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Investing- question about loads
Old 06-24-2015, 02:04 PM   #1
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Investing- question about loads

MIL passing recently resulted in DW inheriting some money at Edward Jones. Met with FA and the money is in the process of transferring to a new account so we can decide what to do with it. Of course, getting the FA speech about how well she's doing with the account.

I see the loads on the funds range from 3.75 to 5.75 (she's got to fund her retirement too)... expenses range from .62 to .90.

I plan to run, don't walk over to Vanguard soonest possible time.

I have a stupid question about loads... are commissions paid on the reinvested gains of the funds, or just the initial purchases into the fund with new, outside money...since I'm all in low expense index funds, it hasn't been too important to me.
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Old 06-24-2015, 02:13 PM   #2
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I don't own load funds either, but I believe the load is paid only at the time of the initial investment.
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Old 06-24-2015, 02:16 PM   #3
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I can't answer your question but I do know the loads can be either front end or back end loads depending on the MF and how it was purchased.
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Old 06-24-2015, 02:21 PM   #4
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Excuse my poor English on the above post as I couldn't edited it for some reason.
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Old 06-24-2015, 03:07 PM   #5
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If, for example, they are in American Funds "A" shares, the commission was paid when the money went in originally. The FA continues to get some $ via the 12b-1 fee coming back from the fund, which is part of the expense ratio. A common 12b-1 expense is ~.25%

The quoted ER on the fund is the total ER (includes the 12b-1).
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Old 06-24-2015, 03:26 PM   #6
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..... are commissions paid on the reinvested gains of the funds, or just the initial purchases into the fund with new, outside money...since I'm all in low expense index funds, it hasn't been too important to me.
Typically just on new money, not on reinvested dividends or capital gain distributions.

I think if you sold at a gain and repurchased there might well be a load but I'm not sure on that.

There are also back end loads where there is a fee on redemptions if the money hasn't bee invested long enough.

I pretty much refuse to buy a load fund... front or back end.... since there are so many good no load funds available.
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Old 06-24-2015, 04:08 PM   #7
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Be careful that they do not charge you a load when opening up your new account... that is what I would be scared of....


I do not have loaded funds... but from what I have read, it is only on any new money you invest... reinvested amounts do not get a load.... but, as with anything you need to read the docs... I would not put it past some funds to collect extra money by doing so....
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Old 06-24-2015, 04:18 PM   #8
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From what the FA inside the bank tells me, the higher the load the better investment it is

Glad to hear you are running to Vanguard...
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Old 06-24-2015, 04:18 PM   #9
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It's just on the initial purchase, not on reinvestment. You are taking the money to Vanguard right? Expect Jones to charge a fee for account closure. It's cheap compared, to the ongoing, needless 12b-1 fee.
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Old 06-24-2015, 04:31 PM   #10
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Expect Jones to charge a fee for account closure. It's cheap compared, to the ongoing, needless 12b-1 fee.
Jones will actually charge a fee to close an account they needed to so they could divide the money and have a place to transfer it to? The account will only be open for how ever long it takes Vanguard to set up the distribution..wow, that's a BS move...
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Old 06-24-2015, 04:34 PM   #11
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I wonder if the OP can put it in a MM fund and then write a check to Vanguard for all but $1 and then let the account sit there until EJ closes it.
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Old 06-24-2015, 05:04 PM   #12
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Jones will actually charge a fee to close an account they needed to so they could divide the money and have a place to transfer it to? The account will only be open for how ever long it takes Vanguard to set up the distribution..wow, that's a BS move...
Now I don't know about an account they claim to need. Maybe I'm not understanding why they need another account.

I can't find it in current online online documents. I did see they charge 2% for dividend reinvestment on stocks(waved for those over 250k). Jones will charge any fee they (sometimes) legally can.
Remember the SEC fined them for 75 million in 2004 for not disclosing the "cost sharing revenue" from preferred ered providers. American Funds being 1 of 7. Not sure if those fees are just the 12b-1 fees or something else.

Here's what I was looking at from the fast eddie erh E. D. Jones website.

https://www.edwardjones.com/en_US/di.../account_fees/
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Old 06-24-2015, 05:33 PM   #13
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Tailgate can you pull the money from the Vanguard side?

I'd do anything to avoid dealing with Jones. They have no fiduciary responsibility to you or anyone. The folks that are FAs are paid 100% commission, any chance they have to make your money their's it will happen.

Google their name followed by "ripoff" or anything similar. You will find lots of information.
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Old 06-24-2015, 06:07 PM   #14
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My wife's mother passed away in December 2014 and she (my wife) inherited funds invested through Edward Jones. They will transfer the funds to a new account in your wife's name.
If American Funds, you can move investments from one American fund to most other American funds without incurring any loads or fees (though it is a taxable event from the iRS perspective, but with the markup in basis as of date of death, it should be a small gain or loss incurred). Adding money to the American Funds usually will entail paying a load on the purchase.

BTW, expect a check any day now from closing the account, it'll be invested at Vanguard.
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