LPL Financial Transfer- Newbie

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DestroyingAngel
Posts: 2
Joined: Thu Sep 13, 2018 2:35 pm

LPL Financial Transfer- Newbie

Post by DestroyingAngel » Thu Sep 13, 2018 2:56 pm

I'm a new investor and admittedly have much to learn. I inherited 30K worth of bank stock, and it's recovered enough over the past 9 years to warrant my desire to diversify that stock. I asked my credit union for advice, and they referred me to LPL financial (who they have some sort of agreement with). My broker works for the credit union but invests through LPL (who my account is now with). Long story short, I've been with LPL for 5 months, and don't like their monthly fees (about $140 a month), and I've also put in another 5K into the investment account. I googled LPL reviews and found this site, which doesn't seem to be a big fan of that firm. I purchased Boglehead's guide to investing, and haven't even read half of it, before deciding that i'm very interested in Vanguaard for my long-term investment strategy. Mainly, keep what I have (don't sell anything) and start my bi-monthly investment strategy with Vanguaard as I learn how to invest on my own, and make purchases myself.
-Does anybody know if firms like LPL charge an early withdrawal fee? (yes, I should have looked into this before I signed up).
-If I move this portfolio over to Vanguaard, I would think that since I own the mutual funds, etc, that they would just transfer right over?
-This portfolio is as follows. What are your thoughts on investments for this account?
-Bank Loan (4.05%)
-Cash and Equiv (2.98%)
-Int Long Hi Qual US Bond (11.51%)
-Large For Eq (6.97%)
-Large US Gro Eq (20.21%)
-Large US Val Eq (22.17%)
-Mid Cap US Gro Eq (3.96%)
-Mid Cap US Val Eq (3.82%)
-Small US BI Eq (6.98%)
-Sector (2.96%)
-Small For/Em Mkt Eq (10.55%)
-Small US Val Eq (3.84%)

Thanks for your help and patience with me. I can't imagine how frustrating this must be to read, but i'm eager to learn, and most importantly, i'm aggressively doing that. I know i'm going to lose some money with transferring, but I would rather learn my lesson now than down the road. Time is, after all, money. Thanks.

Jack FFR1846
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Joined: Tue Dec 31, 2013 7:05 am

Re: LPL Financial Transfer- Newbie

Post by Jack FFR1846 » Thu Sep 13, 2018 4:59 pm

That fee is stupid high. I pay 1/3 of that total on 2.3 million dollars invested. Don't worry about the exit fee because you're going to pay it regardless. Move the money out now. If you're going to Vanguard, call them now and get the ball rolling.
Bogle: Smart Beta is stupid

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David Jay
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Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: LPL Financial Transfer- Newbie

Post by David Jay » Thu Sep 13, 2018 8:15 pm

Just to reinforce what Jack said, always work with the financial institution that is receiving the funds because they have a vested interest in having things go smoothly.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: LPL Financial Transfer- Newbie

Post by livesoft » Thu Sep 13, 2018 8:35 pm

The first red flag for me was "and it's recovered enough over the past 9 years to warrant my desire to diversify that stock" because recovery is not a criteria for selling a stock. Indeed, it is often better to sell at a loss. But that's another discussion for another thread.

I haven't used LPL financial, but it should not matter now if LPL charges an early withdrawal. Investing is ALL about losing money. If you are losing money then you aren't investing.

I think you should read and learn some more, not give LPL any more money, and then rip the band-aid right off and sell or transfer assets to someplace that charges no fees. Good luck!
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DestroyingAngel
Posts: 2
Joined: Thu Sep 13, 2018 2:35 pm

Re: LPL Financial Transfer- Newbie

Post by DestroyingAngel » Thu Sep 13, 2018 10:28 pm

Thanks all of you, for the advice. I really appreciate it. I will absolutely move the funds. Regarding the stock I inherited, at one time it was worth 40 dollars a share. By the time I inherited it from my grandparents (9 years ago), it was worth $5.00 a share (thanks to the recession). Long story short, I've held onto that stock for 9 years or so, it had partially recovered value up to $21 a share, at which point I decided that I was tired of holding it (wondering if it would ever get back up to $40), and so I've decided to diversify it, and start another retirement portfolio. And here I am. Thanks again.

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