Do you manage your own investments?

[TxxAgg]

Looks like Edward Jones charges $95 to close or transfer each account - that's going to add up quickly if I decide to move it

That's part of their schtick. It's a deterrent. They are crooks. Literally, they are borderline criminal.

Hook up with Vanguard or Fidelity and they will handle the transactions for you.

You'll be way better off in the long run

 

[HoneyDew]

Just call vanguard and they will walk you through the process bescause they want your business. They’ll tell you what paperwork to submit and they’ll work with EJ to transfer the assets. Does EJ require a minimum because you can just leave the accounts empty. Besides depending on the total value of your portfolio sometimes vanguard covers various fees. Just ask. Run the numbers and EJ may still be worth paying the closing fees because vanguard is so much cheaper.

 

[Kobuk]

Sure are some harsh words on this forum. It sounds like I’ve had a little better experience than others. If I was going to go solo, I might think about getting some of my info from an investing forum over a hunting forum. I really think that most guys are trying to help but if you have so many questions, I’d probably leave your money where it is until you get all learned up! Haha. Maybe leave your existing money where it is and start your own account with what you want to add so you won’t collect any undue fees? I’m pretty sure I wouldn’t have been able to retire so young if I went at it solo but that was me.

 

[30338]

Looks like Edward Jones charges $95 to close or transfer each account - that's going to add up quickly if I decide to move it

An excellent illustration of EJ's customer focused approach.

 

[5MilesBack]

I've always had a motto of "never paying someone else to do what I am willing and able to do myself". It doesn't take much research or effort to get into index funds, and those should be a first on everyone's list. Then you can easily branch out into individual stocks and/or even sector specific mutual funds or ETF's if you'd like. Heck they even have a "solar" ETF now that's been going gangbusters recently. You can easily buy and sell just about anything that strikes your fancy these days. Just understand the risks and know that you'll never lose money by taking a profit. I have all kinds of investments that I've sold my initial investment and just let the gains ride. Vanguard is a very good option.

 

[Lou Sid]

It's not rocket science. Look at the charts for shopify, facebook, snap, twilio, zoom, PayPal, L3 Harris, Lockheed martin, crowdstrike, docusign, Norwegian cruise lines, ringcentral, zscaler, Microsoft, apple, Amazon, google, Visa, Mastercard, crown castle, American tower, nvidia, marvel, okta, I could list 50 more. Look at the charts from 5, 10, 15 yrs ago and do the math on if you bought back then what you'd have today. Then do some research, buy 5 or so of these stocks, and forget about it until you retire. Its literarily that easy. Dont ever sell. Market crashes 1-5-10 yrs from now = buy more.

 

[Timberline1996]

I use webull and have a couple index funds and then some stocks that I bought in March

 

[spaniel]

I have an MBA and have a fair amount of finance experience. I have a 401K where I can manage the mix of investments, and a Vanguard index fund. That's it. I had an Etrade account with a modest amount in it, which I considered entertainment - basically the equivalent of other people going to a casino but with better returns. I recently closed it after realizing that over time Vanguard's index fund was returning about the same. Trading in individual stocks is no different than gambling...you may get lucky here and there but over time it'll average out.

 

[hodgeman]

If you're primarily an index fund investor, there is simply no need to pay someone else to manage it. Roll to a Vanguard IRA and go for it. You might need to do some research and learn a few things, but that's to your benefit.

A typical advisor is getting 1% of the assets under management, and that's a huge drain on a portfolio year after year. The difference in getting 8% versus 7% (8%-1%fee) is going to be many thousands of dollars since you can't make money an your fee, and that money can't make money over time.

Read Jack Bogle's "Little Red Book on Common Sense Investing" or JL Collins "Simple Path to Wealth"

 

[Afhunter1]

I always managed my own up until it got large enough that I was worried I was missing out on diversification and tax efficiency. I have a MBA as well and I am well versed on finance but I don’t have time to give my investments what they need. I did ALOT of searching and settled on putting my money with personal capital and I think in your situation you should def ck them out. I have been more than pleased with their performance. Their fees are low and advisors are top quality. You will get more out of them than just index investing because you will miss opportunities with indexes that you don’t have to.

They are a hybrid robo/advisor combo.

 

[eddyprice]

Another Vanguard recommendation - they are client owned, meaning they are only beholden to the people who invest, no shareholders to make money for like almost all others. Lots of good learning resources on their website.

I highly recommend a short book (~125 small pages) "The Elements of Investing" by Malkiel & Ellis. Covers basic investment principles and clear advice on how to follow them. Can be read in just a couple of hours.

 

[Antarctica]

Used to do it all, an in a way, I still do, but mostly just peg it to the S&P500 these days. Don't have time in my life to worry investments constantly.

 

[Beendare]

Some thoughts;

Someone that doesn't have a good CPA to explain tax advice or the complexities of more involved retirement plans like defined benefit programs, Roths, etc....would benefit from a good advisor to walk them through those minefields.

I know many financial advisors....and typically they will always err on the conservative side....which can be good or bad. Sometimes I am willing to take on what they would call too much risk. I like being a bit more concentrated in a certain stock or sectors that I really like. I understand that risk. I take the time to monitor these [where a FP can't take that time] I can mitigate the risk with options, stops...or just watching it like a hawk.

Someone starting from scratch needs to understand its all about building assets; Stocks, Bonds, Real estate, a business- Assets take many different forms but the key is to build enough that it will pay you later in life at a lower tax rate. Making a lot of money every year just means you are paying more taxes...a treadmill of sorts.

I think everyone should own a business, even a side gig........so they can take advantage of before tax expenses.

Stock Market; Picking stocks...or Funds, ETF's Bonds.....is really the easy part. The more complex part is understanding the markets...and why they do what they do.

Do you think many of these companies stock prices going through the roof are due to earnings? Nope.

The Fed is throwing money at these markets. Currently; Global stimulus is over 20% of GDP and over 30% of GDP in the US.

The total USA GDP is $22 trillion. The Fed balance sheet has expanded 77% YTD [ a HUGE NUMBER] from $4.2 trillion to $7.4 trillion. This has driven Money Supply (M2) up 25% y/y vs a prior record of 14%.

These ^ are huge factors....and when that money spigot is tuned off.....its going to be ugly. Yellen isn't going to shut it off....she will probably get a bigger hose.

The Fed and the incoming admin are going to shovel money to the rich while giving lip service to the poor......all of the big financial institutions know it..........you might as well get some for yourself.

____

 

[180splitg3]

I appreciate all the input guys. I'm going to do more research before I decide exactly what to do. First thing will be to find out if any of the online brokers will reimburse the fees to transfer the accounts. For those who handle your own - is it a pain come tax time as far as documentation? I'm guessing the online brokers supply an necessary forms but I need to look into that...

 

[eddyprice]

I appreciate the info so far from everyone! If I want to transfer my money from Edward Jones to let's say vanguard - will this cost anything? I currently have too many accounts (in my opinion). I have a traditional IRA, Roth IRA, SEP IRA, two Joint IRAs and my wife has her Roth, a 403b, and a traditional IRA. My accountant is telling me that I should open a solo 401k (I'm hoping I could roll the SEP into this) and I also want to start a 529 for my kids education. I recently sold some of my holdings and bought VTI but that cost me about $500 in fees from Edward Jones. That is what started me thinking about handling my own accounts. I also recently read the JL Collins book (the simple path to wealth) and that's when I started looking into the Vanguard index funds. So much I wish I would have known at a younger age!

Even though you say that there is so much you wish you would have known at a youger age - look at the positive - you're investing and seem to have been for a long time. That is a huge plus in terms of building wealth.

Moving your accounts to Vanguard should be relatively easy, they can help and deal with all the details. I have moved accounts to Vanguard to consolidate from other companies. Easy here is a link to start: https://support.vanguard.com/triage/mmv/A0000, or call, they are helpful.

 

[Wapiti1]

I appreciate all the input guys. I'm going to do more research before I decide exactly what to do. First thing will be to find out if any of the online brokers will reimburse the fees to transfer the accounts. For those who handle your own - is it a pain come tax time as far as documentation? I'm guessing the online brokers supply an necessary forms but I need to look into that...

No, tax forms are consolidated and they report it in a standard format. If you use tax software like Turbotax, you can just import the tax documentation and it auto loads the forms in Turbotax. Just double check the numbers.
I use Ally and Fidelity. Fidelity has my 401K and stock program from work. I have the Ally account because Fidelity only has monthly withdrawl as a funding option and I get paid weekly. I prefer to have my savings and investment dollars pulled weekly so the only money in my checking account is my running money.

About once a year I talk with a financial advisor that is free through our credit union and we adjust as needed. Mostly this is a double check to make sure I wasn't stupid. I'm too far from retirement to start shuffling for tax purposes.

Check with your bank or credit union. There are a lot of financial services the are free to members.

Jeremy

 

[ETtikka]

For college savings, I am using a roths, they do not count against financial aid (first question on financial aid form is do you have college savings fund in any form or fashion), you can use the $ for anything (not just education), and you can pull out $ at any time ( contributions, not earnings), just a thought.

 

[Beendare]

For college savings, I am using a roths, they do not count against financial aid (first question on financial aid form is do you have college savings fund in any form or fashion), you can use the $ for anything (not just education), and you can pull out $ at any time ( contributions, not earnings), just a thought.

Food for thought;

You dont want to get hit with big tuition bills that you are paying out of your checking account-those are all taxable funds. There are small educational credits....but there are restrictions.

Edit; Turbo tax is a good source to see if you qualify.

Keep in mind...many cannot write off their kids education ...but typically your kids dont hit income restrictions and can write it off themselves.

A Roth is good but check limitations and tax consequences on any conversions.
Its definitely worth thinking ahead.

Hypothetical; suppose you own a business and have your kid working for you, the money you pay them is deductible to you....and that same money going to their education is deductible to them.Win/ win.

Or you can gift your kids a significant chunk every year without them having to pay tax.

 

[Jesse Jaymes]

It's not rocket science. Look at the charts for shopify, facebook, snap, twilio, zoom, PayPal, L3 Harris, Lockheed martin, crowdstrike, docusign, Norwegian cruise lines, ringcentral, zscaler, Microsoft, apple, Amazon, google, Visa, Mastercard, crown castle, American tower, nvidia, marvel, okta, I could list 50 more. Look at the charts from 5, 10, 15 yrs ago and do the math on if you bought back then what you'd have today. Then do some research, buy 5 or so of these stocks, and forget about it until you retire. Its literarily that easy. Dont ever sell. Market crashes 1-5-10 yrs from now = buy more.

Got a laff out of this.....at 49 I JUST began investing/buying stocks. Have a multi millionaire friend who literally made himself from the dark swamps of Louisiana. I am privy to his notes and research. He owns about 20+ companies. Many are on the above list. I have purchased stock in 4 of the above listed companies.

Your research mirrors his.

Have no clue what I am doing. NONE. But I am getting in and will get educated as I gain wealth. No plans to dump anything. I have a Govt TSP with my big money in it. This is my own personal attempt to get schmarter and more richer.

 

[Crusader]

Like many of the guys already posted, I recommend Vanguard. Index funds in stocks and bonds properly balanced for your age.