really stupid question--how to buy mutual funds

[Nords]

Oh so many thanks! I've been pondering the HOW to dump the FA since it seems that we're not getting what we're paying for. But that is another question...

I've moved things around in the past, and my experience was that it generally involves liquidating, completing some paperwork to do a "transfer of assets" (which might involve things like signature guarantees), and then waiting for it to happen. A little bit of a pain, but well worth it (to me) in the end.
Then, once you have assets at your chosen brokerage or fund firm, they may start out in a money market or cash account, but you are then free to invest in your choice of funds.

Palomalou, one of the keys seems to be to not speak to your current FA about the situation any more than absolutely necessary. Above all, let your new firm (Fidelity, Vanguard, or Schwab) initiate the action.

If your assets are held at the firm where you want them to be held, then send your FA a [-]"Dear John" letter. Reassure them that it's you, not them.[/-] "Thank you but I'm taking over my investments" letter, and then try to avoid all contact. If you must you could answer their phone calls, but resist their warnings & entreaties & offers.

If you want to move your assets elsewhere then apply for an account at the new firm. As part of the application process, you'll fill out the "transfer of assets" form. You can choose to transfer the assets "in kind", which moves the shares from one firm to the other without tax consequences. Or you could choose "liquidation", which sells the shares and moves the cash-- with applicable capital gains taxes.

For various reasons, I closed my father's Vanguard account and moved the assets to Fidelity. It was easily done online at Fidelity's website with only one page, a consent form, having to be printed out, signed, and mailed back. Fidelity took it from there. We got one call from Fidelity that Vanguard wouldn't transfer the shares in kind-- was liquidation OK? Once I agreed to liquidation, they finished the transfer the next business day. I never once had to speak to Vanguard, and I've never heard from them again.

 

[steelyman]

If you want to move your assets elsewhere then apply for an account at the new firm. As part of the application process, you'll fill out the "transfer of assets" form. You can choose to transfer the assets "in kind", which moves the shares from one firm to the other without tax consequences. Or you could choose "liquidation", which sells the shares and moves the cash-- with applicable capital gains taxes.

Thanks for this very important caveat, which is an issue for taxable accounts. My transfers were done between employer (tax-deferred) plans or for my parents' accounts (for which the tax issues were a bit different).

 

[obgyn65]

In the past I have bought my CDs and munis with Edward Jones. I guess they handle mutual funds too. I like Edward Jones.

 

[vttlarry]

A piggyback question to this: if you hold an IRA with, say, Wells Fargo, I assume can you still buy Vanguard mutual funds? And if so, is there a higher cost?

 

[Animorph]

A piggyback question to this: if you hold an IRA with, say, Wells Fargo, I assume can you still buy Vanguard mutual funds? And if so, is there a higher cost?

You'll have to check Wells Fargo's list of available funds and list of no transaction fee funds. Or simply look up the fund you want at Wells Fargo and that info should be there. All brokerages carry a slightly different set of funds. I can get some Vanguard funds at Fidelity, but they have a transaction fee, IIRC. ETF's are available through any brokerage, but different sets may be commission free at some brokerages.