Have you been contemplating a move for your investments? Perhaps you've been with Edward Jones for some time, enjoying the personalized touch of a financial advisor, but now you're considering the potentially lower costs and broader DIY investment options that Vanguard offers. You're not alone! Many investors reach a point where they re-evaluate their financial relationships and seek out platforms that align better with their evolving goals, particularly if they're leaning towards a more hands-on, cost-efficient approach.
Moving your money from one financial institution to another might seem like a daunting task, filled with paperwork, potential fees, and the fear of a misstep. However, with a clear understanding of the process, it can be a relatively smooth transition. This comprehensive guide will walk you through every step of transferring your investments from Edward Jones to Vanguard, ensuring you're well-equipped for a successful move.
Navigating the Transfer: Edward Jones to Vanguard
The primary method for moving investments between brokerage firms like Edward Jones and Vanguard is an Automated Customer Account Transfer Service (ACATS). This system allows for the direct transfer of assets "in kind," meaning your investments (stocks, ETFs, mutual funds, etc.) are moved as they are, without being sold and re-purchased. This is generally the most tax-efficient and efficient way to transfer, as it avoids triggering capital gains or losses and keeps your money invested in the market.
However, there are nuances, especially with proprietary funds or certain account types. Let's break down the process step by step.
Step 1: Define Your "Why" and Prepare Your Accounts
Before you even touch a transfer form, take a moment to reflect. Why are you making this move? Is it primarily about cost savings, gaining access to Vanguard's low-cost index funds and ETFs, taking more control of your investments, or a combination of factors? Understanding your motivation will help you stay focused throughout the process.
Sub-heading: Gather Essential Information
- Edward Jones Account Statements: Collect your most recent statements for all accounts you plan to transfer. These will contain crucial information like account numbers, types of accounts (e.g., individual brokerage, Roth IRA, Traditional IRA, 401k rollover, etc.), and a detailed list of your current holdings.
- Vanguard Account Information (or plan to open one): If you already have a Vanguard account, note down your account number. If not, you'll be opening one as part of the transfer process.
- Identify In-Kind Transferability: Make a list of all the investments held at Edward Jones. While most publicly traded stocks and ETFs can be transferred in kind, proprietary Edward Jones mutual funds or certain alternative investments may not be transferable to Vanguard. In such cases, these holdings would need to be sold and the cash proceeds transferred. Be aware of any potential capital gains this might trigger.
Step 2: Initiate the Transfer at Vanguard – The Receiving Firm
This is a crucial point: you initiate the transfer at the receiving firm, which is Vanguard in this case. Do not instruct Edward Jones to close your account or sell your holdings before initiating the transfer through Vanguard. This helps prevent unnecessary fees and ensures a smoother transition.
Sub-heading: Online Transfer vs. Paperwork
Vanguard offers a streamlined online transfer process for most common account types. This is usually the quickest and easiest way.
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Online Transfer (Recommended):
- Visit the Vanguard website (
Vanguard.com - Look for a section related to "Transfer an Account" or "Rollovers."
- You will typically be guided through a series of questions. You'll likely need to provide:
- The name of the firm you're transferring from (Edward Jones).
- Your Edward Jones account number(s).
- The type of account you're transferring (e.g., Traditional IRA to Traditional IRA, Brokerage to Brokerage). Ensure the account types match to avoid tax implications.
- Whether it's a full or partial transfer.
- Your Edward Jones login credentials (username and password) if you choose the electronic connection option, which can expedite the process. Alternatively, you can manually enter your Edward Jones account number.
- If you're a new Vanguard client, you'll be prompted to open a new account during this process, which will then receive the transferred assets.
- Review all the details carefully before submitting.
- Vanguard will then communicate directly with Edward Jones to facilitate the transfer.
- Visit the Vanguard website (
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Paperwork Transfer (If Required):
- In some cases, especially for complex accounts, trust accounts, or if an online transfer isn't available for your specific scenario, Vanguard will provide you with pre-filled forms to print, sign, and mail.
- You may also need to include a recent Edward Jones account statement with your signed forms.
- Pay meticulous attention to signatures! Any mismatch in signatures or account holder names between Edward Jones and Vanguard records can cause significant delays. If your Edward Jones account has multiple owners, all owners may need to sign the transfer forms.
Step 3: Understanding In-Kind vs. Liquidation Transfers
As mentioned, an in-kind transfer is generally preferred.
Sub-heading: What Happens to Non-Transferable Assets?
- Proprietary Edward Jones Funds: If you hold Edward Jones proprietary mutual funds (funds managed by Edward Jones themselves), these typically cannot be transferred to Vanguard in kind. You will likely have two options:
- Sell and Transfer Cash: Edward Jones will liquidate these holdings, and the cash proceeds will be transferred to your Vanguard account. Be mindful of potential capital gains taxes if these are in a taxable brokerage account.
- Keep at Edward Jones: You could choose to leave these specific holdings at Edward Jones, but this defeats the purpose of consolidating your investments.
- Fractional Shares: If you have fractional shares of stocks or ETFs at Edward Jones, these usually cannot be transferred in kind. They will typically be sold, and the cash value transferred to Vanguard.
- Account Minimums at Vanguard: Be aware of Vanguard's minimum investment requirements for certain mutual funds. If the in-kind transfer of a specific fund falls below the minimum, you might need to combine it with other funds or move it as cash.
Step 4: Monitor the Transfer Process
Once you initiate the transfer with Vanguard, the waiting game begins. The good news is that Vanguard will generally keep you informed.
Sub-heading: Typical Timelines and Potential Delays
- ACATS Transfers: Most direct ACATS transfers are typically completed within 5 to 7 business days if done electronically and without complications.
- Paperwork Transfers: If paperwork is required, the process can take longer, sometimes 2 to 4 weeks or even more, depending on the responsiveness of both firms.
- Common Reasons for Delays:
- Mismatched Information: Incorrect account numbers, names, or addresses can halt the process. Ensure all personal details are consistent across both firms.
- Signature Issues: Incomplete or mismatched signatures on paper forms.
- Non-Transferable Assets: Issues with proprietary funds or assets that cannot be transferred in kind.
- Account Restrictions: If your Edward Jones account has any restrictions (e.g., linked loans, unverified information), this can cause delays.
- Outstanding Fees: Unpaid fees at Edward Jones could also hold up the transfer.
You can often track the progress of your transfer through your Vanguard online account. If you encounter significant delays or have questions, contact Vanguard's transfer department directly.
Step 5: Review and Rebalance at Vanguard
Once the transfer is complete, your assets will appear in your Vanguard account. This is not the end of the process, but rather a new beginning for your investment strategy.
Sub-heading: Consolidating and Optimizing Your Portfolio
- Verify Holdings: Carefully review your new Vanguard account to ensure all expected assets have transferred correctly and that the cost basis information (original purchase price) for your transferred investments is accurate. It may take some time for cost basis data to be transferred from Edward Jones, sometimes up to 15 calendar days after the transfer is complete.
- Rebalance and Reallocate (If Necessary): Now is an excellent time to assess your portfolio. Since you've moved to Vanguard, you might want to switch some of your transferred holdings into Vanguard's low-cost index funds or ETFs to align with your investment philosophy.
- Close Edward Jones Account (Optional): If you performed a full transfer, your Edward Jones account should be closed automatically. It's a good idea to confirm this with Edward Jones after the transfer is fully settled. If it was a partial transfer, consider if you want to keep any remaining assets at Edward Jones.
Step 6: Address Edward Jones Fees
Edward Jones may charge fees for transferring out assets.
Sub-heading: Potential Transfer Fees
- Account Transfer Fees: Edward Jones may charge an ACATS outgoing transfer fee, often around $75-$125 for a full transfer.
- Account Closure Fees: If you're fully closing the account, there might be a separate account closure fee.
- Liquidation Fees: If any of your investments need to be sold before transfer (as discussed in Step 3), Edward Jones might charge transaction fees or commissions on those sales.
- Vanguard's Stance on Fees: Vanguard typically does not charge transfer-in fees. However, they may reimburse transfer-out fees charged by your previous firm for larger account balances, so it's worth inquiring about this with Vanguard.
It is highly recommended to contact Edward Jones directly before initiating the transfer to understand their specific transfer-out fee schedule. This will help you anticipate any costs.
FAQs: Moving Money from Edward Jones to Vanguard
How to initiate the transfer from Edward Jones to Vanguard?
You initiate the transfer by opening an account at Vanguard (or logging into an existing one) and selecting the option to transfer assets from another firm. You provide Edward Jones account details to Vanguard, and Vanguard handles the communication with Edward Jones.
How to transfer an IRA from Edward Jones to Vanguard?
For IRAs, Vanguard will have a specific "rollover" or "transfer IRA" option. Ensure the IRA type matches (e.g., Roth IRA to Roth IRA, Traditional IRA to Traditional IRA) to avoid tax implications. The process is similar to other ACATS transfers.
How to avoid selling investments when moving from Edward Jones to Vanguard?
Opt for an "in-kind" transfer when initiating the process with Vanguard. This allows your existing stocks, ETFs, and most mutual funds to be moved without being sold, thus avoiding capital gains taxes.
How to handle Edward Jones proprietary mutual funds during a transfer?
Edward Jones proprietary mutual funds generally cannot be transferred in-kind to Vanguard. You will likely need to sell them at Edward Jones and transfer the cash, or leave them at Edward Jones if you wish to retain them. Be mindful of tax implications if you sell in a taxable account.
How to check the status of my transfer to Vanguard?
Once initiated, you can typically track the progress of your transfer directly through your Vanguard online account by navigating to a "Transfers" or "Account Activity" section. Vanguard will also send you updates.
How to ensure all my information matches between Edward Jones and Vanguard?
Before initiating the transfer, meticulously verify that your name, address, Social Security Number, and account type are identical on both your Edward Jones statements and your Vanguard account information. Any discrepancies can cause significant delays.
How to deal with transfer out fees from Edward Jones?
Edward Jones may charge a fee for transferring out your assets. Contact Edward Jones directly to confirm their fee schedule. While Vanguard doesn't charge transfer-in fees, inquire with them if they offer any reimbursement for transfer-out fees for larger account balances.
How to transfer a partial account from Edward Jones to Vanguard?
Yes, Vanguard generally allows partial transfers. When initiating the transfer online, you'll have the option to select specific assets or a portion of your account to move, rather than the entire balance.
How long does it take to move money from Edward Jones to Vanguard?
A direct, electronic ACATS transfer usually takes 5 to 7 business days. If paperwork is involved or there are complications, it can take longer, potentially 2 to 4 weeks or more.
How to handle cost basis information after the transfer?
After the transfer is complete, it may take some additional time (up to 15 calendar days) for Edward Jones to send the cost basis information for your transferred assets to Vanguard. Vanguard will update your account with this information once received. It's good practice to keep your Edward Jones statements as a backup.