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.Thankskalbbj
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
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
"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.
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
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.
Remember that transferring to another broker does not require any contact with the old broker. The new broker does all that.Doug
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
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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