What to do with inherited bonds?
I have 5 different bonds I inherited that are being held at Edward Jones. I want to get them away from Edward Jones (either transfer or liquidate) All of them are municipal-fed tax exempt and 2 are from my state so I don't pay state tax on either. All 5 have a maturity value of $5,000, but they show different current values (guessing that's what they could be sold for now if I liquidate)
#1 value $5,130 matures June 2016 rate 5%
#2 value $5,030 matures July 2016 rate 4.25%
#3 value $5,600 matures April 2021 rate 4.0%
#4 value $5,500 matures October 2023 rate 4.15%
#5 value $5,000 matures July 2029 rate 4.55%
I have a taxable account with vanguard using index funds and would probably be where I'd roll them to if I liquidate them. Looking for advice on keeping them or not and how to get them away from Edward Jones
Posted Feb 27, 2016, 1:28 PM UTC
[deleted]
I'm wanting to get them away from Edward Jones. I've read they charge high fees and I can't find any info on what they're charging to hold the bonds.
Another option I was looking into was moving the money to a high interest checking account I found.
https://www.myconsumers.org/personal/checking/free-rewards-checking.html
4.59% apr, there's a few hoops to jump through but nothing I couldn't easily meet. Doing that would get me about the same rate and I'd know there's no fees.
Why don't you just ask the EJ advisor? I'm one, so let me answer for you. If it's a regular brokerage account there's no fee for the account, nor a fee to have them at EJ. If it's an IRA (which I doubt since they're muni bonds) there's an annual fee.
Thanks, I'll ask. What benefit does EJ get from holding the bonds if there's no fees?
They are part of a retirement plan (or were since they're inherited). There is no benefit to EJ, the benefit is for the client.
I hate EJ, but most of their clownish fees are charged up front on bonds. You may just want to sit tight.