Migrating IRAs to another brokerage, pitfalls?

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Topic Author
KeepItSimple78
Posts: 118
Joined: Fri Apr 15, 2016 6:03 pm
Location: Louisiana

Migrating IRAs to another brokerage, pitfalls?

Post by KeepItSimple78 »

Planning to move 3 IRAs from Vanguard to Merrill Lynch. I hold passive funds and a small money market allocation in one of the IRAs. My understanding is the first step is to convert the funds to ETFs. After which I would contact Merrill and have them start the process of opening IRAs there and transferring the assets. What should I be looking out for? What could go wrong? Fellow Bogleheads seem to make similar moves regularly, with many chasing transfer/asset level bonuses.

I have a few concerns:
1. The actual transfer is done properly and I am whole in the end. Because tax basis isn't an issue here, this isn't a large concern. Should be a straight-forward transfer.

2. The volatility we've seen this year. How long will the assets be out of the market during the transfer? After a bit of research and looking at other posts here, I'm unclear on this and I suppose it varies.


Thanks in advance.
Avid reader of personal finance/investing literature; however, no formal training in this area. My comments are always well-intended, and most often well-informed.
Tattarrattat
Posts: 110
Joined: Wed Aug 19, 2020 6:05 pm

Re: Migrating IRAs to another brokerage, pitfalls?

Post by Tattarrattat »

If you convert to ETFs first, then you will never be out of the market. The ETFs will stay in the market the whole time.
Topic Author
KeepItSimple78
Posts: 118
Joined: Fri Apr 15, 2016 6:03 pm
Location: Louisiana

Re: Migrating IRAs to another brokerage, pitfalls?

Post by KeepItSimple78 »

Great, thanks Tattarrattat
Avid reader of personal finance/investing literature; however, no formal training in this area. My comments are always well-intended, and most often well-informed.
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