I currently have a traditional IRA with Edward Jones that I do not make reoccurring investments. I rolled my 401K from my past job into that account when I moved. Is there any restrictions in moving the money in that account to a Vanguard brokerage account, convert/sell all of those investments and buy a target date index fund? Or is it easier to direct my Edward Jones financial advisor to invest in Index Funds and keep the account. I’ll ask about fees for sure.
Thanks
Hi @Lenwine!
Excellent question, thank you for asking! There are no restrictions to move the money from Edward Jones to a different brokerage firm, like Vanguard. It’s fairly simple to do. You can move it yourself by working directly with Vanguard to have them do a complete transfer of the securities from the Edward Jones account over to the Vanguard account. (this is sometimes referred to as an “ACAT” transfer). Once you initiate this process, it’s generally nice to reach out to your advisor and thank them for their service and let them know you are moving on!
As far as keeping the financial advisory relationship, that’s a personal decision to you. Like you said, I would check how much you are paying the advisor and then asking yourself if what you are getting is worth it. Generally, if they are just investing your money, you are likely better off NOT paying the fee and managing your investments yourself using a target date index fund.
Let us know if you have any other questions!!
Shane