I am in the process of switching brokers from EJ to Fido. My transaction completed but left a few hundred dollars (cash position) and a partial share of Apple and Google in my EJ account. What is the best way to get that over to Fido? It is a Roth IRA.
Switching Brokers Question
- Thread starter stygz
- Start date
Reevaluting my portfolio
I have five mutual funds from American funds that moved over to our new Fido account. In our new account we are going with a simple 3 fund strategy (90/10).
How do we best evaluate if we keep the American funds or trade them for our newly selected funds. I already paid the upfront load but the expense ratio and what ever the other fees (12b1?) may be are higher on the American funds.
Edit: I did a portfolio Visualizer on both plans. I found my three fund portfolio produced a .5% overall better return and the best/worst year less volatile. The worst year actually took a noticeable less dive (13.94% vs 21.64%) using the three funds. This was a 20 year period 2002-2022. Thoughts?
I have five mutual funds from American funds that moved over to our new Fido account. In our new account we are going with a simple 3 fund strategy (90/10).
How do we best evaluate if we keep the American funds or trade them for our newly selected funds. I already paid the upfront load but the expense ratio and what ever the other fees (12b1?) may be are higher on the American funds.
Edit: I did a portfolio Visualizer on both plans. I found my three fund portfolio produced a .5% overall better return and the best/worst year less volatile. The worst year actually took a noticeable less dive (13.94% vs 21.64%) using the three funds. This was a 20 year period 2002-2022. Thoughts?
Last edited:
njhowie
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Fidelity will automatically do a second pull from EJ to get anything remaining - standard operating procedure.
You may want to inquire about the fractional shares. Not sure if those will transfer over. If you sold them now to make them cash, then the second Fidelity pull will certainly bring it over.
Ncc1701
Recycles dryer sheets
Any residual credits will automatically sweep over via ACATs every Friday for the next 6 months. Some brokers wont transfer fractional shares and you would have to liquidate.
Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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With the post of others recently concerning being able to look at a closed account I might want to keep a few dollars at the old broker so I do not lose access to the history...
That is a good point. I am limited to my old statements.
It seems EJ liquidated the fractional shares automatically. Just waiting for the last of the cash to sweep.
Thoughts on selling the American funds for my low cost Fido funds in my three fund portfolio?
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yakers
Thinks s/he gets paid by the post
I wouldn't be in a hurry to sell the American Funds, while I hate, hate, hate loaded funds they are among the very few that have actually performed well. If the fund profile suits you there would be no reason to sell espically if there is a tax cost to selling.
Montecfo
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
When I have done this the accurate cost basis came across also.
VanWinkle
Thinks s/he gets paid by the post
Just remember the effect of the load is not included in the reporting of American Funds gains. That does make a difference in total return due to only 94.25 of every 100.00 dollars making it to the fund(5.75 siphoned off by the advisor) I agree it might not be worth taking a tax hit, but if no tax hit, I would move away from those funds.
GTFan
Thinks s/he gets paid by the post
Yeah I had this problem last month moving an entire taxable account from VG to Schwab - the pre-2012 (noncovered) cost basis didn't transfer over correctly for one fund that I've held since the early 90s. And then VG closed the account and wouldn't fix it even after claiming they would.
Fortunately I had the screenshots before the transfer - sent this to Schwab in a secure msg and they fixed it next day. Now that's service!
target2019
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
At Schwab there's no cost to sell funds. Should be the same at Fidelity.
There's no hurry, but you can get it all done in a couple of days.
I had a balanced R6 American Fund in my 401(k) but couldn't transfer it. I would have kept it.
I think your AF's just come down to what is the expense going forward, and do you think past performance will work going forward.
