Author Topic: Plan to let the Financial Adviser gooooo  (Read 841 times)

bernieb

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Plan to let the Financial Adviser gooooo
« on: August 22, 2017, 11:43:26 AM »
So after reading this blog and others for a couple years , I had started investing on my own with low cost ETFs.  Its been about 2 years and things have been going well (along with the market). I have tracked my progress of using ETFs vs the stock profile used by my financial adviser.  I didn't see much difference to date, so my plan is to save the Financial Adviser fees and finally start switching solely to my own passive investing.  At the moment I have about 300 k invested through my selected ETFs and the advisor has ~ 700 k of my money that he deals with in stocks and mutual funds.....   My question is how I can make a clean break and smartly transfer and invest those funds.  Its not pleasant to think about selling off 700k in stocks and funds and start over buying ETFs.  Any suggestions on how to make a smart smooth transition in my situation would be very helpful.  thanks for any input.


TheAnonOne

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Re: Plan to let the Financial Adviser gooooo
« Reply #1 on: August 22, 2017, 11:51:56 AM »
First off- Congrats!

Second- I believe you can do a "Transfer in-kind", if you like what you are currently "in". This would be preferable if these funds are in 'taxable' accounts.

slappy

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Re: Plan to let the Financial Adviser gooooo
« Reply #2 on: August 22, 2017, 11:59:19 AM »
Yes, you would do a transfer in kind. You would contact the firm that you are transferring the funds into. They can initiate the process for you.

Fudge102

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Re: Plan to let the Financial Adviser gooooo
« Reply #3 on: August 22, 2017, 01:51:33 PM »
What they said.  Transfer in kind.  All of your funds will be moved to the new company.  Nothing will change.  It will simply be a new company, old funds.  Then you can go about selling off old funds and swapping to ETF's as it makes sense. 

Depending on what funds you hold, some may not transfer in kind and will have to be liquidated before transfer.  Those gains/loses you'll have to eat.

The good news is with Roths at least, you can sell all and swap with out any tax liability.  Just don't remove it from the account.  My retirement accounts are much cleaner this way. 

I did this two years ago thought and it was the best move ever.  So much more transparent, easier, and gains that match the market instead of being steadily just beneath it.

bernieb

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Re: Plan to let the Financial Adviser gooooo
« Reply #4 on: August 23, 2017, 05:11:13 AM »
thanks. I am making inquiries this week on what I can transfer in kind and what might have to be sold.  I am in Canada so the Roth doesn't apply to me, but other federal regulations pertaining to federal Tax free savings accounts, registered Education savings accounts etc. certainly would .  I will update as I progress.  thanks again.