Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Scottrade to Vanguard
Old 10-15-2014, 06:31 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2011
Location: columbus
Posts: 100
Scottrade to Vanguard

After reading on here I am planning to dump my higher cost funds in scottrade and transfer to low cost vanguard index funds. Roth $85k...holds 17 different funds and vanguard said they could cost up to $35 each to sell.

Should I liquidate in scottrade first? Should I buy one etf or something to stay in the market during transfer? Does it make sense to move? Any other thoughts/advice?

I think my new long term plan is low cost index/etfs and maybe some individual stocks I really like. Any advice on crafting new portfolio?

Sent from my SPH-L710 using Early Retirement Forum mobile app
__________________

__________________
columbus is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-16-2014, 09:01 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,906
Are these investments in an tax deferred account or a taxable account?
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 10-16-2014, 09:07 AM   #3
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
17 different funds? Good grief.

$35 seems high for this sort of transaction unless there is some sort of rear end load. Vanguard doesn't charge $35 and neither does Scottrade. Something seems amiss to me.

An alternative is to convert to Vanguard ETFs in Scottrade if you are worried about being out of the market during the transfer period. For simplicity I'd put it all into VTI. Vanguard does not charge to sell their ETFs. You will not be able to avoid the transaction fees for these trades and the account transfer fee Scottrade surely charges - probably around $60.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 10-16-2014, 09:07 AM   #4
Recycles dryer sheets
 
Join Date: Feb 2011
Location: columbus
Posts: 100
Tax defered roth its and rollover ira. The Roth is the largest with most high expense funds. I also have a small taxable account with a few stocks but that could just transfer over as is. I'm not sure what to do...if I just liquidate my luck the market will bounce back then.

Sent from my SPH-L710 using Early Retirement Forum mobile app
__________________
columbus is offline   Reply With Quote
Old 10-16-2014, 09:08 AM   #5
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 358
I'd liquidate in scottrade first if all is in a Roth IRA as I think you are saying and then bring over to Vanguard.
Did a similar move from ML a couple of years ago, but don't remember paying any fees on it.

Talk to Vanguard about what you want to do and ask them how to best handle it to minimize costs.

They should be well aware.
__________________
NgineER is online now   Reply With Quote
Old 10-16-2014, 11:47 AM   #6
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 1,138
Why not just hold Vanguard ETFs at Scottrade? Is there some other dissatisfaction with Scottrade, other than the high-cost funds you currently own?

I use Fidelity to house my portfolio, which is primarily composed of low-cost Vanguard index ETFs. I prefer Fidelity's online interface, research tools, cash management tools, cash-back credit cards, plus a better overall brokerage experience. Only disadvantage is I pay $7.95 to trade Vanguard ETFs ($0 for most iShares). But I trade so infrequently that this fee is of no consequence.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.0% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 10-16-2014, 05:11 PM   #7
Recycles dryer sheets
 
Join Date: Feb 2011
Location: columbus
Posts: 100
I was wondering if staying might be a better option. Are the etfs as good as the funds? I would buy and hold so prob just spend $7 per year?

Sent from my SPH-L710 using Early Retirement Forum mobile app
__________________
columbus is offline   Reply With Quote
Old 10-16-2014, 05:31 PM   #8
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 1,138
Quote:
Originally Posted by columbus View Post
I was wondering if staying might be a better option. Are the etfs as good as the funds?
The short answer is yes. The ETFs are just another share class of the corresponding mutual fund, and frequently carry a lower expense ratio. A more complete answer is here.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.0% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 10-16-2014, 05:31 PM   #9
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
One question not addressed is your current ER: how much would you save on annual basis by making the change? Our total ER is about .08 using Vanguard. If your current ER is, say, 1.08, you'd be giving up about 25% of your returns over 25 years.


Sent from my iPad using Early Retirement Forum
__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Old 10-17-2014, 04:50 PM   #10
Dryer sheet wannabe
 
Join Date: Jan 2014
Posts: 19
I'd just transfer your account as is to vanguard and then make changes. Vanguard has this down to a science. I bet it will be a lot less to trade with vanguard.


Sent from my iPad using Tapatalk
__________________
maloney50 is offline   Reply With Quote
Old 10-17-2014, 06:25 PM   #11
Recycles dryer sheets
 
Join Date: Jun 2014
Posts: 124
It really depends on what mutual funds you currently have. Selling the funds at Vanguard could potentially cost more.

For example, for funds not in the NTF ("no-transaction-fee") program, it costs $17 to sell at Scottrade and $35 to sell at Vanguard.

But if you have $50k in Vanguard assets, you would qualify for Voyager status and the cost to sell reduces to $20. However, qualification would be an chicken-and-egg problem because you wouldn't have $50k in Vanguard assets unless you sell the third party funds first.

PS. Only Vanguard mutual funds and Vanguard ETFs count towards Vanguard assets.
__________________
catotx is offline   Reply With Quote
Old 10-17-2014, 09:56 PM   #12
Recycles dryer sheets
 
Join Date: Feb 2011
Location: columbus
Posts: 100
My avg er is 1.25 across 20 funds...so paying over $900 per year in fees. I'm just afraid to move it all to vanguard and have to pay up to $700 to sell off. ...and st has a $75 transfer fee I didn't think about too.

Sent from my SPH-L710 using Early Retirement Forum mobile app
__________________
columbus is offline   Reply With Quote
Old 10-17-2014, 10:27 PM   #13
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,075
Quote:
Originally Posted by columbus View Post
After reading on here I am planning to dump my higher cost funds in scottrade and transfer to low cost vanguard index funds. Roth $85k...holds 17 different funds and vanguard said they could cost up to $35 each to sell.

Any advice on crafting new portfolio?

Sent from my SPH-L710 using Early Retirement Forum mobile app
Quote:
Originally Posted by columbus View Post
My avg er is 1.25 across 20 funds...so paying over $900 per year in fees. I'm just afraid to move it all to vanguard and have to pay up to $700 to sell off. ...and st has a $75 transfer fee I didn't think about too.

Sent from my SPH-L710 using Early Retirement Forum mobile app
Did you buy 3 additional funds since yesterday?

I think it costs $17 dollars to sell a mutual fund in Scottrade. It costs $7.00 to sell an ETF or a stock with Scottrade. As others have mentioned, you might consider speaking to Vanguard about the best way to transfer your assets (which may include just turning your assets into cash at Scottrade and then moving the cash over to Vanguard). If you have Vanguard ETF's or Vanguard Mutual funds currently at Scottrade you might want to transfer them to Vanguard and not sell them through Scottrade.

I imagine you will receive sound advice about re-crafting your portfolio from the Forum's members once you get over to Vanguard.
__________________
Carpe cōleī
redduck is offline   Reply With Quote
Old 10-17-2014, 10:37 PM   #14
Recycles dryer sheets
 
Join Date: Feb 2011
Location: columbus
Posts: 100
There was a second page I didn't notice pretty messed up. Most should have been zero cost transaction funds in scottrade. I'm wondering if I should just sell and buy vanguard etfs and stay in scottrade to avoid transfer fee?

Sent from my SPH-L710 using Early Retirement Forum mobile app
__________________
columbus is offline   Reply With Quote
Old 10-18-2014, 12:23 AM   #15
Recycles dryer sheets
 
Join Date: Jun 2014
Posts: 124
What are some of the mutual funds? Can you group them into asset classes like US large caps, small caps or international large caps?

I suggest to group the similar ones together and replace each asset class by a low-cost Vanguard ETF.
__________________
catotx is offline   Reply With Quote
Old 10-18-2014, 01:50 AM   #16
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 1,138
Quote:
Originally Posted by redduck View Post
I imagine you will receive sound advice about re-crafting your portfolio from the Forum's members once you get over to Vanguard.
Wow. I didn't realize that was a precondition to receive sound advice from the Forum.

Quote:
Originally Posted by columbus View Post
I'm wondering if I should just sell and buy vanguard etfs and stay in scottrade to avoid transfer fee?
Bingo.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.0% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 10-18-2014, 10:24 AM   #17
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,075
Quote:
Originally Posted by Cobra9777 View Post
Wow. I didn't realize that was a precondition to receive sound advice from the Forum....
Good point.
__________________
Carpe cōleī
redduck is offline   Reply With Quote
Old 10-20-2014, 10:42 PM   #18
Recycles dryer sheets
 
Join Date: Feb 2011
Location: columbus
Posts: 100
Well...I funded a vanguard brokerage account today and will try to find the best wsy to leave scottrade. I will have about $50 in sale fees but $300 in account transfer fees if I can't get them waived somehow...there were none when I opened accounts years ago...I don't think it is right to charge now that I have no choice.

Sent from my SPH-L710 using Early Retirement Forum mobile app
__________________

__________________
columbus is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
scottrade fund recommendations columbus Stock Picking and Market Strategy 12 01-17-2013 06:12 PM
Mutual of America to Scottrade or Vanguard Ricardof FIRE and Money 0 11-18-2009 02:56 PM
Brokered CD's with Ameritrade and Scottrade summer2007 FIRE and Money 3 10-11-2008 02:51 AM
Vampires at Scottrade :) HobbyDave FIRE and Money 6 11-15-2007 12:37 PM
Scottrade shafts customers: Jan. 3, 2005 soupcxan FIRE and Money 2 12-11-2004 01:58 PM

 

 
All times are GMT -6. The time now is 05:11 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.