Considering Making Some Changes

[stygz]

Hello! I am from Georgia and found this site while doing a search for TSP vs Edward Jones. I have been exploring using more benefits of the TSP and the fees I am paying with EJ. I am planning on leaving federal service at 58.

 

[Time2]

I don't think you will find a good word here about Edward Jones. Say Good By.

 

[Chuckanut]

Welcome. TSP is a good thing to have. Fees are not. I think you will find that you can do a bit of homework and avoid the fees. It's not rocket science.

 

[stygz]

I don't think you will find a good word here about Edward Jones. Say Good By.

That’s what I am seeing. Currently I am in a few American funds at 4.5% commission. I also have several individual stock I want to keep. I also do some ETFs with Vanguard and ishares.

 

[stygz]

Welcome. TSP is a good thing to have. Fees are not. I think you will find that you can do a bit of homework and avoid the fees. It's not rocket science.

That’s exactly where I am at now. Looking into Vanguard. I need at check with them about stocks fees and an inherited IRA.

 

[RobbieB]

The problem with EJ is they have too many offices.

The problem with Vanguard is they don't have enough.

 

[Chuckanut]

The problem with EJ is they have too many offices.

The problem with Vanguard is they don't have enough.

Which is why Schwab and Fidelity are filling the void.

 

[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 am looking at Vanguard, fidelity, and Schwab. I read the quick review on Clark Howard between all three. I like how Fidelity and Schwab do fractional shares as I do monthly dollar cost averaging. When I move, I own several individual stocks. Beyond that I may simplify my mutual fund portfolio to my ETFs like VOO and ishares mid cap. The American funds I am in are OK but the expense ratio is high. My TSP has been 80-10-10 in the CSI funds. I am very satisfied with its performance.

This seems to be a good resource for me and my wife. We are both 40/42 and expecting to retire at 58 with solid pensions. 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.

 

[stygz]

One thing I would like to add is that I live in Georgia. My EJ guy is in Minnesota. We got him be default when I inherited my IRA from my grandfather. He has been a good advisor from what I can tell but there are conflicts with commission in things such as American funds. Basically we are not a local relationship but we are regular active clients and meet virtually about once a year..

 

[Venturer]

Welcome to the forum. I too am from Ga. and after we retired had Financial advisor that I found by way of a "friend " reccomendation. She had a good heart but after that FA moved us to his new company and his new company was costing us too much we fired him and moved everything to Fidelity. There is a lot of financial wisdom here and wheather you choose to self invest or use a service Fidelity is IMHO a good place to be. When we moved our assets by some advice here we ask if they would reimburse us for the fees that Wel** Far* charged us and it happened for us. Good luck in your decisions and your journey forward!

 

[Venturer]

One thing I would like to add is that I live in Georgia. My EJ guy is in Minnesota. We got him be default when I inherited my IRA from my grandfather. He has been a good advisor from what I can tell but there are conflicts with commission in things such as American funds. Basically we are not a local relationship but we are regular active clients and meet virtually about once a year..

We are in N.jawga but our Fidelity home in in N Atlanta area so about 1 hour away if I need to go there for any "hand holding" ' but so far phone calls and /or facetime has sufficed after our initial office visit just before the pandemic hit and closed offices all over.

 

[stygz]

We are in N.jawga but our Fidelity home in in N Atlanta area so about 1 hour away if I need to go there for any "hand holding" ' but so far phone calls and /or facetime has sufficed after our initial office visit just before the pandemic hit and closed offices all over.

Yes, that’s what I was thinking…..this is how our EJ account relationship has been and it has worked fine.

 

[stygz]

I am leaning to Fidelity and am writing down questions I have. I am liking their Zero funds.

I still have to wonder if it is best to load up our TSPs above the match or just do the match and max out Roth IRA’s factoring the Fidelity fees vs TSP fees?

 

[Helen]

If you use Fido's zero funds make sure you are in a tax sheltered accounts so you can sell those funds without tax consequences. Zero funds can only be held at Fidelity. If you ever want to move to another brokerage you will have to sell the zero funds. Capital gains on those funds could keep you trapped at Fidelity.

 

[Time2]

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 don't know about $95 per account, but I had to pay $95 to get out of TD Ameritrade. However, the 4.5% fee on a tiny balance of $2,200 is $99. I'm sure you have more than that! So the sooner you get out the better. Just open a Fidelity or Vanguard account and buy low fee index funds. I like the Total Stock Market Funds. I like the ETFs, I have Vanguard VTI and VOO.

 

[mz44]

I am leaning to Fidelity and am writing down questions I have. I am liking their Zero funds.

I still have to wonder if it is best to load up our TSPs above the match or just do the match and max out Roth IRA’s factoring the Fidelity fees vs TSP fees?

You could contribute to your Roth TSP.

 

[stygz]

You could contribute to your Roth TSP.

Yes, I should clearify, if I am talking Roth on both TSP and Fidelity.

 

[VanWinkle]

Hello! I am from Georgia and found this site while doing a search for TSP vs Edward Jones. I have been exploring using more benefits of the TSP and the fees I am paying with EJ. I am planning on leaving federal service at 58.

You might want to check out a TSP site with information about your investments there. I agree that leaving Edward Jones could be a positive
move for your investments outside of the TSP.

https://tspcounselor.com/

 

[Chuckanut]

I also recommend getting on the mailing list of the website Humble Dollar. They have a variety of articles on investing and focus on minimizing costs and not jumping in an out of the market. I don't agree with everything their contributors say, but, that means I am still thinking. Like my old grandpappy used to say, "If you and I agree on everything at least one of us isn't thinking.:

 

[pacergal]

Hello and welcome to the forum!
You can learn a lot here, there are very knowledgeable folks on the forum.

 

[OldShooter]

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.

Probably do a clean break at the new year.

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

... 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.

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.

......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.

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]

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.

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"