looking for a fee only planner ?

J

jeffd

Dryer sheet wannabe
Joined
Apr 21, 2010
Messages
20
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 !!
 
What is the EJ guy charging you? Is he acting as a fiduciary?
 
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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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.

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
 
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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
 
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.

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
 
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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.
 
jeffd said:
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.
Click to expand...
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.
 
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.
 
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.
 
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!!!!!!!!!
 
jeffd said:
So your saying I am going to have to pay to get my own money out ?
Click to expand...

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.

jeffd said:
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?
Click to expand...

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.
 
jeffd said:
So your saying I am going to have to pay to get my own money out ?
Click to expand...

Walt34 said:
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.
Click to expand...

According to this EJ fee schedule there is a $95 fee for total transfer or termination of an account. https://www.edwardjones.com/groups/ejw_content/@ejw/documents/web_content/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.
 
travelover said:
It is not an attack if it is true.
Click to expand...

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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Rustward said:
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?
Click to expand...

Do a search here for threads on the topic of people leaving Ameriprise. You will find several that were put into crappy investments with high surrender fees. Perhaps Lisa99 can summarize her experience.

That said, if you want to use Amerprise, go for it. I wouldn't send an enemy to them.
 
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Right the OPs dealing with Jones, both these advisors use similar tactics.

Now a real switch for me; there is a valid reason for something like an account closure fee, there are real costs. Sounds very simple close my account and poof everything's gone.
Not how it works. The record keeper has legal requirements to take your data to end of life(IIRC 5 or 7 years for funds; whole life, annuties; till you die plus 5 or 7 years) and then exponge all your data. There's a lot of weird ,ever changing, processing required to do all that.


Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
 
jeffd said:
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 !!
Click to expand...

I am in a similiar position and I just fired my EJ advisor. I, like you had my investments in with EJ and even tried their advisory accounts for a year with a fee of 1.3%. They returned a 3.22 %. WOW! Did I feel taken for a ride. I politely thanked my advisor and told him what I would like done with my accounts. Vanguard has a concierge service that steps you through the whole process even minimizing fees by cosolidation of accounts and advising you what funds transfer directly. I am still in the process but it should be completed in the next couple of weeks.

I credit this forum and books that I have read for this move. It's your money and you are the boss. No more Birthday or Christmas cards though.
 
travelover said:
Wow, you got Christmas cards, too? :(
Click to expand...

That's for the commoners so don't be impressed. I was lurking on a FA board and there was a discussion about gifts for the best [-]clients[/-] suckers. Suggestions included fruit baskets, chocolates, better grades of wine if you knew they were [-]winos[/-] wine connoisseurs, free portrait session with a local photo studio, and the like.
 
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