i'm almost out of the grip of ameriprise..but i have questions

[dooo42]

i saw lisa is getting out of ameriprise..good job. i'm almost out but i need to move our roth's to vanguard? what happens exactly when you tell amerprise to liquidate all your accounts? should i call the main office to do all this and not involve my planner? will vanguard move the money over for you?

 

[73ss454]

Vanguard will help you transfer everything over. Takes a little while but they get it done. No need to contact anyone except Vanguard.

 

[FIREd]

Typically, you can let Vanguard handle the money transfer for you. But sometimes, Vanguard will require that you first liquidate your current positions before they can roll over the money for you. In this case, you will unavoidably have to involve the planner.

 

[travelover]

Ameriprise may take a pound of flesh from you on the way out, depending on what investments you have with them. You might want to look now so you aren't surprised later.

 

[ziggy29]

Ameriprise may take a pound of flesh from you on the way out, depending on what investments you have with them. You might want to look now so you aren't surprised later.

This is true, but there is a good chance that much of this is a "sunk cost" that is gone either way.

And what isn't "sunk" may not be worth avoiding if it means using terrible, high-fee and loaded funds for a few years to avoid the penalties. I'm not sure whether Lisa's math worked out or if they just decided they wanted to take their lumps and make a clean break despite the hit, but regardless it may be relevant to some.

 

[Lisa99]

Hi Dooo,

I just did this on Friday so can tell you what Vanguard told me.

If the account is tax-deferred Vanguard will take care of the roll-over for you.

If the Ameriprise account is taxable then you have to call Ameriprise and liquidate. Once liquidated you can then invest the money with Vanguard.

And I was worried about talking to my planner, but just finished the conversation five minutes ago...it went so much better than I could have hoped. When I told him why (fees too high, expense ratios too high) he said he completely understood our decision, wished me the best in my investments and to give him a call if I ever changed my mind.

Absolutely no hard sell to keep us, nor doom and gloom scenarios that could happen to us by leaving.

 

[travelover]

This is true, but there is a good chance that much of this is a "sunk cost" that is gone either way.

And what isn't "sunk" may not be worth avoiding if it means using terrible, high-fee and loaded funds for a few years to avoid the penalties. I'm not sure whether Lisa's math worked out or if they just decided they wanted to take their lumps and make a clean break despite the hit, but regardless it may be relevant to some.

Don't get me wrong, I'd flee, too - ASAP.

 

[REWahoo]

And I was worried about talking to my planner, but just finished the conversation five minutes ago...it went so much better than I could have hoped. When I told him why (fees too high, expense ratios too high) he said he completely understood our decision, wished me the best in my investments and to give him a call if I ever changed my mind.

Absolutely no hard sell to keep us, nor doom and gloom scenarios that could happen to us by leaving.

I'm guessing he's one of those who already has his yacht paid for and is just hanging around for the medical benefits...

 

[ERD50]

I'm guessing he's one of those who already has his yacht paid for and is just hanging around for the medical benefits...

That, or he figures it's less work to find another un-educated client than to try to hang onto an educated one.

Congrats on the move Lisa99 & dooo42

-ERD50

 

[73ss454]

Hi Dooo,

I just did this on Friday so can tell you what Vanguard told me.

If the account is tax-deferred Vanguard will take care of the roll-over for you.

If the Ameriprise account is taxable then you have to call Ameriprise and liquidate. Once liquidated you can then invest the money with Vanguard.

And I was worried about talking to my planner, but just finished the conversation five minutes ago...it went so much better than I could have hoped. When I told him why (fees too high, expense ratios too high) he said he completely understood our decision, wished me the best in my investments and to give him a call if I ever changed my mind.

Absolutely no hard sell to keep us, nor doom and gloom scenarios that could happen to us by leaving.

When I moved over my taxable account I had most of the money in Oppenheimer funds. I didn't have to liquidate any of it. I just moved it over and then moved everything out of Oppenheimer and into the various Vanguard funds.

Things must have changed somehow.

 

[Lisa99]

May have something to do with how Ameriprise operates...but that's only a guess.

As for shutting down the VUL, we haven't pulled the trigger yet. I'm paying the cost of insurance ($129/month) out of the 'cash value' until we make a decision. I think the decision will be to shut it down and move the funds, but haven't finalized the decision yet.

 

[meierlde]

Although it was 5 years ago, stocks transfered easily to Vanguard, but funds were a different issue. One just asked vanguard and the stocks moved, but had to involve the bank where the money was to liquidate the funds, then the cash moved. (This was a taxable account)

 

[dgoldenz]

Keep in mind that if you have a gain on a life insurance policy and cash out, there is a taxable consequence. If you have a need for life insurance, a Section 1035 exchange to another permanent life insurance policy will transfer the cash value without any taxable consequence. The exchange can "buy down" the premiums on the new policy or be used to "overfund" a policy. Just something to consider.

 

[Lisa99]

we definitely don't have a gain on the VUL. The overall cost basis is $10k higher than its current value.

And as for moving fast, it was all about finding the right 'recipe', to use an analogy. What the advisor was doing was complex and expensive, which personality-wise is not our style. We're DIYers in everything else, why not in investing where it means so much more.

Once I found this site (and the Boglehead forum) I realized that the recipe could be very simple and even more effective. Once that light bulb went off it was full tilt ahead....and get this, I'm so obsessed with learning everything I can right now I'm even dreaming about asset allocation!! VERY SCARY

 

[dgoldenz]

More often than not, the KISS method works best.

 

[Lisa99]

One word of caution for anyone seriously thinking about moving from advisor managed to self managed.

KNOW YOUR CAPITAL GAINS TAX EXPOSURE.

We were able to move very fast because our entire Ameriprise portfolio was in an overall "no gain" position.

If the portfolio would have had an overall gain (based on the cost basis of each fund) we would have had to move more slowly and figure out fund by fund what our approach needed to be).

 

[kyounge1956]

I've been wanting to send this since the thread started, but as of today I am pleased to announce that I've finally gotten myself completely disentangled from Ameriprise.

About two weeks ago I submitted the forms to cash in my VA and close my account. Last week I got a letter in the mail acknowledging my request, and today the money finally showed up in my Scottrade Roth IRA. Freeeeee! I'm freeeeee!!

 

[Lisa99]

Congrats! My money hasn't shown up yet, but it should be any day now.