Ready to take control of your investments and potentially save on fees? Transferring your accounts from Edward Jones to Schwab can be a smart move for many investors, offering a broader range of investment options, commission-free trading on many securities, and often lower overall costs. While it might seem daunting, the process is quite straightforward when you know the steps.
Let's dive into a comprehensive, step-by-step guide to make your transition as smooth as possible!
Step 1: Are you ready to make the switch? Assess Your Needs and Edward Jones Account
Before you even think about Schwab, it's crucial to understand what you're currently holding at Edward Jones and what you're looking for in a new brokerage. This initial self-assessment will make the entire transfer process much smoother.
1.1 Review Your Edward Jones Accounts and Investments
- Gather your statements: Collect your most recent Edward Jones account statements (at least the last three months, if possible). These will provide critical information about your account numbers, asset types, and current holdings.
- Understand your holdings:
- What types of accounts do you have? Are they brokerage accounts, IRAs (Traditional, Roth, SEP), 401(k)s, 529 plans, or something else? Note the exact account types.
- What are your investments? List out all your individual stocks, ETFs, mutual funds, bonds, CDs, annuities, etc. Pay close attention to any proprietary Edward Jones mutual funds or products, as these might require special handling (e.g., liquidation) or may not be directly transferable to Schwab.
- Are there any restricted securities? Sometimes, certain company stock options or private investments might have transfer restrictions.
- Check for outstanding fees or pending transactions: Ensure there are no pending trades, uncashed checks, or outstanding fees that could delay the transfer.
1.2 Understand Edward Jones's Fees for Transfers
Edward Jones does charge fees for transferring out accounts. It's important to be aware of these costs so you're not surprised.
- Full External Transfer: Edward Jones typically charges a fee for a full transfer of an account to another institution. As of recent information, this can be around $135 for a full transfer.
- Partial External Transfer: If you're only moving some assets, there might be a fee for a partial transfer, which could be around $50.
- Other potential fees: Depending on your specific account type and holdings, there might be other minor fees associated with account closures or specific asset transfers. Always consult the Edward Jones "Schedule of Fees" document or speak directly with your Edward Jones financial advisor for the most up-to-date and accurate fee information.
Step 2: Open Your New Charles Schwab Account(s)
With a clear picture of your Edward Jones holdings, it's time to set up your new home at Schwab.
2.1 Choose the Right Schwab Account Type(s)
Schwab offers a wide array of account types. You'll want to open accounts that mirror your Edward Jones accounts to ensure a smooth "in-kind" transfer, which avoids triggering taxable events (unless you specifically intend to liquidate assets).
- Brokerage Accounts: For general investment purposes.
- Traditional IRA, Roth IRA, SEP IRA: For retirement accounts.
- Rollover IRA: If you're moving a 401(k) or other employer-sponsored retirement plan, a Rollover IRA is often the best choice.
- Custodial Accounts (e.g., UTMA/UGMA): For accounts held on behalf of a minor.
- Trust Accounts: If your Edward Jones account is held in a trust, you'll need to open a corresponding trust account at Schwab.
2.2 Initiate the Account Opening Process
- Online Application is Easiest: Charles Schwab has a robust online platform that makes opening new accounts relatively simple. Visit Schwab's website (schwab.com) and navigate to the "Open an Account" section.
- Provide Personal Information: You'll need to provide standard personal details, including your Social Security number, address, employment information, and financial details.
- Funding Your Account (Optional but Recommended): While you're primarily transferring assets, you might want to fund your new Schwab account with a small amount of cash initially. This can help activate the account and give you a feel for the platform before the full transfer. You can link your bank account for easy electronic transfers.
- Consider Referral Bonuses: Schwab often has referral programs or transfer bonuses for new clients. If you know an existing Schwab client, ask them for a referral code, as this could net you a bonus based on the amount you transfer. Always check the terms and conditions of any bonus offer, as they typically require a minimum deposit and a certain holding period.
Step 3: The Heart of the Transfer: Initiating the Transfer of Assets (TOA)
This is the most critical step. Schwab will initiate the transfer on your behalf, so you generally don't need to directly contact Edward Jones to tell them you're leaving.
3.1 The Schwab Transfer of Assets (TOA) Form
- Access the TOA Tool: Once your Schwab account is open, log in and look for a "Move Money" or "Transfer Accounts" section. Schwab has an online asset transfer tool that guides you through the process.
- Choose "Transfer from Another Firm": Select the option to transfer assets from an external institution.
- Specify Edward Jones: You'll be prompted to select Edward Jones as the transferring firm.
- Enter Edward Jones Account Details: This is where those Edward Jones statements come in handy. You'll need to provide:
- Edward Jones account number(s).
- The exact account type(s) (e.g., Individual Brokerage, Traditional IRA).
- The name(s) on the Edward Jones account(s) - these must exactly match the names on your new Schwab account(s) for a smooth transfer. If there are any discrepancies (e.g., a name change due to marriage, or a slightly different name on a trust), you'll need to provide additional documentation (e.g., marriage certificate, court order) to Schwab.
- Select What to Transfer:
- Full Transfer (Recommended for simplicity): This is generally the easiest option. You select "Transfer All Assets" and Schwab will attempt to move everything from Edward Jones to the corresponding Schwab account.
- Partial Transfer: If you only want to move specific investments, you'll need to list them by name, ticker symbol, and the number of shares. This can be more complex and may incur additional fees from Edward Jones.
- In-Kind Transfer vs. Liquidation: Unless you specifically want to sell your investments, always choose "in-kind" transfer. This means your investments (stocks, ETFs, mutual funds, etc.) are moved as is without being sold, avoiding potential capital gains taxes. Most publicly traded securities can be transferred in-kind.
- Attach Supporting Documents: You will likely need to upload a copy of your most recent Edward Jones statement (dated within the last 90 days). This helps Schwab verify your holdings and account details.
3.2 Authorize the Transfer
- Electronic Signature (E-Signature): Schwab's online process often allows for electronic signatures, making it quick and convenient.
- Wet Signature (if required): In some cases, especially for complex accounts or if you prefer, you might need to print, sign, and mail/fax the forms to Schwab.
- Schwab Submits the Request: Once you've completed and authorized the TOA form, Schwab will send the request to Edward Jones.
Step 4: Monitor and Follow Up
The transfer process isn't instant. It requires coordination between Schwab and Edward Jones.
4.1 Track Your Transfer Progress
- Schwab's Online Tracking: Schwab usually provides an online tool where you can track the status of your transfer. This is your primary way to monitor progress.
- Timeline Expectations:
- Most direct account transfers (ACATS - Automated Customer Account Transfer Service) typically take 3-5 business days once Schwab submits the request to Edward Jones.
- However, complex transfers involving non-standard assets, proprietary mutual funds, or accounts with discrepancies can take longer, sometimes weeks or even a few months.
- Be patient, but also proactive.
4.2 Be Prepared for Communication
- Schwab may contact you: If there are any issues or if additional information is needed, Schwab will reach out to you. Respond promptly to any requests.
- Edward Jones may contact you: Your Edward Jones advisor might call you to understand why you're leaving or to try and retain your business. Be prepared to explain your reasons politely and firmly if you've made your decision. You are not obligated to discuss your reasons in detail.
Step 5: Post-Transfer Actions
Once your assets have landed at Schwab, there are a few important steps to complete.
5.1 Verify Transferred Assets
- Check your Schwab account: Once the transfer is complete, meticulously check your Schwab account to ensure all expected assets have been transferred correctly and the quantities match your Edward Jones statements.
- Confirm Cost Basis: It's crucial that your cost basis information (the original purchase price of your investments) transfers correctly. This is vital for calculating capital gains or losses when you eventually sell assets. If you notice discrepancies, contact Schwab's customer service immediately.
5.2 Reconcile Any Remaining Edward Jones Accounts
- Small Residual Balances: Sometimes, small cash balances or fractional shares might be left behind at Edward Jones. Edward Jones might mail you a check for these residual amounts or liquidate fractional shares.
- Official Account Closure: While a full transfer typically closes the Edward Jones account, it's a good idea to confirm with Edward Jones that the account is officially closed and there are no lingering obligations or fees.
5.3 Adjust Your Investment Strategy (if needed)
- Explore Schwab's Offerings: Now that your assets are at Schwab, take time to explore their platform, research tools, and investment options. You might find new ETFs, mutual funds, or other products that better align with your financial goals and Schwab's lower fees.
- Rebalance Your Portfolio: This is a good opportunity to review and potentially rebalance your portfolio in line with your current risk tolerance and financial objectives.
- Set Up Online Access and Features: Familiarize yourself with Schwab's online access, mobile app, statements, and any features like bill pay or checking accounts if you plan to utilize them.
Step 6: Leverage Schwab's Resources
Schwab is known for its strong customer support and extensive resources. Don't hesitate to use them!
- Customer Service: Schwab has dedicated customer service lines for transfers. Their general brokerage services line is also very helpful. (800-435-4000)
- Financial Consultants: Schwab offers access to financial consultants who can help you with portfolio reviews and investment guidance, often without additional fees (though other account fees or product expenses may still apply).
- Educational Resources: Schwab provides a wealth of educational materials, articles, and webinars on investing, retirement planning, and more.
Related FAQ Questions:
Here are 10 common "How to" questions related to transferring accounts, with quick answers:
How to find my Edward Jones account number?
Your Edward Jones account number can be found on any of your Edward Jones account statements, online access portal, or by contacting your Edward Jones financial advisor.
How to transfer partial assets from Edward Jones to Schwab?
When filling out the Schwab Transfer of Assets (TOA) form, select the "partial transfer" option and specify the exact securities (ticker symbol and quantity) you wish to transfer.
How to avoid taxes when transferring investments?
To avoid immediate tax implications, always opt for an "in-kind" transfer (moving investments as they are) and ensure the account types match between Edward Jones and Schwab (e.g., Traditional IRA to Traditional IRA). Liquidating assets will trigger capital gains or losses.
How to track my transfer progress to Schwab?
Once you initiate the transfer with Schwab, you can typically track its status through your Schwab online account portal, usually in the "Move Money" or "Transfers & Payments" section.
How to deal with proprietary Edward Jones mutual funds?
Proprietary Edward Jones mutual funds may not be directly transferable to Schwab. You'll likely need to either liquidate them at Edward Jones (which could trigger taxes) or convert them to a different share class or fund type that Schwab supports before the transfer. Consult with both Edward Jones and Schwab.
How to consolidate multiple Edward Jones accounts into one Schwab account?
You can consolidate similar account types (e.g., multiple Traditional IRAs into one Schwab Traditional IRA) by initiating a transfer for each Edward Jones account to the single target Schwab account. Ensure the account ownership details match.
How to transfer a 401(k) from Edward Jones to Schwab?
If your 401(k) was held at Edward Jones (often as an IRA Rollover after leaving an employer), you would initiate a direct rollover transfer to a new or existing Schwab Rollover IRA. This is generally done in-kind to avoid tax penalties.
How to contact Schwab customer service for transfer issues?
You can contact Schwab's general brokerage services at 800-435-4000. They have dedicated teams that can assist with account transfers and any questions or issues that arise.
How to ensure all my cost basis information transfers correctly?
While Schwab requests cost basis information from Edward Jones during the transfer, it's wise to keep your Edward Jones statements. After the transfer, meticulously review your Schwab account to confirm the cost basis for each security. If there are discrepancies, contact Schwab immediately with your Edward Jones statements as proof.
How to confirm my Edward Jones account is closed after the transfer?
After the transfer is complete and you've verified all assets are in your Schwab account, you can contact Edward Jones directly to confirm that your previous account(s) have been officially closed and that there are no remaining balances or pending items.
