Considering Making Some Changes

[OldShooter]

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Originally Posted by stygz It looks like the EJ fee to close an account is $95. I think it may be per account? We have 2 Roth accounts, 2 traditional, a regular investment account, and an inherited IRA. As you can tell we have been with them a long time. Almost 10 years. Does that sound right $95 per account? ...

Fast Eddie is notorious for fees, so that's probably right. If you are bringing a significant amount of money to Fido or Schwab they will probably be willing to pick up those fees, though.

To move the money, you just have to fill out a form at the new brokerage. They will take care of contacting Eddie and making the transfer happen. Your broker will probably be notified, though, and the transfer delayed until he has had a chance to talk you out of it. That is the reputation, anyway.

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Originally Posted by stygz Probably do a clean break at the new year.

How much will those four extra months cost you in fees?

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Originally Posted by stygz ... He has been a good advisor from what I can tell but there are conflicts with commission in things such as American funds. ...

Yes. Not only does he collect on the loads, the funds have 12b-1 fees that keep feathering his nest.

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Originally Posted by stygz I am leaning to Fidelity and am writing down questions I have. I am liking their Zero funds. ...

I don't think there is anything wrong with the Fido zeros if they meet your needs, but IMO once the fees on a fund are under 10 basis points it is the same as free. So other factors can be considered.

[Whisper66]

Welcome to the board. Hope you find it very useful.

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Originally Posted by stygz ......I am looking at Vanguard, fidelity, and Schwab......

I feel Jack Broe does a nice comparison of the strengths and weaknesses of these three in his youtube video below.

https://www.youtube.com/watch?v=rAewPVEjeLM&t=10s

And if you are looking to simplify your portfolio, it may be worth visiting Bogleheads Lazy Portfolios page:
https://www.bogleheads.org/wiki/Lazy_portfolios

[Qs Laptop]

Quote:

Originally Posted by stygz It looks like the EJ fee to close an account is $95. I think it may be per account? We have 2 Roth accounts, 2 traditional, a regular investment account, and an inherited IRA. As you can tell we have been with them a long time. Almost 10 years. Does that sound right $95 per account?

I switched from EJ to Fidelity in early 2017. Best move I've ever made. Their website is comprehensive and easy to use. Their 1-800 help line is fantastic.

When I switched I asked for and received a refund from Fidelity for any account termination fees imposed by EJ. I didn't say a word to my EJ account rep about moving, just let Fidelity handle everything. I moved all my investments "in kind" meaning I kept the funds I had from American Funds and Franklin Funds at EJ (EJ's preferred mutual fund providers) and moved them to my new Fidelity accounts. Took about 10-12 days, IIRC. I've since sold off most of them. Fidelity has better funds than American Funds.

I noticed that EJ did not charge me $95 for every account I closed, only a couple. Fidelity reimbursed me for them.

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I am kind of a hands on person but at times like ideas and advice. I am not mad at EJ for their fees. I am just realizing most of what I do there can be done inside my TSP or fidelity etc at mostly no cost.. EJ served a purpose for us for a period of time. It’s going to take a couple months to make the move. Probably do a clean break at the new year.

The last straw for me was when EJ changed their policies and was going to impose a yearly "account under management fees" of (I think) 1.35% on my IRA's AFTER having already paid their upfront load fees on my mutual fund purchases a few years previously. Yes, I was MAD.

I was also mad when I ran the portfoliovisualizer tool and plugged in my American Funds vs. Fidelity funds, comparing funds in the same investment category. I had missed out on a lot of gains with American Funds. Yes, past performance is not indicative of future performance, but if I had been in Fidelity from the moment I started at EJ I would have made thousands more.

[ncbill]

I use Fidelity because they have a local office.

You should be able to handle all the paperwork via the new brokerage.

At a minimum I'd insist your new brokerage cover all fees Fast Eddie charges for bringing your accounts to them.

[ivinsfan]

I'm going to be the voice of caution here say, do your research, do some thinking, come here and ask questions. . make a decision... after that sleep on for awhile and see if you are still comfortable with your intended plan. Yes, you are paying fees but it's much less stressful to switch one time and be comfortable with a plan then it is to second guess yourself and jump from provider to provider

Saying towards the end of the year or at the first of next is OK as long doesn't mean you are just kicking the can down the road to "decide later"

[Badger]

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Originally Posted by Chuckanut Which is why Schwab and Fidelity are filling the void.

+1
Although my wife and I have our IRAs with Vanguard they are very simple and don't require any hand-holding. The individual stocks we have are with TD Ameritrade/Schwab and I have a very good relationship with 2 folks there that I have been working with ever since i bought my first stock. I like that they are close and available.
However, if I was starting out or making a change to simplify my investments and needed a sounding board then I would look into the local Fidelity and/or Schwab brick and mortar.

Cheers!

[target2019]

stygz,
Most recommend what institution is their favorite, so keep that in mind. Try to look past the biases in recommendations and find real evidence of how you'll be supported. For example, the EJ guy is over-compensated, and certainly has the time to field your call, and sell you on more EJ soup. Each institution lays out opportunity where they get a chance to sell you something else.

My first guess is that Vanguard will not be a good choice for you. I say that after using them for over 40 years. We are incrementally moving our investments away, to consolidate with Schwab for simplicity and service.

My second guess is that Fidelity would be a solid choice as well. As long as you can DIY and stay with your own plan it will turn out fine.

What it comes down to is how much personal service will you require. So you will start the search by visiting each local office, Fidelity and Schwab. That is the beginning of customer service, IMO. Then you can evaluate the web platform of each, and how it fits your needs, not mine. Be aware that some Schwab offices are corporate, with franchisees in certain locations. I am not sure about Fidelity.

You can also look around for reviews of what each company delivers, and ask investors on different forums how true the features are, what they actually mean in practice.

[stygz]

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Originally Posted by target2019 stygz, Most recommend what institution is their favorite, so keep that in mind. Try to look past the biases in recommendations and find real evidence of how you'll be supported. For example, the EJ guy is over-compensated, and certainly has the time to field your call, and sell you on more EJ soup. Each institution lays out opportunity where they get a chance to sell you something else. My first guess is that Vanguard will not be a good choice for you. I say that after using them for over 40 years. We are incrementally moving our investments away, to consolidate with Schwab for simplicity and service. My second guess is that Fidelity would be a solid choice as well. As long as you can DIY and stay with your own plan it will turn out fine. What it comes down to is how much personal service will you require. So you will start the search by visiting each local office, Fidelity and Schwab. That is the beginning of customer service, IMO. Then you can evaluate the web platform of each, and how it fits your needs, not mine. Be aware that some Schwab offices are corporate, with franchisees in certain locations. I am not sure about Fidelity. You can also look around for reviews of what each company delivers, and ask investors on different forums how true the features are, what they actually mean in practice.

I did open a Fidelity account yesterday after reading reviews, videos, and a comparison on Clark Howard. I threw a $20 in to buy two ETFs (IVV, IJH) to see how the platform works.

I called Fidelity about transfer fee reimbursement. They cover this on accounts over $25k. They took my information and are going to call me about more questions and such I may have.

I sent off some questions to my EJ guy as well. At the minimum I am going to stop contributing to American funds in our Roth's and move to ETFs.

I was thinking about doing more in our Roth TSP as the fees are very low but I found four good funds with Fidelity that beat the TSP in cost and match or beat the TSP in performance.

FXAIX
FSMDX
FSPSX
FDVV

I am thinking of mixing these up in our Roth's going forward. We have individual stocks and will keep those.

[target2019]

I'm not sure what your comparing, but
FXAIX
FSMDX
FSPSX
FDVV
may work for you. You could also compare the broad U.S. stock market ETF or fund (Fidelity® ZERO Total Market Index Fund (FZROX)) as a single investment. It's your choice.

[stygz]

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Originally Posted by target2019 I'm not sure what your comparing, but FXAIX FSMDX FSPSX FDVV may work for you. You could also compare the broad U.S. stock market ETF or fund (Fidelity® ZERO Total Market Index Fund (FZROX)) as a single investment. It's your choice.

Those are similar funds. The returns over a 10ys and 5yr were little better over the zero funds. However, Expense ratio averaged 0.025 vs 0. Generally, I am finding and reading these broad funds perform near the same when comparing apples to apples.

I am looking at some of the type of accounts (IVV, IJH) ETFs for our taxable account.

[stygz]

I did a check with EJ.

I have a "select account". No management fee to be found in my records or listed on their website for select accounts. They do charge a fee for different types of accounts though.

https://www.edwardjones.com/us-en/wo...l-advisor/fees

From what I have researched so far paying a management fee costs more than simply a commission.

[target2019]

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Originally Posted by stygz Those are similar funds. The returns over a 10ys and 5yr were little better over the zero funds. However, Expense ratio averaged 0.025 vs 0. Generally, I am finding and reading these broad funds perform near the same when comparing apples to apples. I am looking at some of the type of accounts (IVV, IJH) ETFs for our taxable account.

Total Market = Large + Mid + Small. I wouldn't call that similar. You could mix the right three to give you exactly what Total Market is, or tilt towards one of the three, but, simplicity.

The point was that you could hold one fund, with -0- expense, and enjoy the simplicity.

Since high yield corp tracks Total Market more closely than Bond, it does not diversify as much as you might think.

For me one fund has its allure, unless there is some investment decision to tilt, such as to mid-cap. But it is your choice in the final analysis.