Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

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bfeenix44
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Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

CURRENT SITUATION:
My folks are in their mid-90s, and I am now responsible for their physical and financial affairs. They are still in their own home, and I live with them currently as my dad has severe hearing and vision loss, a permanent catheter, and is quite frail. Between mom and I and Home Health Care we are managing but his short-term memory is now going (long term seems better), and he's no longer able to "do his bookwork" as he's done his entire life. I handle things for them much the same as he has in the past, and discuss it with him as he enjoys feeling included. My mom has never handled finances and is very uncomfortable doing so; I include her in the discussions, as well, as she says she likes to learn, but doesn't want to be hands-on. I have one older sister (5 hours away; we have a great relationship) but she chooses to let an advisor handle her portfolio, and has much the same mind-set as my mom.

ISSUE:
Folks have an investment account with Ed Jones (Taxable = single stocks, single municipal bonds, CDs, mutual funds). I have recently moved my own (simpler) portfolio over to Vanguard and would like to do the same with theirs. Dad still understands things very well in the moment, he just can't hold them in memory. They both trust me to make the best decisions, and Mom and I have the understanding that some financial things may need to be handled between her and I, possibly apart from Dad. I understand it's possible that the best thing may be to let things be as they are until my folks pass away, but I feel I won't know this unless I look into it.

The info below does include farmland estimated value in with bond allocation. I see people have different opinions on where to place land in allocation; if it's better to present it another way, let me know.

Emergency funds: 8 years
Debt: None
Tax Filing Status: Married, Jointly
Tax Rate: 12% Federal, 4.1% State
State of Residence: Iowa
Age: Dad 96 / Mom 95
Size of current total portfolio: Low 7 figures

Current / Desired Asset allocation:
Farmland is included on bond side.
"Desired Allocation" = I feel we're in the ballpark OK with 20/80 at their age, but I welcome suggestions.
18 / 82 = current allocation INCLUDING estimated land value
30 / 70 = current allocation NOT including estimated land value
(The Ed Jones allocation by itself is 64 / 36.)

General financial additional notes:
My folks own part of a small Iowa farm (we have a very solid, young tenant farmer), and they have adequate insurance (Medicare, Supplement and Prescription, Long Term Care). Home is paid off, and we live quite frugally in a very rural environment. There are wills, living wills, medical directives, etc. in place and I have Power of Attorney.

Folks' annual expenses are completely covered by their non-investment income (SS, IPERS pension, VA compensation, farm cash rent). They probably have at least $30K - $40K leftover at the end of the year, which may be considered for investment. My understanding is that no capital gains taxes are paid in their tax bracket.

Folks currently take all Ed Jones distributions -- nothing is re-invested. The EJ distributions are approx 3.4% of EJ total account value. They really wouldn't even need to take distributions from Ed Jones, but I don't want to "reinvest" with EJ, so in the meantime we will do cash / CDs with the distributions until we move account to Vanguard.

They have a couple of small annuities which they plan to cash before they annuitize (they have done this with other similar annuities in the past; just getting them for interest, I guess). I don't know much about these yet as they've been lower on priority list, but I'll be learning more about them next.

----------------------------------------------------------------------------
PORTFOLIO:
49.69% Land
42.11% Ed Jones, taxable (see below)
3.00% Annuities (2)
2.61% Cash for investing now
2.59% II / E Bonds
---------
100%
----------------------------------------------------------------------------
ED JONES 42.11% DETAILS:

xx% Edward Jones - CDs
0.78% Morgan Stanley Bk N A Salt Lake City Utah
0.79% Wells Fargo Bank NA
1.91% Discover Bank
1.58% Morgan Stanley Bk N A Salt Lake City Utah

xx% Edward Jones - Municipal Bonds
0.55% CUSIP: 83703FEM0 Bond Rating: AA/WD
South Carolina Jobs Econ Dev Hosp Rev Rfdg Palmetto Hlth

0.27% CUSIP: 880461BF4 Bond Rating: AA+/Aa1
Tennessee Housing Dev Agency Residential Fin Prog Revenue B

1.04% CUSIP: 46257TDT3 Bond Rating: AA/Aa2
Iowa State Special Oblig Ijobs Pg Series A Revenue

1.65% CUSIP: 90343SAV7 Bond Rating: AA/Aa3
Usf Financing Corp Florida Capital Improvement Revenue

1.56% CUSIP: 259230MV9 Bond Rating: AA-/AA-
Douglas Cnty NE Hosp Auth No 2 Hlth Facs Nebraska Medicine

1.09% CUSIP: 432299AT2 Bond Rating: AA+/Aa1/AA+
Hillsborough Cnty Florida Communications Svcs Tax Rev

xx% Edward Jones - Corporate Bond
0.51% CUSIP: 74432AH78 Bond Rating: A/A3
Prudential Financial Inc

xx% Edward Jones - Stocks
stock company name (ticker symbol)

1.20% Alliant Energy Corp LNT
0.50% AT&T Inc T
0.47% Coca-Cola Co KO
0.57% ConocoPhillips COP
0.59% Enbridge Inc ENB
0.10% Invesco Ltd IVZ
1.28% Johnson & Johnson JNJ
0.24% Kraft Heinz Co KHC
0.95% McDonalds Corp MCD
1.10% Merck & Co MRK
0.39% Pfizer Inc PFE
1.19% Xcel Energy Inc XEL

xx% Edward Jones - Mutual Funds
fund name (ticker symbol) (expense ratio)

6.39% American Balanced Cl A ABALX 0.59% ER
6.54% American Capital Income Builder CAIBX 0.61% ER
7.43% American Income Fund of America AMECX 0.58% ER
0.54% Federated Prime Cash Obligations Cl Ws PCOXX 0.20% ER
0.92% Invesco Hi Yield Municipal Cl A ACTHX 1.22% ER
----------------------------------------------------------------------------
Questions:
My plan would be to open a Vanguard account / index funds for them (when we're in agreement), and move things over in groups...i.e. muni bonds first, then stocks, etc., or however it needs to be done.

1.) If you were doing it this way, what order would you do it in? Given the current market volatility, are there higher-risk things that should be dealt with first?

2.) Is there anything else I may be overlooking with regard to moving these things to Vanguard? (My portfolio was simpler than theirs, so easier to move.)

3.) If people have been in similar situations, but decided to let things be until folks passed away, I'd be interested in knowing more about reasons for those decisions.

4.) I'm newly aware that when one parent dies, only half the account is stepped up in cost basis -- has anyone seen how this works?

Sure appreciate this forum -- I will be using your advice to present my case to my folks for moving to Vanguard / index funds.

Please bear with me in my response time back to you as I have clipped the tip of a finger in a pruning accident, and my usual 70-words-per-minute speed has been similarly clipped, as well!

thanks!!
tamara
Last edited by bfeenix44 on Tue May 19, 2020 7:54 am, edited 3 times in total.
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FiveK
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by FiveK »

bfeenix44 wrote: Mon May 18, 2020 2:51 pm My understanding is that no capital gains taxes are paid in their tax bracket.
Not for federal, but if Iowa is like most states the state tax rate applies.
They have a couple of small annuities which they plan to cash before they annuitize (they have done this with other similar annuities in the past; just getting them for interest, I guess). I don't know much about these yet as they've been lower on priority list, but I'll be learning more about them next.
Withdrawals of any amount above what they contributed are taxed as ordinary income, and the IRS deems those amounts are withdrawn first. There is no basis step-up for an inherited annuity, unlike other inherited assets.
Questions:
My plan would be to open a Vanguard account / index funds for them (when we're in agreement), and move things over in groups...i.e. muni bonds first, then stocks, etc., or however it needs to be done.

1.) If you were doing it this way, what order would you do it in? Given the current market volatility, are there higher-risk things that should be dealt with first?

2.) Is there anything else I may be overlooking with regard to moving these things to Vanguard? (My portfolio was simpler than theirs, so easier to move.)

3.) If people have been in similar situations, but decided to let things be until folks passed away, I'd be interested in knowing more about reasons for those decisions.
1&2) Understand the tax implications of all considered asset rearrangements before executing them.

3) Stocks or funds with mostly unrealized gains might be best left as is, awaiting basis step-up on inheritance. Given enough capital gains they will be out of the 12% bracket and be taxed on those gains if taken now.

Things may become clear after you analyze the tax implications, or that may lead to more pointed questions - good luck!
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cheese_breath
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by cheese_breath »

At their ages I'd leave things as they are for now. You don't want to risk making changes that might upset them. Plus you might be in the middle of the reorganization and find yourself without authority to complete it if they pass on first.

But you can start familiarizing yourself with everything and developing your future game plan now.
The surest way to know the future is when it becomes the past.
tpsomerville
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by tpsomerville »

I'm the guardian and conservator for my mother, who is deep in dementia. Her assets are with Ameriprise, which has a local representative Mom worked with for years. When it became necessary for me to take the responsibility, I had recently finished the process of consolidating my assets at Vanguard. I thought hard about moving Mom from Ameriprise to Vanguard, but in the end I realized it didn't matter much for a few different reasons, so I left the money where it is.
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Stinky
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by Stinky »

cheese_breath wrote: Mon May 18, 2020 3:38 pm At their ages I'd leave things as they are for now. You don't want to risk making changes that might upset them. Plus you might be in the middle of the reorganization and find yourself without authority to complete it if they pass on first.

But you can start familiarizing yourself with everything and developing your future game plan now.
I was thinking the same thing.

If you want to move something, the lowest-hanging fruit is the mutual funds. That’s a lot of the asset base, and will save them some fees.
It's a GREAT day to be alive - Travis Tritt
Topic Author
bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

FiveK wrote: Mon May 18, 2020 3:29 pm
bfeenix44 wrote: Mon May 18, 2020 2:51 pm My understanding is that no capital gains taxes are paid in their tax bracket.
Not for federal, but if Iowa is like most states the state tax rate applies.
They have a couple of small annuities which they plan to cash before they annuitize (they have done this with other similar annuities in the past; just getting them for interest, I guess). I don't know much about these yet as they've been lower on priority list, but I'll be learning more about them next.
Withdrawals of any amount above what they contributed are taxed as ordinary income, and the IRS deems those amounts are withdrawn first. There is no basis step-up for an inherited annuity, unlike other inherited assets.
Questions:
My plan would be to open a Vanguard account / index funds for them (when we're in agreement), and move things over in groups...i.e. muni bonds first, then stocks, etc., or however it needs to be done.

1.) If you were doing it this way, what order would you do it in? Given the current market volatility, are there higher-risk things that should be dealt with first?

2.) Is there anything else I may be overlooking with regard to moving these things to Vanguard? (My portfolio was simpler than theirs, so easier to move.)

3.) If people have been in similar situations, but decided to let things be until folks passed away, I'd be interested in knowing more about reasons for those decisions.
1&2) Understand the tax implications of all considered asset rearrangements before executing them.

3) Stocks or funds with mostly unrealized gains might be best left as is, awaiting basis step-up on inheritance. Given enough capital gains they will be out of the 12% bracket and be taxed on those gains if taken now.

Things may become clear after you analyze the tax implications, or that may lead to more pointed questions - good luck!
Thanks for your feedback... appreciate it!
Topic Author
bfeenix44
Posts: 103
Joined: Thu Dec 26, 2019 8:05 pm

Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

cheese_breath wrote: Mon May 18, 2020 3:38 pm At their ages I'd leave things as they are for now. You don't want to risk making changes that might upset them. Plus you might be in the middle of the reorganization and find yourself without authority to complete it if they pass on first.

But you can start familiarizing yourself with everything and developing your future game plan now.
Good point, thanks!
Topic Author
bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

tpsomerville wrote: Mon May 18, 2020 3:50 pm I'm the guardian and conservator for my mother, who is deep in dementia. Her assets are with Ameriprise, which has a local representative Mom worked with for years. When it became necessary for me to take the responsibility, I had recently finished the process of consolidating my assets at Vanguard. I thought hard about moving Mom from Ameriprise to Vanguard, but in the end I realized it didn't matter much for a few different reasons, so I left the money where it is.
Thanks for sharing your situation... Makes me feel less pressure to do something if it's not the right time.
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bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

Stinky wrote: Mon May 18, 2020 9:17 pm
cheese_breath wrote: Mon May 18, 2020 3:38 pm At their ages I'd leave things as they are for now. You don't want to risk making changes that might upset them. Plus you might be in the middle of the reorganization and find yourself without authority to complete it if they pass on first.

But you can start familiarizing yourself with everything and developing your future game plan now.
I was thinking the same thing.

If you want to move something, the lowest-hanging fruit is the mutual funds. That’s a lot of the asset base, and will save them some fees.
Appreciate your feedback!
jjface
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by jjface »

Yes I'd probably leave it too. If you start reorganising now you'd need to be careful with capital gains so as to not trigger a lot of tax consequences. It is much easier to reorganise when it is in the hands of the heirs. You probably would rather be spending your time with them doing other things than discussing money anyway. And at the end of the day they have enough money to live on so no need to worry about it for now.

The good thing is it doesn't look too bad. We've all seen some pretty bad portfolios from EJ but this seems like one of the less complicated ones I've seen. 5 mutual funds - that must be a record low for a EJ portfolio!
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LilyFleur
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by LilyFleur »

I'm sorry if I missed this, but is the Edward Jones account taxable or tax-deferred?

I am just thinking that when one of your parents dies, that will leave the other in the single tax bracket. I don't know if the survivor would have the same pension amount every month.

Sorry, if this isn't part of your original question, but I do see that you now have an opportunity to make financial plans for the survivor and possibly make some moves now that would make the move to a single tax bracket more affordable for that parent.

For example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
ivk5
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by ivk5 »

LilyFleur wrote: Tue May 19, 2020 1:22 amFor example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
For funds not immediately needed to pay expenses, isn’t Roth conversion strictly better than withdrawing to invest in taxable?
Topic Author
bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

jjface wrote: Mon May 18, 2020 11:58 pm Yes I'd probably leave it too. If you start reorganising now you'd need to be careful with capital gains so as to not trigger a lot of tax consequences. It is much easier to reorganise when it is in the hands of the heirs. You probably would rather be spending your time with them doing other things than discussing money anyway. And at the end of the day they have enough money to live on so no need to worry about it for now.

The good thing is it doesn't look too bad. We've all seen some pretty bad portfolios from EJ but this seems like one of the less complicated ones I've seen. 5 mutual funds - that must be a record low for a EJ portfolio!
You make very good points, and nice to know it's not such a bad EJ portfolio. The person handling the account doesn't "push" a lot of new stuff all the time.

Thanks!
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bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

LilyFleur wrote: Tue May 19, 2020 1:22 am I'm sorry if I missed this, but is the Edward Jones account taxable or tax-deferred?

I am just thinking that when one of your parents dies, that will leave the other in the single tax bracket. I don't know if the survivor would have the same pension amount every month.

Sorry, if this isn't part of your original question, but I do see that you now have an opportunity to make financial plans for the survivor and possibly make some moves now that would make the move to a single tax bracket more affordable for that parent.

For example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
Thanks for your feedback...I edited original post to say account is taxable. Your points about single parent is something I need to learn more about.
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

I'm newly aware that when one parent dies, only half the account is stepped up in cost basis -- has anyone seen how this works?

tamara
not4me
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by not4me »

bfeenix44 wrote: Tue May 19, 2020 7:55 am I'm newly aware that when one parent dies, only half the account is stepped up in cost basis -- has anyone seen how this works?

tamara
I'll take a shot, but maybe missing your specific question. 1st of all, not all assets will get a stepped up basis. For example, the annuities. But for the taxable EJ account, assuming they are passed through the will, the executor would see that assets are re-titled & basis would go with the asset. So, for example, assume your 2 parents jointly own stock with a basis of $50. Will specifies that if survived by a spouse, the assets go to the surviving spouse (as opposed to some going to kids, etc). The stock is worth $100 at death. So, account would be re-titled into name of surviving spouse with a basis of $75 (surviving spouse's "original" basis of $25 + deceased share).

I noted they own "part of a farm" & that would be similar. Say, your 2 parents currently own half & the other half is owned by your uncle & aunt. When one of your parents dies & wills their share to the surviving spouse, your uncle and aunt would have their same share, but your surviving parent would now own half. The surviving parent would have their original basis + one fourth of value of farm when death occurred. (Assuming the farm isn't held in an irrevocable trust or some other possible combinations....)

Another point...the basis is adjusted, not always stepped "up". It could go down. No one inherits a tax loss that was unrealized at death.

A couple of other assorted thoughts. I'd agree with others that I wouldn't move assets at this point. We're all different & some parents may be proud they have someone smart enough to help. It's good that parents are still mentally sharp. But, especially in later stages, minds can slip. They can feel someone trying to "get their money", saying they made mistakes, etc. The EJ rep is likely seen as long time ally & might subtly cause friction. Let your parents feel pride they accomplished much & provided well.

More detail...I think it right to not dig deeper & reinvest in anything other than CD, maybe treasuries. They may not be paying cap gain now, but if you sell somethings with gains that could bump them into higher bracket. But, if they have some losses right now, perhaps harvesting those would make sense. For example the invesco hi yield fund has a high er & if it had a loss, selling might give a good chance to get out of annuity & not bump taxes.
baritone
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by baritone »

You're getting excellent advice from folks far brighter and more knowledgeable than I, so I'll just contribute one observation: The Edward Jones higher-ups would be apoplectic if they discovered that their rep didn't rob your folks a lot more that he has.
You seem to have great, hard-working parents and I'm so glad they have lived long lives.
Regards, David
Beehave
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by Beehave »

Your care for your parents is admirable. My basic suggestions would be to just make sure there are no changes to the Edward Jones account holdings or fee structures without your being consulted and giving your okay. I am concerned that the pruning accident could be indicative that you already have a lot on your mind, so I would suggest not making major changes unless they seem imperative. Keep taking care of yourself and your parents.

As an urban-dweller for decades, there is something especially touching and visceral about your farm and your family. My daughter rode by bike coast-tot-coast across the US, on a path to the south of Iowa. It was a Habitat-for-Humanity event. At the end, the group voted the people of Kansas as by far the warmest and friendliest they had met. I'm sure had they passed through Iowa they'd have felt the same. Good luck and I wish you the best.
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

not4me wrote: Tue May 19, 2020 11:09 am
bfeenix44 wrote: Tue May 19, 2020 7:55 am I'm newly aware that when one parent dies, only half the account is stepped up in cost basis -- has anyone seen how this works?

tamara
I'll take a shot, but maybe missing your specific question. 1st of all, not all assets will get a stepped up basis. For example, the annuities. But for the taxable EJ account, assuming they are passed through the will, the executor would see that assets are re-titled & basis would go with the asset. So, for example, assume your 2 parents jointly own stock with a basis of $50. Will specifies that if survived by a spouse, the assets go to the surviving spouse (as opposed to some going to kids, etc). The stock is worth $100 at death. So, account would be re-titled into name of surviving spouse with a basis of $75 (surviving spouse's "original" basis of $25 + deceased share).

I noted they own "part of a farm" & that would be similar. Say, your 2 parents currently own half & the other half is owned by your uncle & aunt. When one of your parents dies & wills their share to the surviving spouse, your uncle and aunt would have their same share, but your surviving parent would now own half. The surviving parent would have their original basis + one fourth of value of farm when death occurred. (Assuming the farm isn't held in an irrevocable trust or some other possible combinations....)

Another point...the basis is adjusted, not always stepped "up". It could go down. No one inherits a tax loss that was unrealized at death.

A couple of other assorted thoughts. I'd agree with others that I wouldn't move assets at this point. We're all different & some parents may be proud they have someone smart enough to help. It's good that parents are still mentally sharp. But, especially in later stages, minds can slip. They can feel someone trying to "get their money", saying they made mistakes, etc. The EJ rep is likely seen as long time ally & might subtly cause friction. Let your parents feel pride they accomplished much & provided well.

More detail...I think it right to not dig deeper & reinvest in anything other than CD, maybe treasuries. They may not be paying cap gain now, but if you sell somethings with gains that could bump them into higher bracket. But, if they have some losses right now, perhaps harvesting those would make sense. For example the invesco hi yield fund has a high er & if it had a loss, selling might give a good chance to get out of annuity & not bump taxes.
Thanks for your input... some really great things for me to think about here. I'm also thinking I'm going to leave things as they are, and just maybe look at smaller losses for TLH.
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

Beehave wrote: Tue May 19, 2020 11:48 am Your care for your parents is admirable. My basic suggestions would be to just make sure there are no changes to the Edward Jones account holdings or fee structures without your being consulted and giving your okay. I am concerned that the pruning accident could be indicative that you already have a lot on your mind, so I would suggest not making major changes unless they seem imperative. Keep taking care of yourself and your parents.

As an urban-dweller for decades, there is something especially touching and visceral about your farm and your family. My daughter rode by bike coast-tot-coast across the US, on a path to the south of Iowa. It was a Habitat-for-Humanity event. At the end, the group voted the people of Kansas as by far the warmest and friendliest they had met. I'm sure had they passed through Iowa they'd have felt the same. Good luck and I wish you the best.
Thanks for your kind comments... your intuitive perception of my pruning accident was right on. 3 days after that shenanigan, I dropped a heavy painting on my toe, and found myself -- bandaged hand, limping out to try to protect my little garden from the polar vortex, when I thought,"Hmmm, I think the universe is telling me to slow down a bit!"
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LilyFleur
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by LilyFleur »

ivk5 wrote: Tue May 19, 2020 2:13 am
LilyFleur wrote: Tue May 19, 2020 1:22 amFor example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
For funds not immediately needed to pay expenses, isn’t Roth conversion strictly better than withdrawing to invest in taxable?
That is a really good question. As it turns out, the account is a taxable account.
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LilyFleur
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by LilyFleur »

bfeenix44 wrote: Tue May 19, 2020 7:45 am
LilyFleur wrote: Tue May 19, 2020 1:22 am I'm sorry if I missed this, but is the Edward Jones account taxable or tax-deferred?

I am just thinking that when one of your parents dies, that will leave the other in the single tax bracket. I don't know if the survivor would have the same pension amount every month.

Sorry, if this isn't part of your original question, but I do see that you now have an opportunity to make financial plans for the survivor and possibly make some moves now that would make the move to a single tax bracket more affordable for that parent.

For example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
Thanks for your feedback...I edited original post to say account is taxable. Your points about single parent is something I need to learn more about.
Yes. And you do have some time while they are both alive if you need to sell something and realize the capital gains while they can pay lower taxes, if you will need to do that to take care of the survivor's needs. If one or both parents need nursing care, that will be a time of very high medical tax deductions, so it would be a time to pay capital gains taxes if needed to help pay for the care.

Yes, please take good care of yourself, and welcome to Bogleheads. It's great that you are aware and looking at their finances. Overall, it sounds like they are in good shape financially. Maybe put that foot up on the ottoman and read a good book! 8-) Your parents are blessed to have you.
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bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

LilyFleur wrote: Wed May 20, 2020 2:54 am
bfeenix44 wrote: Tue May 19, 2020 7:45 am
LilyFleur wrote: Tue May 19, 2020 1:22 am I'm sorry if I missed this, but is the Edward Jones account taxable or tax-deferred?

I am just thinking that when one of your parents dies, that will leave the other in the single tax bracket. I don't know if the survivor would have the same pension amount every month.

Sorry, if this isn't part of your original question, but I do see that you now have an opportunity to make financial plans for the survivor and possibly make some moves now that would make the move to a single tax bracket more affordable for that parent.

For example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
Thanks for your feedback...I edited original post to say account is taxable. Your points about single parent is something I need to learn more about.
Yes. And you do have some time while they are both alive if you need to sell something and realize the capital gains while they can pay lower taxes, if you will need to do that to take care of the survivor's needs. If one or both parents need nursing care, that will be a time of very high medical tax deductions, so it would be a time to pay capital gains taxes if needed to help pay for the care.

Yes, please take good care of yourself, and welcome to Bogleheads. It's great that you are aware and looking at their finances. Overall, it sounds like they are in good shape financially. Maybe put that foot up on the ottoman and read a good book! 8-) Your parents are blessed to have you.
Yes, reading keeps me sane...I work in a library, so have that going for me, too! :wink:
Thankfully folks have long term care insurance, which we've already had to use once (Dad spent 5 months in care facility after a stroke), and it actually paid over and above what other insurance was already covering. LTC isn't cheap but they've had these policies for years and the premiums really only started getting steep inside of the last decade.
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by trueblueky »

I think, make sure EJ does not buy or sell without your advance knowledge and approval. Be cautious about any change in EJ representative. The next one may be worse.

As the municipal bonds mature, replace them with CDs or other fixed income. Muni are not appropriate in the 12% tax bracket. Several are taxed by Iowa, so no state advantage. All muni contribute to more of SS being taxed.
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

trueblueky wrote: Thu May 21, 2020 10:06 am I think, make sure EJ does not buy or sell without your advance knowledge and approval. Be cautious about any change in EJ representative. The next one may be worse.

As the municipal bonds mature, replace them with CDs or other fixed income. Muni are not appropriate in the 12% tax bracket. Several are taxed by Iowa, so no state advantage. All muni contribute to more of SS being taxed.
Thanks for your reply...
Would you have any suggestions for fixed-income investing in lower tax bracket other than CDs? Would some kind of bond index fund be better?

tamara
backpacker61
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by backpacker61 »

bfeenix44 wrote: Thu May 21, 2020 12:46 pm
trueblueky wrote: Thu May 21, 2020 10:06 am I think, make sure EJ does not buy or sell without your advance knowledge and approval. Be cautious about any change in EJ representative. The next one may be worse.

As the municipal bonds mature, replace them with CDs or other fixed income. Muni are not appropriate in the 12% tax bracket. Several are taxed by Iowa, so no state advantage. All muni contribute to more of SS being taxed.
Thanks for your reply...
Would you have any suggestions for fixed-income investing in lower tax bracket other than CDs? Would some kind of bond index fund be better?

tamara
I had the same thought as trueblueky; that municipal bonds typically make sense only for investors in the 24% or higher tax brackets.

They should be able to own taxable bonds with higher yields at the same credit quality as the municipal issuers, and still be ahead as the interest wouldn't be taxed too heavily.

You could look at BND, Vanguard Total Bond Market Index ETF, or VCSH Vanguard Short Term Corporate ETF. I've owned VCSH in the past. You should be able to purchase those through Edward Jones.

I also agreed with the other posters, that it is probably best not to move things around at this point. My mother is 92, and we're just leaving things where they are; retaining the same investments she's had for 30-40 years. She is comfortable with what she owns. We do discuss how to allocate capital gain or dividend distributions she receives as they come in; that which is excess to what she needs (this tends to all go into Vanguard funds). You could do that with your parent's municipal bonds as they mature.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by Nestegg_User »

ivk5 wrote: Tue May 19, 2020 2:13 am
LilyFleur wrote: Tue May 19, 2020 1:22 amFor example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
For funds not immediately needed to pay expenses, isn’t Roth conversion strictly better than withdrawing to invest in taxable?
a Roth conversion would require payment of taxes, and at ages 90+ it's unlikely to be tax efficient; as Lily has remarked upthread either or both are likely to have higher financial needs (medical or assisted living) which would allow them to be taken out with far better tax consequences. {ETA: OP has clarified that the account is a taxable one... so, while the point is moot for him, the comment in general is appropriate}

First question is, of course, is Vanguard the best option? Is there a Fido or Schwab office nearby? Then you have a local contact to complete the process.
For me, I'd use one like that and, at least, move BOTH the individual stocks and the mutual funds to that new office. I would also make sure that no new trading is initiated by EJ (otherwise it might be likely, as funds moving away might draw some visibility to the account).

I would also likely draw any future funds from the EJ municipals, as they are likely to get hit hard (even when revenue bonds), and definitely don't let them get rolled over to new issues! (No new CD's either.... move the cash, once matured, directly over into the new location. In fact, if they matured soon.... then I'd wait until they did and move the individual stocks, mutual funds, and cash in one fell swoop)
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by ivk5 »

Nestegg_User wrote: Thu May 21, 2020 2:53 pm
ivk5 wrote: Tue May 19, 2020 2:13 am
LilyFleur wrote: Tue May 19, 2020 1:22 amFor example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
For funds not immediately needed to pay expenses, isn’t Roth conversion strictly better than withdrawing to invest in taxable?
a Roth conversion would require payment of taxes, and at ages 90+ it's unlikely to be tax efficient; as Lily has remarked upthread either or both are likely to have higher financial needs (medical or assisted living) which would allow them to be taken out with far better tax consequences. {ETA: OP has clarified that the account is a taxable one... so, while the point is moot for him, the comment in general is appropriate}
Yes, moot for this thread. For the general case: withdrawing from tIRA to reinvest in taxable (as Lily proposed) and converting to Roth both generate the same additional taxable income in that year. Only one guarantees no future tax burden on earnings/gains (aside from Roth penalty scenarios).
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by Nestegg_User »

since OP mentioned that they were currently in Zero bracket, at this time, an conventional IRA to Roth IRA up to the limit of the bracket could make sense.
(usually the individuals are at some non-zero level, wherein the costs (taxes paid) won't be made up for in deferral). (usually a blended W/D approach is useful, especially if there's any tax losses which can be used to offset withdrawals from other sources)


{ETA: OP might determine how much taxes will be levied on the estate:
https://www.thebalance.com/overview-of- ... ws-3505292 }
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

backpacker61 wrote: Thu May 21, 2020 1:36 pm
bfeenix44 wrote: Thu May 21, 2020 12:46 pm
trueblueky wrote: Thu May 21, 2020 10:06 am I think, make sure EJ does not buy or sell without your advance knowledge and approval. Be cautious about any change in EJ representative. The next one may be worse.

As the municipal bonds mature, replace them with CDs or other fixed income. Muni are not appropriate in the 12% tax bracket. Several are taxed by Iowa, so no state advantage. All muni contribute to more of SS being taxed.
Thanks for your reply...
Would you have any suggestions for fixed-income investing in lower tax bracket other than CDs? Would some kind of bond index fund be better?

tamara
I had the same thought as trueblueky; that municipal bonds typically make sense only for investors in the 24% or higher tax brackets.

They should be able to own taxable bonds with higher yields at the same credit quality as the municipal issuers, and still be ahead as the interest wouldn't be taxed too heavily.

You could look at BND, Vanguard Total Bond Market Index ETF, or VCSH Vanguard Short Term Corporate ETF. I've owned VCSH in the past. You should be able to purchase those through Edward Jones.

I also agreed with the other posters, that it is probably best not to move things around at this point. My mother is 92, and we're just leaving things where they are; retaining the same investments she's had for 30-40 years. She is comfortable with what she owns. We do discuss how to allocate capital gain or dividend distributions she receives as they come in; that which is excess to what she needs (this tends to all go into Vanguard funds). You could do that with your parent's municipal bonds as they mature.
Appreciate your input...
I have Vanguard Total Bond for myself and will probably do that with their munis as they mature.
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bfeenix44
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Re: Requesting advice: Ed Jones to Vanguard for folks in mid-90s

Post by bfeenix44 »

Nestegg_User wrote:
ivk5 wrote: Tue May 19, 2020 2:13 am
LilyFleur wrote: Tue May 19, 2020 1:22 amFor example, if the Edward Jones account is tax-deferred, start withdrawing funds now at the lower MFJ tax rate and placing them in a regular brokerage account so that the survivor could draw those funds mostly tax free.
For funds not immediately needed to pay expenses, isn’t Roth conversion strictly better than withdrawing to invest in taxable?
a Roth conversion would require payment of taxes, and at ages 90+ it's unlikely to be tax efficient; as Lily has remarked upthread either or both are likely to have higher financial needs (medical or assisted living) which would allow them to be taken out with far better tax consequences. {ETA: OP has clarified that the account is a taxable one... so, while the point is moot for him, the comment in general is appropriate}

First question is, of course, is Vanguard the best option? Is there a Fido or Schwab office nearby? Then you have a local contact to complete the process.
For me, I'd use one like that and, at least, move BOTH the individual stocks and the mutual funds to that new office. I would also make sure that no new trading is initiated by EJ (otherwise it might be likely, as funds moving away might draw some visibility to the account).

I would also likely draw any future funds from the EJ municipals, as they are likely to get hit hard (even when revenue bonds), and definitely don't let them get rolled over to new issues! (No new CD's either.... move the cash, once matured, directly over into the new location. In fact, if they matured soon.... then I'd wait until they did and move the individual stocks, mutual funds, and cash in one fell swoop)
Thanks for your response...
I'm not quite sure what you mean by "would draw any future funds from the EJ municipals, as they are likely to get hit hard (even when revenue bonds)"?

I've made a schedule of all the folks' CDs so I know when they mature, and I think I will also do that with the Muni bonds.

We are quite rural and EJ is the only game in town for local offices. The rep doesn't seem into high pressure...she seems to gauge her management to client need with regard to age, risk tolerance, etc. When I talk to her about my folks, she seems to understand who they are and how they want things done. It seems people (agents) around here need to take care dealing with other peoples' money because if you get a bad rap in a small town you're done for.

When I check EJ monthly statements, I don't see anything unusual going on, i.e., buying/selling without permission, etc. We get notices in the mail occasionally that give us recommendations like "hold" or "buy."
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

Nestegg_User wrote: Thu May 21, 2020 3:41 pm since OP mentioned that they were currently in Zero bracket, at this time, an conventional IRA to Roth IRA up to the limit of the bracket could make sense.
(usually the individuals are at some non-zero level, wherein the costs (taxes paid) won't be made up for in deferral). (usually a blended W/D approach is useful, especially if there's any tax losses which can be used to offset withdrawals from other sources)


{ETA: OP might determine how much taxes will be levied on the estate:
https://www.thebalance.com/overview-of- ... ws-3505292 }
Thanks for your reply and especially the link...
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by tibbitts »

Sounds like you have a good EJ rep and as long as that's the case I'd leave things as is for now.
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bfeenix44
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Individual Muni Bonds (Ed Jones taxable)

Post by bfeenix44 »

I've opened a Vanguard account for new money for my folks. I've also made changes to the Ed Jones account to take all interest, dividends, and capital gains distributions in cash (providing they will be able to stay in the lower 12% tax bracket). I will be redirecting those to the Vanguard account...so no new investing, or reinvesting, in Ed Jones now.

I'm leaving short-term capital gains alone as my understanding is they're taxed differently than long-term (there isn't much in that category anyway).

This is what I felt was a good "compromise" between moving EVERYTHING to Vanguard and leaving EVERYTHING with Ed Jones. And this way I'm prepared to put new money into Vanguard, and redirect cash from EdJ to Vanguard.

EDITED TO ADD:
My intent is to eventually move all to Vanguard within the coming year.

I've been reading a lot of threads about various bond concerns, and I'm just wondering if there is somewhere I can read about the folks' individual Muni Bonds (below) to see if I should be concerned about them? In other words, can a person see somewhere whether a municipality / project is at risk prior to issues with investment?

I'm so in the dark re: bonds... Still learning!!
thanks!
------------------
MUNI BONDS
xx% Edward Jones - Municipal Bonds

0.55% CUSIP: 83703FEM0 Bond Rating: AA/WD
South Carolina Jobs Econ Dev Hosp Rev Rfdg Palmetto Hlth

0.27% CUSIP: 880461BF4 Bond Rating: AA+/Aa1
Tennessee Housing Dev Agency Residential Fin Prog Revenue B

1.04% CUSIP: 46257TDT3 Bond Rating: AA/Aa2
Iowa State Special Oblig Ijobs Pg Series A Revenue

1.65% CUSIP: 90343SAV7 Bond Rating: AA/Aa3
Usf Financing Corp Florida Capital Improvement Revenue

1.56% CUSIP: 259230MV9 Bond Rating: AA-/AA-
Douglas Cnty NE Hosp Auth No 2 Hlth Facs Nebraska Medicine

1.09% CUSIP: 432299AT2 Bond Rating: AA+/Aa1/AA+
Hillsborough Cnty Florida Communications Svcs Tax Rev
Last edited by bfeenix44 on Mon Jul 06, 2020 4:15 pm, edited 1 time in total.
Outer Marker
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by Outer Marker »

bfeenix44 wrote: Mon Jul 06, 2020 1:54 pm I've opened a Vanguard account for new money for my folks. I've also made changes to the Ed Jones account to take all interest, dividends, and capital gains distributions in cash (providing they will be able to stay in the lower 12% tax bracket). I will be redirecting those to the Vanguard account...so no new investing, or reinvesting, in Ed Jones now.

I'm leaving short-term capital gains alone as my understanding is they're taxed differently than long-term (there isn't much in that category anyway).

This is what I felt was a good "compromise" between moving EVERYTHING to Vanguard and leaving EVERYTHING with Ed Jones. And this way I'm prepared to put new money into Vanguard, and redirect cash from EdJ to Vanguard.
Well, good for you for taking the first step in moving toward Vanguard; however, the "compromise" approach makes no sense. Your parents are no longer in the accumulation stage, so the vast majority of their holdings will continue to be subject to the continuing high fees you're trying to get away from. You're only reinvesting the small amount of income they throw off that is not spent. You're also doubling your paperwork, 1099s, etc. IMHO you'd be much further ahead moving everything, simplifying and consolidating. I can't think of a single benefit of keeping the EJ account open. What advantages do you see?
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by bfeenix44 »

Outer Marker wrote: Mon Jul 06, 2020 3:16 pm
bfeenix44 wrote: Mon Jul 06, 2020 1:54 pm I've opened a Vanguard account for new money for my folks. I've also made changes to the Ed Jones account to take all interest, dividends, and capital gains distributions in cash (providing they will be able to stay in the lower 12% tax bracket). I will be redirecting those to the Vanguard account...so no new investing, or reinvesting, in Ed Jones now.

I'm leaving short-term capital gains alone as my understanding is they're taxed differently than long-term (there isn't much in that category anyway).

This is what I felt was a good "compromise" between moving EVERYTHING to Vanguard and leaving EVERYTHING with Ed Jones. And this way I'm prepared to put new money into Vanguard, and redirect cash from EdJ to Vanguard.
Well, good for you for taking the first step in moving toward Vanguard; however, the "compromise" approach makes no sense. Your parents are no longer in the accumulation stage, so the vast majority of their holdings will continue to be subject to the continuing high fees you're trying to get away from. You're only reinvesting the small amount of income they throw off that is not spent. You're also doubling your paperwork, 1099s, etc. IMHO you'd be much further ahead moving everything, simplifying and consolidating. I can't think of a single benefit of keeping the EJ account open. What advantages do you see?
I do plan on moving all to Vanguard in the coming year...just learning a lot right now and want to be confident in my decisions.

Thanks
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by Outer Marker »

bfeenix44 wrote: Mon Jul 06, 2020 4:18 pm
I do plan on moving all to Vanguard in the coming year...just learning a lot right now and want to be confident in my decisions.

Thanks
:beer You have done your parents a great service. I don't think you need it for the long haul, but you might think about using Vanguard's Personal Advisor Service to help with the transition and getting it set up and streamlined for you. Well done.
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by tibbitts »

Like I said would just leave the account as-is but whatever you do don't end up with half with one firm and half with another, that's just complicating things.
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by Steelersfan »

I don't have any input beyond what others had said, but what a good person you must be for taking care of your parents as you are. And your thoughtful replies to the posts made here just reinforce that opinion.
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by not4me »

bfeenix44 wrote: Mon Jul 06, 2020 1:54 pm
I've been reading a lot of threads about various bond concerns, and I'm just wondering if there is somewhere I can read about the folks' individual Muni Bonds (below) to see if I should be concerned about them? In other words, can a person see somewhere whether a municipality / project is at risk prior to issues with investment?

I'm so in the dark re: bonds... Still learning!!
These are all municipal bonds & bring with them important differences from other bonds. One site is: https://emma.msrb.org/Home/Index
This can be used to lookup by cusip. Another site is: https://www.municipalbonds.com/ -- this has some general resources that might help.

This may be a minority opinion, but I wouldn't spend considerable time trying to evaluate the issuer. These are not rated junk & to do added evaluation won't be easy. They also have years to go before maturing -- which may be good news or bad. I'd suggest you 1st look at a couple of other areas.

1st, "cost" of selling -- regardless of which broker is used, there'll be a hit. These are illiquid (relatively speaking). Learn what "markup" means in this context. For a broker such as EJ, they will charge a hefty commission. Be seated if you ask them for a quote on what it might fetch.

2nd, taxes. This depends some on whether they were bought at a discount/par/premium. Likely. the price has gone up a good bit if they've been owned for a while. Figuring cap gains on munis is not straight forward. Even if inherited (which will adjust the basis), it won't be as easy as taxable assets. (Of course, the increase in price can reverse!). I think donating them (for those who itemize and have charitable intent) might be something to consider.
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by Big Dog »

EDITED TO ADD:
My intent is to eventually move all to Vanguard within the coming year.
Personally, I'd call Vanguard and inquire which of the assets can be moved over in-kind, and them move all of those over immediately, or at least once the folks get an account established. Then, I'd look at anything that cannot be moved over in-kind one-by-one with an eye towards taxes if you have to sell the asset first.
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bfeenix44
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by bfeenix44 »

Outer Marker wrote: Mon Jul 06, 2020 4:29 pm
bfeenix44 wrote: Mon Jul 06, 2020 4:18 pm
I do plan on moving all to Vanguard in the coming year...just learning a lot right now and want to be confident in my decisions.

Thanks
:beer You have done your parents a great service. I don't think you need it for the long haul, but you might think about using Vanguard's Personal Advisor Service to help with the transition and getting it set up and streamlined for you. Well done.
Thanks for your input!
Topic Author
bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

Steelersfan wrote: Mon Jul 06, 2020 5:13 pm I don't have any input beyond what others had said, but what a good person you must be for taking care of your parents as you are. And your thoughtful replies to the posts made here just reinforce that opinion.
Thanks for the kind comments...my mom spent 3 days in hospital this past week, and I continue to realize there's so little I have control over with regard to their physical bodies, but caretaking their finances helps me feel like I'm helping.
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bfeenix44
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by bfeenix44 »

not4me wrote: Mon Jul 06, 2020 5:28 pm
bfeenix44 wrote: Mon Jul 06, 2020 1:54 pm
I've been reading a lot of threads about various bond concerns, and I'm just wondering if there is somewhere I can read about the folks' individual Muni Bonds (below) to see if I should be concerned about them? In other words, can a person see somewhere whether a municipality / project is at risk prior to issues with investment?

I'm so in the dark re: bonds... Still learning!!
These are all municipal bonds & bring with them important differences from other bonds. One site is: https://emma.msrb.org/Home/Index
This can be used to lookup by cusip. Another site is: https://www.municipalbonds.com/ -- this has some general resources that might help.

This may be a minority opinion, but I wouldn't spend considerable time trying to evaluate the issuer. These are not rated junk & to do added evaluation won't be easy. They also have years to go before maturing -- which may be good news or bad. I'd suggest you 1st look at a couple of other areas.

1st, "cost" of selling -- regardless of which broker is used, there'll be a hit. These are illiquid (relatively speaking). Learn what "markup" means in this context. For a broker such as EJ, they will charge a hefty commission. Be seated if you ask them for a quote on what it might fetch.

2nd, taxes. This depends some on whether they were bought at a discount/par/premium. Likely. the price has gone up a good bit if they've been owned for a while. Figuring cap gains on munis is not straight forward. Even if inherited (which will adjust the basis), it won't be as easy as taxable assets. (Of course, the increase in price can reverse!). I think donating them (for those who itemize and have charitable intent) might be something to consider.
Good guidance here...appreciate it!
Topic Author
bfeenix44
Posts: 103
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Re: Individual Muni Bonds (Ed Jones taxable)

Post by bfeenix44 »

not4me wrote: Mon Jul 06, 2020 5:28 pm
bfeenix44 wrote: Mon Jul 06, 2020 1:54 pm
I've been reading a lot of threads about various bond concerns, and I'm just wondering if there is somewhere I can read about the folks' individual Muni Bonds (below) to see if I should be concerned about them? In other words, can a person see somewhere whether a municipality / project is at risk prior to issues with investment?

I'm so in the dark re: bonds... Still learning!!
These are all municipal bonds & bring with them important differences from other bonds. One site is: https://emma.msrb.org/Home/Index
This can be used to lookup by cusip. Another site is: https://www.municipalbonds.com/ -- this has some general resources that might help.

This may be a minority opinion, but I wouldn't spend considerable time trying to evaluate the issuer. These are not rated junk & to do added evaluation won't be easy. They also have years to go before maturing -- which may be good news or bad. I'd suggest you 1st look at a couple of other areas.

1st, "cost" of selling -- regardless of which broker is used, there'll be a hit. These are illiquid (relatively speaking). Learn what "markup" means in this context. For a broker such as EJ, they will charge a hefty commission. Be seated if you ask them for a quote on what it might fetch.

2nd, taxes. This depends some on whether they were bought at a discount/par/premium. Likely. the price has gone up a good bit if they've been owned for a while. Figuring cap gains on munis is not straight forward. Even if inherited (which will adjust the basis), it won't be as easy as taxable assets. (Of course, the increase in price can reverse!). I think donating them (for those who itemize and have charitable intent) might be something to consider.
Good guidance here...appreciate it!
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

Big Dog wrote: Mon Jul 06, 2020 5:49 pm
EDITED TO ADD:
My intent is to eventually move all to Vanguard within the coming year.
Personally, I'd call Vanguard and inquire which of the assets can be moved over in-kind, and them move all of those over immediately, or at least once the folks get an account established. Then, I'd look at anything that cannot be moved over in-kind one-by-one with an eye towards taxes if you have to sell the asset first.
I think I am leaning this direction...thanks!
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Steelersfan
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by Steelersfan »

bfeenix44 wrote: Mon Jul 06, 2020 6:04 pm
Big Dog wrote: Mon Jul 06, 2020 5:49 pm
EDITED TO ADD:
My intent is to eventually move all to Vanguard within the coming year.
Personally, I'd call Vanguard and inquire which of the assets can be moved over in-kind, and them move all of those over immediately, or at least once the folks get an account established. Then, I'd look at anything that cannot be moved over in-kind one-by-one with an eye towards taxes if you have to sell the asset first.
I think I am leaning this direction...thanks!
If you do decide to transfer assets in-kind, you should get a printout of all the individual assets and their current cost basis at EJ. If that doesn't transfer you'll need it if you decide to sell anything.
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bfeenix44
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Re: Requesting advice: Ed Jones (taxable) to Vanguard for folks in mid-90s

Post by bfeenix44 »

Steelersfan wrote: Mon Jul 06, 2020 6:21 pm
bfeenix44 wrote: Mon Jul 06, 2020 6:04 pm
Big Dog wrote: Mon Jul 06, 2020 5:49 pm
EDITED TO ADD:
My intent is to eventually move all to Vanguard within the coming year.
Personally, I'd call Vanguard and inquire which of the assets can be moved over in-kind, and them move all of those over immediately, or at least once the folks get an account established. Then, I'd look at anything that cannot be moved over in-kind one-by-one with an eye towards taxes if you have to sell the asset first.
I think I am leaning this direction...thanks!
If you do decide to transfer assets in-kind, you should get a printout of all the individual assets and their current cost basis at EJ. If that doesn't transfer you'll need it if you decide to sell anything.
Thanks for this reminder...I did this when I moved my own EdJ about to Vanguard.
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