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Old 01-09-2018, 06:54 AM   #21
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I think you can have issues with any brokerage house.

I would not want to go through the daunting task/paperwork/time on the computer/phone to switch EVERYTHING over from one brokerage house to another. Think about it. Trying to switch taxable accounts and moving "assets in kind." Having to set up new POA's/Agent Authorizations all over again and getting the documents notarized. Having to set up direct deposits with bank accounts again. HAving to roll over IRA's.

No thanks. It would have to be a major screw up or consistent screw ups for me to switch. Stuff happens.
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Old 01-09-2018, 08:42 AM   #22
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You probably know this but there is a Fidelity office on North Cattlemen Rd in the UTC Mall just south of University Parkway and Charles Schwab is kiddy-corner across from Fidelity.
Thanks I did not know this .
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Old 01-09-2018, 08:48 AM   #23
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No thanks. It would have to be a major screw up or consistent screw ups for me to switch. Stuff happens.
I consider taking an extra $20,000 from an account plus the $8,000 for taxes a major screw up and the fact that they are not willing to fix it immediately .How does something like this even happen ?
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Old 01-09-2018, 09:14 AM   #24
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I consider taking an extra $20,000 from an account plus the $8,000 for taxes a major screw up and the fact that they are not willing to fix it immediately .How does something like this even happen ?
I would ask Vanguard, it's a very legit question.
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Old 01-09-2018, 09:20 AM   #25
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Totally agree that it should be automated, but no need for a paper form... I have done 3 recharacterizations over the last few years and all have been by phone.
Good to know. I couldn't figure out a way to do it online, so I called and asked how to do a recharacterization. The rep said I needed to fill out a form, so I filled out the form.
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Old 01-09-2018, 09:23 AM   #26
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Luckily I was watching my account .Could you imagine just trusting Vanguard then finding this mistake a month later ?
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Old 01-09-2018, 09:24 AM   #27
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Totally agree that it should be automated, but no need for a paper form... I have done 3 recharacterizations over the last few years and all have been by phone.

Did my by phone also, but I think they did make me mail in a form...

But, that is not allowed now so who cares...
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Old 01-09-2018, 09:28 AM   #28
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When I have recharacterized with Fidelity, it has always been online. Very simple.
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Old 01-09-2018, 09:54 AM   #29
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That’s because we’re all FIRED!
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Old 01-09-2018, 09:56 AM   #30
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Screwing up someone personal finances that they've painstakingly planned out should not be dismissed as sh*t happens. Would you want that lazy mindset at your local nuclear power plant?
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Old 01-09-2018, 10:08 AM   #31
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DH & I have had accounts at Vanguard for decades. We've had no problems with Vanguard, ever.

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When my Mom passed away about 18 months ago, I was expecting difficulty in working with Vanguard on the things that needed to be done. Vanguard surprised me by putting me in touch with their specialists in that area, and everything was done correctly, on time, and with no cumbersome hoops. Oh, and I think we were given a direct number to that area so we could just call them whenever we needed something.
I was in a very similar situation, except it was my FIL and it was about 5 years ago. We had several accounts from various sources outside of Vanguard to put in DH's name and then transfer to his Vanguard account. Our Flagship rep was very helpful, as was the specialist who was assigned to us -- and yes, we were given the specialist's direct number. Between the two of them, they made a very cumbersome process much less so. I was tempted to send them flowers and candy when it was all completed!

We're Flagship clients so the level of service we received was probably much better than if we weren't.

After that positive experience, I eventually moved all of our investment accts to Vanguard. We haven't started taking RMDs yet, but I have no reason to believe we'll have any difficulties. Knock wood.
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Old 01-09-2018, 10:19 AM   #32
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Last week I got a message from Vanguard to call them regarding my RMD's .I had them set up to automatically happen on Jan.5 .I called and everything was fine until on Saturday I saw they took almost $20,000 more than the required amount . I called today and they admitted their mistake but it will take a week to fix . What is happening with Vanguard and what other companies do people use ?
This may not interest you but as I understand RMD's, it is often better to take the RMD in the later part of the year. First your investments accumulate tax free until then (stocks on balance go up).

Second there are no estimated taxes needed if you pay them with the final RMD withdrawal.

So my plan is:
January through November: take IRA distributions as needed up to RMD minus Fed tax due
December: take final RMD distribution equal to Fed tax due

This is my first RMD distribution year so hopefully I got this idea right. Corrections?
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Old 01-09-2018, 10:36 AM   #33
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This may not interest you but as I understand RMD's, it is often better to take the RMD in the later part of the year. First your investments accumulate tax free until then (stocks on balance go up).

Second there are no estimated taxes needed if you pay them with the final RMD withdrawal.

So my plan is:
January through November: take IRA distributions as needed up to RMD minus Fed tax due
December: take final RMD distribution equal to Fed tax due

This is my first RMD distribution year so hopefully I got this idea right. Corrections?
I like this idea,do any other members employ this strategy?

The amount subject to RMD is based on prior year's ending balance
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Old 01-09-2018, 10:46 AM   #34
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Depends on your tax bracket. Many here should take a traditional RMD early, a Roth later. If you taka a traditional RMD later you are paying ordinary income rate tax on the growth that year. By taking it early, you can put that money into a regular investment account until needed, and pay tax at the lower cap gain and dividend rates.
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Old 01-09-2018, 10:58 AM   #35
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Over the years, I've had trouble with customer service from both FIDO and VG.

I recall having to "train" a few FIDO reps on the back door roth contribution/conversion back when the income limits stopped being a factor in doing Roth conversions. I had at least 3 reps tell me all contributions to a traditional IRA were pre-tax (tax deductible) and having a basis in a Trad IRA wasn't possible. I never could get them to agree that I was right.

I've had similar problems with VG recently when trying to set up one of their Advantage Checking accounts. Basically, nobody knew anything about them and couldn't answer the simplest of questions.

Fidelity's website is better, but I've gotten so used to VG's now that I have no problems doing what I need to do without calling.
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Old 01-09-2018, 11:09 AM   #36
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Depends on your tax bracket. Many here should take a traditional RMD early, a Roth later. If you taka a traditional RMD later you are paying ordinary income rate tax on the growth that year. By taking it early, you can put that money into a regular investment account until needed, and pay tax at the lower cap gain and dividend rates.
Thanks GrayHare. This is actually precisely why I formulated the question.

as for VG vs Fidelity, I've used both extensively and both have their issues, customer service has been fairly helpful for the simpler how do I questions.
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FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 01-09-2018, 11:19 AM   #37
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Depends on your tax bracket. Many here should take a traditional RMD early, a Roth later. If you taka a traditional RMD later you are paying ordinary income rate tax on the growth that year. By taking it early, you can put that money into a regular investment account until needed, and pay tax at the lower cap gain and dividend rates.
With the 2018 lower marginal rates I'm not sure this is an issue for many here. For instance, if you are retired and in the 12% rate range then is this a problem? We personally might eventually be pushed into the higher marginal rate range as RMD's increase over the years. I'm not up on the new cap gain and dividend rates.

But yes, probably depends on one's tax situation. And let's not forget tax policy is not a constant. May change a lot over the next decade ... or not.
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Old 01-09-2018, 11:28 AM   #38
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I use USAA and have for years. Never had a problem with my investments, all stocks and ETFs in taxable accounts, TIRAs and Roth IRAs. RMDs won’t be an issue for 9 years, but we’re planning to reduce them as much as possible by converting DW 401k (with Fidelity) into her Roth IRA with USAA, and my tIRA into my Roth.
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Old 01-09-2018, 11:28 AM   #39
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Screwing up someone personal finances that they've painstakingly planned out should not be dismissed as sh*t happens. Would you want that lazy mindset at your local nuclear power plant?
There is not company out there that has not had multiple errors made by their employees... including nuclear power plants....

The question is how quickly they fix the problem... some do a better job than others...
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Old 01-09-2018, 11:38 AM   #40
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With the 2018 lower marginal rates I'm not sure this is an issue for many here. For instance, if you are retired and in the 12% rate range then is this a problem?
Someone in the 12% bracket is likely to owe 0% on capital gains, in which case they will pay less tax, perhaps no tax, by having cap gains instead of ordinary income.
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