EJ to Vanguard Frozen Simple - my experience

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
JC565
Posts: 57
Joined: Wed Jan 03, 2018 1:07 pm

EJ to Vanguard Frozen Simple - my experience

Post by JC565 » Sun May 26, 2019 1:21 am

I was locked into an EJ guided solutions account (5305 simple ira) I talked to the EJ salesman and told him I wanted
  • ability to hold assets in cash
  • Low fees
  • Freedom to purchase whatever I want
  • No account minimum "since I'll be b buying a house soon"
  • No drips, no rebalancing
That led me to converting my GS account into a "select retirement account." And i had all funds converted to cash and The salesman assures me all fees are waived, but ej documentation list a $3 per month fee if under 1500. I have it specifically and in writing that doesn't apply to me. (Perhaps my company has enough invested in total)

I called vanguard and they sent a new account form And an asset transfer form. I completed these and attached EJ statement and mailed all 3 documents back to vg. Transferred a partial balance, leaving 200 in the account as to not trigger a $95 fee. All assets are directed to VIGAX for a single $25 annual fee, plus expense ratio. (A single trade at ej is $54)

vanguard says 12 days to complete the transfer in one email and 4-6 weeks in another. Well see how quickly it happens

Next on my list is to change my direct deposit and withholding forms to max out the 12,500 pretax since I no longer have to worry about funding ej's sslesforce.

If I did this correctly I should pay $0 to Edward Jones.

User avatar
beyou
Posts: 2816
Joined: Sat Feb 27, 2010 3:57 pm
Location: Northeastern US

Re: EJ to Vanguard Frozen Simple - my experience

Post by beyou » Sun May 26, 2019 5:41 am

Except you will have $200 sitting in an account you don’t want. Does not seem fee free. Unless you can write a $200 check now !

bradinsky
Posts: 155
Joined: Sat Jul 21, 2018 6:32 am

Re: EJ to Vanguard Frozen Simple - my experience

Post by bradinsky » Sun May 26, 2019 5:57 am

Good morning JC,
You should just go ahead & close out the EJ account. It doesn’t make sense to let them hold the $200. In the end, they will get the $95. The quicker you put them behind you, the better it will be for you. We left EJ last year & I’m happy we did. We ended up paying the closing fees for multiple accounts, and Schwab actually reimbursed us for those charges. Good luck & happy investing!

Brad

Topic Author
JC565
Posts: 57
Joined: Wed Jan 03, 2018 1:07 pm

Re: EJ to Vanguard Frozen Simple - my experience

Post by JC565 » Sun May 26, 2019 10:50 am

I cannot close the account. 5305 simple and I am required to use EJ to get company match

User avatar
teen persuasion
Posts: 951
Joined: Sun Oct 25, 2015 1:43 pm

Re: EJ to Vanguard Frozen Simple - my experience

Post by teen persuasion » Fri Jun 28, 2019 9:17 am

JC565 wrote:
Sun May 26, 2019 1:21 am
I was locked into an EJ guided solutions account (5305 simple ira) I talked to the EJ salesman and told him I wanted
  • ability to hold assets in cash
  • Low fees
  • Freedom to purchase whatever I want
  • No account minimum "since I'll be b buying a house soon"
  • No drips, no rebalancing
That led me to converting my GS account into a "select retirement account." And i had all funds converted to cash and The salesman assures me all fees are waived, but ej documentation list a $3 per month fee if under 1500. I have it specifically and in writing that doesn't apply to me. (Perhaps my company has enough invested in total)

I called vanguard and they sent a new account form And an asset transfer form. I completed these and attached EJ statement and mailed all 3 documents back to vg. Transferred a partial balance, leaving 200 in the account as to not trigger a $95 fee. All assets are directed to VIGAX for a single $25 annual fee, plus expense ratio. (A single trade at ej is $54)

vanguard says 12 days to complete the transfer in one email and 4-6 weeks in another. Well see how quickly it happens

Next on my list is to change my direct deposit and withholding forms to max out the 12,500 pretax since I no longer have to worry about funding ej's sslesforce.

If I did this correctly I should pay $0 to Edward Jones.
Thanks for the details!

So if I understand you correctly, you are transferring nearly all of your EJ SIMPLE IRA to a frozen SIMPLE IRA at Vanguard, and then continuing max contributions to EJ for the match and tax benefits.

How frequently do you intend to transfer new contributions to the Vanguard account?

I've just (finally!) gotten access to a SIMPLE IRA thru my employer, but it's with Wells Fargo and has ridiculous expense ratios. As I understand it, I can open a frozen SIMPLE IRA with Vanguard and transfer (even before 2 years have elapsed). I can only do one rollover per year (per IRS rules), but trustee to trustee transfers are not the same as rollovers, I believe. So I'm trying to figure out how often I want to transfer out of WF and into Vanguard.

Post Reply