TOD Accounts

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May 27, 2008 2:23 pm

I just transferred an account in from Edward Jones.  Is it in fact true that Edward Jones charges $275 to implement and execute a TOD agreement?

 
 
May 27, 2008 2:34 pm

The setup is $75.

 
If/when it gets executed, it costs $200.
 
The fees are avoided with the CFO account, which includes TOD, 2 IRA's, dividend reinvestment, online billpay, unlimited checking, no minimum for money market.  It costs $100 per year.
May 27, 2008 2:38 pm

It also gets avoided with the MAP program. 

May 27, 2008 2:41 pm

Send them over to us. We don't charge on either end.

May 27, 2008 5:15 pm
CreditOnion:

Send them over to us. We don't charge on either end.





We don't charge either. Frankly, I never heard of any firm charging for any of the above mentioned features, excepting a $35 annual fee for IRAs.











May 27, 2008 5:30 pm

You don't need a TOD on an IRA.  Seems Ray Jay charges the same as EDJ.  So I guess there is at least one other firm that charges, have you ever heard of Raymond James Philo?


From Raymond James website:
 
Initiating a DTBS agreement

DTBS is available to anyone with an account custodied by Raymond James & Associates and can be initiated relatively quickly, with a minimum of paperwork.


The following fees apply to the agreement:



$75 to initially establish the account,
$50 to modify the terms of any beneficiary designation or to modify distribution of assets to beneficiaries,
$25 for each additional listed beneficiary over eight, either when the agreement is established or when changes are made to the agreement, and
$200 for the processing fee, payable when assets are transferred to beneficiaries.

These fees are specific to DTBS agreements and do not include any other fees customarily charged by Raymond James, such as custody and transaction fees.

May 30, 2008 8:25 am

Just out of curiosity, does anyone know of any reputable firm that charges these kinds of fees?



May 30, 2008 12:50 pm

Hmmm...didn't one of the Jones bigs end up at RayJay?  That would explain the TOD fees and the annuty haircut...

May 30, 2008 1:57 pm

I am transferring in a family account today from Jones--I've been letting my former clients know that they can get a free TOD's and free dividend reinvestment on their stock holdings at LPL... that made a difference to this family!

May 30, 2008 2:17 pm

When you're at a place and have never been anywhere else, you always think yours is the right way.  When I was at Jones, I thought everyone charged for TOD's, front end and back end and also on the dividend reinvestment...So when I get to LPL and find out we don't do this...I guess I could ask who really treats their clients the best....hmmmm

May 30, 2008 2:44 pm

Lets not forget that the TOD probably counts toward the diversification contests and that the FA's get paid a portion of that. So, yes they could do what the Indies or other firms do but they don't. Why give it away when you can charge for it and the GP can make a profit off of it?

So am I right or wrong... does it count toward the diversification contest just like credit cards do?

May 30, 2008 4:12 pm

You are wrong.

May 30, 2008 4:54 pm
Philo Kvetch:

Just out of curiosity, does anyone know of any reputable firm that charges these kinds of fees?

 
Sounds like any firm that does charge would not  be considered reputable by you so its a bit of a catch 22 isn't it?  All you originally said is that no other firm charges and I gave you an example of one.   I really expected a thank you for my 3 minutes of hard work.
May 31, 2008 12:08 am

At Edward Jones they charge 2% of the dividend to reinvest back into the same stock, ETF, or closed-end fund.  They do not charge to reinvest mutual fund dividends back into the same mutual fund or cross reinvest. 

 
At LPL all dividend reinvestments are free.
 
There is one more thing, at Jones...you can reinvest dividends from stocks, interest from bonds, and dividends from ETF's & Closed-End Funds into any of the preferred mutual funds Jones has on the books as long as it meets minimums.  The FA gets paid the load on the invested amount.  The problem with the program when I left was you didn't even need a client LOA to do this and many people said that they explained it to client as taking care of the Lazy Money!
 
Of course I left more than a year ago and things might have changed--doubt it!
May 31, 2008 1:38 am

I was also shocked when I found that so many things EDJ charged for are not charged elsewhere.  On the other hand, being indie and having other fees is new.  Ticket charges and client fees for liquidating funds held at the firm are other fees clients wouldn't have charged.  My guess is the preferred funds paid for all of the 'ticket' charges somehow.  Clients are paying for these things one way or another, some just prefer to believe it is 'free'.  Hidden fees for some, typically the smaller accounts, keeps them happy.  I really get frustrated with the few clients who complain about $5 confirm fees and the ever so infrequent inactivity fee.  My point is clients are paying for these things somewhere.  The only thing about TOD is that EDJ supposedly invented it, and Al Gore invented the internet too.

May 31, 2008 1:26 pm

Your right JW, we have inactive account fee's on the brokerage non-ira accounts (which I picked up much of that since it is just the cost of doing business) and a sell fee on mutual funds -- both of these Jones does not charge!

May 31, 2008 3:09 pm
Maxstud:
Philo Kvetch:

Just out of curiosity, does anyone know of any reputable firm that charges these kinds of fees?



Sounds like any firm that does charge would not be considered reputable by you so its a bit of a catch 22 isn't it? All you originally said is that no other firm charges and I gave you an example of one. I really expected a thank you for my 3 minutes of hard work.





I didn't say that no other firm charges...I said that I never heard of one charging. As to the catch 22, that's a leap that you've made, not I.



If you spent as much time on comprehension as you spend trying to come up with snappy comebacks Max, you might amount to something some day. It's a long shot, I admit, but at least it's something to which you can aspire.

Jun 2, 2008 4:06 pm
freeman12:

Lets not forget that the TOD probably counts toward the diversification contests and that the FA's get paid a portion of that. So, yes they could do what the Indies or other firms do but they don't. Why give it away when you can charge for it and the GP can make a profit off of it?
So am I right or wrong... does it count toward the diversification contest just like credit cards do?

 
Technically wrong, but CFO accounts do count, and this is one of the big selling points of the CFO. 
 
I always thought charging for TOD was chintzy, I just didn't realize that it was not the standard way of doing business until I left.  Also, FYI, if you are at EDJ I believe you can still do TOD for free as long as the only assets are in mutual funds.   Just have the funds held directly by the mutual fund company, and use their TOD, it's right there on the application.
Jun 3, 2008 6:54 pm
Philo Kvetch:
Maxstud:
Philo Kvetch:

Just out of curiosity, does anyone know of any reputable firm that charges these kinds of fees?

 

Sounds like any firm that does charge would not  be considered reputable by you so its a bit of a catch 22 isn't it?  All you originally said is that no other firm charges and I gave you an example of one.   I really expected a thank you for my 3 minutes of hard work.



I didn't say that no other firm charges...I said that I never heard of one charging. As to the catch 22, that's a leap that you've made, not I.

If you spent as much time on comprehension as you spend trying to come up with snappy comebacks Max, you might amount to something some day. It's a long shot, I admit, but at least it's something to which you can aspire.

 
Splitting hairs.  It doesn't take me any time at all for my snappy comebacks, its a gift.
Jun 3, 2008 8:20 pm

If that's a "gift" Max, I'd exchange it for something worthwhile.