The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: geekette on November 09, 2013, 01:51:50 PM
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We FINALLY quit dragging our feet and have started the process to roll over his old 401(k) from Fidelity to Vanguard. I didn't know (until we called) that Fidelity would have to write the check out to Vanguard, snail mail the check to us, and we'd have to forward it on. At least Vanguard sent us a FedEx envelope. Over half our portfolio (and well over half our retirement money) is sitting on the kitchen table for the weekend.
Naturally it was taken out of the market on Tuesday when the market was down, and it won't make it back into the market until at least Tuesday. Sorry, y'all, but I'm hoping for a dip early next week!
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Did they do it right? Don't you need to do a direct trustee rollover to Vanguard to avoid taxes?
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Oh, I hope so.... The check is made out to Vanguard, but they said it had to come to our address first (Fidelity gets the float, darnit).
If we have to pay taxes on a half million, we're in big trouble.
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It should be made out to Vanguard, FBO geekette/geekette's SO - I'm going to hope that the financial institutions involved know how it should be done.
Paying taxes on a half mil is a first world problem.
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I had the same experience with Fidelity - they had to send the check to me and I had to send it to Vanguard... Just get in it in the mail and double check the address before you send it :)
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Yeah, I've had a very similar situation, and I just argued and argued, and kept them (One America, not Fidelity) on the phone for like an hour, till they finally agreed to send straight to Vanguard. I didn't want any chance for the taxes to be wrong. So in the future, be persistent. But you shouldn't have a problem, just make sure you get it in the mail within 60 days, I believe.
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Hard to believe how far behind the US is compared with other countries when it comes to electronic transfers of funds. I live in the US but am from the UK originally. If I want to transfer funds between my UK bank accounts it happens more or less instantly (they say to allow 2 hours but it's usually less tha 2 minutes). In the US this takes 2 business days at least. Why?
I was just talking to a guy from a Danish company that is setting up a US subsidiary. He tells me the US is the only country they operate in where they still use paper checks, which is a huge inefficiency for them.
Anyway make sure you get that check to vanguard within the 60 day time limit for rollovers.
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When you call Vanguard and have them call Fidelity with you to do the rollover, they have the check sent to you to send to Vanguard.
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We 'mericans seem to fight change more than anything. Paper checks, dollar bills, PENNIES! Most won't bother to pick one up, but by golly, we can't get rid of 'em!
At any rate, we have a FedEx envelope ready to go to Vanguard Monday. Assuming FedEx runs on Veteran's Day.
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PENNIES! Most won't bother to pick one up, but by golly, we can't get rid of 'em!
The president likes change, what can I say?
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We 'mericans seem to fight change more than anything. Paper checks, dollar bills, PENNIES! Most won't bother to pick one up, but by golly, we can't get rid of 'em!
When are you lot going to make life easier for the school kids and adopt the metric system?
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On transferring money in the US:
Hard to believe how far behind the US is compared with other countries when it comes to electronic transfers of funds. I live in the US but am from the UK originally. If I want to transfer funds between my UK bank accounts it happens more or less instantly (they say to allow 2 hours but it's usually less tha 2 minutes). In the US this takes 2 business days at least. Why?
Our Automated Clearing House (ACH) system is the reason why it takes 2 days. There's a really cool startup, Dwolla, which is attacking the problem of our antiquated banking system. They have something called FiSync that works to transfer money instantaneously.
https://fisync.dwolla.com/
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Check it carefully. When I did it, they gave me the wrong amount (took out taxes and made it out to me personally) and I had to get them to resend. Huge hassle that took too long to fix. Much smaller amount though.
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Checked, double checked, photographed, new account number printed on the stub, put in the pre-addressed FedEx envelope, tracking number noted, dropped off in a FedEx box tonight!
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Hard to believe how far behind the US is compared with other countries when it comes to electronic transfers of funds. I live in the US but am from the UK originally. If I want to transfer funds between my UK bank accounts it happens more or less instantly (they say to allow 2 hours but it's usually less tha 2 minutes). In the US this takes 2 business days at least. Why?
Yeah its a real pain in the ass if you ask me. Here is a good podcast about it from planet money.
http://www.npr.org/blogs/money/2013/10/04/229224964/episode-489-the-invisible-plumbing-of-our-economy
Maybe we should start a petition.
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Thanks for that link - another podcast to listen to!