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Old 01-09-2021, 10:17 AM   #41
Confused about dryer sheets
 
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I am done with my investment management company. After a stellar year in the market I had a flat return on over $1M. The funds are all in Fidelity and mostly in rollover accounts. I don’t know how to go about breaking free and moving the $ into the ‘big 3’. I am concerned about any tax consequences.
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Old 01-09-2021, 10:54 AM   #42
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Tax consequences are easy to assess. Obviously, none for tax-free Roth IRAs and HSAs or tax-deferred tIRAs as long as you do a trustee-to-trustee transfer or redeposit the money within 60 days and have no done a rollover in the last 12 months.

For taxable accounts, usually you can find your cost basis and unrealized gains online by logging into your account... but even if you have gains if you do an in-kind transfer from old brokerage to new brokerage then that would not be a taxable event.

Bottom line... in most cases tax consequences can easily be avoided.
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Old 01-09-2021, 12:17 PM   #43
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Originally Posted by 38Chevy454 View Post

I have all my savings with Fidelity, and been happy with their support and service. I did a few rollovers to self-directed IRA from various old work 401k/403b accounts. Nice thing about Fidelity is if you are near one of their offices, you can meet with an advisor who can help you with all of the rollover paperwork. Essentially you bring in your work 401k paperwork, and fill out some paperwork at Fidelity, and they do all the work to complete the rollover. At your level of funds you meet Fidelity Private Client status, Fidelity will offer investment advisor services free, to help you with any questions and some recommendations for your portfolio. They won't provide specific investment choices, but they will talk about asset allocation (AA), risk tolerance, monthly income needs, upcoming RMDs, estate planning (general, not formal lawyer), and more. The advisors are certified financial planners (CFP) who can help you out. BTW, Fidelity will likely also give you some incentive to move your 401k to a Fidelity IRA. That incentive could be around $2500 range I have heard. They will also push for their paid FA services, but you don't have to take that. You can get the advisor for free, and still get good customer service and advice.
I moved my 401K and couple IRAs to Fidelity also. For IRAs since I was new with Fidelity I went into the local office and they helped with paperwork, and even called my old advisor to complete the transfer. My 401K was administered by Fido so that was easy. I think the 401K administrator did required paperwork and it was completed over the phone.
When doing a transfer normally existing assets are sold and the cash is transferred. With Fido it was deposited into a money market fund they call sweep account and then can be invested from there at your pace to get your allocation as you like. Took me several months to complete just cause I wanted to be slow and deliberate.
My DW is also not interested in managing our funds so I found a Fido advisor at no cost that she is comfortable with and will help with managing if I go first. I think finding an advisor for DW is important now.
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Old 01-09-2021, 12:56 PM   #44
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Originally Posted by Dot57 View Post
I am done with my investment management company. After a stellar year in the market I had a flat return on over $1M. The funds are all in Fidelity and mostly in rollover accounts. I donít know how to go about breaking free and moving the $ into the Ďbig 3í. I am concerned about any tax consequences.
Easy peasy. Your new broker/custodian will have a form for you to fill out for each account you are moving. Very few decisions except whether you want the assets moved in kind or liquidated and the cash moved. Consult @pb4's post re tax consequences. If you opt for cash out make sure you will not be charged fees for selling, otherwise go for in-kind and do any selling after the transfer. Your new broker will contact the dear departed; you will have no direct dealings with them except possibly a phone call trying to talk you out of doing the deed. Decline politely, then hang up impolitely.

Sorry to hear about the bad year. On your equities, you should have been up at least 18% after fees.
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Old 01-09-2021, 02:23 PM   #45
Confused about dryer sheets
 
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Since I’m no longer interested in an actively managed portfolio that charges a 1% fee, any advise on where to go for advisory help to make the change to the 3 index fund allocation? My current funds are at Fidelity. The ‘move’ seems so complicated. And of course I hate the thought of hurting my advisors feelings.
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Old 01-09-2021, 02:39 PM   #46
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Since Iím no longer interested in an actively managed portfolio that charges a 1% fee, any advise on where to go for advisory help to make the change to the 3 index fund allocation? My current funds are at Fidelity. The Ďmoveí seems so complicated. And of course I hate the thought of hurting my advisors feelings.
Your fears are totally unfounded. These books will give you all you need to know:

"The Coffee House Investor" by Bill Schultheis https://www.coffeehouseinvestor.com/

"The Bogleheads Guide to Investing" by Taylor Larimore et al https://www.amazon.com/Bogleheads-Gu.../dp/0470067365

The advisor? He is not your friend any more that a lawn maintainance guy is likely to be your friend. He is a hired hand. FA's work hard to be seen as friends because friends don't ask friends hard questions. Friends don't take their business away from friends, etc. There was a post here a couple of years ago, the poster told about an FA friend who frequently took him fishing on a nice boat. They drank together and enjoyed each others' company. The poster pulled his money from the FA and put it somewhere else. Never again was he invited to go fishing.
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Old 01-09-2021, 02:55 PM   #47
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Originally Posted by Dot57 View Post
Since Iím no longer interested in an actively managed portfolio that charges a 1% fee, any advise on where to go for advisory help to make the change to the 3 index fund allocation? My current funds are at Fidelity. The Ďmoveí seems so complicated. And of course I hate the thought of hurting my advisors feelings.
I would have suggested that Fidelity was a good place. Is your advisor a Fidelity employee ? Are you unsure of what funds to use or how to sell and buy a different fund ? I did a transfer this morning with Fidelity on-line, just said to sell one fund and use proceeds to buy another, all one trade.
Sorry if Iím missing the complication, I donít mean to gloss over what was to me a stressful move when I sold all the funds in my 401K and had to decide what funds to buy. It did get less stressful for me.
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Old 01-09-2021, 03:05 PM   #48
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... Sorry if Iím missing the complication ...
My guess is that @Dot57 was using an advisor who in turn used Fido as a custodian. So the advisor would have had trading authority in the account(s) and @Dot57 wouln't have a direct Fido relationship. This is pretty common. It is big business for Fido, Schwab, and TDAmeritrade. Also a company most of us have never heard of: LPL Financial
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Old 01-09-2021, 03:07 PM   #49
Confused about dryer sheets
 
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My funds are held at Fidelity but are managed by a 3rd party advisor who charges 1%. Is like to move all the funds into 3 index funds (still researching which ones). While I’ve ordered the recommended reads suggested by OldShooter (thank you), I’m wondering who can help me with the administrative aspects of setting up the index funds? Is it as simple as putting a call into Fidelity (assuming I choose their funds)?
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Old 01-09-2021, 04:05 PM   #50
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Originally Posted by Dot57 View Post
My funds are held at Fidelity but are managed by a 3rd party advisor who charges 1%. Is like to move all the funds into 3 index funds (still researching which ones). While I’ve ordered the recommended reads suggested by OldShooter (thank you), I’m wondering who can help me with the administrative aspects of setting up the index funds? Is it as simple as putting a call into Fidelity (assuming I choose their funds)?
I would suggest you open another Fido account and transfer from the current to the new one. Personally I would visit my local office to do this. As I mentioned, I did a similar move several years ago. The staff at the front desk took me to a computer in the lobby and walked me through the moves. My accounts were with another company, managed by a third party advisor. They helped open a new account for me then called the advisor to get the transfer started from his side. Being Fido to Fido it may be easier for you. I did have a 2 minute uncomfortable discussion with the advisor but that was it.

Just want to advise or encourage you that it seems daunting but it really isn’t. You can do this. You could wait for 3 months if you feel uncomfortable with the virus ?
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Old 01-09-2021, 04:08 PM   #51
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... Iím wondering who can help me with the administrative aspects of setting up the index funds? Is it as simple as putting a call into Fidelity (assuming I choose their funds)?
If your money is at Fidelity you are not limited to Fido's funds. There are many more options. The books will help you.

But actually doing a buy (or sell) couldn't be simpler. You can do it on their web site with a few clicks or you can telephone and have one of their reps help you. There may be a small charge for using a human instead of a web site but for a long term investor it is negligible, so you may prefer the hand-holding for your initial transactions.

Ref @RetireBy90's comment I don't know why you would not want to just use the accounts you already have, but Fido can advise you on that. I would keep the same accounts so all of my history was in one place but YMMV.
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Old 01-09-2021, 05:12 PM   #52
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Ref @RetireBy90's comment I don't know why you would not want to just use the accounts you already have, but Fido can advise you on that. I would keep the same accounts so all of my history was in one place but YMMV.
I suggested just as an easy way to keep the old advisor from having any access to the account(s). They should be able to remove the previously granted access but it may be easier.
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Old 01-10-2021, 02:48 PM   #53
Recycles dryer sheets
 
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Originally Posted by Dot57 View Post
Since I’m no longer interested in an actively managed portfolio that charges a 1% fee, any advise on where to go for advisory help to make the change to the 3 index fund allocation? My current funds are at Fidelity. The ‘move’ seems so complicated. And of course I hate the thought of hurting my advisors feelings.
@Dot57 - Recently, I re-read Paul Merriman's free books: How to invest series complimentary download | Paul Merriman They have plenty of good information that's relatively easy to digest for newcomers.

Also, I've found jlcollins' Stock Series highly useful, especially for the psychological aspect of making one comfortable with investing: https://jlcollinsnh.com/stock-series/

Once you're done reading and understanding those, you have the major tools you need to invest on your own, while sleeping comfortably at night. Aside from the self-confidence and sleep-at-night factor, the main benefit is that you'll save about 90% of your current investing costs. Is that worth hurting your advisor's feelings? Only you can decide that...
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Old 01-11-2021, 12:19 PM   #54
Confused about dryer sheets
 
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I like Fidelity because they have brick and mortar stores I can walk into and not be on the phone forever. Even if its just a fifteen minute Q and A. Also they gave me some personal attention with reading graphs, and basic questions.

I am full in with Fidelity, although I hold a Schwab account for the international ATM offerings in their checking account.
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