Leaving Edward Jones...where to start?

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BigHank496
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Joined: Mon Apr 17, 2017 8:00 pm

Leaving Edward Jones...where to start?

Post by BigHank496 » Mon Apr 17, 2017 8:37 pm

I recently finished reading The Bogleheads' Guide to Investing and have been lurking around this forum to further educate myself. I have been investing with EJ for about 12 years, but now realize that there are much better and cheaper options out there. But I'm not sure where to start...

My wife and I each have a Roth IRA (recently switched to guided solutions), stocks, and term life insurance policies that are held through EJ. I'm looking for suggestions on how to start the escape process and what to do with each of our investments. Any help is appreciated!

TX_Man
Posts: 96
Joined: Mon Jan 19, 2015 5:53 pm

Re: Leaving Edward Jones...where to start?

Post by TX_Man » Mon Apr 17, 2017 8:47 pm

Another defector! I left Edward Jones myself (my parents suggested it to me when I was just starting).

Transferring assets "in kind" means they get moved from company to company as is. Meaning mutual fund XYZ gets moved from Edward Jones to Vanguard without selling it, meaning no dealing with capital gains/losses. Start by determining which company you want to use (Vanguard, Charles Schwab, Fidelity, etc), and let them know you want to move your assets to them. It is a simple process. Generally there is a small transfer fee from the company you are leaving.

Life insurance is another thing entirely and I have no idea how to go forward with that, or if life insurance policies can even be transferred.

Edit: Typos
Last edited by TX_Man on Mon Apr 17, 2017 8:57 pm, edited 2 times in total.

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Alexa9
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Joined: Tue Aug 30, 2016 9:41 am

Re: Leaving Edward Jones...where to start?

Post by Alexa9 » Mon Apr 17, 2017 8:53 pm

https://www.nytimes.com/2017/04/14/busi ... rowth.html
http://www.obliviousinvestor.com/vanguard/
http://kronstantinople.blogspot.com/p/e ... -saga.html
Have Vanguard transfer everything to them. Don't even contact EJ. They will beg/threaten you to stay. Then I'd recommend the Target Retirement Date or Lifestrategy Funds to start. Your life insurance will probably stay with EJ.

radiowave
Posts: 1880
Joined: Thu Apr 30, 2015 5:01 pm

Re: Leaving Edward Jones...where to start?

Post by radiowave » Mon Apr 17, 2017 9:15 pm

Alexa9 wrote:https://www.nytimes.com/2017/04/14/busi ... rowth.html
http://www.obliviousinvestor.com/vanguard/
http://kronstantinople.blogspot.com/p/e ... -saga.html
Have Vanguard transfer everything to them. Don't even contact EJ. They will beg/threaten you to stay. Then I'd recommend the Target Retirement Date or Lifestrategy Funds to start. Your life insurance will probably stay with EJ.
+1 I'm and Edward Jones survivor as well. As above, start on the Vanguard side, don't contact the EJ advisor. Vanguard will move the funds across and then you can sell them on the VG side. Note, EJ will charge you an account closure fee for each account. But you'll make that back in short time with the much lower fees.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

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ThePrune
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Joined: Wed Nov 10, 2010 9:38 am
Location: Midland, MI

Re: Leaving Edward Jones...where to start?

Post by ThePrune » Tue Apr 18, 2017 6:26 am

As a former EJ client who transferred all family accounts to Vanguard, there is one further detail that applied to me and might apply to you as well.

Besides the account closure fees (unavoidable) EJ also charges annual account fees. But these annual account fees are waived if you have enough invested with them. Therefore the order in which accounts are closed (if not performed all at once) can make a difference!

What do I mean? Consider the case where you have enough invested with EJ that the annual account fees are waived. For some reason (say family aggregation) the closure of some accounts (e.g. from one spouse) drops the sum of the remaining accounts to the point where the annual account fees are owed. In this situation you'll get charged the annual account fee and the account closure fee when the remaining accounts are eventually transferred to Vanguard.

How did we get around this? One of my wife's accounts was large enough to qualify by itself for the waiver of all household annual account fees. We made sure that that account was the last one closed out by Vanguard.
Investment skill is often just luck in sheep's clothing.

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