaching my father now about a review and analysis. He has his entire 401k & pension rolled into an annuity with Edward Jones, as well as his and my mother's Roth IRA's. He also has years worth of company stock invested with them.

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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Fri Dec 02, 2016 8:56 am

Earl Lemongrab wrote:
Green_98 wrote:MFS Allocation A Shares. MAGWX. $25,000. 5.75% load plus other fees. Return over last +/-5 years is -0.24%.
I support leaving EJ (in spite of the fact that two nieces work there) but your assessment of that fund is incorrect. The growth of 10k for the past five years has been close to 50%. Are you ignoring the dividends and only looking at share price?

Chart

You would have done better with other funds, and the load will further reduce your return, but it has not been negative.

Earl

Let me clarify:
I realize that MAGWX has had positive returns, I was simply referring to my personal rate of return since September of 2012. As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.

I am not unhappy with MAGWX, I am starting to see how I might never succeed with Jones.

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Re: Edward Jones to Vanguard - about to make the move

Post by mrc » Fri Dec 02, 2016 1:38 pm

Green_98 wrote:<snip>

As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.
Wow! :shock: :shock: :oops: :shock: :shock:
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Green_98
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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Fri Dec 02, 2016 1:48 pm

Green_98 wrote:
Earl Lemongrab wrote:
Green_98 wrote:MFS Allocation A Shares. MAGWX. $25,000. 5.75% load plus other fees. Return over last +/-5 years is -0.24%.
I support leaving EJ (in spite of the fact that two nieces work there) but your assessment of that fund is incorrect. The growth of 10k for the past five years has been close to 50%. Are you ignoring the dividends and only looking at share price?

Chart

You would have done better with other funds, and the load will further reduce your return, but it has not been negative.

Earl

Let me clarify:
I realize that MAGWX has had positive returns, I was simply referring to my personal rate of return since September of 2012. As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.

I am not unhappy with MAGWX, I am starting to see how I might never succeed with Jones.
I just re-ran the chart, dating back to Sep 2012 when I started my Roth. Looks like it has gained roughly 36%. My personal rate of return is -0.63%.

I'm heading out to the wood shed and taking a belt to my own hind end for not watching this more carefully.

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Re: Edward Jones to Vanguard - about to make the move

Post by chasingbutterflies » Fri Dec 02, 2016 1:59 pm

Spare your hind end and chalk it up to lesson learned. You're not the only person to be snookered by EJ and be thankful you found out when you did. You're young yet and have lots of time to make up the money lost and then some!

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Re: Edward Jones to Vanguard - about to make the move

Post by sco » Sat Dec 03, 2016 9:34 am

Green_98 wrote:
Let me clarify:
I realize that MAGWX has had positive returns, I was simply referring to my personal rate of return since September of 2012. As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.

I am not unhappy with MAGWX, I am starting to see how I might never succeed with Jones.

You made plenty of money that past 5 years, you just paid more in fees than you made.... Good ol' EJ..

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Re: Edward Jones to Vanguard - about to make the move

Post by mwm158 » Sat Dec 03, 2016 9:58 am

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Last edited by mwm158 on Mon Jan 02, 2017 10:49 pm, edited 1 time in total.

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Re: Edward Jones to Vanguard - about to make the move

Post by sco » Sun Dec 04, 2016 9:03 am

mwm158 wrote:Why is everyone so upset with EJ? It's not like they committed fraud, they're just out selling products and services. Just like with any other product or service, caveat emptor. Do I get mad at best buy when I buy something and then see it cheaper at walmart? No, I say "damn, I should have paid more attention." There needs to be a level of personal responsibility that goes along with this. Does EJ suck? Of course. Do I spend $6 a day on coffee at starbucks? Nope, but some people do, and I don't blame starbucks for it.

Perhaps it is because they are one of the worst, and the pricing isn't exactly transparent..

But yeah, if their price was a simple walmart price tag then this whole investing thing would be a lot easier to compare.. Wouldn't it?

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Re: Edward Jones to Vanguard - about to make the move

Post by JW-Retired » Sun Dec 04, 2016 11:24 am

Green_98 wrote:I was simply going off of the paper statement that I got from Edward Jones during my last visit, roughly a month ago. I started contributing in 2013 ($458/month), and as of last month, I had a -0.24% cumulative(net) return. It shows a cost basis of $1,000 more than the current value.

The fund has a 5.75% front load, plus expenses, plus Edward Jones fee. I think this is where any gains have been going perhaps.
I'm still puzzled with your net loss over the last few years. What month in 2013 was your first investment? Did you start out with a sizable initial lump sum? Don't know, but I've heard that sometimes the load is only charged for that initial lump sum investment in the fund and not for later additions to it? Do you know if you are paying the load on every monthly addition? What is the "Edward Jones fee" you refer to? Are you paying an AUM (assets under management) fee?

Regardless, escaping EJ is a fantastic move! Call Vanguard ASAP and get it going. Your proposed investments look fine to me. :beer

Welcome to the forum.
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Re: Edward Jones to Vanguard - about to make the move

Post by F150HD » Sun Dec 04, 2016 12:12 pm

radiowave wrote:OP welcome.

I'm a recovering EJ client (actually I inherited my dad's account). Pull your EJ account from the Vanguard side and try not to interact with EJ so you won't have to listen to the nonsense why you should stay. You will get hit with a account closure fee, I think taxable is $75. Move the funds in-kind to Vanguard then liquidate them there and execute your plan. The admiral shares for the 3 funds is $10K minimum. You may want to consider only the two equity funds in taxable and change your asset allocation in your tax deferred account to adjust for bonds.

You'll sleep better at night once you get your funds over to Vanguard.
a sale of inherited funds in taxable is a long term capital gain (correct me if wrong, and this assumes they have appreciated).....is this 'tracked' when the funds are moved in-kind to VG? so once one does liquidate the EJo funds inside a VG account, they are taxed at the long term rate? and the 1099 reflects this?

Thanks.
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Re: Edward Jones to Vanguard - about to make the move

Post by whodidntante » Sun Dec 04, 2016 1:29 pm

OutInThirteen wrote:Have you considered consolidating your accounts at Fidelity? I did that a number of years ago when my employer contracted with Fidelity to administer their 403(b) and 457(b) plans. Sure makes it a lot easier.
I would build up the account a bit at Vanguard then transfer it to Fidelity to earn a bonus.

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Re: Edward Jones to Vanguard - about to make the move

Post by F150HD » Sun Dec 04, 2016 2:18 pm

whodidntante wrote:
OutInThirteen wrote:Have you considered consolidating your accounts at Fidelity? I did that a number of years ago when my employer contracted with Fidelity to administer their 403(b) and 457(b) plans. Sure makes it a lot easier.
I would build up the account a bit at Vanguard then transfer it to Fidelity to earn a bonus.
how much is needed for a 'bonus'?

and how big is the bonus?
Long is the way and hard, that out of Hell leads up to light.

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Re: Edward Jones to Vanguard - about to make the move

Post by whodidntante » Sun Dec 04, 2016 2:29 pm

F150HD wrote:
whodidntante wrote:
OutInThirteen wrote:Have you considered consolidating your accounts at Fidelity? I did that a number of years ago when my employer contracted with Fidelity to administer their 403(b) and 457(b) plans. Sure makes it a lot easier.
I would build up the account a bit at Vanguard then transfer it to Fidelity to earn a bonus.
how much is needed for a 'bonus'?

and how big is the bonus?
There are several offers available. Realistically, you need 50k to get a worthwhile bonus. I like the airline miles offer, but they will also pay cash bonuses.

http://www.hustlermoneyblog.com/best-brokerage-bonuses/

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Re: Edward Jones to Vanguard - about to make the move

Post by Earl Lemongrab » Sun Dec 04, 2016 3:24 pm

F150HD wrote:how much is needed for a 'bonus'?

and how big is the bonus?
You might want to review The Final, Definitive Thread on Brokerage Transfer Bonuses

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Green_98
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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Mon Dec 05, 2016 9:00 am

JW-Retired wrote:
Green_98 wrote:I was simply going off of the paper statement that I got from Edward Jones during my last visit, roughly a month ago. I started contributing in 2013 ($458/month), and as of last month, I had a -0.24% cumulative(net) return. It shows a cost basis of $1,000 more than the current value.

The fund has a 5.75% front load, plus expenses, plus Edward Jones fee. I think this is where any gains have been going perhaps.
I'm still puzzled with your net loss over the last few years. What month in 2013 was your first investment? Did you start out with a sizable initial lump sum? Don't know, but I've heard that sometimes the load is only charged for that initial lump sum investment in the fund and not for later additions to it? Do you know if you are paying the load on every monthly addition? What is the "Edward Jones fee" you refer to? Are you paying an AUM (assets under management) fee?

Regardless, escaping EJ is a fantastic move! Call Vanguard ASAP and get it going. Your proposed investments look fine to me. :beer

Welcome to the forum.
JW
I started in Sep of 2012 with a $150/monthly draft, and raised my contribution to $458/monthly one year later. Initially, the adviser had me in MFS conservative fund, and then after a year, called me and said that I needed to be in something more aggressive, and recommended the MFS growth fund. I then began to learn some on my own, and in the last 6 months, I have really begun a hard-charge to learn all I can.

I have picked through every statement I can find, and the only "fee" from Edward Jones I see is a $40/year fee for Roth maintenance. BUT, the MFS mutual fund does have a 5.75% front load. I am certain I am being charged this load, even though it does not specifically state it on my statements. It only says "$458 invested in MFS - Roth IRA". It does not say what happens to that $458 after that. Their description of fees says that the listed fees on my statements "do not include trade transaction fees, commissions, or mark-ups"

Bottom line, since 09/2012, my cost basis is roughly $1,200 higher than the current market value of my Roth. I am paying 1.05% yearly operating expense to this fund. I would -assume- that I am paying that 5.75% front load as well, but cannot find it on any paperwork. The fact that this account has gone down in a bull market simply does not make sense.

Instead of Vanguard, I am considering moving the Roth to Fidelity (since that is where my 401k is) and splitting:
80% FSTVX Total market index
20% FTBFX Total Bond
Add FTIPX when I have saved the $10,000 minimum, and then split 70/20/10.

I appreciate everyone's input greatly!

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Re: Edward Jones to Vanguard - about to make the move

Post by JW-Retired » Mon Dec 05, 2016 10:32 am

Green_98 wrote: I started in Sep of 2012 with a $150/monthly draft, and raised my contribution to $458/monthly one year later. Initially, the adviser had me in MFS conservative fund, and then after a year, called me and said that I needed to be in something more aggressive, and recommended the MFS growth fund. I then began to learn some on my own, and in the last 6 months, I have really begun a hard-charge to learn all I can.

I have picked through every statement I can find, and the only "fee" from Edward Jones I see is a $40/year fee for Roth maintenance. BUT, the MFS mutual fund does have a 5.75% front load. I am certain I am being charged this load, even though it does not specifically state it on my statements. It only says "$458 invested in MFS - Roth IRA". It does not say what happens to that $458 after that. Their description of fees says that the listed fees on my statements "do not include trade transaction fees, commissions, or mark-ups"

Bottom line, since 09/2012, my cost basis is roughly $1,200 higher than the current market value of my Roth. I am paying 1.05% yearly operating expense to this fund. I would -assume- that I am paying that 5.75% front load as well, but cannot find it on any paperwork. The fact that this account has gone down in a bull market simply does not make sense.

Instead of Vanguard, I am considering moving the Roth to Fidelity (since that is where my 401k is) and splitting:
80% FSTVX Total market index
20% FTBFX Total Bond
Add FTIPX when I have saved the $10,000 minimum, and then split 70/20/10.
It wasn't much of a bull market for this particular fund, so the load probably explains it. Most all of your money went in between Sept 2013 and now. You didn't, but if you had lump summed all of it on Sept 30, 2013 per morningstar it would have grown only by about 15%, less 5.75% for the load is 9.25%. (The Morningstar plots account for the expense ratio of the fund but not any load, since they can't know if it is being charged.)

http://quotes.morningstar.com/chart/fun ... ture=en-US
(change the start date to 09/30/2013)

If you look at the rest of the plot you can see most of your money was put in at a significantly higher market level than in Sept 2013. Most of it at or above 10% higher. That means you just haven't made up for the 5.75% taken out of most of those contributions going in. EJ may have other hidden fees besides their $40 Roth maintenance but probably the load is main reason for the poor performance.

I think there are web sites where you could model periodic payments to various funds and should be able to model your particular fund investments and costs pretty exactly. I'll see if I can find one, or maybe someone else will weigh in with a link.

Moving to Fidelity would be fine too. Just stick to their low cost index funds. In a move like this you don't need to talk to your current advisor. Give your account info to Fidelity and they will do all the work.

Your EJ guy might or might not call you and whine, but he will have seen folks leave because of high costs many times before. No explanation needed. I've moved assets away several times from different higher cost companies and never heard a word from them.
JW
Retired at Last

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Re: Edward Jones to Vanguard - about to make the move

Post by HeadSpinning » Mon Dec 05, 2016 6:17 pm

Green_98 wrote:
Instead of Vanguard, I am considering moving the Roth to Fidelity (since that is where my 401k is) and splitting:
80% FSTVX Total market index
20% FTBFX Total Bond
Add FTIPX when I have saved the $10,000 minimum, and then split 70/20/10.

I appreciate everyone's input greatly!

The Total Bond Index fund is FSITX, btw. The ER is 0.05% as opposed 0.45% for FTBFX

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Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Tue Dec 06, 2016 9:27 am

HeadSpinning wrote:
Green_98 wrote:
Instead of Vanguard, I am considering moving the Roth to Fidelity (since that is where my 401k is) and splitting:
80% FSTVX Total market index
20% FTBFX Total Bond
Add FTIPX when I have saved the $10,000 minimum, and then split 70/20/10.

I appreciate everyone's input greatly!

The Total Bond Index fund is FSITX, btw. The ER is 0.05% as opposed 0.45% for FTBFX
I picked FTBFX simply due to the higher rating/return based on Morningstar & Fidelity reports.

sco
Posts: 934
Joined: Thu Sep 24, 2015 2:28 pm

Re: Edward Jones to Vanguard - about to make the move

Post by sco » Tue Dec 06, 2016 11:54 pm

Green_98 wrote:
HeadSpinning wrote:
Green_98 wrote:
Instead of Vanguard, I am considering moving the Roth to Fidelity (since that is where my 401k is) and splitting:
80% FSTVX Total market index
20% FTBFX Total Bond
Add FTIPX when I have saved the $10,000 minimum, and then split 70/20/10.

I appreciate everyone's input greatly!

The Total Bond Index fund is FSITX, btw. The ER is 0.05% as opposed 0.45% for FTBFX
I picked FTBFX simply due to the higher rating/return based on Morningstar & Fidelity reports.
Don't do that

Topic Author
Green_98
Posts: 65
Joined: Tue Nov 29, 2016 11:28 am

Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Wed Dec 07, 2016 9:04 am

sco wrote:
Green_98 wrote:
HeadSpinning wrote:
Green_98 wrote:
Instead of Vanguard, I am considering moving the Roth to Fidelity (since that is where my 401k is) and splitting:
80% FSTVX Total market index
20% FTBFX Total Bond
Add FTIPX when I have saved the $10,000 minimum, and then split 70/20/10.

I appreciate everyone's input greatly!

The Total Bond Index fund is FSITX, btw. The ER is 0.05% as opposed 0.45% for FTBFX
I picked FTBFX simply due to the higher rating/return based on Morningstar & Fidelity reports.
Don't do that
Are you referring to using Morningstar reports?

lostdog
Posts: 2482
Joined: Thu Feb 04, 2016 2:15 pm

Re: Edward Jones to Vanguard - about to make the move

Post by lostdog » Wed Dec 07, 2016 9:49 am

Green_98 wrote:
Green_98 wrote:
Earl Lemongrab wrote:
Green_98 wrote:MFS Allocation A Shares. MAGWX. $25,000. 5.75% load plus other fees. Return over last +/-5 years is -0.24%.
I support leaving EJ (in spite of the fact that two nieces work there) but your assessment of that fund is incorrect. The growth of 10k for the past five years has been close to 50%. Are you ignoring the dividends and only looking at share price?

Chart

You would have done better with other funds, and the load will further reduce your return, but it has not been negative.

Earl

Let me clarify:
I realize that MAGWX has had positive returns, I was simply referring to my personal rate of return since September of 2012. As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.

I am not unhappy with MAGWX, I am starting to see how I might never succeed with Jones.
I just re-ran the chart, dating back to Sep 2012 when I started my Roth. Looks like it has gained roughly 36%. My personal rate of return is -0.63%.

'm heading out to the wood shed and taking a belt to my own hind end for not watching this more carefully.
This saying made me chuckle!
Global Market Cap Equity | 6 Months Cash | Staying The Course

Topic Author
Green_98
Posts: 65
Joined: Tue Nov 29, 2016 11:28 am

Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Wed Dec 07, 2016 11:08 am

lostdog wrote:
Green_98 wrote:
Green_98 wrote:
Earl Lemongrab wrote:
Green_98 wrote:MFS Allocation A Shares. MAGWX. $25,000. 5.75% load plus other fees. Return over last +/-5 years is -0.24%.
I support leaving EJ (in spite of the fact that two nieces work there) but your assessment of that fund is incorrect. The growth of 10k for the past five years has been close to 50%. Are you ignoring the dividends and only looking at share price?

Chart

You would have done better with other funds, and the load will further reduce your return, but it has not been negative.

Earl

Let me clarify:
I realize that MAGWX has had positive returns, I was simply referring to my personal rate of return since September of 2012. As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.

I am not unhappy with MAGWX, I am starting to see how I might never succeed with Jones.
I just re-ran the chart, dating back to Sep 2012 when I started my Roth. Looks like it has gained roughly 36%. My personal rate of return is -0.63%.

'm heading out to the wood shed and taking a belt to my own hind end for not watching this more carefully.
This saying made me chuckle!
I'm glad my good fortune gave you cause for a good chuckle! 8-)

User avatar
CaliJim
Posts: 3050
Joined: Sun Feb 28, 2010 8:47 pm
Location: California, near the beach

Re: Edward Jones to Vanguard - about to make the move

Post by CaliJim » Wed Dec 07, 2016 11:15 am

Welcome
Yes
-calijim- | | For more info, click this Wiki

sco
Posts: 934
Joined: Thu Sep 24, 2015 2:28 pm

Re: Edward Jones to Vanguard - about to make the move

Post by sco » Thu Dec 08, 2016 12:33 am

Green_98 wrote:
lostdog wrote:
Green_98 wrote:
Green_98 wrote:
Earl Lemongrab wrote: I support leaving EJ (in spite of the fact that two nieces work there) but your assessment of that fund is incorrect. The growth of 10k for the past five years has been close to 50%. Are you ignoring the dividends and only looking at share price?

Chart

You would have done better with other funds, and the load will further reduce your return, but it has not been negative.

Earl

Let me clarify:
I realize that MAGWX has had positive returns, I was simply referring to my personal rate of return since September of 2012. As of this morning, my personal rate of return for those 4 years is -0.63. Basically, I have lost money investing through Edward Jones in a fund that has returned close to 50% over the last 4 years.

I am not unhappy with MAGWX, I am starting to see how I might never succeed with Jones.
I just re-ran the chart, dating back to Sep 2012 when I started my Roth. Looks like it has gained roughly 36%. My personal rate of return is -0.63%.

'm heading out to the wood shed and taking a belt to my own hind end for not watching this more carefully.
This saying made me chuckle!
I'm glad my good fortune gave you cause for a good chuckle! 8-)

It only took you 4 years to figure it out... On average, you are a much quicker learner than most....

Topic Author
Green_98
Posts: 65
Joined: Tue Nov 29, 2016 11:28 am

Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Thu Dec 08, 2016 9:05 am

So I got a phone call from my Edward Jones agent yesterday, asking me if he had done anything to make me mad. I said no, nothing personal, just business. He then asked me where I was taking my money, and I told him Fidelity Index funds. He laughed a little and said "yea, you'll make more money there for sure, that's a smart move." That was his exact quote.

I was somewhat stunned, simply amazed that, in a round-about way, he admitted that I was getting ripped off. Personally, the guy is great, but I learned a lesson. Don't get comfortable with someone who messes with your money.

I have my father looking into his Edward Jones annuity now. I think his and mom's Roth IRAs are in American Funds too. We're fixing to do a little investigating. He is with another EJ advisor.

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dwickenh
Posts: 1881
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Location: Illinois

Re: Edward Jones to Vanguard - about to make the move

Post by dwickenh » Thu Dec 08, 2016 12:03 pm

Welcome green_98

When you make your move to Fidelity, make sure you don't make the same mistake with one of their brokers talking you into active funds with high expenses. Don't base your decisions on prior returns as they are not guaranteed and likely a reversion to mean will bring the "winners" back to average. The best determination of future returns are costs!! You have a great plan, just don't let someone looking to pay for their own kids college get in your way.

Best wishes,

Dan

p.s. I have taken myself to the woodshed several times over the years :twisted:
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

Topic Author
Green_98
Posts: 65
Joined: Tue Nov 29, 2016 11:28 am

Re: Edward Jones to Vanguard - about to make the move

Post by Green_98 » Thu Dec 08, 2016 1:02 pm

dwickenh wrote:Welcome green_98

When you make your move to Fidelity, make sure you don't make the same mistake with one of their brokers talking you into active funds with high expenses. Don't base your decisions on prior returns as they are not guaranteed and likely a reversion to mean will bring the "winners" back to average. The best determination of future returns are costs!! You have a great plan, just don't let someone looking to pay for their own kids college get in your way.

Best wishes,

Dan

p.s. I have taken myself to the woodshed several times over the years :twisted:
Dwickenh
Thank you for your response!

I have decided on:
90% FSTVX - stocks 0.05% exp
10% FSITX - bonds 0.05% exp

No Fidelity Rep has tried to deter me or change my mind, yet.

retirementbound
Posts: 24
Joined: Wed Oct 19, 2016 11:10 am

Re: Edward Jones to Vanguard - about to make the move

Post by retirementbound » Thu Dec 08, 2016 4:33 pm

I recently made the move from EJ but to Fidelity since I have already had my IRA with them. I have always loved their customer service. Regardless of who you switch to ensure that you see if they are offering a transfer bonus. May be $100 or more and since you are making the move anyway it is a nice little bonus.

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