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IRA custodian transfer?
Old 03-03-2015, 10:03 AM   #1
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IRA custodian transfer?

Having a hard time even formulating the question on this subject.

I have a small (17k) TIRA account with Franklin Templeton that I'm drawing down and will deplete this year. Everything substantial is with Vanguard. Would have dumped him awhile ago but the account is small.

I just received a notice from FT that the broker-dealer FA(affiliated with PFSI,Primerica) has requested to take over as custodian. FT would resign as custodian and the FA who set this up originally would take over. Funds will still be held in FT products, however it would be 'serviced' by PFSI.

I can 'opt out' of this transfer. I've talked with FT, but hesitate to call the local FA about it until I have an inkling of what to ask. I'm skeptical and believe it must be about 'fees and expenses' in PFSI's benefit, but expect to get a smoke screen answer. I've yet to receive any custodial agreement or account info from PFSI. FT says that there are no fees or expenses on their part that incur with this change.

I did recently move my DW's 403B from this FA and Franklin Templeton over to Vanguard funds, so all he is theoretically managing is the 17k that is depleting.

What would you do?

Opt out without further fanfare?
Move the whole 17k over to Vanguard asap?
Let it ride and see what the new agreement looks like?
Call the FA and try to interpret his answer

... another reason to fire your FA and do it yourself...
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Old 03-03-2015, 10:16 AM   #2
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I'd roll it over to Vanguard, despite the short-term paperwork. Reasons:
1) Then it is done, all the money is at one place, fewer 1099-Rs to deal with, etc. And, maybe costs are lower than FT, too.
2) No potential for fees from the new FA or the need to have an involved conversation while he goes through his standard "tree of responses."
3) Best way to communicate to FT that you don't like your arrangements being messed with. You have an arrangement with FT, and you shouldn't have to "opt out" of anything to keep it the same. Sure, this isn't big money, but it's your money and you get a vote.

From what I've read here, things work best if you have Vanguard "pull" the money to them, rather than trying to "push" the money from your present custodian.

Or, if you are drawing down anyway--if your 2015 RMD would close out this account, you could just do that. Simper still. Is that what you mean by "deplete"--as in "empty the account entirely"?
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Old 03-03-2015, 10:43 AM   #3
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Quote:
Originally Posted by samclem View Post

Or, if you are drawing down anyway--if your 2015 RMD would close out this account, you could just do that. Simper still. Is that what you mean by "deplete"--as in "empty the account entirely"?
thanks for the input..yes, I'm taking regular distributions from the account each month... 1,700 monthly, so in 10 months the account will close by itself.

my initial reaction is to simply opt out of the change.. if the FA wants to change the deal, he should have just picked up the phone to begin with. I'd move it but the paperwork stinks and FT requires a medallion sig guarantee, which in this town is a 3 to 12 month wait from the bank. FT waive it for me once by it's bs.
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Old 03-03-2015, 10:50 AM   #4
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Quote:
Originally Posted by Tailgate View Post
thanks for the input..yes, I'm taking regular distributions from the account each month... 1,700 monthly, so in 10 months the account will close by itself.

my initial reaction is to simply opt out of the change. . .
If there's a chance the monthly distros might slop over into 2016 (due to good performance of the funds, etc), I'd opt to take it all now and put it into my after-tax accounts at Vgd. But, regardless, I definitely wouldn't let myself fall back intot he clutches of the FA.

Good luck!
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