Help with transferring IRA to Vanguard

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neveragain
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Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 8:48 am

I called Vanguard this morning to transfer my IRAs to them. However it's not going to be as easy as I thought.

Jones has churned my IRAs over and and over again. There are many buys, sells, dividends, etc in the accounts. There are at least 10 trades per month. Vanguard said, find out what the fees are to liquidate all this and to contact Edward Jones to ask them what the fees would be to sell out of all this.

In the meantime, I am going to ask EJ to stop churning my accounts.

But should I liquidate everything and transfer over to Vanguard? They said the fees would be lower on the Vanguard's side, but they weren't sure what it would cost me on Edward Jones' side.

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BolderBoy
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Re: Help with transferring IRA to Vanguard

Postby BolderBoy » Fri Jul 14, 2017 9:05 am

neveragain wrote:But should I liquidate everything and transfer over to Vanguard? They said the fees would be lower on the Vanguard's side, but they weren't sure what it would cost me on Edward Jones' side.

Personally, when I dumped my hideous FA in 2010, I simply had them sell everything into cash and had VG harvest the cash in the way that I directed. Lots of fees, but they've long ago been overridden by being at VG. No muss, no fuss.

A friend trying to save $500 in fees went through the process of getting things transferred in-kind.

My process took about 2-3 weeks total. Hers took 6 months before it was all said and done with dozens of phone calls, emails, letters and signing authorizations required.

You do the math.
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neveragain
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Re: Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 9:08 am

Was this for an IRA? And would there be tax consequences to liquidate the accounts and transfer them? Did it take long to recoup your losses when you transferred over to Vanguard?
Last edited by neveragain on Fri Jul 14, 2017 9:12 am, edited 1 time in total.

neveragain
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Re: Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 9:10 am

Also, is there is a difference between "mutual funds held" and "Exchange traded and closed-end funds"? I don't understand the difference between these two.

Uniballer
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Re: Help with transferring IRA to Vanguard

Postby Uniballer » Fri Jul 14, 2017 9:11 am

No tax consequences for selling funds in an IRA. Just commissions and fees.

Big Dog
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Re: Help with transferring IRA to Vanguard

Postby Big Dog » Fri Jul 14, 2017 9:14 am

How much money is involved?

I would do three things:

1) ask EJ want the fees are to transfer/close this account.
2) tell them -- not "ask" -- to STOP making any trades on your behalf, and follow up with an e-mail in writing
3) tell them to make just one more trade: move the funds into something easily transportable, such as a Total Stock Fund, Total Bond Fund, S&P500, or, if a large balance, split into several of the three funds depending on your preferred asset allocation. If in stocks, and they are publicly-traded, Vanguard can move direct into their own brokerage.

Once you know the price (1) and (3) is implemented, Vanguard can initiate the transfer on your behalf.

neveragain
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Re: Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 9:21 am

Big Dog wrote:1) ask EJ want the fees are to transfer/close this account.
2) tell them -- not "ask" -- to STOP making any trades on your behalf, and follow up with an e-mail in writing
3) tell them to make just one more trade: move the funds into something easily transportable, such as a Total Stock Fund, Total Bond Fund, S&P500, or, if a large balance, split into several of the three funds depending on your preferred asset allocation. If in stocks, and they are publicly-traded, Vanguard can move direct into their own brokerage.


Sure, I'll ask them to move the funds into something easily transportable but what if they refuse? I guess I should just keep demanding but they'll figure out my goal is to close the account with them. I'd like to ask them to move it all into S&P 500, they will likely refuse at this point, but I'll keep asking. I'd rather have something easily transportable. They are currently in mutual funds and other things. I assume it would lower my fees if everything in one thing altogether.
Last edited by neveragain on Fri Jul 14, 2017 9:26 am, edited 1 time in total.

Uniballer
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Re: Help with transferring IRA to Vanguard

Postby Uniballer » Fri Jul 14, 2017 9:25 am

How can they refuse? It is your money.

Just ask them what it would cost to liquidate everything to cash and close the account. Anything else is likely to cost more.

I couldn't find EJ's fees to consolidate, but my parents had an account at LPL, and they wanted $40 per mutual fund purchase or sale, and $80 for an exchange. It was cheapest to transfer in-kind to Vanguard and sell the funds there.

Jack FFR1846
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Re: Help with transferring IRA to Vanguard

Postby Jack FFR1846 » Fri Jul 14, 2017 9:30 am

Uniballer wrote:How can they refuse? It is your money.

Just ask them what it would cost to liquidate everything to cash and close the account. Anything else is likely to cost more.

I couldn't find EJ's fees to consolidate, but my parents had an account at LPL, and they wanted $40 per mutual fund purchase or sale, and $80 for an exchange. It was cheapest to transfer in-kind to Vanguard and sell the funds there.


You can't assume it's cheapest to move in kind and sell at Vanguard. When I moved a fund from Fidelity to Vanguard, they told me to sell to cash at Fidelity because it would be free. To move in kind and sell at Vanguard would have cost $75 per fund.
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neveragain
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Re: Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 9:41 am

Uniballer wrote:How can they refuse? It is your money.

Just ask them what it would cost to liquidate everything to cash and close the account. Anything else is likely to cost more.
.


Account closing fee is 95, I believe. This in itself is not a big deal to me. But I want to avoid the other fees.

Uniballer
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Re: Help with transferring IRA to Vanguard

Postby Uniballer » Fri Jul 14, 2017 11:02 am

Jack FFR1846 wrote:You can't assume it's cheapest to move in kind and sell at Vanguard.

Agreed. You have to find out what the costs (and other issues) are for the different approaches and handle it the best way.

Of course, the OP could always tell EJ to just send him a check and do a 60-day rollover himself. But I have no idea if that is the best way to go.

neveragain
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Re: Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 11:42 am

My financial adviser claimed that the trades do not cost me any money. He says they are done automatically by Edward Jones "when they see opportunity". And that the costs are covered by my AUM fee.

I don't necessarily believe this, though.

And how hard will it be to get them to agree to consolidate everything into a total stock fund or index fund.

neveragain
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Re: Help with transferring IRA to Vanguard

Postby neveragain » Fri Jul 14, 2017 11:47 am

Jack FFR1846 wrote:
Uniballer wrote:How can they refuse? It is your money.

Just ask them what it would cost to liquidate everything to cash and close the account. Anything else is likely to cost more.

I couldn't find EJ's fees to consolidate, but my parents had an account at LPL, and they wanted $40 per mutual fund purchase or sale, and $80 for an exchange. It was cheapest to transfer in-kind to Vanguard and sell the funds there.


You can't assume it's cheapest to move in kind and sell at Vanguard. When I moved a fund from Fidelity to Vanguard, they told me to sell to cash at Fidelity because it would be free. To move in kind and sell at Vanguard would have cost $75 per fund.


If so, I'll have to move the IRAs to Fidelity, if it saves money. I guess Fidelity has low-cost index funds, as Vanguard does, right?

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Earl Lemongrab
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Re: Help with transferring IRA to Vanguard

Postby Earl Lemongrab » Sun Jul 16, 2017 12:42 pm

Yes, Fidelity has good choices. I would seriously look at them. Unfortunately they don't have a transfer bonus program at the moment, but they might cover a transfer fee if any. What size account? How many funds? There might be other options.
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