One or more Investment Firms?

[GrayHare]

Very interesting.

What right does a brokerage exercise in freezing an individual account at their discretion?

Don't they need authorization from a law enforcing agency to do so?

No, authorization is not needed individually for each case. A brokerage can lock down any account simply on single-party (their) suspicion of any of a list of items. No ruling, no warrant, no third-party. Even if this makes the brokerage liable, the brokerage will invent an excuse to blame the customer.

 

[pb4uski]

I think failure of Vanguard, Fidelity, et al is unlikely.... they are essentially service firms.... they provide investment management, marketing and distribution, shareholder services, etc.

 

[NW-Bound]

No, authorization is not needed individually for each case. A brokerage can lock down any account simply on single-party (their) suspicion of any of a list of items. No ruling, no warrant, no third-party. Even if this makes the brokerage liable, the brokerage will invent an excuse to blame the customer.

Which authority do I go to, in order to reclaim my asset? The State Attorney General office?

 

[GrayHare]

Which authority do I go to, in order to reclaim my asset? The State Attorney General office?

That's one. Any org that oversees banking and financial matters can probably help too, such as Financial Industry Regulatory Authority and the Federal Reserve.

 

[RobbieB]

Sounds like Dreyfus paid the fraudster and didn't want to admit it or make good on their error (you know because they don't make mistakes)

When you came looking they were like "oh crap" and hid.

 

[swakyaby]

Sounds like Dreyfus paid the fraudster and didn't want to admit it or make good on their error (you know because they don't make mistakes)

When you came looking they were like "oh crap" and hid.

You know, that scenario would explain their strange behavior.

 

[Midpack]

Good timing for me. We have a local bank, and online bank but all our equity and bond holdings are at Vanguard. However, Fidelity has much better tools and support, so I’m seriously thinking of moving our TIRAs to Fidelity for the added tools, and leaving our brokerage account at Vanguard. And I didn’t used to worry about it, but hacking exposures don’t seem to be abating at all.

 

[pb4uski]

^^^^ When you say brokerage account I presume you mean taxable accounts? If so, then I would consider the opposite... move brokerage account to Fidelity and keep tIRAs at Vanguard. Why? Because Fidelity allows beneficiary designations on joint taxable accounts and Vanguard does not. Not a huge deal but you still get the tools. BTW, I have had accounts with Fidelity for a little over a year and have not been particularly impressed by their tools or website.

 

[Midpack]

^^^^ When you say brokerage account I presume you mean taxable accounts? If so, then I would consider the opposite... move brokerage account to Fidelity and keep tIRAs at Vanguard. Why? Because Fidelity allows beneficiary designations on joint taxable accounts and Vanguard does not. Not a huge deal but you still get the tools. BTW, I have had accounts with Fidelity for a little over a year and have not been particularly impressed by their tools or website.

Yes taxable.

I’d like to avoid a taxable event and... I am fine with Fido’s bond funds instead of Vanguards, our TIRAs are all bond funds and REIT. But I don’t want to sell out of the Vanguard equity funds we own in taxable, and I’ve read there are extra fees on VG funds held at Fido.

Interesting you haven’t been impressed with Fido online, not sure what to make of that. Thank you.

 

[pb4uski]

I take it that the tickers in your taxable account can't be transferred in-kind to Fido to avoid a taxable event? I suspect that ours could not.

 

[Midpack]

I take it that the tickers in your taxable account can't be transferred in-kind to Fido to avoid a taxable event? I suspect that ours could not.

I assume I can transfer all our VG funds in kind to Fidelity. But I’ve read Fido has begun charging a small fee, though I can’t find confirmation. Does anyone know for sure? I don’t see a reason to add any fund drag to our VG funds no matter how small, when I’m happy to exchange all our VG bond funds for Fido bond funds in our TIRAs and can do so without a taxable event. Maybe I’m mistaken.

 

[PatrickA5]

I assume I can transfer all our VG funds in kind to Fidelity. But I’ve read Fido has begun charging a small fee, though I can’t find confirmation. Does anyone know for sure? I don’t see a reason to add any fund drag to our VG funds no matter how small, when I’m happy to exchange all our VG bond funds for Fido bond funds in our TIRAs and can do so without a taxable event. Maybe I’m mistaken.

We transferred our IRA's (VG Life Strategy) in kind to FIDO. Haven't seen any fees. The only fees that I'm aware of would be if I wanted to buy more VG funds - which I think would be $75. I won't be doing that.

 

[gwraigty]

I assume I can transfer all our VG funds in kind to Fidelity. But I’ve read Fido has begun charging a small fee, though I can’t find confirmation. Does anyone know for sure? I don’t see a reason to add any fund drag to our VG funds no matter how small, when I’m happy to exchange all our VG bond funds for Fido bond funds in our TIRAs and can do so without a taxable event. Maybe I’m mistaken.

https://www.fidelity.com/customer-service/transfer-assets

We don't charge a fee to move assets from another institution; however, your current firm may charge to transfer your assets to us.

 

[scrabbler1]

Sometimes, Fidelity will reimburse you for the fees you paid to the other company after the asset transfer is done. This happened last year when I helped my (snake-bit) friend do an asset transfer to Fidelity. I'm not sure if there were any conditions which had to be met in order to qualify for the waiver of the fees, though.

 

[Badger]

We have all our money in 3 places. We have 2 Mutual funds in Vanguard IRAs along with 2 MM accounts for sweeping RMD and dividends, individual stocks with a broker (considering moving those to Vanguard if possible for ease of keeping track of everything), and cash in our credit union (checking, CDs, etc.). We don't plan on selling any stock so the children will get those to cash in at a higher basis.



Eventually my brain may not be able to handle keeping track of everything so I have this plan and a set of instructions to keep me and my wife from making bad choices with a foggy brain. Investing is pretty much over (bought and now holding) with enough cash to see us through most any circumstance.


I don't see a need for us to divide everything up to more MF companies. For the past couple of years I have been consolidating to this plan. Works for us. We sleep well and have less hassle.


Cheers!

 

[ncbill]

Sometimes, Fidelity will reimburse you for the fees you paid to the other company after the asset transfer is done. This happened last year when I helped my (snake-bit) friend do an asset transfer to Fidelity. I'm not sure if there were any conditions which had to be met in order to qualify for the waiver of the fees, though.

Raymond James charged me $125 to transfer an old IRA to Fidelity...Fido reimbursed that.

Goodbye & good riddance, Raymond James!