Page 1 of 1

Help Moving All My Investments to Vanguard

Posted: Wed Jul 26, 2017 2:16 pm
by GoldieFin
I'm new to posting on this forum and I’m looking for advice on how to merge and simply my accounts so that I can manage them myself. Currently the funds are split between Vanguard funds and funds managed with TD Ameritrade for 1%. I plan to move my accounts from TD Ameritrade to Vanguard and manage all accounts myself. The funds are in the low-mid six figure range and are mainly beneficiary accounts. I don’t need access to the funds in the short-term so I am interested in long-term investing.

Below I’ve included my current retirement assets as well as the mix I am considering switching to.

Emergency funds: six months
Tax Filing Status: Single
Tax Rate: 10% or 15% Federal, 0% State
Desired Asset allocation:90% stocks (50%US/40%Intl/10%REITS)/ 10% bonds
Desired International allocation: 40% of stocks

Current retirement assets

Taxable at Vanguard
11% Vanguard Total Stock Market (VTSAX)

Taxable at TD Ameritrade
3.2% iShares Core MSCI Emerging Markets ETF (IEMG)
3% iShares Core S&P500 ETF (IVV)
0.6% iShares US Energy (IYE)
0.8% iShares MSCI EAFE Small-Cap ETF (SCZ)
0.7% Vanguard Small-Cap Index Fund ETF (VB)
0.4% Vanguard REIT Index Fund ETF (VNQ)
2.4% Vanguard Midcap ETF (VO)

Roth IRA at Vanguard
3.3% Target Retirement 2050 (VFIFX)

Inherited IRA at Vanguard
10.6% Target Retirement 2060 (VTTSX)

Inherited IRA at TD Ameritrade
60.7% Various Stock Funds

Inherited Roth IRA at TD Ameritrade
3.3% Vanguard Long-Term Bond Index Fund (VBLIX)

Contributions
None this year – No earned income


Proposed New Allocations with Accounts Merged at Vanguard

Taxable at Vanguard
11% Vanguard Total Stock Market Index Admiral Shares (VTSAX) (0.04%)
11.1% Vanguard Total International Stock Index Admiral Shares (VTIAX) (0.11%)

Roth IRA at Vanguard
3.3% Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%)

Inherited IRA at Vanguard
9% Vanguard REIT Index Fund Admiral Shares (VGSLX) (0.12%)
34% Vanguard Total Stock Market Index Admiral Shares (VTSAX) (0.04%)
24.9% Vanguard Total International Stock Index Admiral Shares (VTIAX) (0.11%)
3.4% Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%)

Inherited Roth IRA at Vanguard
3.3% Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%)

Totals:
45% VTSAX, 36% VTIAX, 9% VGSLX, 10% VBTLX

Questions:
1. Looking for feedback on my proposed new allocation. Are there ways to improve it while keeping it easy to manage? (Note: I will rebalance once a year and over time adopt a more conservative stock/bond allocation split.)

2. Some of the assets in my taxable TD Ameritrade account will have short-term capital gains if I sell them before next June. Should I just go ahead and sell everything right away after i transfer my assets? Or should I wait a year to sell assets purchased less than a year ago?

Re: Help Moving All My Investments to Vanguard

Posted: Wed Jul 26, 2017 3:01 pm
by PFInterest
You could leave them at TD. Just stop paying the mgmt fee and pick the index funds you want.

Re: Help Moving All My Investments to Vanguard

Posted: Wed Jul 26, 2017 3:14 pm
by Avo
Welcome to the forum!

Condolences on the personal losses that led to the inherited IRAs.

I assume you know that you have annual required minimum distributions from all the inherited IRAs:
https://investor.vanguard.com/inherit/ira-rmd?lang=en

Your Roth and the inherited Roth grow tax free, so stock funds should go there (since they grow faster). Put all your bonds and REITs into your inherited traditional IRAs. Taxable should be all stocks.

Your allocation is fine and easy to manage. I would skip REITs, but that's just one opinion.

If you have significant capital gains, I would wait until they become long term.

Vanguard will charge you $7 for each non-Vanguard ETF trade.

Congratulations on getting your finances in good order at an early age!

Re: Help Moving All My Investments to Vanguard

Posted: Wed Jul 26, 2017 5:01 pm
by GoldieFin
Thanks for the feedback, Avo.

I am on the fence about REITs, so I may leave them out and split my stocks 50/50 between domestic and international. Per your note, I'll make both of the Roths all stocks.

I didn't know about the Vanguard charges, so I'll compare them to TD.

Again, thanks for taking the time to give advice!