Are these the proper steps to leave Vanguard with Sep and Cd's?

[Brook2]

Are these the proper steps to transfer Vanguard SEP (with CDs) to Fidelity?

Tell me if my steps are correct in moving assets of my VG Sep Ira to Fidelity Sep Ira.

Inside the VG brokerage Sep account I have:

-1 Mutual fund (Let's call it "Fund A")
-Money Market fund,
-Settlement fund and
-multiple CDs due in 1-3 years.

Step 1: cash out the Mutual "fund A," and put cash in the Money Market fund (in order to easily move it to Fidelity.)

Step 2: Move all that Money Market cash to Fidelity (except for the $3,000 VG requires minimum to keep it open). I will use the transferred cash to buy new funds I like at Fidelity.

Then:

Step 3: Wait until all my CDs come due (1-3 years) and are deposited into my VG settlement fund.

Step 4: Once all CD assets are in settlement fund, move settlement fund into my VG Money Market Fund. (I assume I can't transfer anything from a settlement fund directly to Fidelity)

Step 5: Transfer all VG Money market assets to Fidelity, and close VG MM.

Step 6: Close complete VG brokerage account.

 

[Whisper66]

That’s one way but not the way I’d do it. You are moving presumably for improved customer service. I’d just call Fidelity and give them the information they needed to move assets in kind that I wanted moved. Then sell the vanguard items from within the Fidelity account when you wish. That’s how I consolidated 6 other brokerage accounts into one account at Vanguard. Went very smoothly and no effort on my part other than working with Vanguard by phone.

Fidelity should be able to quickly advise if anything you have can’t simply be transferred as is (without sales). I know nothing of CDs but believe you are likely to be able to move your money market and settlement fund in kind.

 

[Phroig]

Vanguard Federal MM won’t transfer, but the settlement fund should transfer as cash to your new settlement fund. Your mutual fund might transfer in kind. Call Fidelity and ask about all your investments.

 

[levindb]

Ask Fidelity to do it all for you...transfer in kind for those that they can, and cash for those they cannot. They are pleased to have your funds, and custodian to custodian avoids any tax issues.

 

[Chris7]

Brokered CDs should just transfer over. We have had clients move such to our Broker and unfortunately have had the reverse happen. The sending brokerage (Vanguard) may charge some sort of transfer fee, but it shouldn't be a crazy amount.



If there are any fees, they should be contained in Vanguard's disclosures. If you have a Rep at Fidelity, they may done this before and also be able to tell you what fees you may expect.


cd : O)

 

[OldShooter]

Yes, what others are saying. Just give Fido the ball and relax. Your OP is waay unnecessarily complicated.

You should also ask Fido if they will pay a bounty for the assets you are moving to them and it is pretty much expected that the receiving house will cover any fees that the dear departed might impose.

 

[CRLLS]

Another vote for letting Fido handle the move. It is simple on your end. Just a call/email etc. and you're done. They carry the ball from there on out to ensure everything is done to completion. And definitely request Fido's incentive bonus.