Unwinding professional investment management

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
bchannon
Posts: 1
Joined: Thu Sep 17, 2020 6:51 pm

Unwinding professional investment management

Post by bchannon »

I am retired and considering unwinding a relationship with a professional investment advisor and re-assuming responsibility for management. I’m curious whether anyone can offer advice on how best to do this.
User avatar
David Jay
Posts: 9411
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Unwinding professional investment management

Post by David Jay »

Welcome to the forum. We are a bunch of self-managed investors, so you will fit right in.

When it comes to transfers, we always recommend that you work with the institution receiving the funds as they have the incentive to make sure things go smoothly. We recommend a full-line (I.e. they have a full line of in-house mutual funds), low cost brokerage. Frequent recommendations are Vanguard, Fidelity or Schwab.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
User avatar
FiveK
Posts: 10333
Joined: Sun Mar 16, 2014 2:43 pm

Re: Unwinding professional investment management

Post by FiveK »

If you wish to move your investments to a different brokerage, contact the new brokerage and let them "pull" your funds from the existing brokerage.

You'll have to decide if you want to keep your current investments and thus determine if they can be transferred "in kind" or whether you want to sell what you have and purchase new ones.

If you wish to keep your investments where they are now, but remove the advisor from the account(s), you'll have to find the appropriate form to do so. Of course your advisor will be so sad to see you (and your commissions) leave....
softwaregeek
Posts: 566
Joined: Wed May 08, 2019 8:59 pm

Re: Unwinding professional investment management

Post by softwaregeek »

You will have to rip off the bandaid.

Open an account with a reputable discount broker like Schwab or Fidelity, call them and have their advisor initiate an "ACAT" transfer. That is an automated transfer of accounts and should take a couple of weeks. For your situation, I like Fidelity and Schwab a little better than the Vanguard account since they are the gold standards of service in the industry.

Then post your portfolio back here for review.
GrowthSeeker
Posts: 884
Joined: Tue May 15, 2018 10:14 pm

Re: Unwinding professional investment management

Post by GrowthSeeker »

Welcome to the forum.
Agree with initiating the transfer at the new brokerage that you're moving to. If you get them a list of all the funds then they can be sure all of them will transfer "in kind". Vanguard has a team that does nothing but help people transfer accounts to Vanguard. You can initiate and accomplish the transfer totally online as well.
It may be much less costly to move it all to Vanguard (or Fidelity or whoever) first and then sell and buy other funds afterwards. (Assuming commissions are less at the new place).

Plus depending on the firm your account is at now with the advisor, I've heard some of these firms will pull shenanigans to delay the transfer. But if Vanguard initiates it, you don't even have to talk to your former advisor.

If any accounts are taxable, make sure you have a copy of all the basis information for each holding. (Just in case the basis information does not transfer correctly - see my signature line). One less thing to have to contact the former brokerage about later. Having said that, I would get basis info gets transferred correctly 99% of the time.
Just because you're paranoid doesn't mean they're NOT out to get you.
User avatar
Stinky
Posts: 5584
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Unwinding professional investment management

Post by Stinky »

bchannon wrote: Thu Sep 17, 2020 8:52 pm I am retired and considering unwinding a relationship with a professional investment advisor and re-assuming responsibility for management. I’m curious whether anyone can offer advice on how best to do this.
Welcome to the Forum!

It's great to hear that you want to "re-assume" responsibility for managing your assets. It sounds like you had control at one time, ceded it to someone else for whatever reason, and now want to take over again. THAT'S GREAT! You'll save on investment management fees, and you'll be able to precisely control what you're invested in.

Others have already given good advice on the nuts and bolts of making the transfer to a new firm.

I just wanted to encourage you to continue to read this forum, and to post questions as they come up. Some have suggested that you post your portfolio so that you can get comments; that's a great idea, and you'll get excellent feedback.

Keep asking questions of the folks on this Forum. They are intelligent, experienced, well-intentioned, and will do their best to help you out on your investment journey.
It's a GREAT day to be alive - Travis Tritt
PaunchyPirate
Posts: 256
Joined: Sun Nov 30, 2014 7:58 pm

Re: Unwinding professional investment management

Post by PaunchyPirate »

Before you pull the plug to initiate your change, do your best to download/print out any relevant data (trade confirmations, monthly statements, tax forms, etc.) from your current account holdings that you may need for ongoing tax filing.

If possible, have documentation of your cost basis of the holdings in taxable accounts. This SHOULD all transfer over to a new broker, but there have been reports of challenges with this some times. You will need this data when you go to sell the holdings in the future.

You may lose online access to your current data once you initiate the transfer.

Good luck. I did this several years ago and have never regretted my decision.
User avatar
David Jay
Posts: 9411
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Unwinding professional investment management

Post by David Jay »

PaunchyPirate wrote: Fri Sep 18, 2020 7:55 am Before you pull the plug to initiate your change, do your best to download/print out any relevant data (trade confirmations, monthly statements, tax forms, etc.) from your current account holdings that you may need for ongoing tax filing.
That’s a great recommendation!
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
User avatar
beernutz
Posts: 332
Joined: Sun May 31, 2015 12:50 pm

Re: Unwinding professional investment management

Post by beernutz »

I ended a 14 year managed relationship with Schwab earlier this year. Since I kept the investments at Schwab after the transition it was an easy process although the Schwab CS people I spoke to could not tell me if any or all of my institutional class managed investments would be liquidated prior to the transition. I took a leap of faith that they wouldn't and luckily none were.

Even so I downloaded all my investment balance info the day of the transition just to be able to audit it after the fact.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. --Will Rogers
NewMoneyMustBeSmart
Posts: 376
Joined: Sat Jun 01, 2019 10:28 pm
Location: Midwest

Re: Unwinding professional investment management

Post by NewMoneyMustBeSmart »

FiveK wrote: Thu Sep 17, 2020 9:13 pm If you wish to move your investments to a different brokerage, contact the new brokerage and let them "pull" your funds from the existing brokerage.
When I went from FA#1 to FA#2 ; FA#2 said do *not* tell FA#1 - we'll just ACATS it out, because it's better that FA#1 doesn't know in advance.

It's not the nicest thing, but it does seem prudent.

I agree with FiveK - tell the new place to TakeAllTheThings (tm). They do this with ACATS - basis will follow within 30 days. Print out everything before you do this.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein
Post Reply