Raymond james to Fidelity

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Topic Author
investorstarter
Posts: 13
Joined: Tue Jul 30, 2019 5:43 pm

Raymond james to Fidelity

Post by investorstarter » Mon Dec 02, 2019 5:52 pm

Hey fellow boggleheads,

I'm new to this forum relatively and I have a question in regard to my Solo 401k(tax deferred). I've been with raymond james for year and half and would like to break that relationship ASAP as fees are crazy and high. The FA has picked my index funds and there are tons of them. I've decided to move my funds to fidelity and do 3 fund portfolio. My question is would you liquidate all the funds at Raymond james and move the cash over to fidelity and start over or move those funds in kind. I've called fidelity and they told me that one of my index funds are only at raymond james and I better sell all those funds before moving but I wanted to get your opinion on this

Emergency funds: Three to six months of expenses
Debt: Car loan (30K)
Tax Filing Status: Married Filing Jointly

Tax Rate: 30% Federal, 0% State

State of Residence:FL

Age:36

Desired Asset allocation: 80% stocks / 20% bond

Current retirement asset

Solo 401k 124K

Funds:
HRSCX
FNIAX
OAKIX
HFMCX
AIVSX
GBFAX
RICCX
PSRAX

HomeStretch
Posts: 2968
Joined: Thu Dec 27, 2018 3:06 pm

Re: Raymond james to Fidelity

Post by HomeStretch » Mon Dec 02, 2019 6:01 pm

I can see why you want to move ASAP. Your advisor set you up with a high cost portfolio. The funds have high ERs and some also have loads. None of the funds are likely worth keeping even if they can transfer in-kind.

The good news is that there are no tax consequences for selling in a tax deferred account. RJ may charge you trading fees and/or account closure fees. Ask Fidelity if they will reimburse you for the RJ fees.

Work with Fidelity on the transfer. You will need to amend your Solo 401k plan to Fidelity’s plan. You will need to instruct RJ to sell all holdings. Have the plan assets (cash) transferred directly from RJ to Fidelity. Reinvest at Fidelity.

retired@50
Posts: 679
Joined: Tue Oct 01, 2019 2:36 pm

Re: Raymond james to Fidelity

Post by retired@50 » Mon Dec 02, 2019 6:20 pm

HomeStretch wrote:
Mon Dec 02, 2019 6:01 pm
I can see why you want to move ASAP. Your advisor set you up with a high cost portfolio. The funds have high ERs and some also have loads. None of the funds are likely worth keeping even if they can transfer in-kind.

The good news is that there are no tax consequences for selling in a tax deferred account. RJ may charge you trading fees and/or account closure fees. Ask Fidelity if they will reimburse you for the RJ fees.

Work with Fidelity on the transfer. You will need to amend your Solo 401k plan to Fidelity’s plan. You will need to instruct RJ to sell all holdings. Have the plan assets (cash) transferred directly from RJ to Fidelity. Reinvest at Fidelity.
I agree with HomeStretch. This adviser has advised you right into making his boat payment for him... Run away and join the low cost index fund crowd, the sooner the better.

Regards,

pkcrafter
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Location: CA
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Re: Raymond james to Fidelity

Post by pkcrafter » Mon Dec 02, 2019 7:00 pm

investorstarter wrote:
Mon Dec 02, 2019 5:52 pm
Hey fellow boggleheads,

I'm new to this forum relatively and I have a question in regard to my Solo 401k(tax deferred). I've been with raymond james for year and half and would like to break that relationship ASAP as fees are crazy and high. The FA has picked my index funds and there are tons of them.
Welcome,

None of the funds you've listed are index funds, and we've seen far longer lists than 7 funds, but they are all high fee. Most show a front-end load, but that is usually waved in a managed account.
I've decided to move my funds to fidelity and do 3 fund portfolio.

:thumbsup

My question is would you liquidate all the funds at Raymond james and move the cash over to fidelity and start over or move those funds in kind. I've called fidelity and they told me that one of my index funds are only at raymond james and I better sell all those funds before moving but I wanted to get your opinion on this
Find out how much Fidelity will charge to sell your old funds vs what RJ will charge. As for the one that Fidelity does not carry, you must sell it first because the fund won't transfer and you will end up with a mess. Initiate a custodian to custodian transfer at Fidelity.

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.

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oldcomputerguy
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Re: Raymond james to Fidelity

Post by oldcomputerguy » Mon Dec 02, 2019 7:04 pm

pkcrafter wrote:
Mon Dec 02, 2019 7:00 pm
Initiate a custodian to custodian transfer at Fidelity.
This is important. Work with (and through) Fidelity to pull the assets over. Do not initiate the process through Raymond James. They will try to get you to stay, and likely will not be very cooperative.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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Wiggums
Posts: 1960
Joined: Thu Jan 31, 2019 8:02 am

Re: Raymond james to Fidelity

Post by Wiggums » Mon Dec 02, 2019 7:09 pm

oldcomputerguy wrote:
Mon Dec 02, 2019 7:04 pm
pkcrafter wrote:
Mon Dec 02, 2019 7:00 pm
Initiate a custodian to custodian transfer at Fidelity.
This is important. Work with (and through) Fidelity to pull the assets over. Do not initiate the process through Raymond James. They will try to get you to stay, and likely will not be very cooperative.
I agree.

It’s possible that Fidelity will pay any closing fee charged by Raymond James. Ask Fidelity.

scrabbler1
Posts: 2428
Joined: Fri Nov 20, 2009 2:39 pm

Re: Raymond james to Fidelity

Post by scrabbler1 » Mon Dec 02, 2019 7:37 pm

My friend had a small brokerage account and large Roth IRA with RJ until I helped him do an online asset transfer of each account from RJ to Fidelity. We used Fidelity's online Asset Transfer feature which took a few days for each one, as we were familiar with it from prior asset transfers from elsewhere. Fidelity reimbursed him for the transfer fees.

I had checked with Fidelity beforehand to make sure each fund he had in RJ would transfer cleanly. They did. He had some individual stocks and they transferred without any problems. He had some cash in the brokerage account which did transfer over but not into his brokerage's cash account. We had to separately combine the two accounts later, not a big deal.

One little thing which did happen, though, was that any fractional shares of the RJ mutual funds in the brokerage account did not transfer over, only whole share amounts. RJ automatically cashed the fractional shares out first. It was a minor headache at tax time with several tiny redemptions.

Topic Author
investorstarter
Posts: 13
Joined: Tue Jul 30, 2019 5:43 pm

Re: Raymond james to Fidelity

Post by investorstarter » Tue Dec 03, 2019 4:45 pm

HomeStretch wrote:
Mon Dec 02, 2019 6:01 pm
I can see why you want to move ASAP. Your advisor set you up with a high cost portfolio. The funds have high ERs and some also have loads. None of the funds are likely worth keeping even if they can transfer in-kind.

The good news is that there are no tax consequences for selling in a tax deferred account. RJ may charge you trading fees and/or account closure fees. Ask Fidelity if they will reimburse you for the RJ fees.

Work with Fidelity on the transfer. You will need to amend your Solo 401k plan to Fidelity’s plan. You will need to instruct RJ to sell all holdings. Have the plan assets (cash) transferred directly from RJ to Fidelity. Reinvest at Fidelity.
I know man. I think that's what i'm gonna do and sell all those funds and move cash over and invest in 3 funds portfolio. Thanks for the advice

Topic Author
investorstarter
Posts: 13
Joined: Tue Jul 30, 2019 5:43 pm

Re: Raymond james to Fidelity

Post by investorstarter » Tue Dec 03, 2019 4:46 pm

oldcomputerguy wrote:
Mon Dec 02, 2019 7:04 pm
pkcrafter wrote:
Mon Dec 02, 2019 7:00 pm
Initiate a custodian to custodian transfer at Fidelity.
This is important. Work with (and through) Fidelity to pull the assets over. Do not initiate the process through Raymond James. They will try to get you to stay, and likely will not be very cooperative.
Yes I called them today and i spoke to them and they said that they will be happy to that for me.

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