Yet another “I’m leaving Ameriprise” post

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
UpwardTrend
Posts: 4
Joined: Sun May 20, 2018 8:05 pm

Yet another “I’m leaving Ameriprise” post

Post by UpwardTrend » Sun May 20, 2018 8:58 pm

Hello all,

Brand new and first post, but I’ve been reading the forum for several months now. I’ve had an awakening and I know I need to move my retirement funds from Ameriprise to Vanguard. I’ve done a forum search on this topic and have learned a lot, but need either validation or correction on my exact steps.

I currently have 2 accounts with Ameriprise: one rollover IRA, and one Simple IRA.

I currently have a Vanguard account with only taxable mutual funds (VTSAX and VFIAX)

Is this what I need to do?

1. Set up a traditional Vanguard IRA (in addition to the taxable account I already have)
2. Contact Vanguard to initiate an in-kind transfer for the funds in my Ameriprise account (I did a search, and I believe all 10 funds can be transferred. I also had a moment of unpleasant realization when I discovered the fees and expense ratios I’ve been paying for the past 10+ years.)
3. Once this has been initiated, send the Dear John email to my advisor at Ameriprise, and he will undoubtedly try to keep me.
4. Once the funds have been transferred, I can then sell the old Ameriprise funds and buy the Vanguard funds and use the 3-fund portfolio approach.

Any holes in my thinking? Will Vanguard be as helpful as I’m hoping they’ll be in handling the transfer?

Thanks much.

User avatar
David Jay
Posts: 5677
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Yet another “I’m leaving Ameriprise” post

Post by David Jay » Sun May 20, 2018 9:41 pm

3. No need to send the Dear John letter. Just hop on the bus, Gus.
4. Ask the Vanguard advisor where to sell which funds. It may be cheaper to sell at Ameriprise - or not. I don’t know, so ask the Vanguard rep.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

amateurnovice
Posts: 167
Joined: Wed Mar 11, 2015 1:56 pm

Re: Yet another “I’m leaving Ameriprise” post

Post by amateurnovice » Sun May 20, 2018 9:48 pm

This is minor but I don't see the point in holding both VFIAX and VTSAX in the same account or even in the same portfolio.

Extra exposure to large caps is all you get by holding both. Drop VFIAX and add a total international fund and total bond fund.

UpwardTrend
Posts: 4
Joined: Sun May 20, 2018 8:05 pm

Re: Yet another “I’m leaving Ameriprise” post

Post by UpwardTrend » Mon May 21, 2018 11:00 am

Thanks for the responses. Good idea to check with Vanguard to let them tell me what the best way is to handle it.

Do I need to use the Personal Advisor Services for this, or can regular ‘ole Vanguard reps take care of me?

ExitStageLeft
Posts: 981
Joined: Sat Jan 20, 2018 4:02 pm

Re: Yet another “I’m leaving Ameriprise” post

Post by ExitStageLeft » Mon May 21, 2018 11:11 am

We just rolled over a couple of IRAs from Janus Henderson and the regular Vanguard staff were very helpful. It's not a quick process, and we had to sell some assets that couldn't be transferrd in kind. But the Vanguard folks will walk you through it.

Post Reply