Question RE: Transferring assets from EJ to Vanguard

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evilscholar
Posts: 3
Joined: Thu Oct 05, 2017 1:53 pm

Question RE: Transferring assets from EJ to Vanguard

Post by evilscholar » Thu Oct 05, 2017 1:57 pm

Hi, new account but I've been lurking a bit on this forum and reading up on investing, and it's given me the confidence to finally move my assets from Edward Jones to Vanguard. I was looking to just simply put my IRA assets into a Target Retirement Fund.

My question is, since I'm doing a transfer in-kind, I will have a bunch of American Funds Mutual Funds in my account - should I immediately sell these for shares of the Vanguard Target Retirement Fund? Is there any reason to hold onto them?

Thanks.

dbr
Posts: 23331
Joined: Sun Mar 04, 2007 9:50 am

Re: Question RE: Transferring assets from EJ to Vanguard

Post by dbr » Thu Oct 05, 2017 6:25 pm

evilscholar wrote:
Thu Oct 05, 2017 1:57 pm
Hi, new account but I've been lurking a bit on this forum and reading up on investing, and it's given me the confidence to finally move my assets from Edward Jones to Vanguard. I was looking to just simply put my IRA assets into a Target Retirement Fund.

My question is, since I'm doing a transfer in-kind, I will have a bunch of American Funds Mutual Funds in my account - should I immediately sell these for shares of the Vanguard Target Retirement Fund? Is there any reason to hold onto them?

Thanks.
There are no tax consequences for buying and selling in an IRA. You should check the transaction fees to sell at EJ vs Vanguard.

krow36
Posts: 1332
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Location: WA

Re: Question RE: Transferring assets from EJ to Vanguard

Post by krow36 » Thu Oct 05, 2017 8:17 pm

evilscholar wrote:
Thu Oct 05, 2017 1:57 pm
My question is, since I'm doing a transfer in-kind, I will have a bunch of American Funds Mutual Funds in my account - should I immediately sell these for shares of the Vanguard Target Retirement Fund? Is there any reason to hold onto them?
Can you list the funds, their ticker and their expense ratios?

bip2101
Posts: 10
Joined: Thu Jul 27, 2017 1:33 pm

Re: Question RE: Transferring assets from EJ to Vanguard

Post by bip2101 » Fri Oct 06, 2017 8:25 am

I just actually went through the process of transferring my American Funds account to Vanguard. Very easy process that is out lined in this thread --viewtopic.php?f=1&t=224396&p=3467883#p3467883. I liquidated the American Funds and purchased Vanguard funds with no fees. While the American Funds were good mutual funds, I traded for Vanguard funds due to the ERs.

renue74
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Joined: Tue Apr 07, 2015 7:24 pm

Re: Question RE: Transferring assets from EJ to Vanguard

Post by renue74 » Fri Oct 06, 2017 8:29 am

No need to hang onto the funds.

Sell them in your EJ account. Wait for the $ to hit and then transfer the IRA account to Vanguard. Then buy your Target Fund.

EJ will hit you with a transfer fee and take that out of the $ you transfer.

You'll sell first at EJ. Then after you know the money is in the account, contact Vanguard to do the account transfer. They will initiate it.

pkcrafter
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Re: Question RE: Transferring assets from EJ to Vanguard

Post by pkcrafter » Fri Oct 06, 2017 8:52 am

renue74 wrote:
Fri Oct 06, 2017 8:29 am
No need to hang onto the funds.

Sell them in your EJ account. Wait for the $ to hit and then transfer the IRA account to Vanguard. Then buy your Target Fund.

EJ will hit you with a transfer fee and take that out of the $ you transfer.

You'll sell first at EJ. Then after you know the money is in the account, contact Vanguard to do the account transfer. They will initiate it.
Note that if EJ pulls money from the IRA you will need to replace it or it's counted as a withdrawal and there would be a penalty. I think the account closing fee is about $98, so not much, but still annoying if you have to pay an early withdrawal penalty. Pay the fee separately or add the deduction back to the IRA.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

goingup
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Joined: Tue Jan 26, 2010 1:02 pm

Re: Question RE: Transferring assets from EJ to Vanguard

Post by goingup » Fri Oct 06, 2017 9:27 am

evilscholar wrote:
Thu Oct 05, 2017 1:57 pm
Hi, new account but I've been lurking a bit on this forum and reading up on investing, and it's given me the confidence to finally move my assets from Edward Jones to Vanguard. I was looking to just simply put my IRA assets into a Target Retirement Fund.

My question is, since I'm doing a transfer in-kind, I will have a bunch of American Funds Mutual Funds in my account - should I immediately sell these for shares of the Vanguard Target Retirement Fund? Is there any reason to hold onto them?

Thanks.
Don't keep the American Funds. They have higher ERs and you will not be able to contribute any more money to them. They'll be like ghost ships floating in your IRA. :wink:
You begin at Vanguard to initiate the transfer process. You should speak to them to find out what it costs in fees to sell the American Funds in your new Vanguard account. It's probably better to sell the funds while you're at EJ instead. Once your cash arrives at Vanguard (may take a couple weeks) buy the Target Fund.

evilscholar
Posts: 3
Joined: Thu Oct 05, 2017 1:53 pm

Re: Question RE: Transferring assets from EJ to Vanguard

Post by evilscholar » Fri Oct 06, 2017 9:56 am

Thanks for all the advice! I'll look into the fees for selling at EJ vs Vanguard... and I did kind of figure that keeping them wouldn't be a good idea b/c of the higher ER but just was looking for some advice. I appreciate it!

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