Advice on Transferring Assets to Vanguard

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FAR15
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Joined: Wed Aug 15, 2018 11:14 am
Location: NC

Advice on Transferring Assets to Vanguard

Post by FAR15 » Tue Oct 23, 2018 8:04 am

Hi all ... I'd be really grateful for any advice. My wife and I have a majority of our retirement assets in TSP, but have about $92K with Ameriprise (in two Roth IRAs and a non-qualified account) which plan to transfer to Vanguard. Retirement timeline: at least 15 years from now. My plan was to liquidate all investments at Ameriprise (mostly high expense ratios) and then transfer over to new Roth IRAs and a non-qualified account at Vanguard. The process may take several weeks. With the current stock market falling and unstable, does it make sense to do that now, or to wait a bit, or (in the case of funds which will transfer over) to transfer those expensive funds and wait for an opportune market time to sell & transfer assets to Vanguard funds?

Ameriprise Accounts:

1. My Roth IRA: Ameriprise Brokerage: $18,178.43
Owner: Ameriprise Trust Company, c/o me, as Custodian for me
Roth IRA
Tax Status: Qualified
Holdings:
-Cash: $4,408.86
-ETF (RDIV: Oppenheimer S&P Ultra Dividend Rev ETF): $3,237.04
-Mutual Funds: $10,532.53
a) CLSCX: $2,832.54
b) MCGWX: $4,822.36
c) OSMCX: $2,877.63

2. My wife's Roth IRA (for whatever reason, a variable annuity inside a Roth): $52,892.44
Holdings: RVS RAVA 4 SELECT Q
Owner: Wife
Tax Status: Qualified

3. Joint Account, Ameriprise One Account: $20,632.59
Owner: me and my wife JT TOD
Tax Status: Non-Qualified
Holdings:
-Cash: $3,306.23
-ETF (RDIV: Oppenheimer S&P Ultra Dividend Rev ETF): $4,328.60
-Mutual Funds: $12,997.76
a) MCGWX: $6,118.96
b) MCLOX: $2,942.05
c) MMHCX: $3,936.75


-RVS RAVA 4 SELECT Q is Ameriprise proprietary and must be liquidated. Liquidate now and transfer cash to Vanguard, or wait for certain market conditions?
-RDIV ETF can be transferred over, and purchased through Vanguard as well (but 0.39% management fees). Liquidate at Ameriprise now and transfer, or transfer RDIV over and wait for market conditions to liquidate and move to Vanguard funds?
-MCGWX, MCLOX, MMHCX, CLSCX, and OSMCX can be transferred to Vanguard but not purchased from Vanguard. Liquidate at Ameriprise now and move funds to Vanguard, or transfer and wait for market conditions before selling and purchasing Vanguard funds?
-For all liquidated funds transferred to Vanguard, would you recommend buying funds now, waiting for market conditions before buying funds, or dollar cost averaging of several months?

Thanks in advance for any input.
-Dan

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

Re: Advice on Transferring Assets to Vanguard

Post by Jack FFR1846 » Tue Oct 23, 2018 8:11 am

Have you sent a statement of each account to Vanguard and asked if they can transfer in kind? That's the first step. If so, then you are not out of the market for even a second. If not, then make your decisions.

When I moved money from Fidelity, Vanguard told me that they could move in kind or have Fidelity liquidate. These were proprietary Fidelity funds and they were no issue for Vanguard. The only downside to that is that liquidating at Fidelity cost $0 per fund and at Vanguard $75 per fund.
Bogle: Smart Beta is stupid

FAR15
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Joined: Wed Aug 15, 2018 11:14 am
Location: NC

Re: Advice on Transferring Assets to Vanguard

Post by FAR15 » Tue Oct 23, 2018 9:44 am

Vanguard told me they can transfer over everything over except for the approx. $50K RVS RAVA 4 SELECT Q account (variable annuity in a ROTH IRA) which must be liquidated.

If I transfer the mutual funds and the ETF, those are all very high expense-ratio holdings. Do you think it would be better to keep them in those vehicles for the time being rather than lose market exposure for a month?

Lafder
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Location: East of the Rio Grande

Re: Advice on Transferring Assets to Vanguard

Post by Lafder » Tue Oct 23, 2018 9:54 am

I would talk with Vanguard on the phone and they can get Ameriprise on the phone so you can both hear the costs of liquidating all cash and moving that vs moving in kind what you can and cashing what you cant.

VG can tell you the costs on their end for selling once it gets to them.

The time out of the market will be insignificant in the big picture. There is as much a chance you will be saved from a crash as you will miss out on some gains.......... It is doubtful it will be out of the market a month, even if they insist on mailing you a paper check to then send to VG which I have had to deal with several times when moving accounts..................

I would sell to cash wherever it costs the least.

The rep can help you set it up so you have the accounts waiting to receive the $$, and have you call back when the funds arrive and are available, or do the transactions online.

lafder

FAR15
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Joined: Wed Aug 15, 2018 11:14 am
Location: NC

Re: Advice on Transferring Assets to Vanguard

Post by FAR15 » Tue Oct 23, 2018 10:03 am

Thanks. Vanguard walked me through the process of setting up receiving accounts over the phone. The only account that requires paperwork submission is the >$50K account which requires a Medallion signature guarantee. Vanguard also thought it would be cheaper to have Ameriprise liquidate than to pay Vanguard $10 for each fund to do so. A phone call with both parties might be helpful - thanks.

mhalley
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Joined: Tue Nov 20, 2007 6:02 am

Re: Advice on Transferring Assets to Vanguard

Post by mhalley » Tue Oct 23, 2018 1:59 pm

When you go to cash and then transfer, the market could go up, stay the same or go down. Over the course of many years, being out of the market for a month is just noise, but getting rid of the high fees will impact you in a major way, year after year. You have no way of knowing when the market conditions will be ideal to transfer. The sooner you get rid of the high fees, the better. Put in the transfer request today.

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Charlie Foxtrot
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Re: Advice on Transferring Assets to Vanguard

Post by Charlie Foxtrot » Tue Oct 23, 2018 3:37 pm

For what it's worth, I just started this process this morning to transfer my mother's investments ($200K IRA, $50K taxable account) from Wells Fargo to Vanguard. After talking it over with a Vanguard rep, he said it would probably be cheaper and much faster to have Wells Fargo liquidate each account to cash rather than do a transfer in kind. Wells Fargo had her invested in 22 different mutual funds for her IRA, and 20 different mutual funds for her taxable account, with fees costing her over $4,000 per year. What a RIPOFF! The good news is that her Wells Fargo "adviser" took the news well and started the process on his end, which he said will take a few days, so it will be very easy to complete the transfers once the money is in cash. I figured that the money she will save in the first year by switching to a single index fund (VBIAX) with a .07% expense ratio will more than offset the capital gains taxes and the outrageous fees she has been paying. Good luck with your transfer.
"Man plans... God laughs"

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