Another Edward Jones question (leaving ethically)

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frenchpress27
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Another Edward Jones question (leaving ethically)

Post by frenchpress27 »

Hello. This is my first post after being a long time lurker (and learner) here. My wife and I have been Jones' clients for nearly 15 years now, and have two Roth IRAs as well as a 529. Total value for the IRAs is approx $150k, 529 is about $30k. Typical dozen or so fund portfolios with > .5% expense ratios and 1.35% AUM. After debating it for a while, dragging our feet, back-testing the Jones' portfolio against a simple target date fund, etc, we are ready to leave Edward Jones (mainly so we can escape the AUM). Managing my workplace plans has given me the confidence needed to handle the IRAs too, I feel.

I've read many forum posts on how to do this seamlessly by initiating on the receiving end to avoid shady tactics by the advisor (locking your account, ghosting you). I explained to my spouse how this would work, that essentially the receiving brokerage would "pull" over the assets in kind if possible, and we would send a formal letter to Jones' to let them know this was happening, along with any instructions about whether to liquidate first, etc. Wife wasn't pleased with this, and thought it would be crappy to not at least call the advisor and explain what is happening as a courtesy, since we've been with him for so many years. Tried to explain how that can get us into a trap, and there is really no need to do it, this is just business, etc, but she still feels strongly about it. I will admit (which is probably obvious), that I prefer the more passive approach, and do not really want to get into a dialogue with the advisor about this, as I know they are trained to handle and respond to this situation.

So, I come here to see what you have to say. Sure this is probably a relationship issue more than anything, but I wanted to hear if folks here would be inclined to make this phone call to the advisor first.

Any other comments or suggestions are welcome. Thanks again for the wealth of information here.
radiowave
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Re: Another Edward Jones question (leaving ethically)

Post by radiowave »

I'm a recovering EJ cllient (inherited account). I would recommend you get all your ducks lined up, e.g. which brokerage, which funds you'll covert to, etc. Be ready to pull the plug, even to the point of setting up the new accounts in the receiving brokerage. Then a courtesy email or visit. Also in your letter be sure to prevent the FA from doing any further trading or other manipulation of your EJ accounts. Anticipate closing fees on each account.
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livesoft
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Re: Another Edward Jones question (leaving ethically)

Post by livesoft »

Some people seem to have anxiety about dealing with other people. Are you like that? I am not and could very easily have the EJ advisor take to me lunch or dinner that they paid for and at the same time tell them that I was leaving and exactly why. It is not like they have not heard it all before.
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cchrissyy
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Re: Another Edward Jones question (leaving ethically)

Post by cchrissyy »

I can't see an ethical problem here. You are simply changing one service provider to another. It's professional not a personal relationship.

If anything, wouldn't it be unethical to waste his time another minute? If he's on a call hearing your reasons or apology he's not out serving his other customers or selling to new leads.
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123
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Re: Another Edward Jones question (leaving ethically)

Post by 123 »

Just have your new custodian pull the assets from Edward Jones. No need to give any notice to Edward Jones. If you get a call from Edward Jones (and you will) simply say that you're grateful for all the help they've provided but you've decided to go a different direction. Then say "Thanks again, goodbye".
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aj44
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Re: Another Edward Jones question (leaving ethically)

Post by aj44 »

You’re getting out of EJ, great decision and one you should feel very good about.

You’ve likely paid them a hefty sum over the years, you owe them nothing else. Frankly they don’t care from a personal perspective that you would be extending them the courtesy of a call, they would only view that as a chance to talk you out of leaving and to keep taking your money.
000
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Re: Another Edward Jones question (leaving ethically)

Post by 000 »

No I wouldn't call. I would send an e-mail informing them what was happening though, after I had already initiated the transfer.
dbr
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Re: Another Edward Jones question (leaving ethically)

Post by dbr »

I would certainly send a polite and appreciative but final letter.

I don't agree with the idea that only nastiness should be expected. Your advisor is a person too. But you should have everything arranged and pulling the investments is a good idea, allowing that some have to be sold at EJ.
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Re: Another Edward Jones question (leaving ethically)

Post by pkcrafter »

No. 1. This is your money.
No. 2. You have paid EJ plenty of money over the years, and you've finally realized this is EJ's business, and it is totally your choice if you want to stop paying for their retirement! Total up all the fees you've paid and show your wife.
3. Initiate the transfer {direct custodian transfer) with the new company, and be sure the new company carries all the funds you wish to transfer. If there are funds the new custodian does not carry, you must sell them now.


Paul
Last edited by pkcrafter on Sat Dec 04, 2021 1:03 pm, edited 1 time in total.
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bugleheadd
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Re: Another Edward Jones question (leaving ethically)

Post by bugleheadd »

Its just business. they will not miss you. they will move on to try to get a new customer to pump up their numbers
student
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Re: Another Edward Jones question (leaving ethically)

Post by student »

No need to call. This is no different from not renewing your gym membership or magazine subscription.
NMBob
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Re: Another Edward Jones question (leaving ethically)

Post by NMBob »

was this advisor your friendly best buddy before he was making money off your account......just saying staying in contact and friendly is part of sales...not part of friendship. i had a car salesman have me work on his golf clubs etc many times, his grandkids, etc....we would go to lunch once in while. 3 years later when i thought of buying a car and the price was the same price a complete stranger from out of state would pay, ie the max and even 300 more for a missing second remote ,,,, i didn't buy. after that, I didnt hear from the guy for years,,,other than running into him at a golf course...

he's not your friend, its his sales requirements...you do not need to contact him
exodusNH
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Re: Another Edward Jones question (leaving ethically)

Post by exodusNH »

frenchpress27 wrote: Mon Sep 20, 2021 8:25 pm Hello. This is my first post after being a long time lurker (and learner) here. My wife and I have been Jones' clients for nearly 15 years now, and have two Roth IRAs as well as a 529. Total value for the IRAs is approx $150k, 529 is about $30k. Typical dozen or so fund portfolios with > .5% expense ratios and 1.35% AUM. After debating it for a while, dragging our feet, back-testing the Jones' portfolio against a simple target date fund, etc, we are ready to leave Edward Jones (mainly so we can escape the AUM). Managing my workplace plans has given me the confidence needed to handle the IRAs too, I feel.

I've read many forum posts on how to do this seamlessly by initiating on the receiving end to avoid shady tactics by the advisor (locking your account, ghosting you). I explained to my spouse how this would work, that essentially the receiving brokerage would "pull" over the assets in kind if possible, and we would send a formal letter to Jones' to let them know this was happening, along with any instructions about whether to liquidate first, etc. Wife wasn't pleased with this, and thought it would be crappy to not at least call the advisor and explain what is happening as a courtesy, since we've been with him for so many years. Tried to explain how that can get us into a trap, and there is really no need to do it, this is just business, etc, but she still feels strongly about it. I will admit (which is probably obvious), that I prefer the more passive approach, and do not really want to get into a dialogue with the advisor about this, as I know they are trained to handle and respond to this situation.

So, I come here to see what you have to say. Sure this is probably a relationship issue more than anything, but I wanted to hear if folks here would be inclined to make this phone call to the advisor first.

Any other comments or suggestions are welcome. Thanks again for the wealth of information here.
The S&P 500 has returned about 10.7% since 2006. At 1.35% plus the ERs, you've given them about 10% of your earnings every year.

You owe them nothing more. Download your cost basis info, initiate the transfer at the new brokerage, then send them the Dear Edward letter, letting them know the AUM and complicated portfolio were the reasons for leaving.
MathWizard
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Re: Another Edward Jones question (leaving ethically)

Post by MathWizard »

I 2nd the suggestion to notify only after the transfer is initiated.

The agent may very well pit your wife against you, or insulate that you do not know what you are doing. This happened to me with a different "wealth advisor".

If your wife does not want to pull the trigger on the move, try moving half to an equivalent index fund at a low cost investment company. I chose Vanguard, but now other companies have low fee index funds as well.

The after fees returns should show your wife how much the nice chats cost you.

This worked for me, when one quarter my IRA made money and hers lost, in the same investments. I showed her that the difference was the fees, and her money was moved over within the month.
mhalley
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Re: Another Edward Jones question (leaving ethically)

Post by mhalley »

If you call, realize that the advisor salesman has many hours of training on client retention. He has a great song and dance prepared to make you second guess your decision to leave. Keep it short, ie, just calling to let you know I have decided to move my accounts, I have thought long and hard about this and my decision is final. Thank you for your help over the years, goodbye.
tomsense76
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Re: Another Edward Jones question (leaving ethically)

Post by tomsense76 »

As others have noted there is nothing unethical about leaving. That said, it sounds like your wife is a good person and it would be good to do something to make her happy. Though you are likely right that EJ is going to try every trick in the book to keep you.

Maybe do a 3 way call that includes the brokerage you want to transfer assets to? Would your wife go for this? Think it will be hard for EJ to pull things with another business professional on the line intent on handling the transfer in a timely manner.

Personally would look into using Fidelity or Schwab for the new account. They are usually willing to reimburse closing fees (though you would need to ask them first). Also they may offer you a sign up bonus (potentially larger depending on the assets moved). If you go with Schwab, could also ask for a fee waiver on Vanguard mutual funds (if you like mutual funds). More details here. Would say Vanguard, but they don't cover transfer fees.
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TurtleBeatsHare
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Re: Another Edward Jones question (leaving ethically)

Post by TurtleBeatsHare »

You owe EJ nothing. They owe you an enormous apology for providing what they know to be bad financial advice that helped them line their pockets at your expense. Choose whichever withdrawal method is most convenient for you. My own experience moving funds out of EJ for my elderly mother was that it was easiest to rely on the new brokerage to handle the transfer to ensure continuity of tax basis information and minimize the opportunity for further sales tactics. In my case—as you can probably tell—it was extremely difficult to not express my views about what I view as thievery motivated by an inexcusable conflict of interest, and so less in person contact was better.
esteen
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Re: Another Edward Jones question (leaving ethically)

Post by esteen »

I think your passive approach is prudent. However if your wife wants to end it with a call, then have her call them. That is how I would (politely) put it to my DW. She is an adult and is capable of those conversations just as well as I can.

Of course before anyone calls, as other posters said, ensure you have all your ducks in a row first including a step by step plan for transfer and accounts set up at the new institution. That way you can have the transfer set to initiate the day after the call, so no matter how the call goes you can transfer the next day. That also makes the call easier because it's not "we're thinking about moving" but "we ARE moving, effective tomorrow, thanks for everything."
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Re: Another Edward Jones question (leaving ethically)

Post by JBTX »

frenchpress27 wrote: Mon Sep 20, 2021 8:25 pm Hello. This is my first post after being a long time lurker (and learner) here. My wife and I have been Jones' clients for nearly 15 years now, and have two Roth IRAs as well as a 529. Total value for the IRAs is approx $150k, 529 is about $30k. Typical dozen or so fund portfolios with > .5% expense ratios and 1.35% AUM. After debating it for a while, dragging our feet, back-testing the Jones' portfolio against a simple target date fund, etc, we are ready to leave Edward Jones (mainly so we can escape the AUM). Managing my workplace plans has given me the confidence needed to handle the IRAs too, I feel.

I've read many forum posts on how to do this seamlessly by initiating on the receiving end to avoid shady tactics by the advisor (locking your account, ghosting you). I explained to my spouse how this would work, that essentially the receiving brokerage would "pull" over the assets in kind if possible, and we would send a formal letter to Jones' to let them know this was happening, along with any instructions about whether to liquidate first, etc. Wife wasn't pleased with this, and thought it would be crappy to not at least call the advisor and explain what is happening as a courtesy, since we've been with him for so many years. Tried to explain how that can get us into a trap, and there is really no need to do it, this is just business, etc, but she still feels strongly about it. I will admit (which is probably obvious), that I prefer the more passive approach, and do not really want to get into a dialogue with the advisor about this, as I know they are trained to handle and respond to this situation.

So, I come here to see what you have to say. Sure this is probably a relationship issue more than anything, but I wanted to hear if folks here would be inclined to make this phone call to the advisor first.

Any other comments or suggestions are welcome. Thanks again for the wealth of information here.
My guess is over 15 years they took 1/4 to 1/3 of what you would have had. You may have otherwise had about $270k (assume 2% annual fee compounded 15 years and 5.75% up front load). So $90k went to them, give or take.

Given that, I think I'd be more inclined to be angry at them than sorry for them.

I helped a friend move about the same amount away in a rollover IRA from EJ to Vanguard. Went directly through vanguard (prior to more recent customer service woes). Never talked to EJ. I have no idea if friend ever heard from them. I doubt it.
Carguy85
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Re: Another Edward Jones question (leaving ethically)

Post by Carguy85 »

exodusNH wrote: Mon Sep 20, 2021 10:33 pm
The S&P 500 has returned about 10.7% since 2006. At 1.35% plus the ERs, you've given them about 10% of your earnings every year.

You owe them nothing more. Download your cost basis info, initiate the transfer at the new brokerage, then send them the Dear Edward letter, letting them know the AUM and complicated portfolio were the reasons for leaving.

You are likely being far too kind... I’d bet their cut of actual earnings has been far higher. Probably much closer to the guess above by JBTX. At any rate, you are likely too nice to call (I know I sure am) without at least having the wheels in motion. The advisor just like any other high pressure sales person WILL use this to their advantage. Good luck
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Re: Another Edward Jones question (leaving ethically)

Post by ROIGuy »

radiowave wrote: Mon Sep 20, 2021 9:01 pm I'm a recovering EJ cllient (inherited account). I would recommend you get all your ducks lined up, e.g. which brokerage, which funds you'll covert to, etc. Be ready to pull the plug, even to the point of setting up the new accounts in the receiving brokerage. Then a courtesy email or visit. Also in your letter be sure to prevent the FA from doing any further trading or other manipulation of your EJ accounts. Anticipate closing fees on each account.
If you send a letter make sure it is sent (signed/ certified).
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8foot7
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Re: Another Edward Jones question (leaving ethically)

Post by 8foot7 »

Initiate the transfer first and then tell your wife if she wants to call the guy, she can.
ROIGuy
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Re: Another Edward Jones question (leaving ethically)

Post by ROIGuy »

Remember that your advisor is your employee not your friend. If he was your friend they would stay in contact with after you close your account.
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F150HD
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Re: Another Edward Jones question (leaving ethically)

Post by F150HD »

if you do a phone call, worth recording it. Convo here:

viewtopic.php?p=6090954#p6090954
chw
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Re: Another Edward Jones question (leaving ethically)

Post by chw »

As others have suggested, I would have all the receiving accounts open and live to receive funds. Confirm with the new brokerage if all of the existing funds are transferable (some may not be). If you have non transferable funds, you will need to ask the current advisor to liquidate those funds prior to pulling to the new institution. You can use that call to advise the FA that you are moving and to suspend further activity in the accounts (I would also send an email to recap this confirmation so the FA doesn’t “misinterpret” your instructions). You could also ask him if he can get waivers on the account closing fees since you’ve been log term clients that have already paid large fees to the firm. He will probably laugh at you, but I would ask.
Last edited by chw on Tue Sep 21, 2021 6:47 am, edited 1 time in total.
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climber2020
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Re: Another Edward Jones question (leaving ethically)

Post by climber2020 »

frenchpress27 wrote: Mon Sep 20, 2021 8:25 pm Wife wasn't pleased with this, and thought it would be crappy to not at least call the advisor and explain what is happening as a courtesy, since we've been with him for so many years. Tried to explain how that can get us into a trap, and there is really no need to do it, this is just business, etc, but she still feels strongly about it. I will admit (which is probably obvious), that I prefer the more passive approach, and do not really want to get into a dialogue with the advisor about this, as I know they are trained to handle and respond to this situation.
This is a business decision. Treat it as such.

When I moved away from my financial adviser years ago, I had Vanguard handle the transfer and mailed a paper letter to my adviser the next day informing him that he was fired. He didn't realize my accounts were empty until he received my letter several days later and started calling. I promptly blocked him from my phone.

You owe him nothing. You've already given him plenty in years of commissions and fees, and it's not worth potentially messing up your own finances to be a people pleaser. Have your wife read this thread if she needs some convincing.
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dziuniek
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Re: Another Edward Jones question (leaving ethically)

Post by dziuniek »

Not seeing how it's any different from switching insurance companies.
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beyou
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Re: Another Edward Jones question (leaving ethically)

Post by beyou »

The only difficulty I had dealing with moving an account (or avoiding opening an acct) was with relatives in the business. Had one who told me back in the early days of $20 online stock trades, I would get the family insider price for stock trades. My first trade was $80 commission. He insisted this WAS the discounted price. He also got me into high ER load funds. That was it, family or not, I started the transfer BEFORE talking to him. I didn’t want to be talked out of anything, but ONLY BECAUSE IT WAS A RELATIVE, I gave a courtesy call AFTER I had put the transfer in motion. Luckily he gave me no grief. Anyone else there would have been no call. I turned this from business to a relationship issue by hiring a relative.

And decided not to buy insurance from another relative, never discussed buying, but people know if you have kids, you buy life insurance. Despite never spending a minute of his time, he expressed anger years later that I never bought from him.

You can’t please everyone, and if it’s purely a retail business relationship, you do not owe them any discussion at all. Nothing good can come from it, so why try ? You will not get an “OK” or their blessing !
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Re: Another Edward Jones question (leaving ethically)

Post by bradinsky »

OP,
Initiate the transfer at the new brokerage, wait 2 days & then send the advisor an email explaining how you have always wanted to manage your investments yourself. Thank them for all of their help & guidance over the years, but make sure they understand the decision is final. Rest assured, you have paid the well over the years & owe them nothing. It’s just “business”, nothing personal. Don’t take or make any phone calls to/from them. That’s the way we handled it. Move on & in a short time you will realize what an intelligent decision you made.
FWIW, you will soon learn that they were not your friend & that all Christmas & birthday cards from them will cease. No more pictures of their kids or grandchildren either. STRICTLY BUSINESS!
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Nate79
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Re: Another Edward Jones question (leaving ethically)

Post by Nate79 »

Interesting how you or your spouse feels you should be ethical in leaving EJ yet do you believe they were ethical in their fee structure and transparency on how they are paid to invest your money all these years?
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frenchpress27
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Re: Another Edward Jones question (leaving ethically)

Post by frenchpress27 »

Wow thanks for all the replies. I definitely plan to have my ducks in a row. This would include opening all corresponding accounts at the new brokerage. Leaning towards Schwab. I would then begin downloading everything historical I can from my account logon from Jones' website. At that point I'll get a snapshot of our portfolios and see what can be ported over in-kind to Schwab. I assume I'll need to call them to find out what they'll accept. If they accept everything, I guess it's pretty easy, otherwise I'll probably just instruct Jones to liquidate the entire portfolio. I don't really see the point in only liquidating the part that won't transfer.

I also should say, my wife and I are united on the decision to leave Jones', it's just the manner in which we do that we were debating about.

As far as having her call. Well I suppose that could work but I feel like that would be a cop-out.

Thanks for all the help!
robphoto
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Re: Another Edward Jones question (leaving ethically)

Post by robphoto »

Sounds good. Write down the simple steps and cross them off in order.

1 Download all available EJ account info

2 Set up new Schwab accounts

3 Formally initiate transfer with Schwab for all accounts

4 Call the EJ guy the next day, thank him for his help, tell him you're going in a different direction

You may want to set a 3-minute timer to keep the conversation brief and not let him run on
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hand
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Re: Another Edward Jones question (leaving ethically)

Post by hand »

You just slip out the back, Jack
Make a new plan, Stan
You don't need to be coy, Roy
Just get yourself free
Hop on the bus, Gus
You don't need to discuss much
Just drop off the key, Lee
And get yourself free

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RXfiles
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Re: Another Edward Jones question (leaving ethically)

Post by RXfiles »

frenchpress27 wrote: Tue Sep 21, 2021 7:34 am At that point I'll get a snapshot of our portfolios and see what can be ported over in-kind to Schwab.
You dont have to do an inkind transfer for a Roth ira or 529. You can change your investments without taxes in those accounts. In kind really only matters in taxable. Just change to a three fund when you switch over
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retiredjg
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Re: Another Edward Jones question (leaving ethically)

Post by retiredjg »

I think you may be overly concerned about "shady tactics".

If you move your money, the advisor is not involved in that process at all. That will all be done by some other department, not the advisor. But people who think the advisor is involved will report they have been "ghosted" when in fact, the advisor is simply not part of the process.

I doubt that the advisor can lock your account or otherwise make things difficult. What they can do is try to talk you out of it - and many are very skillful in this regard. This is a good reason to inform the advisor right before the move happens, immediately after preparing for the move.

There is no reason not to send an email thanking the advisor for assistance in the past and informing him/her that you have decided to move the money. If you want, you can say it is to eliminate the AUM fee or not say anything at all. No explanation is owed although it might be appreciated.

If your wife feels that a polite ending to the relationship is important, disregarding her feelings is just dumb.

I think people get into trouble by beating around the bush and hinting they are thinking of moving their money at some time in the future...the old "let them down easy approach." This leads the advisor to think there is a chance of keeping the customer and some will be very aggressive about pursuing that. Don't do that. Get your ducks in a row, send a nice email, and move on.
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Re: Another Edward Jones question (leaving ethically)

Post by Sandtrap »

One can exit any situation either neutrally or with courtesy (as far as human dynamics).
In business and finance and "money matters", one is responsible to be fair and honest to oneself and, if possible, fair with others, but not to one's detriment. And, if possible, not cheating another. (which is often confused as giving in and letting them get what they want vs what you want).

"Ethics" is very often confused with "being liked" or "leaving on good terms. . . which means being liked. . or everyone is smiling and happy and gracious".

When we leave a business arrangement. We leave. "Exit. . .stage right. . " With expediance, don't "dilly dally", just "do it".

To you, there is one business relationship with Edward Jones. To Edward Jones, and to the Edward Jones salespeople, you are one of millions of clients.

So. . just do it. Do it now. Don't look back.

Per Personal Investment Finance: Your portfolio and financial future will be better for it.

Actionably: setup a brokerage account at Vanguard or Fidelity, etc. Contact and confer with your customer service person, to set up things and make the transfers. They will set up ACH transfer links and then you can do the transactions online, etc, etc, etc. Have them help you and talk you through it. There is nothing "unethical" about this. (feelings have nothing to do with it). It's "business", "your business". You do not and should not need the EJ advisor, etc, to do transactions.

This happens every day all day between brokerages, banks, financial institutions, etc, from a customer standpoint (you). People move millions of dollars around, all day long, with the click of a "mouse" or touch of a keypad. You have $180k to move.

PM me as you wish.
j :D

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tashnewbie
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Re: Another Edward Jones question (leaving ethically)

Post by tashnewbie »

RXfiles wrote: Tue Sep 21, 2021 7:50 am
frenchpress27 wrote: Tue Sep 21, 2021 7:34 am At that point I'll get a snapshot of our portfolios and see what can be ported over in-kind to Schwab.
You dont have to do an inkind transfer for a Roth ira or 529. You can change your investments without taxes in those accounts. In kind really only matters in taxable. Just change to a three fund when you switch over
Schwab might charge OP a fee to sell some funds (probably $50-$75, so not huge). OP should ask Schwab about that and see if it would give him a credit for those fees, if there are any.
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Re: Another Edward Jones question (leaving ethically)

Post by deltaneutral83 »

frenchpress27 wrote: Mon Sep 20, 2021 8:25 pm Typical dozen or so fund portfolios with > .5% expense ratios and 1.35% AUM. After debating it for a while, dragging our feet, back-testing the Jones' portfolio against a simple target date fund, etc, we are ready to leave Edward Jones (mainly so we can escape the AUM).

Any other comments or suggestions are welcome. Thanks again for the wealth of information here.
1.35% AUM is serious. I'd initiate the transfer and THEN make the call/email. Just curious OP, it was mentioned that you're a long time lurker here, did it take you some time before you backtested your portfolio against the appropriate benchmarks (or TDF as stated) ? There is very little any big box shop can do to combat 1.35% and high ER's. It's simply a wealth transfer at that point. Genuinely curious about the amount of time it took and the psychology behind it if you have been aware for a number of years.
Last edited by deltaneutral83 on Tue Sep 21, 2021 8:15 am, edited 1 time in total.
PVW
Posts: 806
Joined: Mon Dec 29, 2014 10:01 am

Re: Another Edward Jones question (leaving ethically)

Post by PVW »

EJ sales tactic #43. You are the competition. Your wife is the ally. First thing the rep is going to do is make you look like an ignorant clown that can't be trusted with the family investments. He'll be subtle and try to sound like he just cares about your success, but he's putting doubt in your wife's head.

The reality is that the EJ rep is smarter than you and your wife might believe him. Best to avoid this possibility unless your wife can see through the sales pitch.
Nowizard
Posts: 4827
Joined: Tue Oct 23, 2007 5:33 pm

Re: Another Edward Jones question (leaving ethically)

Post by Nowizard »

Though several have posted that there is no ethical issue and/or they have no difficulty in changing a service provider, the issue with your post is your wife's view of appropriateness which is not necessarily the same as whether she agrees or disagrees with an ethical question. It sounds like the advice to set up things with your new provider other than the transfer and to inform the EJ person falls within the context of a good marriage is made of small compromises. Notification could be with email or in person, even with a small token of appreciation. After all, it is new knowledge that has led to changing, not the advisor specifically if you have been with him/her for a number of years. It is a mistake to assume all who work in such settings are scam artists attempting to take your money. There are many who use advisors for a variety of reasons, including during times when they are gaining investment knowledge and the confidence to go it on their own.

Tim
Shallowpockets
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Joined: Fri Nov 20, 2015 9:26 am

Re: Another Edward Jones question (leaving ethically)

Post by Shallowpockets »

Ask your wife if she remembers the last time she ate a bad meal. Ask her if she even remembers that.
That is what it will be like when you leave EJ. In a week it will be in the past and not even part of the conversation. Certainly it will pass as quick for the EJ advisor who will not remember you.
Dave55
Posts: 2016
Joined: Tue Sep 03, 2013 2:51 pm

Re: Another Edward Jones question (leaving ethically)

Post by Dave55 »

I left 3 different advisors early in my investment career. It really does not matter if you say goodbye or just move your assets without making contact with your Edward Jones guy. It's a personal choice. I personally would not say goodbye to E Jones as they have ripped you off for a long time. Edward Jones are salespeople, so most likely they will attempt to rescue you from the move.

Dave
"Reality always wins, your only job is to get in touch with it." Wilfred Bion
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: Another Edward Jones question (leaving ethically)

Post by exodusNH »

F150HD wrote: Tue Sep 21, 2021 5:56 am if you do a phone call, worth recording it. Convo here:

viewtopic.php?p=6090954#p6090954
This might be illegal, depending on jurisdiction. E.g., in New Hampshire, all parties must consent to having the conversation recorded.
DetroitAvant
Posts: 58
Joined: Sat Jan 07, 2017 8:39 pm

Re: Another Edward Jones question (leaving ethically)

Post by DetroitAvant »

I'm very curious if you'll be able to move the 529. Through a set of circumstances, we've ended up with a 529 in EJ and I haven't been able to find a good way to move it and kind of decided it's easiest just to leave it where it is and draw it down first.
bugleheadd
Posts: 916
Joined: Fri Nov 29, 2019 10:25 am

Re: Another Edward Jones question (leaving ethically)

Post by bugleheadd »

Tell her any calls to EJ will only be made after the transfer is done
Topic Author
frenchpress27
Posts: 8
Joined: Mon Sep 20, 2021 8:03 pm

Re: Another Edward Jones question (leaving ethically)

Post by frenchpress27 »

deltaneutral83 wrote: Tue Sep 21, 2021 8:12 am
frenchpress27 wrote: Mon Sep 20, 2021 8:25 pm Typical dozen or so fund portfolios with > .5% expense ratios and 1.35% AUM. After debating it for a while, dragging our feet, back-testing the Jones' portfolio against a simple target date fund, etc, we are ready to leave Edward Jones (mainly so we can escape the AUM).

Any other comments or suggestions are welcome. Thanks again for the wealth of information here.
1.35% AUM is serious. I'd initiate the transfer and THEN make the call/email. Just curious OP, it was mentioned that you're a long time lurker here, did it take you some time before you backtested your portfolio against the appropriate benchmarks (or TDF as stated) ? There is very little any big box shop can do to combat 1.35% and high ER's. It's simply a wealth transfer at that point. Genuinely curious about the amount of time it took and the psychology behind it if you have been aware for a number of years.
Yes, believe it or not, I never actually did the backtest with our IRAs until recently. But after I did, against a portfolio I could have easily constructed myself with similar AA as the jones porfolio, it was clear that since 2017, I have missed out on about $8K worth of returns for our IRAs combined. (around 2017 is when they switched to the AUM model, IIRC). And then just the general kicking the can down the road, dreading having to deal with transferring the accounts, dealing with the advisor, so here we are several years later.
niagara_guy
Posts: 1165
Joined: Tue Feb 11, 2020 7:32 am

Re: Another Edward Jones question (leaving ethically)

Post by niagara_guy »

I think you have a business relationship with EJ, but of course your sales person will try to make it personal to hopefully keep you as a customer.

I would thank your sales person in a letter for his/her service (assuming that's true) and include instructions noted by others above as needed. I would address the letter to the sales person (could be an email instead). Be clear that you are leaving EJ and be clear with any instructions. You might say that this is a final decision so no reply is needed. Your sales person has made a lot of money off of your investments at your expense. You don't owe him anything but a nice letter or email saying goodbye.
Stubbie
Posts: 205
Joined: Fri May 29, 2020 6:09 am

Re: Another Edward Jones question (leaving ethically)

Post by Stubbie »

Similar story to some of the others. A good friend of mine was a client of one of his fraternity brothers who worked for one of the "full service" brokerage houses. Paid him outrageous fees for years. They spent a lot of time together so my buddy though they were best friends. My buddy moves all of his accounts to Fidelity (I had nothing to do with it). Now his best friend won't even return his phone calls. Has not seen him seen he quit paying him. My buddy was quite hurt by this. He delayed moving his accounts for years because he didn't want to hurt his "best friend's" feelings. He's now wishing he had done it years earlier and saved himself a LOT of money.
You owe this guy nothing. Strictly business.
hnd
Posts: 1071
Joined: Mon Jun 22, 2020 11:43 am

Re: Another Edward Jones question (leaving ethically)

Post by hnd »

part of selling you these services is selling you on the idea that you guys are buds and they care about you and truly hope your dog has a happy birthday. in truth they likely don't care until they have a calendar reminder pop up telling them its time to send a card.

I know a few advisors that really work to care. so its not completely fair to bucket every advisor into that, but in the end its business. i'm in sales. i have people that i enjoy talking to and care about. but for the most part its too the extent that they are customers. If they purchased services from someone else, i'd likely take a stab at checking in at some point in the future, but in truth its to get their business back if they are feeling remorseful. I'd likely move along and never speak to them again unless it was happenstance.
fposte
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Joined: Mon Sep 02, 2013 1:32 pm

Re: Another Edward Jones question (leaving ethically)

Post by fposte »

On the phone call, if you make it: be clear with yourself that the goal is to communicate information to him, not to get his acceptance or approval. You don't need to listen to his side. You don't even need his buy-in to end the call--you don't have to keep going just because he wants to.
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