Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Proprietary Funds
Old 03-03-2006, 08:27 PM   #1
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 140
Proprietary Funds

I am still in the process of moving Merrill Lunch funds to Vanguard. My plan was to move everything in-kind, then sell what does not have a back end sales charge and wait until it expires for those that do. Today my ML Financial Advisor left a message that my Merrill Lynch funds are proprietary funds and can't be held at another firm. VG had told me they could hold ML funds. Does anyone know who is right?
__________________

__________________
smooch 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!

Re: Proprietary Funds
Old 03-03-2006, 09:00 PM   #2
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Re: Proprietary Funds

Smooch,

ML may be correct, I'm not sure what you bought so you'll have to do your own DD.

If the money is in tax deferred accounts I would pay the back end charges and move the money.* Just make sure they don't send the check to you.* It should go directly into a tax deferred account at Vanguard.

If it's a taxable account I would look at the total amount of fees and taxes and make a choice based on that info.* That's a choice only you can make.* If you can live with the fees and taxes I would just sell and get your monies in Vanguard ASAP and don't look* back.

All of my money is now at Vanguard and some of it is still in Oppenheimer funds, but only the taxable accounts.* I will have to do some DD and figure out if it pays to just get out or wait until I'm retired and in a lower tax bracket.

In the end you will feel better once it's all moved over.*

Good luck

__________________

__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Re: Proprietary Funds
Old 03-04-2006, 12:27 AM   #3
Full time employment: Posting here.
 
Join Date: Jan 2006
Posts: 899
Re: Proprietary Funds

Vanguard lists ML funds on their web site which suggests that you can buy them through Vanguard. I suppose that doesn't necessarily mean that you can transfer an existing ML fund to you Vanguard account.

Why do you want to transfer administration of the ML funds to Vanguard? The only thing that will do is simplify your accounting a bit.

I agree with 73. I suggest that you look and see if it makes sense to sell the ML funds, take the tax consequence, and move the money into Vanguard funds.'

MB
__________________
mb is offline   Reply With Quote
Re: Proprietary Funds
Old 03-04-2006, 11:27 AM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: Proprietary Funds

Quote:
Originally Posted by mb
Why do you want to transfer administration of the ML funds to Vanguard?* The only thing that will do is simplify your accounting a bit.
We transferred our Tweedy, Browne IRAs in-kind to Fidelity for three reasons:
- simpler IRA conversions to Roths (custodian's conventional IRA to the same custodian's Roth IRA)
- Tweedy insisted on charging their annual $10 IRA custodian fee (per IRA, so our Roth conversions at Tweedy would have cost $40/year)
- it boosted our assets under Fidelity's management above one of their breakpoints.

Fidelity charges $75 for buying Tweedy's funds but there's no fee for selling them. So we've spent nothing to obtain the above advantages.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Proprietary Funds
Old 03-04-2006, 04:18 PM   #5
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 140
Re: Proprietary Funds

Our intention is to sell the ML funds, but some have back-end charges. I thought it would be easier to move them in-kind to VG, then liquidate them as the sales charges go away. It would make it easier to just deal with VG instead of VG for some funds and ML for others. I guess I will liquidate them at ML and then move them. Thanks for the help!
__________________
smooch is offline   Reply With Quote
Re: Proprietary Funds
Old 03-04-2006, 04:37 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Re: Proprietary Funds

Two things to consider:

1. If your ML funds are in a taxable account (not an IRA) you should probably calculate how much in taxes you may incur. If they are in tax deferred funds, you will not have this problem.

2. I suggest that you consider the rollover the ML funds that have no back end load left as of now. Retain the ones that still have a back end load with ML and as they lose this expense, move them to VG.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Proprietary Funds
Old 03-04-2006, 07:23 PM   #7
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 140
Re: Proprietary Funds

MickeyD, that is exactly what I plan to do - liquidate all but the ones with the back-end load until it goes away. Thanks!
__________________
smooch is offline   Reply With Quote
Re: Proprietary Funds
Old 03-19-2006, 11:54 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Re: Proprietary Funds

Sounds like a plan. Let us know when you have it all set up with VG.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Proprietary Funds
Old 03-19-2006, 02:14 PM   #9
 
Posts: n/a
Re: Proprietary Funds

xxxx
__________________
  Reply With Quote
Re: Proprietary Funds
Old 03-19-2006, 06:35 PM   #10
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 140
Re: Proprietary Funds

Update: All non ML funds were moved with no problem. ML funds without the sales charge were liquidated, but the funds have not come over yet after two weeks. I finally called on Friday and as I expected, ML is giving me a story about Vanguard not doing things in the proper way, so now we start a few weeks of my money in limbo.
__________________
smooch is offline   Reply With Quote
Re: Proprietary Funds
Old 03-19-2006, 06:51 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
Re: Proprietary Funds

Quote:
Originally Posted by smooch
Vanguard not doing things in the proper way,..
And if you believe that, I have a bridge for sale.*

I wonder if ML would put in that statement in writing?* Try something like, "Send me an e-mail detailing what they need to do and I will take care of that."*
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Re: Proprietary Funds
Old 03-20-2006, 02:00 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Proprietary Funds

"The proper way" == "not taking the money away before we can make a few extra bucks off of the float"
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny 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
My 401k's expense ratios, Bogle, lowest-cost quartile data for stock funds? Dude FIRE and Money 19 02-07-2007 02:17 PM
Index funds beat most active funds JustCurious FIRE and Money 57 10-23-2006 12:14 PM
Vanguard Adding More Target Retirement Funds Lusitan FIRE and Money 23 03-21-2006 07:17 PM
Stocks or Mutual Funds renferme FIRE and Money 7 03-01-2006 07:14 PM
Low cost funds into ETFs? Olav23 FIRE and Money 26 07-06-2005 10:42 PM

 

 
All times are GMT -6. The time now is 05:08 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.