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looking for a fee only planner ?
Old 01-19-2015, 04:59 PM   #1
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looking for a fee only planner ?

Hello agin

I had an intro post and had a lot of questions answered here.
There were a few replies telling me to dump my current E-Jones guy
that I have handling my meager retirement accounts (TRAD IRA, ROTH IRA)

Now I have my yearly check up/meeting coming up and would like to know why
I should be considering leaving him (been roughly 15 yrs) to go to a fee-based
and also where and how to find a good one.

I am really a late starter(check the intro post) if you are curious. I have been trying to change and learn as much as possible, here and library books but not ready to manage on my own,... or am I?

I guess I'm looking for some reason to move from E-J and where to. Do they not invest wisely or what? I like the idea of being in control of my future but not looking forward to the conversation with him! Even though it is my money

Should I go to a fee based planner first ? Any help you can give me will be greatly appreciated as I try to fix some mistakes that I have made through the years Thanks !!
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Old 01-19-2015, 05:29 PM   #2
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What is the EJ guy charging you? Is he acting as a fiduciary?
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Old 01-19-2015, 05:30 PM   #3
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6 Pointed Questions To Ask Before Hiring A Financial Advisor - Forbes
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Old 01-19-2015, 05:32 PM   #4
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I'd post what your portfolio consists of on the Bogleheads forum. They will give you good general direction(s) that you can implement yourself once you pay to get rid of the EJ guy. Then bounce it back here to clarify if necessary.

Be forewarned, no more free birthday cards, though.

P.S.

The answer is that EJ is overcharging you and Vanguard is a better place to invest.
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Old 01-19-2015, 06:00 PM   #5
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Yes every E.D. client that shared their info with me was the same. You're paying at least 1% in their fees, for them to put you in high fee funds. That's the their business model.

If you don't understand how they charge your fees, they'll take even more.

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Old 01-19-2015, 06:53 PM   #6
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Thanks for the quick responses!

So your saying I am going to have to pay to get my own money out ?
Also I am ashamed to say I really don't know what I am being charged

Keep in mind I am playing catch-up on investing, reading until my eyes bleed!
But after awhile none of it makes any sence,so is it possible for the average
(non genious) person to manage there own accounts after seeing a planner?

I have seen the Vanguard funds mentioned a lot on here,can you open an account on your own by transfering my EJ and then fund it like I do now
with auto deposits?

I will keep studying this stuff and am extremly grateful for the
wisdom of this site,Thanks again
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Old 01-19-2015, 07:44 PM   #7
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Jeff, if you mean my statement about charging you more, that wasn't the intent. But expect that E.D. may charge some account closure fees, it's minor compared to what they charge you every month.

Of course you don't know what E.D. is charging you, that's how they work. You can definitely manage your own funds, E.J. makes it appear complicated, so you'll keep coming back.

Relax and slow down, in your introduction someone smarter then me suggested a Vanguard target date fund. Might be a good option. Another option is a Vanguard offering called VPAS I think they charge you .3% to manage your funds. So maybe you're paying ~.4% total for a year, you can watch what they do and then take it over.

If you just call Vanguard they will help you through the whole process, and be more than happy to take your auto deposits.

I'm sure someone smarter than me might suggest a very simple 2-3 fund couch potato portfolio. I'm not directly a Vanguard customer, so I don't know their funds and rules as well as others folks here. Sorry I can't be of more help.

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Old 01-19-2015, 08:28 PM   #8
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Jeffd, seems like you have a hard time saying "NO". I would suggest open the Vanguard account and fill necessary paperwork to transfer your funds from EJ to Vanguard. There is no need to explain anything.

But if you must see the EJ rep, i suggest that you take your wife for support and make sure she is more firm than you are in saying "NO" to EJ rep.
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Old 01-20-2015, 05:48 AM   #9
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Quote:
Originally Posted by jeffd View Post

I guess I'm looking for some reason to move from E-J and where to. Do they not invest wisely or what? I like the idea of being in control of my future but not looking forward to the conversation with him! Even though it is my money.
You're presenting yourself in a weak position. What might work best is to prepare a few questions, and listen to the answers carefully. Post the answers here and learn from the various responses.

If you list the details for the funds and fees, I am guessing you're paying 2% and more out of the returns you're getting. Financial advisers like this are expert in getting new clients to replace those who wake up and leave.
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Old 01-20-2015, 07:39 AM   #10
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Here's a link to a recent Scott Burns column on investment fees:

AssetBuilder - Unbundling Money Management - AssetBuilder Inc., Registered Investment Advisor

The basic reason to leave EJ is the fees. You pay them a high management fee to be put into high fee funds. They are taking a big chunk of any market return you may be getting without taking any risk.

I have most of my assets at Vanguard. They have low cost index funds and some managed funds. All of their fees are much lower than anything EJ will have you in.

I suggest you read Millionaire Teacher by Andrew Hallam. It explains index investing very clearly. It shows you how to manage your money yourself successfully. The vast majority of the people here use similar approaches. It's simple to do. It takes very little time.

Don't let the EJ rep give you a snow job about moving your money. I suggest you set up the accounts at Vanguard and have them initiate the trasfer for you. Just be ready to stand firm when you get the inevitable EJ call.
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Old 01-20-2015, 10:32 AM   #11
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Just one more point on fees. An adviser will tell you that it is "only" 1%. Yes, it is 1% of your total capital, but if you make a 5% return, they are essentially taking 20% of your earnings. And once your portfolio grows to a million dollars, like many of us here, that is $10,000!

I know people that would work for a whole month straight for that.
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Old 01-21-2015, 02:32 PM   #12
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Jeff, here's a great post and link on why you need to run away from E.D. The link tells how your Jones guy views you. A paycheck.

http://www.early-retirement.org/foru....php?p=1546825

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Old 01-21-2015, 04:09 PM   #13
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We found our fee-only financial planner here: Fee-Only Financial Advisors Home - NAPFA - The National Association of Personal Financial Advisors

Well worth the low fee she charged. And the "check-up" we do every few years is even lower. It's worth it to me for peace of mind and confirmation that I'm on track. This stuff isn't something I can discuss with friends.
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Old 01-21-2015, 06:48 PM   #14
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If I may humbly suggest, read Bogleheads Guide to Investing. It won't make you an expert but will give you a strong start. Easy to read and follow. And, you can check out Bogleheads.com. Great financial site with great advice. You will quickly learn of and should now google the 3 fund portfolio/couch potato portfolio.

I just terminated my FA. Going it all alone with a 7-figure portfolio. I could not stomach the fees any longer but didn't have the confidence until I finished that book.

You can do it yourself, really. But, if you use anyone, a fee-only is the way to go.

Rule #1 keep it simple
Rule #2 keep it low cost
Rule #3 stay the course

Best of luck and PLEASE find out what you are paying . . .remember that is REAL money and after-tax dollars!!!!!!!!!
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Old 01-22-2015, 03:50 PM   #15
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Quote:
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So your saying I am going to have to pay to get my own money out ?
No, you shouldn't have to go quite that far. The reason to leave E.J. is the high fees they charge for doing simple stuff.

Quote:
Originally Posted by jeffd View Post
But after awhile none of it makes any sence,so is it possible for the average
(non genious) person to manage there own accounts after seeing a planner?
Yes you can do it yourself and it is not rocket science, in fact it is merely grade school arithmetic. Even I can do it.

Start by reading this book: The Millionaire Teacher.

You would even be better off at Vanguard by simply selecting a target date fund to start. The lower fees will make that a better investment than E.J.
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Old 01-22-2015, 04:50 PM   #16
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Quote:
Originally Posted by jeffd View Post
So your saying I am going to have to pay to get my own money out ?
Quote:
Originally Posted by Walt34 View Post
No, you shouldn't have to go quite that far. The reason to leave E.J. is the high fees they charge for doing simple stuff.
According to this EJ fee schedule there is a $95 fee for total transfer or termination of an account. https://www.edwardjones.com/groups/e...dweb244753.pdf

Account closing fees are pretty common. I have a small rollover IRA at Fidelity and that has an account closing fee of $50.

But EJ has a ton of nickel and dime fees that are not necessary. Almost anywhere else would be better.
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Old 01-22-2015, 05:08 PM   #17
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......
Account closing fees are pretty common.......
As I recall some here that left Ameriprise were charged a pound of flesh.
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Old 01-22-2015, 05:54 PM   #18
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As I recall some here that left Ameriprise were charged a pound of flesh.
This page says the Ameriprise account closing fee is $100.
https://www.ameriprise.com/financial...erage-fees.asp

I really don't understand why we have to attack these places. Just don't use them.
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Old 01-22-2015, 06:01 PM   #19
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This page says the Ameriprise account closing fee is $100.
https://www.ameriprise.com/financial...erage-fees.asp

I really don't understand why we have to attack these places. Just don't use them.
It is not an attack if it is true. Plus, I appreciate it when others warn me of problematic enterprises and I try to return the favor.
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Old 01-22-2015, 08:50 PM   #20
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It is not an attack if it is true.
So is the "pound of flesh" reality?

Is that what really happened?

Do you have anyone who is willing to tell that story: "Pound of flesh"?
Could they tell us from which parts of their body this "pound of flesh" was taken?

Were you possibly exaggerating?
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