Edward Jones to Index funds model

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Janet300
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Edward Jones to Index funds model

Post by Janet300 » Wed May 09, 2018 10:40 am

I am nearing retirement and currently IRA with Edward Jones. Fees are so high that I am considering moving to Vanguard low cost index funds or Schwab. Not sure which company or funds to choose. Do you get any benefits to moving a large sum to one company verses splitting it up? I like the vanguard choices but keep reading how much better service is with Scwab.

Veritas Simplex
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Re: Edward Jones to Index funds model

Post by Veritas Simplex » Wed May 09, 2018 12:26 pm

Welcome to the forum! Definitely the correct decision to exit EJ ASAP. Vanguard, Schwab and Fidelity offer low cost index mutual funds and ETFs to investors. Depending on the size of your account, you may receive a transfer bonus from firms other than Vanguard. You'd need to inquire with the individual firms. Merrill Edge and TD Ameritrade are also mentioned as firms offering transfer bonuses.

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greg24
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Re: Edward Jones to Index funds model

Post by greg24 » Wed May 09, 2018 12:30 pm

Many on this board would suggest Schwab or Fidelity, which have better customer service than Vanguard.

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triceratop
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Re: Edward Jones to Index funds model

Post by triceratop » Wed May 09, 2018 12:35 pm

You'll definitely save a pretty penny (pun intended) by switching away from EJ.

If you're in the bonus business then Merrill Edge and TDAM are where you should look. If you split your assets up you may be able to do both and receive bonuses at each. I would choose the brokerage you'll use long-term, though.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

chambers136
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Re: Edward Jones to Index funds model

Post by chambers136 » Wed May 09, 2018 12:45 pm

You may be able to get Schwab to match a bonus offer from MerrillEdge or TDAmeritrade

NotWhoYouThink
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Re: Edward Jones to Index funds model

Post by NotWhoYouThink » Wed May 09, 2018 12:47 pm

You need to decide more than "index funds model" before you move anything, or you could end up in the same predicament. Schwab, Fidelity, TD Ameritrade and Merrill Lynch will all be happy to charge you fees to manage your money. If you want to save, then you want a self-managed account rather than an Advisor account. The difference is important. And before you self-manage your account you need to figure out what you have now, and what you want going forward.

So what do you have now at EJ? What do you want? If you don't know yet and want advice, the best way to gather input is to use this format.
viewtopic.php?t=6212

DippityDoo
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Re: Edward Jones to Index funds model

Post by DippityDoo » Wed May 09, 2018 1:38 pm

Hi, Janet. I left EJ for Fidelity. They gave me a cash bonus for transferring my accounts and they reimbursed EJ's account closure fees.

If I may, I'd like to give you one piece of advice: Please don't feel as though you owe your EJ rep a heads-up as a courtesy. Sometimes EJ reps get downright nasty (mine did) and can try to thwart the transfer of your assets to a new brokerage. After you decide which new brokerage to use, I encourage you to let the new broker initiate the transfer request and deal with EJ. They will be familiar with EJ's tactics.

Best wishes with your decision.

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ruralavalon
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Re: Edward Jones to Index funds model

Post by ruralavalon » Wed May 09, 2018 4:25 pm

Janet300 wrote:
Wed May 09, 2018 10:40 am
I am nearing retirement and currently IRA with Edward Jones. Fees are so high that I am considering moving to Vanguard low cost index funds or Schwab. Not sure which company or funds to choose. Do you get any benefits to moving a large sum to one company verses splitting it up? I like the vanguard choices but keep reading how much better service is with Scwab.
Welcome to the forum :) .

It's clearly a good decision to move your IRA away from Edward Jones.

What funds do you currently use in your IRA? Please give fund names, tickers and expense ratios. What type of funds do you think that you want to use after the IRA is moved elsewhere?

My usual preference for fund firms is
1) Vanguard,
2) Fidelity, or
3) Schwab
in that order. All three have a selection of low expense ratio index funds you can use.

Fidelity and Schwab offer new account transfer bonuses, Vanguard does not. My personal experience with Vanguard customer service has been good.

Definitely let the firm you select to hold the transferred IRA initiate and handle the transfer away from Edward Jones.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

delamer
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Re: Edward Jones to Index funds model

Post by delamer » Wed May 09, 2018 5:32 pm

There are certain funds at Vanguard that have lower ERs depending on the amount that you invest.

https://investor.vanguard.com/mutual-fu ... ral-shares

I don’t know if Schwab has anything comparable.

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oldcomputerguy
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Re: Edward Jones to Index funds model

Post by oldcomputerguy » Wed May 09, 2018 5:56 pm

How much are you transferring? If it’s over $500k, you might want to think about splitting it between two houses (maybe half in Fidelity and half in Vanguard, or some such). SIPC insurance covers up to $500k per account.
"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)

Topic Author
Janet300
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Re: Edward Jones to Index funds model

Post by Janet300 » Thu May 10, 2018 9:10 am

I have a few questions about moving funds. I have a 403b account at my work with VOYA and another with VALIC. I have another with Edward Jones and my husbands is with Edward Jones. These are all in IRA accounts in which taxes have not been paid. They total 1,200,000. Would I be better off splitting this between 2 companies? Are we allowed to rollover all of Hesse at the same time? I was reading something about only being allowed to rollover 1 account per year.

avoidingdumbmistakes
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Re: Edward Jones to Index funds model

Post by avoidingdumbmistakes » Thu May 10, 2018 9:28 am

Schwab has a very nice lineup low cost funds and etfs and they cover all the usual tilts if you want go that way.

My US ETFs are .03-.04. International broad market is .06 and niche like international emerging markets is .13

Funds are around the same costs. Of course cost isn't the only reason to choose a home but I'm very happy with Schwab's lineup and website. I have 4 accounts there and customer service/ease of use has been just fine. I really like their fund screener and portfolio analysis tools as well. Makes it easy to stay on top of rebalancing.

That being said, if I run into problems down the line I wouldn't hesitate to switch to VG or Fido in a split second.

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BL
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Re: Edward Jones to Index funds model

Post by BL » Thu May 10, 2018 9:37 am

If you know exactly what you want, any of them are fine. If you want to ask about which funds to choose, then I think Vanguard would be safer as they have mostly low ER funds and don't have incentive to up-sell you to more expensive solutions (except maybe the lower-cost PAS management).

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goingup
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Re: Edward Jones to Index funds model

Post by goingup » Thu May 10, 2018 9:47 am

As mentioned, any of the big 3--Vanguard, Fidelity or Schwab are excellent firms. I would not be concerned about transferring $1.2m to any of them. I'd use just one firm for simplicity.

One of the first decisions after choosing a firm is whether to self-manage your portfolio or use an advisory service. Vanguard has VPAS, which charges .30% of assets under management (AUM). For example, the cost per year on a $1.2m portfolio would be $3,600, which is considered quite low. I'm sure Fidelity and Schwab have low cost advisory services too. https://investor.vanguard.com/advice/personal-advisor

DippityDoo
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Re: Edward Jones to Index funds model

Post by DippityDoo » Thu May 10, 2018 10:11 am

goingup wrote:
Thu May 10, 2018 9:47 am
I'm sure Fidelity and Schwab have low cost advisory services too.
I'm a happy camper at Fidelity but I wouldn't recommend their advisory service because it's too pricey. But for someone willing to manage their own portfolio and select low-cost funds, I think Fidelity is perfectly fine. Their customer service is top-notch. My rep knows I'm an indexer and he doesn't pester me with unwanted calls. Another thing I appreciated about Fidelity was that my rep arranged it so that I could transfer in my funds with high ERs and sell on the Fido side without trading fees. EJ had me in 20+ funds so that made a big difference.

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Taylor Larimore
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Vanguard Customer Service

Post by Taylor Larimore » Thu May 10, 2018 10:14 am

Many on this board would suggest Schwab or Fidelity, which have better customer service than Vanguard.
Bogleheads:

The underlined quote is debatable. Any company with millions of customers (especially a rapidly growing company) will have disgruntled customers and some come here to complain. I have been a Vanguard customer since 1986 and am very satisfied with Vanguard service.

This is a post I made less than two years ago:
Bogleheads:

My September, 2016 issue of Consumer Reports arrived today in the mail. The heading on Page 49 caught my eye: "Investment Companies: Which Ones Do It Best"
Our table below, rates traditional investment companies on the services they provide. A total of 118,662 ratings from small investors and 45,447 from large investors were provided by subscribers.
Ratings were based on:

Investment Returns
Met Goals
Customer Service
Advice
Online Reports

Vanguard's overall company rating was #1 for both small investors (67 companies rated), and large investors (31 companies rated).
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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goingup
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Re: Edward Jones to Index funds model

Post by goingup » Thu May 10, 2018 11:41 am

DippityDoo wrote:
Thu May 10, 2018 10:11 am
goingup wrote:
Thu May 10, 2018 9:47 am
I'm sure Fidelity and Schwab have low cost advisory services too.
I'm a happy camper at Fidelity but I wouldn't recommend their advisory service because it's too pricey. But for someone willing to manage their own portfolio and select low-cost funds, I think Fidelity is perfectly fine. Their customer service is top-notch. My rep knows I'm an indexer and he doesn't pester me with unwanted calls. Another thing I appreciated about Fidelity was that my rep arranged it so that I could transfer in my funds with high ERs and sell on the Fido side without trading fees. EJ had me in 20+ funds so that made a big difference.
Fidelity now has a service called FidelityGo which is described as a robo advisor for .25 AUM. I agree that self-managing is the lowest cost option but it's not something everyone wants to do. https://www.fidelity.com/managed-accoun ... o/overview

jacko
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Re: Edward Jones to Index funds model

Post by jacko » Thu May 10, 2018 10:49 pm

I recommend Betterment.

Larry2623
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Re: Vanguard Customer Service

Post by Larry2623 » Thu May 10, 2018 11:20 pm

Taylor Larimore wrote:
Thu May 10, 2018 10:14 am
Many on this board would suggest Schwab or Fidelity, which have better customer service than Vanguard.
Bogleheads:

The underlined quote is debatable. Any company with millions of customers (especially a rapidly growing company) will have disgruntled customers and some come here to complain. I have been a Vanguard customer since 1986 and am very satisfied with Vanguard service.

This is a post I made less than two years ago:
Bogleheads:

My September, 2016 issue of Consumer Reports arrived today in the mail. The heading on Page 49 caught my eye: "Investment Companies: Which Ones Do It Best"
Our table below, rates traditional investment companies on the services they provide. A total of 118,662 ratings from small investors and 45,447 from large investors were provided by subscribers.
Ratings were based on:

Investment Returns
Met Goals
Customer Service
Advice
Online Reports

Vanguard's overall company rating was #1 for both small investors (67 companies rated), and large investors (31 companies rated).
Best wishes.
Taylor
How can you debate it if you have been with V for over 30 years and never tried other 2? Mostly just kidding, but technically true

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