Likely Move From Edward Jones to Vanguard

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Likely Move From Edward Jones to Vanguard

Post by estrellamts »

Greetings and thanks to this forum. Already found some very interesting past posts/topics related to my questions and looking forward to future advice offered. I retired in 2020 at age 60 after 40 years in the aviation industry and while the pandemic and financial markets have slowed me down w/ retirement plans...I continue to enjoy retirement. In the last few months...because of urging from friends and articles read, I'm reassessing my use of Edward Jones for advice on retirement accounts and the amount paid to manage. It's tough to justifying a 1200.00 monthly fee on average when usual living expenses will be around 2500.00. I will continue to seek advice of an advisor...but if decided to go with Vanguard...the .30% fee is far more palatable than the current 1%. A goal will be to eventually to drop the paid advisor...but feel right now I don't know what I don't know. The list of books on this site seems a good start to better reach that goal.

Currently have (3) accounts at EJ's. A taxable investment account, a traditional IRA and a Roth IRA. The (2) IRA's are within 'Guided Solutions' at EJ's and serve as my only form of upcoming retirement income other than SS that so far I plan to wait until 70 to start. I've yet to tap into IRA's...and currently use an emergency fund to live on since taking a buyout from employer. Given the market condition...I plan to deplete the 19k emergency fund with Marcus for living expenses remainder 2022...rather than solidify IRA paper losses. I've had one phone meeting with a Vanguard Advisor who will soon submit a suggested plan to move from accounts at EJ over to Vanguard. Not decided what will do with the taxable investment account fund...liquidate or transfer to Vanguard. Once I make decision to move to Vanguard...I'd like to convert funds in traditional IRA over to Roth and stay within the top of the 12% tax bracket for 2022. (So far I have no taxable income for 2022 and don't expect to).

My Details:

Emergency Fund: 19k @ Marcus Savings (living expenses for balance of 2022)

Debt: none. own home/car...no credit card debt

Tax Filing: Single

Tax Rate: FED 12% AZ 3%

State of Residence: Arizona

Age: 61

No further contributions to IRA's or Investment account

Current Desired Asset Allocation:
45% - 55% Equity Investments (0-5% Aggressive) (5 -15% growth) (30-45 growth&income)
45%- 55% Fixed Income (40-55% Income) (0-5% cash)

Portfolio aprox.: 1.3M (Invest acct 45k) (IRA 1M) (Roth IRA 255K)

***
EJ TAXABLE INVEST ACCT HOLDINGS

ABALX 6k ER .56 AMERICAN BAL A
ABNDX 10K ER .55 AMERICAN BOND OF AMER A
CWGIX 4K ER .75 AMER CAP WRLD GRW & INC A
AGTHX 8K ER .61 AMER GROWTH FD OF AMER A
AHITX 8K ER .69 AMER HIGH INC TRUST A
AMECX 3K ER .56 AMER INC FUND OF AMER A
SMCWX 3K ER 1.02 AMER SMALL CAP WORLD A
JCMAX 4K ER 1.14 JPMORGAN MID CAP EQUITY A

***
(1)EJ TRADITIONAL IRA HOLDINGS/(1) EJ ROTH IRA HOLDINGS

AFMBX 73K/16K ER .25 AMER BAL F3
AFMFX 78K/18K ER .27 AMER MUT F3
FNPFX 71K/16K ER .41 AMER NEW PERS F3
FNWFX 21K/4K ER .57 AMER NEW WRLD F3
SFCWX 37K/8K ER .65 AMER SMALLCAP WRLD F3
USGFX 61K/11K ER .22 AMER US GOVT SECS F3
CDDYX 50K/14K ER .56 COLUMBIA DIVIDEND INC I3
FDTRX 50K/11K ER .46 FRANKLIN DYNATECH R6
FRRXX 20K/4K ER .48 FRANKLIN US GOV MONEY R6
JHBSX 94K/18K ER .36 JH BOND R6
JCPUX 95K/21K ER .39 JP MORGAN CORE PLUS BOND R6
JGSMX 27K/6K ER .74 JPMORGAN SMALL CAP GROWTH R6
LBNOX 59K/13K ER .49 LORD ABBETT BOND DEBENT F3
LOLDX 134K/30K ER .32 LORD ABBETT SHORT DUR INC F3
MFBKX 81K/18K ER .41 MFS CORP BOND R6
MFEKX 59K/15K ER .05 MFS GROWTH R6
MDIZX 67K/15K ER .73 MFS INTL DIVERSIFIC R6
PMAQX 42K/9K ER .59 PRINCIPAL MIDCAP R6

***
Questions:

Need suggestions on transferring EJ taxable investment funds straight over to Vanguard account or better to convert to Vanguard funds? Tax consequences and expenses of moving the funds rather than liquidating and buying Vanguard?

Advisor I spoke with at Vanguard suggested 2-3 weeks possible in transferring everything over? Can that be right?

Suggestions/recommendations on best fit of Vanguard funds?

Would it be a mistake to do an EJ IRA to EJ Roth conversion prior to moving to Vanguard? Not sure of move timeline and would like to take current tax advantage of converting while market down.

Last question...want to re-build (as soon as feasible) a 1 year emergency fund. (50K). Suggestions on best move to replenish using funds from IRA's or investment account?

Thanks to anybody offering suggestions and advice.
Last edited by estrellamts on Mon Jun 20, 2022 9:21 am, edited 7 times in total.
typical.investor
Posts: 3267
Joined: Mon Jun 11, 2018 3:17 am

Re: Likely Leaving EJ for Vanguard Soon...Need Some Advice

Post by typical.investor »

estrellamts wrote: Sun Jun 19, 2022 5:10 pm

Tax Rate: FED 12% AZ 3%


***
EJ TAXABLE INVEST ACCT HOLDINGS

ABALX 6k ER .56 AMERICAN BAL A
ABNDX 10K ER .55 AMERICAN BOND OF AMER A
CWGIX 4K ER .75 AMER CAP WRLD GRW & INC A
AGTHX 8K ER .61 AMER GROWTH FD OF AMER A
AHITX 8K ER .69 AMER HIGH INC TRUST A
AMECX 3K ER .56 AMER INC FUND OF AMER A
SMCWX 3K ER 1.02 AMER SMALL CAP WORLD A
JCMAX 4K ER 1.14 JPMORGAN MID CAP EQUITY A

***


Suggestions on transferring taxable investment funds straight over to Vanguard or convert to Vanguard funds? Tax consequences and expenses of moving the funds rather than liquidating and buying Vanguard?
Liquidating may have tax consequences, so transfer holdings in-kind unless you determine there is no consequence.

Steps:

1) Determine the cost basis of your holdings. Then you can figure your 'unrealized gains' or how much you'd have to pay taxes on if sold.
2) See if any positions can be sold at a loss to offset gains.
3) Capital gains in the FED 12% are 0%, so figure how much space you have until you hit this mark. It's a little tricky because you don't know exactly what these funds will be paying in dividends and capital gains the rest of the year but you can estimate that.
4) if you can't sell everything in the 0% CG bracket, they turn off dividend reinvestment of anything you will sell in future years.

American Funds are active and typically issue yearly capital gains which means you have already been taxed and the remaining gains added to your cost basis, so your 'unrealized gains' may be low and you might be able to exit these positions easily.
User avatar
retired@50
Posts: 8409
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Likely Leaving EJ for Vanguard Soon...Need Some Advice

Post by retired@50 »

estrellamts wrote: Sun Jun 19, 2022 5:10 pm Portfolio aprox.: 1.3M (Invest acct 45k) (IRA 1M) (Roth IRA 255K)

***
EJ TAXABLE INVEST ACCT HOLDINGS

ABALX 6k ER .56 AMERICAN BAL A
ABNDX 10K ER .55 AMERICAN BOND OF AMER A
CWGIX 4K ER .75 AMER CAP WRLD GRW & INC A
AGTHX 8K ER .61 AMER GROWTH FD OF AMER A
AHITX 8K ER .69 AMER HIGH INC TRUST A
AMECX 3K ER .56 AMER INC FUND OF AMER A
SMCWX 3K ER 1.02 AMER SMALL CAP WORLD A
JCMAX 4K ER 1.14 JPMORGAN MID CAP EQUITY A

***
Questions:

Suggestions on transferring taxable investment funds straight over to Vanguard or convert to Vanguard funds? Tax consequences and expenses of moving the funds rather than liquidating and buying Vanguard?
Welcome to the forum. :happy

For more details on the taxable investment account ($45K) and the potential tax costs to selling the EJ funds and buying Vanguard funds, see this wiki page link: https://www.bogleheads.org/wiki/Paying_ ... itch_funds

With a total of $45K in the taxable account, it could be that you're only looking at $20k of gains (maybe less, maybe more) but to find out for sure, you'll want to get your cost basis in this account from the EJ website. Look for "unrealized" gains or losses.

Given the high expense ratios of the funds EJ has selected, I'd want to abandon them as soon as possible and consider some tax efficient index funds like Vanguard Total Stock Market Index (VTSAX) and Vanguard Total International Stock Index Fund (VTIAX).

More details here: https://www.bogleheads.org/wiki/Three-fund_portfolio
and here: https://www.bogleheads.org/wiki/Tax-eff ... _placement

Regards,
This is one person's opinion. Nothing more.
User avatar
Cheez-It Guy
Posts: 2712
Joined: Sun Mar 03, 2019 4:20 pm

Re: Likely Leaving EJ for Vanguard Soon...Need Some Advice

Post by Cheez-It Guy »

Vanguard Personal Advisor Services fee is 0.30%, not 0.03%. For Vanguard Digital Advisor the fee is 0.15%. Expense ratios are in addition. No doubt better than Edward Jones, but an important distinction.
123
Posts: 8683
Joined: Fri Oct 12, 2012 3:55 pm

Re: Likely Leaving EJ for Vanguard Soon...Need Some Advice

Post by 123 »

EJ didn't seem to do much to correctly place your investments for tax purposes in the IRA accounts. While they cloned the fund placement between Traditional IRA and Roth IRA this causes you to pay more taxes. Ideally funds invested in stocks should mostly be in Roth and Taxable accounts and bonds should be in tax-deferred accounts like a Traditional IRA. The reason is that stocks growth in a Traditional IRA gets taxed as ordinary income as you take distributions from the growth, whereas in Roth the higher growth of stocks is tax-free and in taxable accounts stock growth gets the advantage of long-term capital gains tax treatment.
The closest helping hand is at the end of your own arm.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Leaving EJ for Vanguard Soon...Need Some Advice

Post by estrellamts »

Interesting...thank you for that. In making a move into Vanguard funds will keep this in mind. Edward Jones seems very hands off with anything tax related...maybe that's the norm...but not helpful finding this out after the fact. I appreciate you pointing this out.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Leaving EJ for Vanguard Soon...Need Some Advice

Post by estrellamts »

Sorry for the blanket response...still trying to mange the correct way in responding to individuals who've responded to my post. Thanks to all 4 members, valued information and will put to good use.
User avatar
Duckie
Posts: 8826
Joined: Thu Mar 08, 2007 2:55 pm

Re: Likely Move From Edward Jones to Vanguard

Post by Duckie »

estrellamts wrote: Sun Jun 19, 2022 5:10 pm Need suggestions on transferring EJ taxable investment funds straight over to Vanguard account or better to convert to Vanguard funds?
In taxable at Edward Jones make sure automatic dividend/gains reinvestments are turned off. Find out the unrealized gains/losses for every fund in taxable. Sell everything with a loss while still at EJ. Then sell funds with gains until you are net $0. At that point you can either sell the remainder and pay taxes on the gains or transfer "in kind" to Vanguard.

Be prepared to pay ~$100 to close each account, so ~$300.
Tax consequences and expenses of moving the funds rather than liquidating and buying Vanguard?
It depends on the gains/losses in the funds. There may be little to no net gains.
Advisor I spoke with at Vanguard suggested 2-3 weeks possible in transferring everything over? Can that be right?
I would expect it to take longer than that.
Suggestions/recommendations on best fit of Vanguard funds?
Put all your fixed income in your Traditional IRA. I recommend a total bond fund like VBTLX for the majority of your bonds and possibly a TIPS fund like VAIPX and/or a treasury fund like VSIGX.

For US stocks buy a total US stock index like VTSAX and for international buy VTIAX. Since your taxable account is small hold just one fund there (and not a fund you hold elsewhere). A 500 Index fund like VFIAX would be suitable.
Would it be a mistake to do an EJ IRA to EJ Roth conversion prior to moving to Vanguard? Not sure of move timeline and would like to take current tax advantage of converting while market down.
Wait on the conversion until everything is moved over to Vanguard.
Last question...want to re-build (as soon as feasible) a 1 year emergency fund. (50K). Suggestions on best move to replenish using funds from IRA's or investment account?
You could use the taxable account for most of this once completely liquidated.
radiowave
Posts: 2881
Joined: Thu Apr 30, 2015 5:01 pm

Re: Likely Move From Edward Jones to Vanguard

Post by radiowave »

OP, excellent advise above.

I moved two inherited accounts about a decade ago from EJ to VG. My "account closure fee" at the time from EJ was $95.00 per account (money well spent)

Vanguard may charge a small fee to convert some of the EJ funds to VG funds.

Initiate the transfer from VG to minimize or eliminate contact with EJ advisor

An alternative brokerage if you are not 100% on VG are Fidelity or Schwab. Both have local offices, VG does not.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

Duckie wrote: Mon Jun 20, 2022 7:57 pm
estrellamts wrote: Sun Jun 19, 2022 5:10 pm Need suggestions on transferring EJ taxable investment funds straight over to Vanguard account or better to convert to Vanguard funds?
In taxable at Edward Jones make sure automatic dividend/gains reinvestments are turned off. Find out the unrealized gains/losses for every fund in taxable. Sell everything with a loss while still at EJ. Then sell funds with gains until you are net $0. At that point you can either sell the remainder and pay taxes on the gains or transfer "in kind" to Vanguard.

Be prepared to pay ~$100 to close each account, so ~$300.
Tax consequences and expenses of moving the funds rather than liquidating and buying Vanguard?
It depends on the gains/losses in the funds. There may be little to no net gains.
Advisor I spoke with at Vanguard suggested 2-3 weeks possible in transferring everything over? Can that be right?
I would expect it to take longer than that.
Suggestions/recommendations on best fit of Vanguard funds?
Put all your fixed income in your Traditional IRA. I recommend a total bond fund like VBTLX for the majority of your bonds and possibly a TIPS fund like VAIPX and/or a treasury fund like VSIGX.

For US stocks buy a total US stock index like VTSAX and for international buy VTIAX. Since your taxable account is small hold just one fund there (and not a fund you hold elsewhere). A 500 Index fund like VFIAX would be suitable.
Would it be a mistake to do an EJ IRA to EJ Roth conversion prior to moving to Vanguard? Not sure of move timeline and would like to take current tax advantage of converting while market down.
Wait on the conversion until everything is moved over to Vanguard.
Last question...want to re-build (as soon as feasible) a 1 year emergency fund. (50K). Suggestions on best move to replenish using funds from IRA's or investment account?
You could use the taxable account for most of this once completely liquidated.
Thanks Duckie for your recommendations...will be using this info as I discuss w/ Vanguard Thursday. Appreciate your time and advice.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

radiowave wrote: Mon Jun 20, 2022 9:58 pm OP, excellent advise above.

I moved two inherited accounts about a decade ago from EJ to VG. My "account closure fee" at the time from EJ was $95.00 per account (money well spent)

Vanguard may charge a small fee to convert some of the EJ funds to VG funds.

Initiate the transfer from VG to minimize or eliminate contact with EJ advisor

An alternative brokerage if you are not 100% on VG are Fidelity or Schwab. Both have local offices, VG does not.
Thank you radiowave. Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
User avatar
retired@50
Posts: 8409
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Likely Move From Edward Jones to Vanguard

Post by retired@50 »

estrellamts wrote: Mon Jun 20, 2022 11:00 pm ...Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
I presume you're referring to Vanguard Personal Advisory Services (VPAS).

If you invest at least $50,000 you have access to an adviser. (I suspect this is a "team" approach)

If you invest at least $500,000 you will have a dedicated adviser. (I suspect this would be the same person each time you call)

More details here: https://investor.vanguard.com/advice/financial-advisor

I don't think you'll be lumped in with all the other callers who are struggling to reach someone to get a simple question answered, because you'll be a paying client with an advanced level of service. I would also imagine you'll have some form of email or messaging ability for non-urgent questions.

Regards,
This is one person's opinion. Nothing more.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

retired@50 wrote: Mon Jun 20, 2022 11:18 pm
estrellamts wrote: Mon Jun 20, 2022 11:00 pm ...Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
I presume you're referring to Vanguard Personal Advisory Services (VPAS).

If you invest at least $50,000 you have access to an adviser. (I suspect this is a "team" approach)

If you invest at least $500,000 you will have a dedicated adviser. (I suspect this would be the same person each time you call)

More details here: https://investor.vanguard.com/advice/financial-advisor

I don't think you'll be lumped in with all the other callers who are struggling to reach someone to get a simple question answered, because you'll be a paying client with an advanced level of service. I would also imagine you'll have some form of email or messaging ability for non-urgent questions.

Regards,
Yes I'd be using VPAS...but was referring more to the on-boarding team after making investing decisions w/ the advisor...or for the times routine account transactions might come up where an advisor was not necessary to be involved. I do know the advisor would be accessible through an email...but I'd heard support staff calls often result in long waits. Seems the norm with so many businesses these days.
radiowave
Posts: 2881
Joined: Thu Apr 30, 2015 5:01 pm

Re: Likely Move From Edward Jones to Vanguard

Post by radiowave »

estrellamts wrote: Mon Jun 20, 2022 11:00 pm
radiowave wrote: Mon Jun 20, 2022 9:58 pm OP, excellent advise above.

I moved two inherited accounts about a decade ago from EJ to VG. My "account closure fee" at the time from EJ was $95.00 per account (money well spent)

Vanguard may charge a small fee to convert some of the EJ funds to VG funds.

Initiate the transfer from VG to minimize or eliminate contact with EJ advisor

An alternative brokerage if you are not 100% on VG are Fidelity or Schwab. Both have local offices, VG does not.
Thank you radiowave. Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
We left Vanguard abt a year and a half ago. Yes, getting in touch w VG on the phone was painful. But we lost confidence in their back office regarding a monthly custodian to VG IRA transfer that had a serious mistake. We chose to transfer all VG accounts to another brokerage that has local offices and has comparable low cost funds and DIY portfolios.

If you are still on the fence with VG and need a little hand holding, especially with the EJ transfer, both Fidelity and Schwab are highly regarded here on the forum. Just be sure you say you want to set up a self-directed portfolio.

Here's a helpful link in the BH Wiki for setting up funds in either Fidelity, Schwab, or Vanguard: https://www.bogleheads.org/wiki/Three-fund_portfolio
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
DebiT
Posts: 646
Joined: Sat Dec 28, 2013 1:45 pm

Re: Likely Move From Edward Jones to Vanguard

Post by DebiT »

A vote for Schwab here. I have never waited for more than 10 minutes, usually less than 5, for very competent customer service. I don’t use them for advice, but would imagine that to be the same
Age 64, life turned upside down 3/2/19, thanking God for what I've learned from this group.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

radiowave wrote: Tue Jun 21, 2022 8:57 am
estrellamts wrote: Mon Jun 20, 2022 11:00 pm
radiowave wrote: Mon Jun 20, 2022 9:58 pm OP, excellent advise above.

I moved two inherited accounts about a decade ago from EJ to VG. My "account closure fee" at the time from EJ was $95.00 per account (money well spent)

Vanguard may charge a small fee to convert some of the EJ funds to VG funds.

Initiate the transfer from VG to minimize or eliminate contact with EJ advisor

An alternative brokerage if you are not 100% on VG are Fidelity or Schwab. Both have local offices, VG does not.
Thank you radiowave. Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
We left Vanguard abt a year and a half ago. Yes, getting in touch w VG on the phone was painful. But we lost confidence in their back office regarding a monthly custodian to VG IRA transfer that had a serious mistake. We chose to transfer all VG accounts to another brokerage that has local offices and has comparable low cost funds and DIY portfolios.

If you are still on the fence with VG and need a little hand holding, especially with the EJ transfer, both Fidelity and Schwab are highly regarded here on the forum. Just be sure you say you want to set up a self-directed portfolio.

Here's a helpful link in the BH Wiki for setting up funds in either Fidelity, Schwab, or Vanguard: https://www.bogleheads.org/wiki/Three-fund_portfolio
Radiohead when you were at VG did you have a Personal Advisor account or DIY account...(sounds like DIY, correct)? I'm trying to distinguish if good phone support/back office assistance is dependent on the type account you have. Getting hold of the advisor not as much of a concern in the Personal Advisor account...but if back office help is a problem with both type accounts...a concern. Regarding the DIY type portfolio...my intent is to go with a personal advisor for at least a couple years. Thanks again for your replies...appreciate.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

DebiT wrote: Tue Jun 21, 2022 2:15 pm A vote for Schwab here. I have never waited for more than 10 minutes, usually less than 5, for very competent customer service. I don’t use them for advice, but would imagine that to be the same
Thanks DebiT...appreciate your reply
BogleFan510
Posts: 902
Joined: Tue Aug 04, 2020 2:13 pm

Re: Likely Move From Edward Jones to Vanguard

Post by BogleFan510 »

If you simplify your strategy, an advisor and their fees are not necessary. Reassurance can be had for free in this site.

There is nothing wrong with 100% of funds in something like a target date retirement fund. The fund itself performs a very solid strategy inside the fund, and included in the fee is the advisor maintaining this strategy.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

BogleFan510 wrote: Tue Jun 21, 2022 3:46 pm If you simplify your strategy, an advisor and their fees are not necessary. Reassurance can be had for free in this site.

There is nothing wrong with 100% of funds in something like a target date retirement fund. The fund itself performs a very solid strategy inside the fund, and included in the fee is the advisor maintaining this strategy.
Thanks BogleFan...I have friends trying to convince me of the same...and I'm absolutely sure you and they are correct. Unfortunately, even with all the available advice I'm just not confident yet in making that sort of move. Separating from EJ is my goal right now as the managing fees and high expense ratios in comparison are flashing red lights. I need to educate before I take the next step for DIY...and the incentive I know is keeping more of my money.
BogleFan510
Posts: 902
Joined: Tue Aug 04, 2020 2:13 pm

Re: Likely Move From Edward Jones to Vanguard

Post by BogleFan510 »

estrellamts wrote: Tue Jun 21, 2022 3:54 pm
BogleFan510 wrote: Tue Jun 21, 2022 3:46 pm If you simplify your strategy, an advisor and their fees are not necessary. Reassurance can be had for free in this site.

There is nothing wrong with 100% of funds in something like a target date retirement fund. The fund itself performs a very solid strategy inside the fund, and included in the fee is the advisor maintaining this strategy.
Thanks BogleFan...I have friends trying to convince me of the same...and I'm absolutely sure you and they are correct. Unfortunately, even with all the available advice I'm just not confident yet in making that sort of move. Separating from EJ is my goal right now as the managing fees and high expense ratios in comparison are flashing red lights. I need to educate before I take the next step for DIY...and the incentive I know is keeping more of my money.
Seems reasonable to pay VG a bit to set up a structure. Once they do, feel free to set it and forget it (and fire their management services). Lazy, passive portfolios have historically outperformed active ones.

Good luck, just do it!
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

BogleFan510 wrote: Tue Jun 21, 2022 4:09 pm
estrellamts wrote: Tue Jun 21, 2022 3:54 pm
BogleFan510 wrote: Tue Jun 21, 2022 3:46 pm If you simplify your strategy, an advisor and their fees are not necessary. Reassurance can be had for free in this site.

There is nothing wrong with 100% of funds in something like a target date retirement fund. The fund itself performs a very solid strategy inside the fund, and included in the fee is the advisor maintaining this strategy.
Thanks BogleFan...I have friends trying to convince me of the same...and I'm absolutely sure you and they are correct. Unfortunately, even with all the available advice I'm just not confident yet in making that sort of move. Separating from EJ is my goal right now as the managing fees and high expense ratios in comparison are flashing red lights. I need to educate before I take the next step for DIY...and the incentive I know is keeping more of my money.
Seems reasonable to pay VG a bit to set up a structure. Once they do, feel free to set it and forget it (and fire their management services). Lazy, passive portfolios have historically outperformed active ones.

Good luck, just do it!
I certainly appreciate it...wish I'd found this forum a few years ago. Great quality reference tool for sure.
BogleFan510
Posts: 902
Joined: Tue Aug 04, 2020 2:13 pm

Re: Likely Move From Edward Jones to Vanguard

Post by BogleFan510 »

estrellamts wrote: Tue Jun 21, 2022 4:12 pm
BogleFan510 wrote: Tue Jun 21, 2022 4:09 pm
estrellamts wrote: Tue Jun 21, 2022 3:54 pm
BogleFan510 wrote: Tue Jun 21, 2022 3:46 pm If you simplify your strategy, an advisor and their fees are not necessary. Reassurance can be had for free in this site.

There is nothing wrong with 100% of funds in something like a target date retirement fund. The fund itself performs a very solid strategy inside the fund, and included in the fee is the advisor maintaining this strategy.
Thanks BogleFan...I have friends trying to convince me of the same...and I'm absolutely sure you and they are correct. Unfortunately, even with all the available advice I'm just not confident yet in making that sort of move. Separating from EJ is my goal right now as the managing fees and high expense ratios in comparison are flashing red lights. I need to educate before I take the next step for DIY...and the incentive I know is keeping more of my money.
Seems reasonable to pay VG a bit to set up a structure. Once they do, feel free to set it and forget it (and fire their management services). Lazy, passive portfolios have historically outperformed active ones.

Good luck, just do it!
I certainly appreciate it...wish I'd found this forum a few years ago. Great quality reference tool for sure.
BTW, if you 'chicken out' an immediate action can be to tell EG in writing that you are discontinuing their management services. They will not be able to sell or churn assets at that point. Its the first step I would take.

PS I love VG funds but broker with Fidelity and Schwab, for decades. Both are excellent with service. Have never paid a mgmt fee.
radiowave
Posts: 2881
Joined: Thu Apr 30, 2015 5:01 pm

Re: Likely Move From Edward Jones to Vanguard

Post by radiowave »

estrellamts wrote: Tue Jun 21, 2022 3:41 pm
radiowave wrote: Tue Jun 21, 2022 8:57 am
estrellamts wrote: Mon Jun 20, 2022 11:00 pm
radiowave wrote: Mon Jun 20, 2022 9:58 pm OP, excellent advise above.

I moved two inherited accounts about a decade ago from EJ to VG. My "account closure fee" at the time from EJ was $95.00 per account (money well spent)

Vanguard may charge a small fee to convert some of the EJ funds to VG funds.

Initiate the transfer from VG to minimize or eliminate contact with EJ advisor

An alternative brokerage if you are not 100% on VG are Fidelity or Schwab. Both have local offices, VG does not.
Thank you radiowave. Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
We left Vanguard abt a year and a half ago. Yes, getting in touch w VG on the phone was painful. But we lost confidence in their back office regarding a monthly custodian to VG IRA transfer that had a serious mistake. We chose to transfer all VG accounts to another brokerage that has local offices and has comparable low cost funds and DIY portfolios.

If you are still on the fence with VG and need a little hand holding, especially with the EJ transfer, both Fidelity and Schwab are highly regarded here on the forum. Just be sure you say you want to set up a self-directed portfolio.

Here's a helpful link in the BH Wiki for setting up funds in either Fidelity, Schwab, or Vanguard: https://www.bogleheads.org/wiki/Three-fund_portfolio
Radiohead when you were at VG did you have a Personal Advisor account or DIY account...(sounds like DIY, correct)? I'm trying to distinguish if good phone support/back office assistance is dependent on the type account you have. Getting hold of the advisor not as much of a concern in the Personal Advisor account...but if back office help is a problem with both type accounts...a concern. Regarding the DIY type portfolio...my intent is to go with a personal advisor for at least a couple years. Thanks again for your replies...appreciate.
We've always been self-directed at Vanguard and elsewhere. If you read the BH Wiki, there is excellent information on setting up a 3-fund portfolio, basically use three Mutual funds/ETFs for total domestic stock, total bond, and total international funds (see the URL above). A Boglehead approach is typically keep things simple, keep portfolio diversified, keep costs low, set your asset allocation by your risk tolerance, and address tax efficient placement of funds in various accounts. It's really straightforward and you'll get plenty of excellent advice from forum members here. It's basically a set and forget philosophy that doesn't require a lot of hand holding or external advisement. You're not timing the market or picking stocks (day trading). If you go with VG, they have excellent funds that fit the Boglehead philosophy like their total stock fund VTSAX and total bond fund VBTLX. If all your funds are either tax deferred, e.g. IRA and not in a taxable account, you could just put your assets into one of the VG target retirement funds and let it adjust automatically over time. That's basically what the VG Personal Advisor will do but at the added cost. If you have taxable funds, Roth IRAs, real estate holdings, etc. it gets a bit more complicated. Consider a fee only advisor who will help you set up your portfolio for a set one time fee and you can then manage it on your own.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

radiowave wrote: Tue Jun 21, 2022 10:39 pm
estrellamts wrote: Tue Jun 21, 2022 3:41 pm
radiowave wrote: Tue Jun 21, 2022 8:57 am
estrellamts wrote: Mon Jun 20, 2022 11:00 pm
radiowave wrote: Mon Jun 20, 2022 9:58 pm OP, excellent advise above.

I moved two inherited accounts about a decade ago from EJ to VG. My "account closure fee" at the time from EJ was $95.00 per account (money well spent)

Vanguard may charge a small fee to convert some of the EJ funds to VG funds.

Initiate the transfer from VG to minimize or eliminate contact with EJ advisor

An alternative brokerage if you are not 100% on VG are Fidelity or Schwab. Both have local offices, VG does not.
Thank you radiowave. Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
We left Vanguard abt a year and a half ago. Yes, getting in touch w VG on the phone was painful. But we lost confidence in their back office regarding a monthly custodian to VG IRA transfer that had a serious mistake. We chose to transfer all VG accounts to another brokerage that has local offices and has comparable low cost funds and DIY portfolios.

If you are still on the fence with VG and need a little hand holding, especially with the EJ transfer, both Fidelity and Schwab are highly regarded here on the forum. Just be sure you say you want to set up a self-directed portfolio.

Here's a helpful link in the BH Wiki for setting up funds in either Fidelity, Schwab, or Vanguard: https://www.bogleheads.org/wiki/Three-fund_portfolio
Radiohead when you were at VG did you have a Personal Advisor account or DIY account...(sounds like DIY, correct)? I'm trying to distinguish if good phone support/back office assistance is dependent on the type account you have. Getting hold of the advisor not as much of a concern in the Personal Advisor account...but if back office help is a problem with both type accounts...a concern. Regarding the DIY type portfolio...my intent is to go with a personal advisor for at least a couple years. Thanks again for your replies...appreciate.
We've always been self-directed at Vanguard and elsewhere. If you read the BH Wiki, there is excellent information on setting up a 3-fund portfolio, basically use three Mutual funds/ETFs for total domestic stock, total bond, and total international funds (see the URL above). A Boglehead approach is typically keep things simple, keep portfolio diversified, keep costs low, set your asset allocation by your risk tolerance, and address tax efficient placement of funds in various accounts. It's really straightforward and you'll get plenty of excellent advice from forum members here. It's basically a set and forget philosophy that doesn't require a lot of hand holding or external advisement. You're not timing the market or picking stocks (day trading). If you go with VG, they have excellent funds that fit the Boglehead philosophy like their total stock fund VTSAX and total bond fund VBTLX. If all your funds are either tax deferred, e.g. IRA and not in a taxable account, you could just put your assets into one of the VG target retirement funds and let it adjust automatically over time. That's basically what the VG Personal Advisor will do but at the added cost. If you have taxable funds, Roth IRAs, real estate holdings, etc. it gets a bit more complicated. Consider a fee only advisor who will help you set up your portfolio for a set one time fee and you can then manage it on your own.
Today received from a Vanguard advisor making a proposal and it included VTSAX/VBTLX along w/ 8 other VG funds. Conversation Thursday w/ advisor...afterwards I need to give serious thought to the suggestion you make. Newly retired and working w/ a traditional and Roth IRA accounts. Considering to just keep what I currently have in relatively small taxable investment acct. Thanks for you advice.
marcopolo
Posts: 6241
Joined: Sat Dec 03, 2016 10:22 am

Re: Likely Move From Edward Jones to Vanguard

Post by marcopolo »

estrellamts wrote: Tue Jun 21, 2022 11:49 pm
radiowave wrote: Tue Jun 21, 2022 10:39 pm
estrellamts wrote: Tue Jun 21, 2022 3:41 pm
radiowave wrote: Tue Jun 21, 2022 8:57 am
estrellamts wrote: Mon Jun 20, 2022 11:00 pm

Thank you radiowave. Question...I'll be working with an advisor at Vanguard for a couple years likely and I'm curious if you or anyone else reading this has had issues with contacting Vanguard for transactions, questions or just general servicing of account? I've read that lengthy hold times have become more common lately. Thank you again for your above comments.
We left Vanguard abt a year and a half ago. Yes, getting in touch w VG on the phone was painful. But we lost confidence in their back office regarding a monthly custodian to VG IRA transfer that had a serious mistake. We chose to transfer all VG accounts to another brokerage that has local offices and has comparable low cost funds and DIY portfolios.

If you are still on the fence with VG and need a little hand holding, especially with the EJ transfer, both Fidelity and Schwab are highly regarded here on the forum. Just be sure you say you want to set up a self-directed portfolio.

Here's a helpful link in the BH Wiki for setting up funds in either Fidelity, Schwab, or Vanguard: https://www.bogleheads.org/wiki/Three-fund_portfolio
Radiohead when you were at VG did you have a Personal Advisor account or DIY account...(sounds like DIY, correct)? I'm trying to distinguish if good phone support/back office assistance is dependent on the type account you have. Getting hold of the advisor not as much of a concern in the Personal Advisor account...but if back office help is a problem with both type accounts...a concern. Regarding the DIY type portfolio...my intent is to go with a personal advisor for at least a couple years. Thanks again for your replies...appreciate.
We've always been self-directed at Vanguard and elsewhere. If you read the BH Wiki, there is excellent information on setting up a 3-fund portfolio, basically use three Mutual funds/ETFs for total domestic stock, total bond, and total international funds (see the URL above). A Boglehead approach is typically keep things simple, keep portfolio diversified, keep costs low, set your asset allocation by your risk tolerance, and address tax efficient placement of funds in various accounts. It's really straightforward and you'll get plenty of excellent advice from forum members here. It's basically a set and forget philosophy that doesn't require a lot of hand holding or external advisement. You're not timing the market or picking stocks (day trading). If you go with VG, they have excellent funds that fit the Boglehead philosophy like their total stock fund VTSAX and total bond fund VBTLX. If all your funds are either tax deferred, e.g. IRA and not in a taxable account, you could just put your assets into one of the VG target retirement funds and let it adjust automatically over time. That's basically what the VG Personal Advisor will do but at the added cost. If you have taxable funds, Roth IRAs, real estate holdings, etc. it gets a bit more complicated. Consider a fee only advisor who will help you set up your portfolio for a set one time fee and you can then manage it on your own.
Today received from a Vanguard advisor making a proposal and it included VTSAX/VBTLX along w/ 8 other VG funds. Conversation Thursday w/ advisor...afterwards I need to give serious thought to the suggestion you make. Newly retired and working w/ a traditional and Roth IRA accounts. Considering to just keep what I currently have in relatively small taxable investment acct. Thanks for you advice.
You should ask the advisor why you need 8 other funds.
My guess is that their goal is similar to what EJ is doing.
They want to make investing seem complicated so that you will keep paying them for "advice". If you really want to get to a point where you are managing your portfolio yourself, you should be striving towards simplicity as you make these changes. There is really no reason to hold that many different funds.

Good luck to you.
Once in a while you get shown the light, in the strangest of places if you look at it right.
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

marcopolo wrote: Wed Jun 22, 2022 1:11 am
estrellamts wrote: Tue Jun 21, 2022 11:49 pm
radiowave wrote: Tue Jun 21, 2022 10:39 pm
estrellamts wrote: Tue Jun 21, 2022 3:41 pm
radiowave wrote: Tue Jun 21, 2022 8:57 am

We left Vanguard abt a year and a half ago. Yes, getting in touch w VG on the phone was painful. But we lost confidence in their back office regarding a monthly custodian to VG IRA transfer that had a serious mistake. We chose to transfer all VG accounts to another brokerage that has local offices and has comparable low cost funds and DIY portfolios.

If you are still on the fence with VG and need a little hand holding, especially with the EJ transfer, both Fidelity and Schwab are highly regarded here on the forum. Just be sure you say you want to set up a self-directed portfolio.

Here's a helpful link in the BH Wiki for setting up funds in either Fidelity, Schwab, or Vanguard: https://www.bogleheads.org/wiki/Three-fund_portfolio
Radiohead when you were at VG did you have a Personal Advisor account or DIY account...(sounds like DIY, correct)? I'm trying to distinguish if good phone support/back office assistance is dependent on the type account you have. Getting hold of the advisor not as much of a concern in the Personal Advisor account...but if back office help is a problem with both type accounts...a concern. Regarding the DIY type portfolio...my intent is to go with a personal advisor for at least a couple years. Thanks again for your replies...appreciate.
We've always been self-directed at Vanguard and elsewhere. If you read the BH Wiki, there is excellent information on setting up a 3-fund portfolio, basically use three Mutual funds/ETFs for total domestic stock, total bond, and total international funds (see the URL above). A Boglehead approach is typically keep things simple, keep portfolio diversified, keep costs low, set your asset allocation by your risk tolerance, and address tax efficient placement of funds in various accounts. It's really straightforward and you'll get plenty of excellent advice from forum members here. It's basically a set and forget philosophy that doesn't require a lot of hand holding or external advisement. You're not timing the market or picking stocks (day trading). If you go with VG, they have excellent funds that fit the Boglehead philosophy like their total stock fund VTSAX and total bond fund VBTLX. If all your funds are either tax deferred, e.g. IRA and not in a taxable account, you could just put your assets into one of the VG target retirement funds and let it adjust automatically over time. That's basically what the VG Personal Advisor will do but at the added cost. If you have taxable funds, Roth IRAs, real estate holdings, etc. it gets a bit more complicated. Consider a fee only advisor who will help you set up your portfolio for a set one time fee and you can then manage it on your own.
Today received from a Vanguard advisor making a proposal and it included VTSAX/VBTLX along w/ 8 other VG funds. Conversation Thursday w/ advisor...afterwards I need to give serious thought to the suggestion you make. Newly retired and working w/ a traditional and Roth IRA accounts. Considering to just keep what I currently have in relatively small taxable investment acct. Thanks for you advice.
You should ask the advisor why you need 8 other funds.
My guess is that their goal is similar to what EJ is doing.
They want to make investing seem complicated so that you will keep paying them for "advice". If you really want to get to a point where you are managing your portfolio yourself, you should be striving towards simplicity as you make these changes. There is really no reason to hold that many different funds.

Good luck to you.
Thank you MarcoPolo...will do exactly that.
User avatar
Taylor Larimore
Advisory Board
Posts: 31385
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Re: Likely Move From Edward Jones to Vanguard

Post by Taylor Larimore »

estrellamts:

I also would like to know why Vanguard recommends a total of 10 funds. I have not heard of such a Vanguard recommendation before.

Consider the many benefits of the Three-Fund Portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Deep Down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market portfolio."
"Simplicity is the master key to financial success." -- Jack Bogle
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

Taylor Larimore wrote: Wed Jun 22, 2022 9:48 am estrellamts:

I also would like to know why Vanguard recommends a total of 10 funds. I have not heard of such a Vanguard recommendation before.

Consider the many benefits of the Three-Fund Portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Deep Down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market portfolio."
Taylor these are the recommendations suggested for the 3 accounts I'm looking to move from Edward Jones...Taxable investment account, traditional IRA and Roth IRA.

Taxable investment Account - Looks like initially moving funds into money market VMFXX and then on into VTSAX from there

Traditional IRA - Initially into VMFXX and then on into VBTLX, VTSAX, VTIAX, VTABX, VAGVX and VADGX

Roth IRA - Initially into VMFXX and then on into VAIGX, VADGX, VHCAX and VZICX

So 9 rather than 10
radiowave
Posts: 2881
Joined: Thu Apr 30, 2015 5:01 pm

Re: Likely Move From Edward Jones to Vanguard

Post by radiowave »

estrellamts wrote: Tue Jun 21, 2022 11:49 pm
Today received from a Vanguard advisor making a proposal and it included VTSAX/VBTLX along w/ 8 other VG funds. Conversation Thursday w/ advisor...afterwards I need to give serious thought to the suggestion you make. Newly retired and working w/ a traditional and Roth IRA accounts. Considering to just keep what I currently have in relatively small taxable investment acct. Thanks for you advice.
It would be helpful if you could list all of the proposed funds from VG. It seems odd that they would propose VTSAX/VTBLX and other funds?

Note: Vanguard has a suite of fixed asset allocation funds that may be worth considering, called LifeStrategy
https://investor.vanguard.com/investmen ... gy-funds

A single Vanguard fund of funds would replace the 10 proposed funds by the VG financial advisor. That would certainly keep your portfolio simple and low cost as well as diversified. The caveat is that is a fixed asset allocation. The VG Target Retirement funds adjust over time to a more conservative asset allocation over time. See https://investor.vanguard.com/investme ... ent-funds if you have any questions about either VG funds, please let us know.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

radiowave wrote: Wed Jun 22, 2022 11:08 am
estrellamts wrote: Tue Jun 21, 2022 11:49 pm
Today received from a Vanguard advisor making a proposal and it included VTSAX/VBTLX along w/ 8 other VG funds. Conversation Thursday w/ advisor...afterwards I need to give serious thought to the suggestion you make. Newly retired and working w/ a traditional and Roth IRA accounts. Considering to just keep what I currently have in relatively small taxable investment acct. Thanks for you advice.
It would be helpful if you could list all of the proposed funds from VG. It seems odd that they would propose VTSAX/VTBLX and other funds?

Note: Vanguard has a suite of fixed asset allocation funds that may be worth considering, called LifeStrategy
https://investor.vanguard.com/investmen ... gy-funds

A single Vanguard fund of funds would replace the 10 proposed funds by the VG financial advisor. That would certainly keep your portfolio simple and low cost as well as diversified. The caveat is that is a fixed asset allocation. The VG Target Retirement funds adjust over time to a more conservative asset allocation over time. See https://investor.vanguard.com/investme ... ent-funds if you have any questions about either VG funds, please let us know.
Radiowave these are the proposed funds I received from the advisor. Discussion will be Thursday.

Traditional IRA Proposal:

Vanguard Total Bond Mkt Index Fund Adm Shares VBTLX
Vanguard Total Stock Market Index Fund Adm Shares VTSAX
Vanguard Total Intl Stock Index Fund Adm Shares VTIAX
Vanguard Total Intl Bond Index Fund Adm Shares VTABX
Vanguard Advice Select Global Value Fund VAGVX
Vanguard Advice Sel Dividend Growth Fund VADGX

Roth IRA Proposal:

Vanguard Advice Sel Intl Growth Fund VAIGX
Vanguard Advice Sel Dividend Growth Fund VADGX
Vanguard Capital Oppurt Fund Admiral Shares VHCAX
Vanguard Intl Core Stock Fund Admiral Shares VZICX

Taxable Investment Proposal:

Vanguard Total Stock Market Index Fund Admiral Shares VTSAX

The Ed Jones account funds currently held listed at top of post

Will be taking a look at the links you sent. Thank You
mkc
Posts: 1349
Joined: Wed Apr 17, 2013 2:59 pm

Re: Likely Move From Edward Jones to Vanguard

Post by mkc »

"Advice Select" are active funds that are proprietary to Vanguard's advisory side. They are not portable to other brokerages, and you can't hold them outside of VPAS, so this is a bit of a "hook" to keep your accounts there and under management (although since they're only shown for the IRAs, there is no tax implication to liquidating them should you opt to move in the future). Similar to Fidelity's Zero funds not being portable.

Some previous discussion of these on the forum.

viewtopic.php?t=362052
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

mkc wrote: Wed Jun 22, 2022 12:46 pm "Advice Select" are active funds that are proprietary to Vanguard's advisory side. They are not portable to other brokerages, and you can't hold them outside of VPAS, so this is a bit of a "hook" to keep your accounts there and under management (although since they're only shown for the IRAs, there is no tax implication to liquidating them should you opt to move in the future). Similar to Fidelity's Zero funds not being portable.

Some previous discussion of these on the forum.

viewtopic.php?t=362052
estrellamts wrote: Wed Jun 22, 2022 11:55 am
radiowave wrote: Wed Jun 22, 2022 11:08 am
estrellamts wrote: Tue Jun 21, 2022 11:49 pm
Today received from a Vanguard advisor making a proposal and it included VTSAX/VBTLX along w/ 8 other VG funds. Conversation Thursday w/ advisor...afterwards I need to give serious thought to the suggestion you make. Newly retired and working w/ a traditional and Roth IRA accounts. Considering to just keep what I currently have in relatively small taxable investment acct. Thanks for you advice.
It would be helpful if you could list all of the proposed funds from VG. It seems odd that they would propose VTSAX/VTBLX and other funds?

Note: Vanguard has a suite of fixed asset allocation funds that may be worth considering, called LifeStrategy
https://investor.vanguard.com/investmen ... gy-funds

A single Vanguard fund of funds would replace the 10 proposed funds by the VG financial advisor. That would certainly keep your portfolio simple and low cost as well as diversified. The caveat is that is a fixed asset allocation. The VG Target Retirement funds adjust over time to a more conservative asset allocation over time. See https://investor.vanguard.com/investme ... ent-funds if you have any questions about either VG funds, please let us know.
Radiowave these are the proposed funds I received from the advisor. Discussion will be Thursday.

Traditional IRA Proposal:

Vanguard Total Bond Mkt Index Fund Adm Shares VBTLX
Vanguard Total Stock Market Index Fund Adm Shares VTSAX
Vanguard Total Intl Stock Index Fund Adm Shares VTIAX
Vanguard Total Intl Bond Index Fund Adm Shares VTABX
Vanguard Advice Select Global Value Fund VAGVX
Vanguard Advice Sel Dividend Growth Fund VADGX

Roth IRA Proposal:

Vanguard Advice Sel Intl Growth Fund VAIGX
Vanguard Advice Sel Dividend Growth Fund VADGX
Vanguard Capital Oppurt Fund Admiral Shares VHCAX
Vanguard Intl Core Stock Fund Admiral Shares VZICX

Taxable Investment Proposal:

Vanguard Total Stock Market Index Fund Admiral Shares VTSAX

The Ed Jones account funds currently held listed at top of post

Will be taking a look at the links you sent. Thank You
Thanks mkc...appreciating the value of this forum more and more after each reply. No idea which direction I'll take at this point...the 3 fund option or a target fund seem...based on what I see in replies...likely in my best interest and w/o an advisor.
tomd37
Posts: 3867
Joined: Thu Mar 01, 2007 10:39 pm
Location: Middle Tennessee

Re: Likely Move From Edward Jones to Vanguard

Post by tomd37 »

Not impressed with VPAS' selection of funds. In my opinion this all could be achieved with two funds at a much lower expense ratio plus it would be very easily manageable without the additional management fee. An appropriate life strategy fund plus VTSAX in the taxable account, or the Bogleheads' three-fund portfolio plus VTSAX in taxable. I'm not particularly in favor of international bonds thus I stay out of life strategy funds. Just my thoughts on the overall subject of moving from EJ to VG. KISS....
Tom D.
User avatar
BL
Posts: 9695
Joined: Sun Mar 01, 2009 2:28 pm

Re: Likely Move From Edward Jones to Vanguard

Post by BL »

Suggest that you tell them you only want index funds, not their active funds (which have only recently been introduced). The first 4 they mentioned will do just fine: total US stock, total Int., total bond, and I would accept the total int. bond, but no more! (Am very disappointed that they have added the extra for either their profits and/or to be more like EJ and teach folks that this is too complicated to do on your own.)

Agree with above suggestions to do it yourself with one balanced fund such as a Target date fund, or moderate to conservative such as Life Strategy, Balanced, or even the traditional low-cost V. active funds Wellesley or Wellington. The 3-fund is also great. Once it is set up, leave it alone! Maybe check once a year to see if ratios have changed more than 5-10% up or down and buy/sell in your IRAs if you need adjustments to get overall ratios (AAs) back. Actually, you might get the best 3-fund portfolio suggestion right here if you find the sticky for Asking Portfolio Questions and give detailed information to get the best advice. No one here will gain anything if you follow their suggestions, which was the problem with EJ.

Most of us almost never speak to anyone at the brokerage; we just check things online and have things set up to easily transfer from/to our checking account or between accounts. The less you mess with them, the better you do. Most here do not use an "advisor", but if I wanted one to communicate with, PAS would probably be the one. Actually, Bogleheads would be the better place to discuss almost any question.

By the way, you didn't mention if you choose to control your income for other factors such as health insurance.
Last edited by BL on Wed Jun 22, 2022 2:23 pm, edited 1 time in total.
Stumptowngal
Posts: 80
Joined: Fri Jul 24, 2020 3:12 pm

Re: Likely Move From Edward Jones to Vanguard

Post by Stumptowngal »

I, also, am disappointed to think that VPAS may be moving to this model of recommending something like 8 funds as a default mode. But I guess there is no reason to think Vanguard would not want to market their own actively-managed and higher expense ratio funds.

It makes me more hesitant to suggest VPAS as a good option for some people. Hopefully other posters will share if they are getting similar feedback when they contact VPAS.
radiowave
Posts: 2881
Joined: Thu Apr 30, 2015 5:01 pm

Re: Likely Move From Edward Jones to Vanguard

Post by radiowave »

estrellamts wrote: Wed Jun 22, 2022 11:55 am Radiowave these are the proposed funds I received from the advisor. Discussion will be Thursday.

Traditional IRA Proposal:

Vanguard Total Bond Mkt Index Fund Adm Shares VBTLX
Vanguard Total Stock Market Index Fund Adm Shares VTSAX
Vanguard Total Intl Stock Index Fund Adm Shares VTIAX
Vanguard Total Intl Bond Index Fund Adm Shares VTABX
Vanguard Advice Select Global Value Fund VAGVX
Vanguard Advice Sel Dividend Growth Fund VADGX

Roth IRA Proposal:

Vanguard Advice Sel Intl Growth Fund VAIGX
Vanguard Advice Sel Dividend Growth Fund VADGX
Vanguard Capital Oppurt Fund Admiral Shares VHCAX
Vanguard Intl Core Stock Fund Admiral Shares VZICX

Taxable Investment Proposal:

Vanguard Total Stock Market Index Fund Admiral Shares VTSAX

The Ed Jones account funds currently held listed at top of post

Will be taking a look at the links you sent. Thank You
Yes, I'm also very disappointed in Vanguard PAS direction. Seems that the added funds plus the management fee (AUM fee) puts the expense ratio into the .60 to almost .80% range. Personally I would not go this route.

Take a look at the Wiki Tax Efficient Placement: https://www.bogleheads.org/wiki/Tax-eff ... lacement

Basically:
for taxable Total Stock VTSAX and Total International VTIAX
for IRA (tax deferred) Total Bond VBTLX
for Roth, either VTSAX/VBTLX depending on asset allocation

So priority is to choose your asset allocation e.g. 50/50 stock to bond ratio then fill up your three accounts to meet this ratio. Probably easiest to construct a small spreadsheet to work this out. It sounds harder than it is. There are tax implications in buying selling funds in a taxable account so worthwhile to have both VBTLX and VTSAX in your IRA as you can buy/sell without tax implications (at least until you begin to withdraw from your IRA). Asset allocation is for the entire portfolio, not individual accounts.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
User avatar
BL
Posts: 9695
Joined: Sun Mar 01, 2009 2:28 pm

Re: Likely Move From Edward Jones to Vanguard

Post by BL »

Can you go online to view your investments with EJ? You should print out your accounts so you have your own records, especially those showing the capital gain/loss status of each fund in your taxable account. It should transfer over when you go with another broker, but it is always safest to have your own copy. If you sell the taxable funds at EJ, they should issue you a 1099-B early next year with tax information, but you may still want to know the numbers this year if you are watching your income and tax brackets.

This might be the time to replenish your emergency fund or keep it in the Vanguard money market fund in your taxable account.

If I lived anywhere near a Fidelity or Schwab local store, I might have considered them for any website help (not investment advice!)

If you can handle still more new things, Vanguard also has bank CDs and treasury bills that can be purchased. Also some of us love/hate our TreasuryDirect.gov I-Bond accounts which are paying the 9+% CPI-U inflation rates for 6 months if bought before Nov. (rates change for Nov. and May purchases.) Great rates now for $10,000/year/SSN but site is known to lock you out if you double click or use the back key, for example. I am an old person and have never been locked out! (knock on wood)
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

BL wrote: Wed Jun 22, 2022 3:00 pm Can you go online to view your investments with EJ? You should print out your accounts so you have your own records, especially those showing the capital gain/loss status of each fund in your taxable account. It should transfer over when you go with another broker, but it is always safest to have your own copy. If you sell the taxable funds at EJ, they should issue you a 1099-B early next year with tax information, but you may still want to know the numbers this year if you are watching your income and tax brackets.

Have already made use of printing off several pieces of info from my EJ account online. I will however do more printing off of the documents you speak of...just prior to making any move. TY for suggesting

This might be the time to replenish your emergency fund or keep it in the Vanguard money market fund in your taxable account.


Depending on what or who I switch to in coming weeks...this will be a consideration. Also want to do a traditional to roth conversion this year once again since no income. Will decide on both once settled.


If I lived anywhere near a Fidelity or Schwab local store, I might have considered them for any website help (not investment advice!)


I do live not far from a Fidelity ofc and made an appointment with them next week. Considering the 3 fund approach I've seen so much about on this
forum and may discuss doing something like that with FXAIX, FXNAX and FSPSX. Somebody had mentioned they are great to work with in making moves from one firm to another.


If you can handle still more new things, Vanguard also has bank CDs and treasury bills that can be purchased. Also some of us love/hate our TreasuryDirect.gov I-Bond accounts which are paying the 9+% CPI-U inflation rates for 6 months if bought before Nov. (rates change for Nov. and May purchases.) Great rates now for $10,000/year/SSN but site is known to lock you out if you double click or use the back key, for example. I am an old person and have never been locked out! (knock on wood)
Yes! I'm aware of the I Bonds...had seen an article about in newspaper last year. In fact was able to help a couple family members purchase in 2021 and trying to convince them to do the same this year. I'm not in a position to do the same yet this year...but it's on my mind for near future.


BL - Thank you for that information
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

radiowave wrote: Wed Jun 22, 2022 2:52 pm
estrellamts wrote: Wed Jun 22, 2022 11:55 am Radiowave these are the proposed funds I received from the advisor. Discussion will be Thursday.

Traditional IRA Proposal:

Vanguard Total Bond Mkt Index Fund Adm Shares VBTLX
Vanguard Total Stock Market Index Fund Adm Shares VTSAX
Vanguard Total Intl Stock Index Fund Adm Shares VTIAX
Vanguard Total Intl Bond Index Fund Adm Shares VTABX
Vanguard Advice Select Global Value Fund VAGVX
Vanguard Advice Sel Dividend Growth Fund VADGX

Roth IRA Proposal:

Vanguard Advice Sel Intl Growth Fund VAIGX
Vanguard Advice Sel Dividend Growth Fund VADGX
Vanguard Capital Oppurt Fund Admiral Shares VHCAX
Vanguard Intl Core Stock Fund Admiral Shares VZICX

Taxable Investment Proposal:

Vanguard Total Stock Market Index Fund Admiral Shares VTSAX

The Ed Jones account funds currently held listed at top of post

Will be taking a look at the links you sent. Thank You
Yes, I'm also very disappointed in Vanguard PAS direction. Seems that the added funds plus the management fee (AUM fee) puts the expense ratio into the .60 to almost .80% range. Personally I would not go this route.

OK...noted. I've made an appointment w/ Fidelity in my neighborhood. As mentioned below...I might consider 3 fund route for IRA's using FXAIX,FXNAX and FSPSX and avoid an advisor. Would feel better doing business locally and not by phone if no advisor.

Take a look at the Wiki Tax Efficient Placement: https://www.bogleheads.org/wiki/Tax-eff ... lacement

Made note of this link.

Basically:
for taxable Total Stock VTSAX and Total International VTIAX
for IRA (tax deferred) Total Bond VBTLX
for Roth, either VTSAX/VBTLX depending on asset allocation

So priority is to choose your asset allocation e.g. 50/50 stock to bond ratio then fill up your three accounts to meet this ratio. Probably easiest to construct a small spreadsheet to work this out. It sounds harder than it is. There are tax implications in buying selling funds in a taxable account so worthwhile to have both VBTLX and VTSAX in your IRA as you can buy/sell without tax implications (at least until you begin to withdraw from your IRA). Asset allocation is for the entire portfolio, not individual accounts.

The taxable account I'm considering keeping that lineup of American funds and a couple others...and transfer to wherever I go. I assume that's possible...but unsure of the cost in doing so.

"Asset allocation is for the entire portfolio, not individual accounts".

Got it. If not using an advisor I'll be somewhat unsure of correct tax smart positioning of funds among traditional and Roth IRA's...but will come back to this resource when the time comes. Again...thanks for all the advice
Last edited by estrellamts on Wed Jun 22, 2022 8:49 pm, edited 2 times in total.
Circe
Posts: 53
Joined: Thu Apr 21, 2022 7:16 pm

Re: Likely Move From Edward Jones to Vanguard

Post by Circe »

Talk to Schwab and Fidelity. You're moving a substantial sum of assets; they may provide you with a person who can help you with the move at no charge (and take care of transfer costs).
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

Circe wrote: Wed Jun 22, 2022 8:43 pm Talk to Schwab and Fidelity. You're moving a substantial sum of assets; they may provide you with a person who can help you with the move at no charge (and take care of transfer costs).
That would be great if they offer...will make the time to check both out. Many thanks for that.
Circe
Posts: 53
Joined: Thu Apr 21, 2022 7:16 pm

Re: Likely Move From Edward Jones to Vanguard

Post by Circe »

You're welcome. There's several threads about moving on this site. This is a good one: viewtopic.php?t=196884&start=3950
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

Circe wrote: Wed Jun 22, 2022 9:43 pm You're welcome. There's several threads about moving on this site. This is a good one: viewtopic.php?t=196884&start=3950
Just reviewed that thread. I'll keep in mind when visiting Schwab in coming days. (Appears bonuses are still being matched).

Curious if you or anyone else viewing this post have experience using the Schwab online robo tool for monitoring and balancing a retirement account? I'd like to avoid advisor fees and my initial impression of the online tool demo on their website is good.
Circe
Posts: 53
Joined: Thu Apr 21, 2022 7:16 pm

Re: Likely Move From Edward Jones to Vanguard

Post by Circe »

I'm not at Schwab, but there's a thread on a payout by them resulting from a suit regarding recommendations of holding excessive cash.
Should make for an interesting conversation with the Schwab rep.
radiowave
Posts: 2881
Joined: Thu Apr 30, 2015 5:01 pm

Re: Likely Move From Edward Jones to Vanguard

Post by radiowave »

OP here is an excellent long thread on Fidelity as one stop shop. Lots of good tid bids.
https://www.bogleheads.org/forum/viewt ... #p4261620

and here is the Schwab as one stop shop thread ... not as long but still some good info:
viewtopic.php?t=287311
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
Topic Author
estrellamts
Posts: 20
Joined: Tue Jun 14, 2022 3:40 pm

Re: Likely Move From Edward Jones to Vanguard

Post by estrellamts »

radiowave wrote: Thu Jun 23, 2022 4:11 pm OP here is an excellent long thread on Fidelity as one stop shop. Lots of good tid bids.
https://www.bogleheads.org/forum/viewt ... #p4261620

and here is the Schwab as one stop shop thread ... not as long but still some good info:
viewtopic.php?t=287311
Great...thank you. Appointment Monday w/ Schwab. I'll be researching over the weekend.
Post Reply