Edward Jones (funds, pay, creditors, account)

[Tressa]

Not sure if I can ask this or not but does anybody have an idea what percentage the above charges for managing a 72T account

[StealthRabbit]

I haven't used then for many (many) years, but... I am very leary of the depth of knowledge some of the independents have.

I would do my 72T out of Vanguard or Fidelity, hopefully in a self managed fund. BUT... do be careful, the valuable warning I got on the 72T was to be very cautious on your investments (and start with a much bigger balance than expected need); as withdrawals are constant. You certainly don't want to drain the account BEFORE it matures, or you owe tax / penalty on the ENTIRE original balance !!!

I wouldn't trust some 'bootcamp' investment adviser with that choice. (Not to incriminate EJ's, there are plenty of 'green-horns' in that line of business, more than enough to go around...)

[Tressa]

Yikes that's pretty scary, I'm just not sure what to do with our funds I can leave them where they are at and make withdraws twice a year without fees. Hmm interesting

[truckingbronco]

I knew several people who started working for Ed Jones right out of college. It's a sales job and they seem to have the "throw it against the wall and see what sticks" hiring philosophy.

[StealthRabbit]

Originally Posted by Tressa

Yikes that's pretty scary, I'm just not sure what to do with our funds I can leave them where they are at and make withdraws twice a year without fees. Hmm interesting

I expect EJ would be 2% of total account annually (that would be VERY expensive, since you are only needing some distributions)

If you can get at it twice / yr, that seems adequate with some planning, and with some emergency funds set aside (but isn't there 'no fee' withdrawal provisions for emergencies?.)

Would these funds be coming from a 401k and into a Rollover IRA? (you can't 72T from a 401K) But you can from an IRA. The dilemma I faced was having to roll the entire 401K just to get a 72T. I'm still 8 yrs away from being able to tap, but I was not comfortable in rolling the 401K, as I have good investment options, and the money is safe from creditors in 401K (It may not be in an IRA, it depends on the litigation)

I was advised to set up more than one 72T, if necessary, (splitting into smaller IRAs / 72T from a larger IRA) but to be conservative in doing so. (as you are eroding your nest egg, which is fine if it is big enough)

If it is already in an IRA, then you could parcel off a chunk for a minimal 72T and still take semi annual distributions from the main pot IRA if needed. Again, I would look to a self managed method, and costs under 0.5%

btw... For adequate / necessary interim cash flow, I'm just doing some part-time consulting and running some 'recreational' businesses + doing real estate land deals to fund myself for as long as possible, but basically I'm just earning enough to pay property tax, minimal food, and car and LTC insurance. The DS is bring home health benefits by working part-time. (which is a good thing since I'm on my way home from the emergency room...boy do I hate doing stupid and painful things to myself...). Some folks can get by with marketing a hobby (bees, woodworking, sewing, garden produce...)

[Tressa]

going to take a lot of research, we were going to roll 200,000 into the T72 and 200,000 into long term ira but now not too sure,may just make the two withdraws without penality. As long as I can plan it right I can bank it for minimum return but at least have the money available for the bills that come in, we will also have a pension along with this