Best way to move ROTH IRA to Vanguard

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  • Avatar Fin23 
    Status: Physician
    Posts: 4
    Joined: 08/07/2019

    Need advice on the most cost effective way to transfer my ROTH IRA from scammer financial institute (bunch of random “dividend-yielding” stocks and poor mutual funds with high expense ratios) to Vanguard.

    People have said you can occur high expenses liquidating all the funds and then transferring.

    Is it better to have my advisor dump the collection of stocks/mutual funds and buy 100% of VTSAX mutual fund and then initiate the transfer? Would this be cheaper?

    #236957 Reply
    CordMcNally CordMcNally 
    Status: Physician
    Posts: 2806
    Joined: 01/03/2017

    You can sell/buy funds within the Roth and it doesn’t create a taxable event, however, your particular funds may have penalties or fees associated with this so I would check your fund prospectus. If your funds have fees attached, it won’t matter whether you sell them before or after you transfer to Vanguard.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #236985 Reply
    Avatar Peds 
    Status: Physician
    Posts: 4405
    Joined: 01/08/2016

    What does your current brokerage charge?
    What will Vanguard charge?
    You have to ask and find out….

    #236998 Reply
    Lordosis Lordosis 
    Status: Physician
    Posts: 1807
    Joined: 02/11/2019

    You can always call Vanguard and they might be able to help you with the process.  The more money involved the more interested they likely will be to help.

    “Never let your sense of morals prevent you from doing what is right.”

    #237000 Reply
    Faithful Steward Faithful Steward 
    Status: Financial Advisor, Small Business Owner
    Posts: 509
    Joined: 06/12/2017

    Figure out whether it’s less expensive to sell at existing custodian or at Vanguard.

    if less expensive at existing custodian, sell and then do a trustee-to-trustee transfer.

    if less expensive to sell at Vanguard, do an as-is trustee-to-trustee transfer and sell once the holdings arrive at Vanguard.

    Thekey is to make sure you doa trustee-to-trustee transfer. Indirect transfers are fraught with peril.

    Michael Peterson, CFP® | Faithful Steward Wealth Advisors | (717) 496-0900

    #237011 Reply

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