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Author: kalbbj Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27416  
Subject: Moving from Edward Jones Date: 1/30/2006 7:32 PM
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Hi,
I'm new to investing on my own. I currently have an Edward Jones account that I have had since 1998. Recently I have not been happy with the service I'm getting and the fees I'm paying for that service. I now have more time to devote to research and want to invest on my own. What I don't know is if I close my account with Ed Jones does that mean all the stocks and mutual funds are sold and I get a check? Or can I transfer what I own with them to another account at a discount broker? I worry about the taxes I would pay if everything was cashed out.
Thanks
kalbbj
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Author: wwongma One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11941 of 27416
Subject: Re: Moving from Edward Jones Date: 1/30/2006 8:39 PM
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Hi, congrats on being able to spend more time on your finance and stop paying the fees and service.

You do not need to sell your shares to be cash, you can fill out form from your new broker to transfer in kind from the EJ to your new broker. you may pay fees/fines for transferring out of EJ. check with them on the costs.

BTW, what were the fees and what type of bad service did you get?

WW

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Author: kalbbj Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11943 of 27416
Subject: Re: Moving from Edward Jones Date: 1/30/2006 9:24 PM
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I pay a commission fee for every stock transaction. I also pay a fee for the mutual funds I invest in on top of the fee the fund charges. And I recently found out the funds that I'm invested in pays a fee to EJ for the number of people invested in their funds. Something not disclosed when I purchased the funds to start with. When I spoke with my broker about other funds that EJ offers he attempted to steer me away from those funds. And a couple of stocks he recommended for me to purchase turned out not to be so great according to Morning Star. When I spoke to my broker he told me that they are a recommend by their research guys. Well if I can research on Morning Star and the only reason he recommends buying is because the company research says so is not good service to me.
kalbbj

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Author: bogwan Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11944 of 27416
Subject: Re: Moving from Edward Jones Date: 1/30/2006 9:25 PM
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"I now have more time to devote to research "

I suggest you go with vanguard.com and use your valuable time to increase your earned income. Sorry but you are very likely wasting your time.

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Author: theHedgehog Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11945 of 27416
Subject: Re: Moving from Edward Jones Date: 1/30/2006 9:33 PM
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The sad fact is that you are simply not going to get rich buying hot stocks. You may even go broke buying them. Put your money in a diversified portfolio of index funds (or ETFs) and find something you really enjoy doing in life.

Hedge

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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11947 of 27416
Subject: Re: Moving from Edward Jones Date: 1/30/2006 10:31 PM
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I pay a commission fee for every stock transaction.

That's normal.

I also pay a fee for the mutual funds I invest in on top of the fee the fund charges.

That's normal, too, although some discount brokerages may have a "stable" of "no-transaction-fee" funds.

And I recently found out the funds that I'm invested in pays a fee to EJ for the number of people invested in their funds.

That's also normal, and it was disclosed to you when you purchased the funds. Before you purchased you were given the chance to read the fund's prospectus. If you had read the prospectus it would have listed the 12b-3 fee, which you could have looked up and seen that it is paid to the broker.

I think you're making a big deal over not much. What you should be making a deal over is that you are getting mediocre performance for above-average fees -- not the particulars of how the fees are charged.

But I second the other poster's recommendation to transfer in to Vanguard. Decent performance, unbeatably low fees.

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Author: dougdoogle Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11948 of 27416
Subject: Re: Moving from Edward Jones Date: 1/30/2006 11:08 PM
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Remember that transferring to another broker does not require any contact with the old broker. The new broker does all that.

Doug

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Author: kalbbj Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11964 of 27416
Subject: Re: Moving from Edward Jones Date: 1/31/2006 9:25 PM
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Thanks Doug, I will keep that in mind when I make the switch. Now I just have to decide on a discount broker to use.
Kalbbj

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Author: kalbbj Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11965 of 27416
Subject: Re: Moving from Edward Jones Date: 1/31/2006 9:29 PM
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I know it is normal to pay commissions ofr transactions. I just feel I'm not getting enough return for the money being spent and invested. And EJ was fined for not disclosing that they were being paid by several funds families. But thanks for the advice and I will look at Vanguard. What do you think of T Rowe Price funds?
Kallbj

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