Help with Firing FA

[Midpack]

Without knowing what your current and proposed holdings are (your prerogative), it's hard to answer your question. I know I wanted to take advantage of transfer in kind for as many of our holdings as possible to avoid a large tax hit from selling old funds/stocks and buying new. I assume that's why Fidelity is asking, the tax consequences are probably substantial for you, and not to be taken lightly.

As you probably know, you can transfer in kind some or all funds/stocks that qualify and sell and buy funds later on your own schedule to manage the tax bite over more than one year, and maybe take advantage of offsetting capital gains and losses, you don't have to do it all at once...

And you need to make these decisions before transfers begin, there are no "do-overs." The tax consequences are permanent once transactions take place.

 

[NoMoreJob]

Without knowing what your current and proposed holdings are (your prerogative), it's hard to answer your question. I know I wanted to take advantage of transfer in kind for as many of our holdings as possible to avoid a large tax hit from selling old funds/stocks and buying new. I assume that's why Fidelity is asking, the tax consequences are probably substantial for you, and not to be taken lightly.

As you probably know, you can transfer in kind some or all funds/stocks that qualify and sell and buy funds later on your own schedule to manage the tax bite over more than one year, and maybe take advantage of offsetting capital gains and losses, you don't have to do it all at once...

And you need to make these decisions before transfers begin, there are no "do-overs." The tax consequences are permanent once transactions take place.

Excellent advice!

 

[haha]

They asked me about transferring in kind. If they did that, would they charge you per fund because they are not funds they offer NTF?

Dude, this calls for radical action! Ask them.

Ha

 

[Options]

I transferred most of my funds from Fidelity to Vanguard last year. I was assigned a financial advisor who is available any time I have questions. I have done several financial plans with him and found him to be very helpful. He confirmed my decisions to invest in index funds with extremely low fees, like the Vanguard Domestic Index Fund and Vanguard International Index Fund.

And most importantly, I never paid a cent for his services. They were provided free of charge for maintaining a minimum balance with Vanguard. I'm amazed at people who pay 1% or greater of their net worth each year for something available completely free at Vanguard. I believe the minimum you need to have to access these services is $500K, so a relatively modest minimum threshold.

Is anyone else worried about keeping all of their retirement $ with one single institution? Sure VG is a well-known and well-trusted institution, been around long time, etc., but after Madoff, et al, does anyone else have misgivings about trusting any single entity with the whole kitty?

 

[NoMoreJob]

Is anyone else worried about keeping all of their retirement $ with one single institution? Sure VG is a well-known and well-trusted institution, been around long time, etc., but after Madoff, et al, does anyone else have misgivings about trusting any single entity with the whole kitty?

Sure. There are inherent risks in everything and people often worry about it. Personally I think the risk is small enough that the convenience outweighs it but others feel differently.

Here's just one of many discussions over at Bogleheads on the subject.....

Bogleheads • View topic - All my eggs in one basket?

 

[Meadbh]

Is anyone else worried about keeping all of their retirement $ with one single institution? Sure VG is a well-known and well-trusted institution, been around long time, etc., but after Madoff, et al, does anyone else have misgivings about trusting any single entity with the whole kitty?

I use two institutions and it works for me. Both are major Canadian banks and are among the 10 strongest in the world (at least according to Bloomberg). If they failed, we would all have a lot more to worry about. I have invested with other firms in the past but I would never entrust my money to a private firm led by an individual.

The World's Strongest Banks: The World's Strongest Banks - Bloomberg

 

[Midpack]

Is anyone else worried about keeping all of their retirement $ with one single institution? Sure VG is a well-known and well-trusted institution, been around long time, etc., but after Madoff, et al, does anyone else have misgivings about trusting any single entity with the whole kitty?

As you might imagine, that's a topic that's been discussed here many times. Just one example http://www.early-retirement.org/forums/f28/all-the-eggs-in-one-basket-55181.html all the typical POVs usually come up.

Many hold all their assets in one place for the convenience and often lower costs associated with a larger $ portfolio. There are lots of safeguards.

Many others spread their assets around to protect themselves.

Ultimately it's what YOU are comfortable with given the tradeoffs.

What happened with Madoff's clients doesn't enter in the decision in any way for most though...

 

[target2019]

Is anyone else worried about keeping all of their retirement $ with one single institution? Sure VG is a well-known and well-trusted institution, been around long time, etc., but after Madoff, et al, does anyone else have misgivings about trusting any single entity with the whole kitty?

Vanguard safety - Bogleheads
That article explains Vanguard structure, which is not a single entity.

 

[Idnar7]

Dude, this calls for radical action! Ask them.

Dude, sarcasm acknowledged. Thanks for contributing.

 

[cj]

I'm late to this discussion, but I did the same thing a number of years ago. FA (a "friend" from my church) was doing some crazy things that I did not agree with. I called TRP and they yanked the whole thing for me. I notified the FA after the transfer was underway. He was ticked, but hey - it's my money! Never looked back. And as others have said, it was sooooooooooo liberating.

 

[FinanceDude]

But IME Vanguard's tools are mediocre at best **, and their reps are less than knowledgeable/helpful outside the most basic asset allocations and generic questions (you won't get much more than the info you find online anyway). The few times I have asked questions (not basic, but not that esoteric either), no rep has ever had an answer, had to get back to me, and the "answer" was pretty useless.

Agree 1000%...........

For DIY investors OR folks who are willing to just follow Vanguard's recommendations without a lot of questions, Vanguard is great. For people who need a lot of handholding, I'd think Vanguard would be very limited. And handholding is not free, you should expect to pay (fees) for that kind of service.

100% true.......