Author Topic: which vanguard account to open? transfer in kind?  (Read 2144 times)

missj

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which vanguard account to open? transfer in kind?
« on: August 18, 2014, 08:38:46 PM »
Hey guys. I wanna move my money out of Edward Jones ASAP and over to Vanguard.

I am wondering what type of account to open.  I see links for "open a brokerage account online" but is a brokerage account what I want ? Are there certain ones that are more simple, cheaper?  there are also options for "open an IRA"  but I already have an IRA, so can a brokerage account accept transfer of my existing IRA? (sorry, my terminology is terrible)

Also, I already have an employer sponsored Vanguard 403(b) plan.   Will these 2 plans be linked?  The reason I ask is that the total value of both plans combined puts me up into the 2nd fee tier where I pay lower fees, but only if the 2 accounts are linked do I go over the top.

Also, any general things I should know about closing at EJ?  Are there any tips to avoid the closing fees of $95 per account?  Will there be any other hidden fees I am hit with (such as back end commissions or something?)

LeboLebo

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Re: which vanguard account to open? transfer in kind?
« Reply #1 on: August 19, 2014, 12:15:42 AM »
I can't speak to the fees structure - and I'm still researching all the offerings of Vanguard, but I opened my account with just the basic default option of the Prime Money Mkt Fund while I determine my next step. I plan on shifting this to a higher yield fund, just waiting for the right catalyst of information to make the decision.

matchewed

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Re: which vanguard account to open? transfer in kind?
« Reply #2 on: August 19, 2014, 06:17:55 AM »
What type of investment vehicle(s) is the money in? Move it to the respective ones.

If you have an EJ IRA then open an IRA with Vanguard and roll it over. If you have a brokerage account with EJ then you'll need to sell (taxable event) and open one with Vanguard to invest or alternatively if you haven't made IRA contributions you could with this money.

The 403(b) and any other investment vehicle (IRA, standard brokerage..etc.) will remain separate. They will not be linked.

You'll probably have quite a few fees to pay. Edward Jones is a pretty terrible company IMO. Leave ASAP. Take your hits and start learning about investing so you know what to look for.