In Kind Transfer Question

[Wrkn4wkend]

Although we are still at least 10 years away from attempting ER I need to start thinking about a few things. We have had 2 Roth's and a Taxable account with Schwab for something like 15 years. They are now and have always been 100% equity index funds(Total Market, S&P, Small Cap, International etc). The problem is at some point I need to start rebalancing some % to more conservative funds/bonds.

When I look at VG Wellesley Schwab shows me a comparable fund such as JNBAX, or AONIX. They really aren't comparable at all with two or three times the fees, poor morning star ratings, and extremely poor performance when compared to Wellesley.

I recently set up a VG taxable account and will probably be using it for all future contributions. So the question is.......is there anything I need to know about an in kind transfer? Are there any potential pitfalls? Is it a pretty straight forward event where I simply call VG and give them the information and they do the rest?

Thanks in advance!

 

[pb4uski]

I've never needed to do one but I think you just call VG and they will guide you through the process.

 

[Midpack]

So the question is.......is there anything I need to know about an in kind transfer? Are there any potential pitfalls? Is it a pretty straight forward event where I simply call VG and give them the information and they do the rest?

Thanks in advance!

It was very simple for me, they handled everything with Fidelity for me. I transferred our entire portfolio and knew before I pulled the trigger what my options were for each holding, most were transfers in kind including several stocks and non-Vanguard MFs. I was not willing to take a large CG tax hit.

Without knowing exactly what funds you have in mind, we can't answer definitively. But we don't need to know...

...as pb4uski noted, just call Vanguard and tell them exactly what you want to do and they will tell you what's possible. The last thing they want for you is an unpleasant surprise, they will advise accordingly. You're not obligated to make the transfer if you don't like the terms...

 

[Animorph]

I only went from Fidelity to Fidelity, so not much trouble there. "Oh yeah, I want to do a transfer in kind.", "OK". I was able to remain in some Fidelity funds that were closed to new investments at the time by transferring shares.

If Vanguard does not offer a fund that you would like to transfer to them they may need to have you select a replacement.

 

[Rustward]

Although we are still at least 10 years away from attempting ER I need to start thinking about a few things. We have had 2 Roth's and a Taxable account with Schwab for something like 15 years. They are now and have always been 100% equity index funds(Total Market, S&P, Small Cap, International etc). The problem is at some point I need to start rebalancing some % to more conservative funds/bonds.

When I look at VG Wellesley Schwab shows me a comparable fund such as JNBAX, or AONIX. They really aren't comparable at all with two or three times the fees, poor morning star ratings, and extremely poor performance when compared to Wellesley.

I recently set up a VG taxable account and will probably be using it for all future contributions. So the question is.......is there anything I need to know about an in kind transfer? Are there any potential pitfalls? Is it a pretty straight forward event where I simply call VG and give them the information and they do the rest?

Thanks in advance!

Allow me to try to boil this down for you: You need to move assets from a brokerage account at Schwab to one at Vanguard?

If that is the question, then contact Vanguard with the tickers for the funds you need to transfer to determine if Vanguard will hold them for you (there are some things they probably would not take into a regular brokerage account, like institutional share classes, etc.). They can also initiate an in kind transfer for you. I have done some, and it is about as painless as it can be.

But your post talks about two brokerage accounts, two Roths, in kind transfers, and rebalancing. Maybe it's just me or I didn't get enough sleep, but I can't tell precisely what you are asking.