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Learning, Sharing, and Teaching => Investor Alley => Topic started by: nick_mmm on January 07, 2018, 07:21:01 PM

Title: first post- consolidate holdings?
Post by: nick_mmm on January 07, 2018, 07:21:01 PM
I appreciate everything I have learned from this site and forum!

I currently have two taxable accounts, which I use after maxing out roth and 401K. One is with edwardjones.. another is tdameritrade.  I am wondering if I should combine them into a single Vanguard account?

My EJ holdings:
Stocks                     -> $6k
Mutual funds           -> $16k
iShares ETF (IEFA)  -> $6.8K

TDAmeritrade:
Stocks                                      -> $3K       
Vanguard ETF (VTI, VUG, VIG) -> $12K
iShares ETF  (SCZ)                  -> $3K
SPDR ETF (SPAB)                     -> $2K

I have left EJ as is- mostly to avoid paying closing\transfer fees on the account, and as long as I do not make changes I have minimal fees. No new money has gone into this account for years. I know the mutual funds are high-fee, but they have been performing okay the past few years.

I was using TDAmeritrade because of the commission free vanguard ETFs, but they no longer are. I also have the option to keep using tdameritrade, and just start putting new money into the "replacement" ETFs they offer commission-free. 

I think moving to vanguard would simplify things since I could continue to use vanguard funds and not manage a combination of similar ETFs, but I do not have enough in vanguard funds now to meet minimums to keep fees down. I also want to avoid paying 25% tax rate by selling ETFs to consolidate between ishares and vanguard.

I have some money that I am waiting to add right now until I make a decision. Any tips about how to simplify the two portfolios without incurring taxable transactions or extra fees?

Thanks!

Title: Re: first post- consolidate holdings?
Post by: CowboyAndIndian on January 08, 2018, 07:04:15 AM
You have to pay the fees in EJ whenever you take the money out. Either now or later in FIRE when you will start using your cache.

I'm assuming that EJ mutual funds have annual expenses if so, you are saving that amount every year.

Also, consolidation of accounts means lot less trouble when you rebalance your accounts.

So my vote goes to move your funds to Vanguard!
Title: Re: first post- consolidate holdings?
Post by: Retire-Canada on January 08, 2018, 08:19:47 AM
So my vote goes to move your funds to Vanguard!

Simplifying your accounts is worth something and the sooner you do it the better. Get your Vanguard on.
Title: Re: first post- consolidate holdings?
Post by: Mr. Boh on January 08, 2018, 03:32:20 PM
So my vote goes to move your funds to Vanguard!

Simplifying your accounts is worth something and the sooner you do it the better. Get your Vanguard on.

I agree with the above. If you like TDAmeritrade, it would be fine to transfer funds out of EJ and into TDAmeritrade. To me the important thing is to get out of EJ as fast as possible. It might hurt to pay the fees and capital gains now, but as mentioned above you will have to do it eventually.