From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

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athan
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From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by athan » Fri Apr 13, 2018 9:23 pm

I bank with BofA and want to transfer my taxable account from Vanguard to Merrill Edge to take advantage of the credit card bonus. In my taxable account I currently have Admiral shares of VEMAX, VTIAX, and VTSAX.

From those who have transferred to ME, should I first convert to the corresponding ETFs at Vanguard? If so, what should I do with the partial shares? I am assuming just sell the partial shares at Vanguard and pay tax.

onceking
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by onceking » Fri Apr 13, 2018 10:22 pm

I did a similar transfer from vanguard to Merrill Edge. I called vanguard. The person on the phone went through my holdings and told me the corresponding ETF and initiated the conversion. Partial ETF shares were sold as part of the process.

Merrill doesn't support transfer in all mutual funds. So converting to ETF first is easier.

athan
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by athan » Fri Apr 13, 2018 10:36 pm

onceking wrote:
Fri Apr 13, 2018 10:22 pm
I did a similar transfer from vanguard to Merrill Edge. I called vanguard. The person on the phone went through my holdings and told me the corresponding ETF and initiated the conversion. Partial ETF shares were sold as part of the process.

Merrill doesn't support transfer in all mutual funds. So converting to ETF first is easier.
thanks onceking

TIAX
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by TIAX » Sat Apr 14, 2018 12:29 am

athan wrote:
Fri Apr 13, 2018 9:23 pm
I bank with BofA and want to transfer my taxable account from Vanguard to Merrill Edge to take advantage of the credit card bonus.
What will your cash back % be with the bonus?

bgf
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by bgf » Sat Apr 14, 2018 6:29 am

I just did the same thing. 1% everything, 2% groceries and wholesalers, 3% gas.

Thats not that great. What makes it good is the 75% bonus boost to your cash back rewards. I am guessing OP also gets that max boost.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

headedwest
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by headedwest » Sat Apr 14, 2018 6:55 am

I just did this about a month ago -- had Vanguard exchange my mutual funds into ETFs before the account transfer. I had the same experience as onceking -- partial shares were sold and cash was transferred to Merrill; everything else transferred in kind.

Besides the increased cash back bonus, Merrill Edge will also give you free trades once the total holdings between your BofA and ME accounts exceed a certain level (something like $20,000). So, for me, one of the attractions was that it's now easier to tax-loss harvest without having to pay for trades into non-Vanguard TLH partners. I think there's a miniscule charge to sell, however.

Also, ME has/had a bonus offer. The amount of the bonus is based on the amount of funds transferred in during the first 45 days and left there (with gains or losses) for 90 days from the date of account opening. I was about $3000 shy of the next level up, and they gave me the higher bonus if I agreed to leave the money in the account for at least 6 months. It was a "tax time" bonus, ending on April 17, when I did it. Don't know if that deadline has changed.

student
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by student » Sat Apr 14, 2018 7:38 am

Yes. I think you should covert to ETF first. Here is my experience with ME with a couple of updates.

viewtopic.php?f=1&t=214753

Others have mentioned preferred rewards. See viewtopic.php?t=150033

ShadowRegent
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by ShadowRegent » Sat Apr 14, 2018 7:45 am

As others have said, yes convert to ETFs first. Double check that your lots and basis are correct after the conversion-- I had an issue with this at Vanguard where there were very significant errors after converting a number of funds to ETFs. I highly recommend taking a screenshot of your lots and basis before the conversion.

One thing to keep in mind if you do transfer to Merrill Edge-- if you leave any amount of cash in the account you have the option to change your sweep fund from their FDIC-insured deposit program to a Money Market fund (1.16% yield currently rather than 0.14%). You have to call to make the change, though. I'm considering using the CMA account as my checking account to effectively get a >1% yield checking account.

TIAX
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by TIAX » Sat Apr 14, 2018 9:22 am

bgf wrote:
Sat Apr 14, 2018 6:29 am
I just did the same thing. 1% everything, 2% groceries and wholesalers, 3% gas.

Thats not that great. What makes it good is the 75% bonus boost to your cash back rewards. I am guessing OP also gets that max boost.
The only part of that that makes sense is 3% gas (which becomes 5.25%?). You can get 2% on everything on fidelity or citi double cash, 6% groceries on amex and 3% on amex. You can also get 4% on restaurants and 3% on flights and hotels on the uber visa. Doesn't sound like a good reason to transfer to ME.

ShadowRegent
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by ShadowRegent » Sat Apr 14, 2018 9:49 am

The Travel Rewards and Premium Rewards cards can get to 2.675% on everything which is the best I've seen. Probably not enough reason to switch on its own, but a nice perk on top of free trades.

deltaneutral83
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by deltaneutral83 » Sat Apr 14, 2018 10:33 am

ShadowRegent wrote:
Sat Apr 14, 2018 9:49 am
The Travel Rewards and Premium Rewards cards can get to 2.675% on everything which is the best I've seen. Probably not enough reason to switch on its own, but a nice perk on top of free trades.
It's 2.625% on the premium card, and the free trades are very nice. If you're ok with ETFs, I can't see why ME isn't the place to be. I don't know why it's not more marketed, I don't know of free equity/ETF trades in perpetuity anywhere else.

athan
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by athan » Sat Apr 14, 2018 12:52 pm

bgf wrote:
Sat Apr 14, 2018 6:29 am
I just did the same thing. 1% everything, 2% groceries and wholesalers, 3% gas.

Thats not that great. What makes it good is the 75% bonus boost to your cash back rewards. I am guessing OP also gets that max boost.
Exactly the reason!

UpperNwGuy
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by UpperNwGuy » Sat Apr 14, 2018 1:42 pm

How much additional cash back per year will you earn from Bank of America at your current level of credit card spending? For me, the amount would be at most a few hundred dollars — in other words, about the same amount as some of the account transfer bonuses offered by other brokerages. I don't think this is such a good deal. I'll keep my investments at Vanguard and use my current mix of credit cards (3+% on category spend and 2% on non-category spend).

ShadowRegent
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by ShadowRegent » Sat Apr 14, 2018 2:13 pm

UpperNwGuy wrote:
Sat Apr 14, 2018 1:42 pm
How much additional cash back per year will you earn from Bank of America at your current level of credit card spending? For me, the amount would be at most a few hundred dollars — in other words, about the same amount as some of the account transfer bonuses offered by other brokerages. I don't think this is such a good deal. I'll keep my investments at Vanguard and use my current mix of credit cards (3+% on category spend and 2% on non-category spend).
You're right that it's not a ton and you may be better off bonus chasing. One thing I hadn't considered-- with cashback rates so high it's beneficial to pay things like federal tax bills and property tax on the card since the convenience fee is lower than the cashback rate. That made me a couple hundred dollars this year.

I wouldn't do it just for the cashback rate-- if Merrill Edge ditched free trades, I'd put in my transfer request tomorrow.

UpperNwGuy
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by UpperNwGuy » Sat Apr 14, 2018 2:25 pm

Just for the record, I do not bonus chase.

bgf
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by bgf » Sun Apr 15, 2018 11:47 am

TIAX wrote:
Sat Apr 14, 2018 9:22 am
bgf wrote:
Sat Apr 14, 2018 6:29 am
I just did the same thing. 1% everything, 2% groceries and wholesalers, 3% gas.

Thats not that great. What makes it good is the 75% bonus boost to your cash back rewards. I am guessing OP also gets that max boost.
The only part of that that makes sense is 3% gas (which becomes 5.25%?). You can get 2% on everything on fidelity or citi double cash, 6% groceries on amex and 3% on amex. You can also get 4% on restaurants and 3% on flights and hotels on the uber visa. Doesn't sound like a good reason to transfer to ME.
what are these cards? do they have annual fees?
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

athan
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by athan » Sun Apr 15, 2018 12:02 pm

UpperNwGuy wrote:
Sat Apr 14, 2018 1:42 pm
How much additional cash back per year will you earn from Bank of America at your current level of credit card spending? For me, the amount would be at most a few hundred dollars — in other words, about the same amount as some of the account transfer bonuses offered by other brokerages. I don't think this is such a good deal. I'll keep my investments at Vanguard and use my current mix of credit cards (3+% on category spend and 2% on non-category spend).
I think I will get $600 bonus for switching to ME, plus around an extra $300 per year in credit card bonus. My wife likes using BofA for checking, so this makes sense and cents for us. $300/year is just enough for me to switch my taxable from Vanguard.

TIAX
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by TIAX » Sun Apr 15, 2018 12:38 pm

bgf wrote:
Sun Apr 15, 2018 11:47 am
TIAX wrote:
Sat Apr 14, 2018 9:22 am
The only part of that that makes sense is 3% gas (which becomes 5.25%?). You can get 2% on everything on fidelity or citi double cash, 6% groceries on amex and 3% on amex. You can also get 4% on restaurants and 3% on flights and hotels on the uber visa. Doesn't sound like a good reason to transfer to ME.
what are these cards? do they have annual fees?
What do you mean what are they? See above. As for annual fees, the amex has an annual fee (if you don't have enough grocery spending to make it worth it, you can use the 3% grocery amex with no annual fee). The rest don't have annual fees.

TIAX
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by TIAX » Sun Apr 15, 2018 12:39 pm

athan wrote:
Sun Apr 15, 2018 12:02 pm
I think I will get $600 bonus for switching to ME, plus around an extra $300 per year in credit card bonus. My wife likes using BofA for checking, so this makes sense and cents for us. $300/year is just enough for me to switch my taxable from Vanguard.
The "extra" $300 is still lower than many other cards offered by other banks. I don't see what you using a particular (bad) checking account has to do with the credit cards you use.

athan
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by athan » Sun Apr 15, 2018 12:49 pm

TIAX wrote:
Sun Apr 15, 2018 12:39 pm
athan wrote:
Sun Apr 15, 2018 12:02 pm
I think I will get $600 bonus for switching to ME, plus around an extra $300 per year in credit card bonus. My wife likes using BofA for checking, so this makes sense and cents for us. $300/year is just enough for me to switch my taxable from Vanguard.
The "extra" $300 is still lower than many other cards offered by other banks. I don't see what you using a particular (bad) checking account has to do with the credit cards you use.
I like the credit card we have with BofA, and their online plarform and app are both great. Not to mention good experiences with service reps on the phone. I am not trying to bounce from company to company for bonuses. I am just transferring the money necessary to get the 75% multiplier on cash back at BofA.

UpperNwGuy
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by UpperNwGuy » Sun Apr 15, 2018 2:45 pm

I just read on another thread that Bank of America imposes a quarterly limit of $2500 on gas, grocery, and wholesale club spending that can earn the higher credit card rewards. How does that affect the analysis?

athan
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by athan » Mon Apr 16, 2018 10:50 am

UpperNwGuy wrote:
Sun Apr 15, 2018 2:45 pm
I just read on another thread that Bank of America imposes a quarterly limit of $2500 on gas, grocery, and wholesale club spending that can earn the higher credit card rewards. How does that affect the analysis?
I would still get around an additional $300/year by moving at least $100,000 to ME from Vanguard.

FootballFan5548
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Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

Post by FootballFan5548 » Mon Apr 16, 2018 11:18 am

Just last Friday my entire transfer switched from CapOne to Merrill Edge. I also bank with BOA, so having the higher overall balance in Merrill Edge for the credit card cash back 75% bonus was nice.
I was happy with CapOne but they are moving their brokerage ops to E-Trade. For years I've been paying $6.95 for trades at CapOne, it was very nice to put in a buy order at ME for free. Free trades for ETF's are a great thing. I also got a $600 bonus for moving from CapOne to ME.

I still maintain a Vanguard Brokerage account as well. I use that as my "Mutual Fund" brokerage, and ME will be my ETF/Stock brokerage. I'm still getting used to ME, like I said I really did like CapOne and was so comfortable with their platform, it will take some time to get used to Merrill.

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