advice on stock ownership with out a broker

[rancher1913]

does anybody have any advice on how to get your stocks away from a broker. I recently inherited some union pacific railroad stock and it currently sits in an account with edward jones. the broker wants me to set up an account with him in order to give me the stock and wants all kinds of personal info. from my research, taxes are not owned by me and all that should be done is change of ownership with union pacifics transfer agent (dont know who that is). anybody here delt with this before. anybody know a trust worthy person to talk to that will give honest info with out trying to sell me. not getting a warm fuzzy feeling with edward jones.

[MaryB]

Run away fro EJ! They had my 401k and ripped me off when I became disabled and needed it to pay bills. I had to get a lawyer and sue them to get my money.

[Winger Ed.]

You'll need to have another place for them to go:

Set up an account with another licensed broker to have them electronically transferred.

Or you can request and get the old style paper certificates from the issuer and hold them yourself.

[rancher1913]

I dont want an account at any broker, if I can help it, why should I have to pay fees to manage a stock I own.

[kens]

From your OP, you need a probate lawyer, not, a stock broker.
inheritance sounds like a probate issue, rather than a broker issue.

[dangitgriff]

I dont want an account at any broker, if I can help it, why should I have to pay fees to manage a stock I own.

Start with your bank, oftentimes they have financial advisors you can talk to for free.
R/Griff

[JimB..]

The information you need is on this page https://www.up.com/investor/faq/

Call the transfer agent at the toll free number provided and tell them that you would like to have the shares issued as you are closing your brokerage account. They will tell you how.

Another option is to open an account somewhere else, like TD Waterhouse, that doesn’t charge a monthly fee. They’ll have you sign a form and with it they’ll pull your shares away from your current broker the next day.

Edit: I failed to note that the shares are in someone elses name. You’ll probably need to provide a certificate of death and a certified letter from the executor of the estate. The transfer agent can help, and if you happen to get someone that’s not helpful just hang up and call back!

[popper]

Unless it is in a trust go to probate, get a lawyer. You have to prove you are the proper receiver. Will helps. Broker just wants to keep it in his account. Bro did the probate thing for Dad, judge just makes sure everything is AOK.

[garandsrus]

There isn’t a fee at a self service broker like TD Ameritrade, E*trade, etc. you will pay a commission when you sell the stock but it should be less than $20.

[hwilliam01]

I have a broker and I trade on my own....it's easy....although not necessarily lucrative. I also hold the certificates for some stocks which I do not recommend. You can set up a self managing service with USAA (if you qualify for USAA). A trade (which I dictate when to see and buy) is usually $8.95 per trade ($8.95 to buy 100, 200, or 300 shares....whatever, and $8.95 to sell same) (except penny stocks).. If you make a certain number of trades in a month you can get the rate down to $5.95 per trade. Not hard to do, but unlikely.

As for owning the certificates, I have about 200 shares stock for a Fortune 500 Aerospace company. The problem is that only broker can buy or sell stock on the market, so if you own them you'll have to give them to a broker for him to sell at the market to get the dollars. This takes time and still requires a commission. I plan on send in the certificates to USAA and using them to start another account so that I can sell them. Right now, if the stock doubled in price and I needed to see, it would literally take days, perhaps a few weeks to sell and the stock may very well be a price that is very different (perhaps half or less than I paid for them) when I want to sell them. Not a wise move!

Sounds like your stock was in an account that may have been part of a nonrevocable trust, based on what you said about the taxes, but I am interpolating here. If that is the case, I would recommend contacting a lawyer. I can recommend one, but she is in Maine.

Bottom line is that someone (preferably not you) will need to hold the certificates, but I would recommend that you set up an account with a self management brokerage firm (TD, AmeriTrade, E*Trade, USAA, etc), or a formal broker like Edward Jones, or Morgan Stanley. I used to use EJ, but switched to Morgan Stanley...they can usually get a better return for you than you can do on your own.

Good LUck! Bill

[Land Owner]

When I inherited multiple stock certificates, and had zero idea what to do with them or how to convert them into my name, I contacted COMPUTERSHARE on line. The transfer form used by Computershare requires a GOLD MEDALION SIGNATURE CERTIFICATE, i.e. a bank that will verify your inheritance and provide the paperwork that proves you to be the rightful owner. There was NO COST for me to obtain these services, either from Bank of America or Computershare.

[6bg6ga]

My Mother in law had annuities thru Bankers Life. When she was in hospice and then in a care facility we needed to tap those resources in able to provide for her needs in the care center at the rate of $5700.00 a month. She had signed slips to allow my wife to cash in a annuity when needed to pay for her expenses. Some of the small ones were in the neighborhood of 20 or 30K. After the wife had used a few of the small ones it was like pulling teeth to even get a hold of the Bankers Life agent. She would have to start hunting him down several weeks prior to her needing to get more funds. We kept her house ready for her in the event she might come home for several years and when it was apparent she absolutely wouldn't be coming home we sold her house and since Bankers Life had been so cooperative we used the funds from the home to pay her bills.

I remember when her estate was done and the Bankers Life agent came to the house with a large check for the wife. He handed it to her with his fingers firmly still grasping the check as he tried to talk her into keeping the money invested with them. This experience has taught me I will never do business with them.

[bedbugbilly]

I'd say thanks but no thanks - the guy at EJ just wants you to set up an account "with him" and probably is playing games to try and make you believe that you "have" to set up an account with him. The stock belongs to you, not him. I've dealt with this a number of times. If you don't have a broker, do your research, talk to others and see who they use, etc. and then make an appointment with the broker to talk with them and find out what they have to offer you. You need t feel comfortable with your broker and have "trust" th they are working for you, not just for them. Once you find a broker you are comfortable with, they can set up and account for you and you will need to provide your information, SS#, address, DOB, etc. - they don't need your tax information to set up and account or do the transfer - the EJ fellow is pushing to become your financial advisor. Once you have your account set up with your selected broker - they'll take care of transferring the assets to your account - you will never have to talk to EJ again unless it is your choice. Stocks used to have certificates issued, but now, it's all electronic. Your "street account" and then be built upon and your broker may suggest a money market account so that the dividends, when paid, can be put in the money market - which you would have full access to. From there, you can supply your checking account information and have it transferred in to that account if you wish, or, you can just let it sit, collect whatever interest on it that the money market is paying and have the funds available if needed. If you wish to purchase more stocks, your broker will work with you and advise you, when additional shares of any stock are purchased, they will be in your street account. Brokerage houses vary and you may be charged a yearly "service charge" if there is no activity in your street account as far as sales or purchases from which the broker gets a commission (he has to eat as well). At the end of the year, you'll receive a 1099 showing your dividends and any interest to file with your taxes.

[rancher1913]

thanks jimb and land owner that heads me in the right direction. all the legal **** and probate stuff is done, the stocks just have to be put in my name, thats it, but the people at edward jones are trying to keep the stocks inhouse and charge me fees, and are telling me its the only way. anytime a money man says that I know they are untrustworthy

[MostlyLeverGuns]

I have been with Charles Schwab since 'before the Internet' (80's), have been very pleased, they do not bother you, but do help. Your bank might be another place. In today's world, stock certificates are seldom held by individuals with your name on them. Mostly your brokerage account just says you own them, they are in the brokerage account's ledgers. You can keep them with your name on in a safety deposit box, but it is inconvenient. I no longer know how fees and dividends work for stocks held by the individual. Our investments,retirement are with large brokerages with dividends updated in the accounts. Fees depend on how much in your account, what brokerage you are using, and how much activity/trading you have. Edward Jones will follow the law, but will try to keep your investment in their hands. Long ago I purchased stock as an employee and the stock certificates were sent to me when I left. I took those certificates to Charles Schwab when I decided to sell.

[popper]

I do recommend TD-ameritrade, had some stock with them I sold and they got it done right away(same day). There was/is a problem with worthless stock they can't figure out how to get off their books - still get a statement from them - penny stock in a defunct company. Brokers get a fee from what the manage and you do pay a fee on sales. Did you verify that taxes have been paid on gains previous to transfer to you? Else even if you inherit, gains taxes will be due by you. You may not be able to claim capital gains taxes either. Before transfer I'd talk to a good tax guy. If your probate lawyer did it right, taxes were paid already, you would owe for gains after transfer. I got caught on this when MIL passed and spouse got a distribution. Taxes took a big chunk of it. Yup, no inheritance tax but the get their money anyway.

[Petrol & Powder]

Obviously the broker the OP is dealing with acknowledges the stocks belong to the OP, otherwise he wouldn't be trying to get the OP to sign up as a new client.

That broker thinks the OP is gullible and the broker is trying to roll his old (now dead) client, into a new client (complete with fees).

The stocks belong to the OP and the broker KNOWS it. I wouldn't do business with that crook even if the terms were favorable.
My advice to the OP is to set up and account with another broker, transfer the stocks to that new account and tell Edward Jones where to go.

[rancher1913]

that sums it up fairly good P&P except that I do not want any brokers. should be a way to own stocks with out a middle man, just need to figure it out and I'm out of my element with this.

[jonp]

Set up an account with TD Ameritrade. They will help you with the transfer. I've had an account both IRA and Roth with them for several years. Their advice is very sound.

Open an account with as few hundred bucks then call them. They will tell you how to get the transfer done.

[Petrol & Powder]

that sums it up fairly good P&P except that I do not want any brokers. should be a way to own stocks with out a middle man, just need to figure it out and I'm out of my element with this.

Then I think you follow JimB's advice. Contact Union Pacific, provide the documentation that you are the rightful owner of the stock and have the stock transferred to your ownership. I would rather get the stock out of the care of Edward Jones FIRST, before I stated trying to divest myself of a broker.

Remember, at this point we're not talking about an actual paper certificate - you're merely the registered owner. It's kind of like a bank account, there's no pile of cash in a vault with a post-it note stuck on it that says, "this is John Smith's money".
This is why people are suggesting you have another broker lined up to "take" the stock (even though they are just taking an electronic record of the stock).

Union Pacific may be able to register you as the owner and if that's the case, maybe letting them do that would be the next best thing.
Frankly I think having another broker, even a discount firm like Ameritrade, handle it for you makes more sense. Let someone else handle the nuts and bolts; you'll still be the "owner".

[alamogunr]

I know this won't ease the OP's mind, but I have been investing in stocks(mutual funds) first within a retirement plan with an employer, then with a successor employer's 401k. When I retired, I had Fidelity roll my 401k into an IRA. That was over 13 years ago. Since then, Fidelity has managed my account with only limited input from me(aside from fees). I have made several changes, some at the recommendation of the Fidelity representative, some at my instructions. All have been handled quickly and accurately.

It sounds like the OP doesn't trust anyone to have custody of his financial assets. No amount of reassurance will change that. I have a friend that almost goes to the point of burying his savings in the back yard. He honestly believes that he comes out ahead by not losing a penny to others dishonesty rather than being paid interest.

[rancher1913]

close but not quite right alamogunr, I just dont see the need for a middle man holding agent who collects a fee for doing nothing. these were my grandfathers stock and I have no plans on ever selling them, and dont need the paper certificate, so long as union pacific says they are mine I'm good.

[alamogunr]

My apologies, rancher. I made a leap and missed the mark. I'm not very organized so I do better letting someone else keep track of things $ wise.

[Stewbaby]

Ditto the Fidelity or Vanguard route...I manage my own thru them.

[JimB..]

close but not quite right alamogunr, I just dont see the need for a middle man holding agent who collects a fee for doing nothing. these were my grandfathers stock and I have no plans on ever selling them, and dont need the paper certificate, so long as union pacific says they are mine I'm good.

They’ll send you a certificate, it’ll probably look pretty cool.

Someone commented about taxes. The value of the shares automatically goes up to the value at the date of the owner’s death. When you inherit them you owe no taxes for that increase in value or anything prior. When you sell (I know that you don’t plan to) the gain would be calculated from the value at the date of death.