In kind transfer from schwab?

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jonathan3007
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In kind transfer from schwab?

Post by jonathan3007 » Tue Nov 06, 2018 7:18 am

Hello Bogleheads,

I have a question about transferring assets from Schwab to Vanguard. I have about 25k on a "Schwab intelligent advisor" account for almost a year now. With the market's ups and downs and comparing to other indexes like the S&P500 I can see the management of this account is very poor and I'm being charged 0.28% of the managed assets. I want to transfer this money to Vanguard so I can buy Vanguard ETFs instead. my question is, Should I sell all of my assets at Schwab and then transfer the money to Vanguard? or should I do an In-kind transfer from Schwab to Vanguard and then sell all the assets once they are in Vanguard, perhaps I can leave the assets in Vanguard for a year so I don't have to pay short-term capital gains?
I appreciate any help or advice you might be able to give me and as always, thank you for your help!

typical.investor
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Re: In kind transfer from schwab?

Post by typical.investor » Tue Nov 06, 2018 7:23 am

Did you compare it to something with a similar US/Intl stock/bond ratio?

chambers136
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Re: In kind transfer from schwab?

Post by chambers136 » Tue Nov 06, 2018 7:28 am

Just so you know, if you're comparing Schwab index funds to Vanguard index funds, you will see very little difference. You likely have a blend of equities that does not strictly track the S&p 500, as mentioned above

retiredjg
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Re: In kind transfer from schwab?

Post by retiredjg » Tue Nov 06, 2018 8:21 am

If you are paying the .28% doesn't that mean they are tax loss harvesting your account? If yes, I think I would turn that off and not do anything for at least 30 days to let all that settle out before doing anything.

If you move these ETFs to Vanguard in-kind, it is possible Vanguard will charge you something each time you sell one of them. Call and ask. Maybe ask for enough free trades to get out of what you have.

If you are planning to handle your own portfolio, there is no reason you can't do that just as well at Schwab using either their mutual funds or no-transaction-fee ETFs. In other words, you may not have to transfer to Vanguard at all. You could even use one of the low cost Target Index funds at Schwab (emphasis on Index - they have more than one kind).

eli80
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Re: In kind transfer from schwab?

Post by eli80 » Tue Nov 06, 2018 8:35 am

I believe Schwab Intelligent Advisor is their robo adviser. So the .28% is to pay for the adjusting of the assets to keep them in line with the selected asset allocation. Schwab does not add on an adviser fee.

pkcrafter
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Re: In kind transfer from schwab?

Post by pkcrafter » Tue Nov 06, 2018 8:47 am

retiredjg wrote:
Tue Nov 06, 2018 8:21 am

If you are planning to handle your own portfolio, there is no reason you can't do that just as well at Schwab using either their mutual funds or no-transaction-fee ETFs. In other words, you may not have to transfer to Vanguard at all. You could even use one of the low cost Target Index funds at Schwab (emphasis on Index - they have more than one kind).
+1

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

typical.investor
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Re: In kind transfer from schwab?

Post by typical.investor » Tue Nov 06, 2018 8:53 am

jonathan3007 wrote:
Tue Nov 06, 2018 7:18 am
I have about 25k on a "Schwab intelligent advisor" account for almost a year now. With the market's ups and downs and comparing to other indexes like the S&P500 I can see the management of this account is very poor and I'm being charged 0.28% of the managed assets.
As of Q2 2018, Schwab has the best 2 year trailing returns (annualized) out of any robo advisor including Vanguard, Betterment, Wealthfront, SigFig, Personal Capital, E*trade, Acorns and WiseBayan. All has about 60% stocks. Some were heavier in US vs International. Schwab was close to global market cap.

Their one year trailing returns (annualized) returns are 6th out of 18th.

It's a short time to judge I think. You don't need to pay the 0.28% if you don't need access to the live advisor. Same funds with the plain Intelligent Portfolios.

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Nate79
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Re: In kind transfer from schwab?

Post by Nate79 » Tue Nov 06, 2018 12:37 pm

Schwab Intelligent Portfolios is a free robo service. You should be able to use this instead of their advisor service.

If you are comparing the portfolio to the S&P500 you need to go back to basics to understand how and why to compare to different portfolios. Comparing your portfolio to the S&P is not in the least bit correct.

glennherwig
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Re: In kind transfer from schwab?

Post by glennherwig » Tue Nov 06, 2018 3:57 pm

The 28 basis points fee gets you one on one with a financial advisor. I went to the schwab branch and listened to their pitch. This is a good product for people that want a tailored plan. The 28 basis fee is not for tax loss harvesting like someone else mentioned. Tax loss harvesting is free at schwab intelligent but you need 50k in assets.

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Earl Lemongrab
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Re: In kind transfer from schwab?

Post by Earl Lemongrab » Tue Nov 06, 2018 4:20 pm

Here's the Schwab page for the robo adviser. I agree that it doesn't sound like what the OP has. This says 5k is the minimum, not 50k.

https://intelligent.schwab.com/public/i ... /home.html

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Nate79
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Re: In kind transfer from schwab?

Post by Nate79 » Tue Nov 06, 2018 7:26 pm

Earl Lemongrab wrote:
Tue Nov 06, 2018 4:20 pm
Here's the Schwab page for the robo adviser. I agree that it doesn't sound like what the OP has. This says 5k is the minimum, not 50k.

https://intelligent.schwab.com/public/i ... /home.html
The account minimum is $5k but you don't get TLH until $50k.

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