[Moving from Edward Jones to Vanguard]

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Useful User
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[Moving from Edward Jones to Vanguard]

Post by Useful User » Sun Sep 08, 2019 8:28 pm

[Moved into a new thread from: Moving away from Edward Jones to Vanguard --admin LadyGeek]

Hi, all, I appreciate the discussion and tips.

Because my Mom was frugal, after she passed this year my sister and I divided her Edward Jones account. I had tried and tried to steer her away from Edward Jones after a family meeting with my sister's EJ advisor. Let's just say he could have been type-cast for the part. From there on, I started searching for help so that I could help her, if not avoid signing with him, at least be aware and hopefully get out unscathed. I'm sure you're not surprised that I ended up reading and reading and reading about EJ. I consider Bogleheads the best source I found.

So now it's my turn to get out of Edward Jones. I thought my transfer to Fidelity was going fine; but, as others have said here, a couple of my funds won't transfer there. Not at Vanguard either. They're Loomis bond funds. I had actually looked the funds up at Vanguard and thought that would work there, but I didn't find the search to see if they were transferable. Oh, well. Fidelity sent me a letter telling me they wouldn't transfer to them.

Now I have to decide whether to trade or liquidate. It's 33K of the funds. Total account was 260K. If they had transferred, I would have had that magic number over 250K for possible perks. When the firms state the account size, do they include cash or just the security holdings? Would it be better to trade the 2 Loomis bond funds and transfer the new holdings out? Does it make any difference to anyone but me? :) The capital gains figure for both would be about $1,500, since the cost basis was adjusted at the time of inheritance; so that's not a consideration in this instance, at least not for me.

I cannot tell you how much I dislike but more importantly distrust the first EJ guy and his successor. The new guy lied within the first few minutes after I met him! Lied about how long he had been in the field and with the firm. I guess he didn't expect me to look him up before I met him. The next time it was really he and the guy he called at headquarters lying, lying, lying. Saying I couldn't hold the funds I wanted in the self-directed account because they weren't the right type or flavor of that specifically named fund. The exact same fund. Then on the phone, he kind of pleaded to the higher up to let me put it in the lower level managed account. Surprise! He relented! So, then, using logic anyone would use, I said why not the self-directed, since they're the same exact fund! He acquiesced. I tell you it was horrible. Is it also illegal? Does anyone know?

Just had to vent. :)

I really welcome your feedback and suggestions. I want to complete the move soon. I was pretty happy that I was going to be out. The $95 closing fee doesn't bother me that much, either, because there's bound to be some effort and paperwork. I just really don't want them to get anything else from me! They're getting plenty from my sister. And they did a good job of whittling down Mom's account value from the get-go. Took thousands off the top just starting the account. It's really sad.

Thanks, Bogleheads!

Pamela :happy

Silk McCue
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Re: [Moving from Edward Jones to Vanguard]

Post by Silk McCue » Sun Sep 08, 2019 8:56 pm

Welcome to Bogleheads!

Since you rightly despise EJ and the tax consequences are minor sell the funds tomorrow and then have Fidelity pull them.

Cheers

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David Jay
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Re: [Moving from Edward Jones to Vanguard]

Post by David Jay » Sun Sep 08, 2019 9:04 pm

Pamela:

Welcome to the forum.

I trust Fidelity and Vanguard, if they say it won’t transfer then believe them. As a rule, work with the brokerage who will be receiving the funds because they have the incentive to have things go smoothly (they want you happy). There is no need to talk to EJ again.

$1500 in capital gains at your capital gains rate (rate depends on your income) isn’t a lot of money ($375 $225 at 15%, for example).

[edit for math error, see post below]
Last edited by David Jay on Sun Sep 08, 2019 9:23 pm, edited 1 time in total.
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catdude
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Re: [Moving from Edward Jones to Vanguard]

Post by catdude » Sun Sep 08, 2019 9:13 pm

David Jay wrote:
Sun Sep 08, 2019 9:04 pm
$1500 in capital gains at your capital gains rate (rate depends on your income) isn’t a lot of money ($375 at 15%, for example).
I think you mean $225, don't you?
catdude | | "Only in America." (Yogi Berra, after being told that the mayor of Catholic Dublin was Jewish)

Ferdinand2014
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Re: [Moving from Edward Jones to Vanguard]

Post by Ferdinand2014 » Sun Sep 08, 2019 9:34 pm

Silk McCue wrote:
Sun Sep 08, 2019 8:56 pm
Welcome to Bogleheads!

Since you rightly despise EJ and the tax consequences are minor sell the funds tomorrow and then have Fidelity pull them.

Cheers
+1
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

DippityDoo
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Re: [Moving from Edward Jones to Vanguard]

Post by DippityDoo » Sun Sep 08, 2019 9:46 pm

Welcome, Pamela.

I left EJ for Fidelity and have no regrets. If you've been accessing account information online, please make sure you have everything you need because EJ will shut down your online access. They shut me out before all my funds had transferred. When I transferred, I had a substantial amount of cash that Fidelity considered as part of the account size. EJ will deduct their $95 account closure fee but I'd be very surprised if Fidelity didn't reimburse you for that if you ask.

Best wishes. And condolences on the loss of your mother.

Bronco Billy
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Re: [Moving from Edward Jones to Vanguard]

Post by Bronco Billy » Sun Sep 08, 2019 9:57 pm

Can you leave some money in the account and have everything but the cash transferred to whomever? Would that not be a way to keep the online account open and save the $95 closure fee?
It's a POOR woman that cannot support ONE man.

codmaxkor
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Re: [Moving from Edward Jones to Vanguard]

Post by codmaxkor » Sun Sep 08, 2019 9:59 pm

Have you tried Schwab?

WhyNotUs
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Re: [Moving from Edward Jones to Vanguard]

Post by WhyNotUs » Sun Sep 08, 2019 10:05 pm

If you cash out the bond funds and buy total bond market, you will probably save 0.6 to 1% a year in fees. So over time the move will be paid back.

A friend asked me to look at her EJ account last week. VG MM and three American Funds. The first one I looked at had 5.75 front load and 1% on the back with 1.36% fees. :oops:
I own the next hot stock- VTSAX

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Stinky
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Re: [Moving from Edward Jones to Vanguard]

Post by Stinky » Mon Sep 09, 2019 8:22 am

Welcome to the Forum! Glad that you found us.

Sell the funds. Move the money to Vanguard, Fidelity, or Schwab. Start the process today.
It's a GREAT day to be alive - Travis Tritt

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Wiggums
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Re: [Moving from Edward Jones to Vanguard]

Post by Wiggums » Mon Sep 09, 2019 9:25 am

Stinky wrote:
Mon Sep 09, 2019 8:22 am
Welcome to the Forum! Glad that you found us.

Sell the funds. Move the money to Vanguard, Fidelity, or Schwab. Start the process today.
+1

livesoft
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Re: [Moving from Edward Jones to Vanguard]

Post by livesoft » Mon Sep 09, 2019 10:16 am

Useful User wrote:
Sun Sep 08, 2019 8:28 pm
...
Now I have to decide whether to trade or liquidate. It's 33K of the funds. Total account was 260K. If they had transferred, I would have had that magic number over 250K for possible perks. When the firms state the account size, do they include cash or just the security holdings? ...
For Vanguard the so-called "perks" are not really perks, but the $250K required for Vanguard "Voyager" is not clearly stated on the website as using Vanguard products. In reality, you get all the same "perks" with lower than $250K I think.

So $250K divided up as $249K in Vanguard products and $1K in Loomis products held at Vanguard does not give you Voyager.

In your shoes I'd just sell the EJ stuff and move the cash to Vanguard. However, if you just transferred to a different Loomis fund at EJ, then they may charge you an early redemption fee plus the account closure fee. They got you!
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Morgan Dollar 1921
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Re: [Moving from Edward Jones to Vanguard]

Post by Morgan Dollar 1921 » Mon Sep 09, 2019 10:54 am

Stinky wrote:
Mon Sep 09, 2019 8:22 am
Welcome to the Forum! Glad that you found us.

Sell the funds. Move the money to Vanguard, Fidelity, or Schwab. Start the process today.
+2

Topic Author
Useful User
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Re: [Moving from Edward Jones to Vanguard]

Post by Useful User » Tue Sep 10, 2019 10:02 pm

Thanks, Bogleheads!

Sorry for the late response. I do appreciate all of you and your insight and help.

Well, I was trying to get the liquidating done yesterday afternoon via EJ's customer online access. I wrote what I wanted done - liquidate the two remaining funds and transfer the balance of the cash - and was about to send it, when I saw the notice that I could not give any investment instructions via their secure message, they only allowed calling or meeting my advisor. By then the clock ran out on phoning him.

This morning I called when the office opened, and he wasn't in. I gave the branch manager two phone numbers he could use to call me back. By 2:00, I hadn't heard from him, so I called again. A different woman answered, spent quite a while away from the phone, then came back and told me he was out of the office. I again left the numbers, even asking for a voice message. Nothing all day. It's so childish for him not to return a call.

Nothing happened, so I'll try calling again tomorrow. It's really ridiculous! So, it looks like I may have to wait until next week and go in and see him in person, since we are babysitting until our daughter gets the grandbaby into the new daycare next week. (I'll really miss babysitting her!)

I'm going with the advice to sell and get out of there. Leaving anything there just to avoid the $95 won't work for me, but I can see others wanting to do that. When I looked at my EJ account online, I saw that they already took out $95 as a "transfer fee." I hope they mean the account fee in their paperwork and are not planning to charge another. I thought that fee would be the second to last transaction in transferring the account, but I guess not.

I'm learning a lot here, and I'm bound to learn more :happy Thanks again!

Pamela

DippityDoo
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Re: [Moving from Edward Jones to Vanguard]

Post by DippityDoo » Wed Sep 11, 2019 12:22 am

Useful User wrote:
Tue Sep 10, 2019 10:02 pm
It's so childish for him not to return a call.
He may want you to come in to discuss it in person with the hope he can talk you out of the transfer. My EJ rep was uncooperative and refused to follow the transfer instructions. Fidelity had to bypass him and go through EJ's corporate office. Do you have a Fidelity office within driving distance? You can meet with Fidelity, sign the paperwork, and let them handle the transfer so that you don't have to deal with EJ any more.

Best wishes.

bondsr4me
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Re: [Moving from Edward Jones to Vanguard]

Post by bondsr4me » Wed Sep 11, 2019 7:27 am

Silk McCue wrote:
Sun Sep 08, 2019 8:56 pm
Welcome to Bogleheads!

Since you rightly despise EJ and the tax consequences are minor sell the funds tomorrow and then have Fidelity pull them.

Cheers
+1

No need to consult with EJ; "just do it".

Good luck!

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Stinky
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Re: [Moving from Edward Jones to Vanguard]

Post by Stinky » Wed Sep 11, 2019 8:37 am

bondsr4me wrote:
Wed Sep 11, 2019 7:27 am
Silk McCue wrote:
Sun Sep 08, 2019 8:56 pm
Welcome to Bogleheads!

Since you rightly despise EJ and the tax consequences are minor sell the funds tomorrow and then have Fidelity pull them.

Cheers
+1

No need to consult with EJ; "just do it".

Good luck!
+2

Don't talk to EJ again. They're already unhappy with you, because you're a source of fee income that's walking out the door. Let Fidelity do the heavy lifting for you.

And don't take phone calls from the EJ broker on the off chance that he reaches out to you.
It's a GREAT day to be alive - Travis Tritt

mhalley
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Re: [Moving from Edward Jones to Vanguard]

Post by mhalley » Wed Sep 11, 2019 8:51 am

Def don’t go in person. Email or phone only. Can’t you leave him the sell order on voicemail?

DippityDoo
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Re: [Moving from Edward Jones to Vanguard]

Post by DippityDoo » Wed Sep 11, 2019 11:09 am

Stinky wrote:
Wed Sep 11, 2019 8:37 am
And don't take phone calls from the EJ broker on the off chance that he reaches out to you.
^^ Excellent advice! Mine called me one last time and was so nasty and unprofessional that it shocked me.

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