Vanguard to Ameriprise... Naah!

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philm3200
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Joined: Thu Jul 11, 2019 11:21 am

Vanguard to Ameriprise... Naah!

Post by philm3200 » Thu Jul 11, 2019 2:32 pm

I've recently inherited some mutual funds also a brokerage account at Ameriprise. My first time speaking with the Ameriprise broker he suggested that I migrate all the mutual funds to Ameriprise that way he'd be able to manage them in a more efficient way. Sorry to say I made that mistake when I was much younger and using Merrill Lynch,now 68. I told him no we won't be doing that. What I didn't tell him is I'm actually thinking of doing the opposite, closing the Ameriprise account and buying more Vanguard. Here is the breakdown of my recent inheritance... Vanguard, VNYUX - 244k and VGSTX - 82k. Nuveen, NUVBX - 169k. Janus Henderson, JACNX - 19k. Franklin Templeton, FNYTX - 250k. The brokerage account at Ameriprise is valued at 268k. I've ordered How to Make Your Money Last by Jane Bryant Quinn and The Bogleheads' Guide to Retirement Planning which look like they will answer many of my questions. I'll offer up a thank you in advance if anyone has any ideas as to what I should do. I'm mainly wondering if I should close out any of the funds and buy more Vanguard.

bloom2708
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Re: Vanguard to Ameriprise... Naah!

Post by bloom2708 » Thu Jul 11, 2019 2:41 pm

I would consolidate to Vanguard.

Do not tell Ameriprise anything more about moving. Your funds, your decision.

Contact Vanguard to pull the funds over. They will check to see what can be transferred "in kind" and if anything would have to be liquidated before moving. They will help get the forms filled out for you to sign. It probably takes 10 days to 2 weeks. Nice to be in one place and set your allocations/funds based on what you want.

Get everything over to Vanguard, then you are in control.
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grabiner
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Re: Vanguard to Ameriprise... Naah!

Post by grabiner » Thu Jul 11, 2019 2:51 pm

Since you inherited the funds, the cost basis is set to the value on the day of the previous owner's death. Therefore, you can sell these funds for only a small capital gain (taxed at the long-term rate even if you sell within a year of the inheritance), and buy the funds you want.
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livesoft
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Re: Vanguard to Ameriprise... Naah!

Post by livesoft » Thu Jul 11, 2019 3:28 pm

^Unless they are in traditional IRAs or something that else is not a taxable account nor a Roth account. :)
I suppose we can assume 'brokerage account' means a non-IRA though.
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jabberwockOG
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Re: Vanguard to Ameriprise... Naah!

Post by jabberwockOG » Thu Jul 11, 2019 3:31 pm

Definitely move everything over to Vanguard if you already have investments there. Much better to get one consolidated account so one style/format of tax forms and statements are much easier.

bltn
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Re: Vanguard to Ameriprise... Naah!

Post by bltn » Thu Jul 11, 2019 9:27 pm

If I were in your position, I would contact my Vanguard representative and have all the inherited funds transferred to my Vanguard account. Then I would get Vanguard to give me a financial plan for my investments and decide if I would like to use their PAS service for a while, or simply sell all my inherited funds with the stepped up basis, and put the money into a two , three, or four index fund portfolio and manage my own account.

student
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Re: Vanguard to Ameriprise... Naah!

Post by student » Thu Jul 11, 2019 10:17 pm

grabiner wrote:
Thu Jul 11, 2019 2:51 pm
Since you inherited the funds, the cost basis is set to the value on the day of the previous owner's death. Therefore, you can sell these funds for only a small capital gain (taxed at the long-term rate even if you sell within a year of the inheritance), and buy the funds you want.
+1000.

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