EDJ $25 Rollover Fee
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Money in motion…That should be Jones’ tagline instead of making sense of investing…MONEY IN MOTION…the devil is in the details…but when you deal with unsophisticated investors…well…lets just say the details are glossed over…except for Spiffy…he tells them everything.
[quote=WestH]
Let's see:
Opening a $1500 IRA at Jones:
If a Mutual Fund: 5.75% load, $35 annual fee = 2.33%, $90 closing fee = 6%, TOTAL = 14% fees already. Earlier poster was right. Keep it direct at the Mutual Fund company. That way when you go Indy, just change the B/D over, no charge. Priceless![/quote] Why would you bother with a $1500 IRA and if you did open one why in the heck would you take it with you? If the answer is that they have $500,000 with in other stuff then the IRA is free to begin with.[quote=Maxstud]
Why would you bother with a $1500 IRA and if you did open one why in the heck would you take it with you? If the answer is that they have $500,000 with in other stuff then the IRA is free to begin with.[/quote]So you're saying that once you waive the IRA fee it's no big deal since those charges now only total about 11% instead of 14%?? I must be misunderstanding your post, Max.
Its all about making it to expensive to transfer an account. If they cared about the client, EDJ would “suggest” that their reps put all mutual fund accounts directly with the fund company. In the case of the IRA there would be a $10.00 annual fee, not $40.00. In addition, as stated earlier, God forbid, clients would not have to pay the latest EDJ fee of $50.00 to transrfer to another BD. If you really care about the client you don’t find ways to add fees, and you sure would not try to keep clients by making it cost prohibitive to move. If they want to move, let them leave on good terms, maybe they will return someday. As they are treated now, most would never return.
the 50.00 IRA closing fee is NOT necessary to charge the client at Jones! Just call Ret Ops, they’ll tell ya: YOU OPEN A SINGLE ACCT AND ATNF TRANSFER THE IRA CASH TO IT. Then you do the distribution from the single account. Presto!!! no 50.00 fee.
C, mon Spiff---beat you to the punch on this easy one.exactly, and same goes for the annual fee (assuming the policy hasn't changed in the last year.)
[quote=Morphius]
[quote=Maxstud]
Why would you bother with a $1500 IRA and if you did open one why in the heck would you take it with you? If the answer is that they have $500,000 with in other stuff then the IRA is free to begin with.[/quote]So you're saying that once you waive the IRA fee it's no big deal since those charges now only total about 11% instead of 14%?? I must be misunderstanding your post, Max.
[/quote]
No my real point is why would you bother to take a $1500 IRA and if you did why in the world would you transfer the business after you left!
[quote=newnew]the 50.00 IRA closing fee is NOT necessary to charge the client at Jones! Just call Ret Ops, they’ll tell ya: YOU OPEN A SINGLE ACCT AND ATNF TRANSFER THE IRA CASH TO IT. Then you do the distribution from the single account. Presto!!! no 50.00 fee.
C, mon Spiff---beat you to the punch on this easy one.[/quote]So EJ ops recommends the client take a distribution from his IRA for the sole purpose of avoiding a silly EJ fee?!
Now there's a tax efficient, tail-wagging-the-dog response!
[quote=Maxstud]No my real point is why would you bother to take a $1500 IRA and if you did why in the world would you transfer the business after you left!
[/quote]
Because that was a specific example cited in an earlier post.
Are you saying who cares what fees EJ assesses clients because you, as the FA, can simply turn down the client’s business or leave them behind when you jump ship? I can see how that might get you as the FA off the hook, but what about the client mentioned in the earlier post?
WestH - First, if I was taking on a $1500 account and that’s all the client had, I wouldn’t be using A shares. I’d most likely be using B shares, possibly C’s. And I’d be doing it at the fund company, not at Jones. Once the account grew to an acceptable size, I might consider moving it back to Jones. But it would have to be worth my time to do it.
BTW, your assumptions are a little off. There is a $40 annual fee. The FA might buy A shares. But if the FA immediately closed the IRA for some reason, the closing fee would only be $50. If you're going to bash Jones, you should at least know what you are talking about. Oh yeah, if we did that same thing at Raymond James it would cost the client over 15% ($40 annual fee, 5.75% A share, $100 IRA termination fee), at LPL it would cost 13% ($35 annual fee, 5.75% A share, $75 termination fee). The fact is Jones is well below the industry average on those kind of fees. Retirement Ops does NOT recommend taking a taxable distribution to avoid a fee. I'm not sure I follow how the moving of the IRA cash to the single account then doing the transfer would solve the IRA closing fee issue. Maybe the caffeine hasn't kicked in yet this morning. You still have to close the IRA, which triggers the $50 termination fee and the $40 fee if it hasn't already been paid. Or you have some empty IRA accounts on your system constantly reminding you of clients who have left you. My thoughts on transfers and IRA closings - I do everything I can to make my clients happy. If something goes so wrong with the relationship that they want to find another advisor, they'll be happy to pay the closing fee just to be rid of me. They're happy that they have a new advisor they feel they can trust and I have one more little chunk that hits my P&L. I don't lose that many clients, so this hasn't been that big of an issue.Try and understand the point Morphius, the example is STUPID!!! Don't take $1500 IRAs, send them to Vanguard! Yes, the FA should turn down $1500 IRAs because the fees DON'T make sense at that level, you are acting in the prospects best interest. By the way every full service brokerage has similar fees if this upsets you so much maybe you can start a movement against the industry, talk to Bill Singer. I try and and stay out of these EDJ threads but when the examples used have absolutely no basis in reality I break down and reply, 9 out of 10 times I don't post it because just like in real life talking with idiots is a waste of time. On the other hand Roadhards post about advising on a HSA and charging an hourly rate is a GREAT example of where EDJ is lacking in services we can offer our clients and a great reason to keep an open mind. I look forward to any logical response you might have, but I expect silence when the point I make is COMPLETELY logical.[quote=Maxstud]No my real point is why would you bother to take a $1500 IRA and if you did why in the world would you transfer the business after you left!
[/quote]
Because that was a specific example cited in an earlier post.
Are you saying who cares what fees EJ assesses clients because you, as the FA, can simply turn down the client’s business or leave them behind when you jump ship? I can see how that might get you as the FA off the hook, but what about the client mentioned in the earlier post?
Assuming there is a reason to accept the $1,500 IRA, I'll agree that it makes sense to do them direct and avoid all the B/D fees that make them cost-prohibitive.
[quote=Morphius] [quote=Maxstud]No my real point is why would you bother to take a $1500 IRA and if you did why in the world would you transfer the business after you left!
[/quote]
Because that was a specific example cited in an earlier post.
Are you saying who cares what fees EJ assesses clients because you, as the FA, can simply turn down the client’s business or leave them behind when you jump ship? I can see how that might get you as the FA off the hook, but what about the client mentioned in the earlier post?
I look forward to any logical response you might have, but I expect silence when the point I make is COMPLETELY logical. [/quote]
mmmm I hear crickets...........join the anti jones pussy brigade when logic trumps rhetoric
you all disappear.
Ret Ops dose not recommend the dist just to avoid the fee-- I was saying that if the client was gonna take out the money ANYWAY, might as well avoid the fee.
Spiff-call 'em.
Imagine the total amount of fees that is earned by IRA custodians for holding mutual fund only accounts. That’s gotta be about the easiest money that has ever been earned.