| Question about Fees on Non EJ Funds at Edward Jones Account |
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davidinpa
New Member
Cash: $ 0.95
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Joined: 25 Apr 2011
Location: Pennsylvania
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| Question about Fees on Non EJ Funds at Edward Jones Account |
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Here's the situation. My dad recently passed away and I am helping my Mom with his investments. Before he tied, his Edward Jones broker suggested that he move all his mutual funds to Edward Jones (these included Vanguard, Fidelity and other external (not EJ) funds. This was done so he could "see all his assets in one place." My dad was suspicious of EJ and shared this with me several times before he died. My Dad was suspicious of everthing! God love him. The non-Edward Jones accounts now appear in my Mom's EJ account. So they have not been sold and no assets transferred to other mutual funds. Here is my question: is Mom paying EJ 12-b1 fees or any kind of fees simply for holding those (non EJ funds) in the EJ account? I tried to check this online but I can't make heads or tales of the fee disclosures on the EJ site. Man what a bunch of gobbledigook. Thanks for any insight anyone can shed.
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Sat Jun 04, 2011 2:51 pm |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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12b-1 fees are split between the broker and the investment company according to whatever agreement they have. Don't be too concerned about the 12b-1 fees. They are miniscule. As an example, when I was a registered rep, one of my clients started an IRA with a $50 per month automatic purchase. I got six cents of that. Of much more concern are the loads: front-end loads for buying can be as high as 5.75 percent. Back-end loads for selling are typically a couple percent, but as they're levied on (usually) appreciated assets can still nick you pretty bad. What's going to hurt on smaller accounts is the custodial fee. i don't know what it is for Edward Jones, but when I had an IRA at AG Edwards (since bought and merged into Wachovia) it was $40 per year and the main reason I moved that account to TD Ameritrade.
There's no reason to have all your assets in one place. In fact, I practice diversification on accounts the same way I practice diversification on account holdings.
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Sat Jun 04, 2011 4:29 pm |
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