The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: radtek2112 on March 03, 2015, 08:18:03 PM
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My wife and I are currently in the process of transferring our assets from Ed Jones to Vanguard (WOO-HOO!) In regards to transferring the Roth IRA's: Do I or don't I transfer the Roth IRA's "in kind"? I will want to have my Roth IRA's invested in Vanguard index funds to avoid the insane expense ratios we are currently dealing with at E.J. Please advise! If not "in kind", then what instead? Thank you in advance.
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If Ed Jones has it all in individual stocks and loaded mutual funds... which is likely the case, then just move it in kind. Vanguard doesn't charge a fee for most load mutual funds, and they are a whole lot cheaper to sell stocks than Jones is.
If there is a bunch of other stuff I would just call Vanguard. They should be able to tell you if there are any charges, and let you know if there is a better way to transfer it.
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Didn't somebody here transfer an account with ~20 funds to vanguard, and they wanted $30 each to sell them? I think you want to cash out first of that's the case. Unless EJ charge more.
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When I transferred from EdJ to Vanguard a few years ago, I had Edward Jones liquidate my accounts first. I wanted to invest in Vanguard's index funds, and didn't want to keep any of what EdJ had me invested in, so I think this was probably the easiest way to go about it. I transferred a ROTH and a SEP IRA, and EdJ charged ~$100 to close each account, but there were no extra fees to sell the funds (that I'm aware of).
The transfer was pretty easy, except for waiting for everything to settle - it's not an instantaneous process.
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Read this thread:
http://forum.mrmoneymustache.com/investor-alley/so-i-transferred-all-my-mutual-funds-to-vanguard-but-now-fees-to-sell/
In short, that person faced the possibility of paying $1225 ($35 per fund) to sell all their EJ funds after doing an in-kind transfer to Vanguard. So compare the costs of doing the liquidation at EJ vs. Vanguard.
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I'm pretty sure Vanguard didn't charge me anything to transfer a ROTH from Janus with 3-4 different funds in it. It just came out of Janus and went into the selected Vanguard fund. I do have a fair amount with them though.
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Thanks all! I'll talk to the Vanguard people just to make sure about fees. I'm just hoping this switch will save me a ton of money in the future.