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Severing ties with adviser

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  • Avatar indiedoc 
    Participant
    Status: Physician
    Posts: 4
    Joined: 01/10/2019
    Disability Insurance

    hey all,

     

    I fall into the bucket of having made naive financial decisions coming out of residency and now wish to break ties with my adviser and manage my own money vs. finding a well-vetted fee-only adviser to guide me a bit.  What is the process- do I send a letter/email stating my desire to go in a different direction to my current adviser and then fill out some paperwork? How does that transfer of funds (brokerage account , REIT, and SEP IRA currently under management) actually take place?  I know this seems rudimentary to many of you, but the nuts and bolts of this process is completely foreign and , thus, daunting to many of us, so I greatly appreciate any help/guidance.  I apologize if this has already been discussed, but I couldn’t find an applicable thread.

    #180375 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6940
    Joined: 01/09/2016

    Welcome to the forum!

    No apologies needed, this topic comes up from time to time but it is good to revisit, too. You have a few choices:

    1. Call your advisor and tell him of your decision. At this point he may try to dissuade you, of course. You’ll then need to open an account(s) to receive the funds and fill out the paperwork.
    2. Open an account to receive the funds and fill out paperwork to send to your advisor. In this case, everything will be handled electronically.
    3. Form a relationship with a new advisor (fee-only) and let the advisor handle the paperwork. Again, all will be handled electronically.

    One consideration is whether to transfer “in kind” or liquidate. “In kind” means the investments are not sold but transferred in whole to your new advisor/brokerage. If you have a taxable (brokerage) account, you most likely will want to transfer in kind.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #180388 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3050
    Joined: 01/08/2016

    welcome.

    firms like vanguard/fidelity will pull your accounts over for you.

    you can usually transfer taxable accounts in kind which means no selling (triggering taxes).

    i think an email is fine, and it just needs to plainly state you are moving on. thanks. bye. no further contact is needed.

    the SEP you just tell them to stop managing. if you want it at a different broker then you fill out paperwork at that broker.

    you should also look into doing a solo 401k instead (different discussion and info).

     

    #180389 Reply
    Liked by indiedoc
    Avatar tintin 
    Participant
    Status: Spouse
    Posts: 20
    Joined: 01/07/2019

    We are currently in the same boat and are doing the same exact thing.

    If you are planning to do the transition the funds on your own, notify your current advisor in writing asking him to not make any changes to your account, select new brokerage, open the appropriate account and talk to customer support at Vanguard/Fidelity/Charles Schwab and they will help you with the transition. I would pick one account at a time and start the paperwork. It is a good idea to stay in touch with both your current broker hosting your accounts right now and new brokerage like Vanguard where you are moving the funds to in this process until you know that your funds are on their way. Unfortunately, the process may involve printing forms, signing and sending paper forms depending on the type of account you are moving. But it is doable. And you will learn a lot during this process!

    If you need help with the email to the advisor, you can use this – I found it on one of the the threads 😉

     

    “After careful consideration I will be transferring my accounts and will send written instructions to make these transactions, thank you very much.”

    #180494 Reply
    Liked by indiedoc
    Avatar indiedoc 
    Participant
    Status: Physician
    Posts: 4
    Joined: 01/10/2019

    thanks for the help everyone.  I was thinking about transferring my SEP IRA assets into my current employer 401k.  From what I understand this is not a taxable event.  Does this seem reasonable?

    #180770 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6940
    Joined: 01/09/2016

    thanks for the help everyone.  I was thinking about transferring my SEP IRA assets into my current employer 401k.  From what I understand this is not a taxable event.  Does this seem reasonable?

    Click to expand…

    Check with your employer to make sure your plan accepts rollovers (or review your SPD). If so, I think that is exactly what you need to do.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #180779 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3050
    Joined: 01/08/2016
    Splash Refinancing Bonus
    I was thinking about transferring my SEP IRA assets into my current employer 401k.  From what I understand this is not a taxable event.  Does this seem reasonable?

    Click to expand…

    yup, not a taxable event. assuming the options are good then yes go for it.

    #180780 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 1970
    Joined: 05/01/2017

    , notify your current advisor in writing asking him to not make any changes to your account,

     

    Click to expand…

    I have no personal experience in this area but that sounds like a very, very good idea.

    #180894 Reply

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