Author Topic: Moving from Betterment to Vanguard  (Read 2186 times)

dave__

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Moving from Betterment to Vanguard
« on: May 22, 2015, 01:07:12 PM »
A while ago I put a chunk of change into a Betterment account after reading about great it was. Since then, I've continued reading and it seems that I will not be reaping the benefits of Tax Loss Harvesting that Betterment offers (and charges for) and Vanguard is an equal/cheaper option. I would like to pull the money out and move it into a Vanguard Index Fund (likely VTSAX). Is there a way to do this without paying capitol gains taxes? Or will I have to bite the bullet this time and chalk it up as a life lesson?

Thanks!

GGNoob

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Re: Moving from Betterment to Vanguard
« Reply #1 on: May 22, 2015, 01:17:52 PM »
Yes, you can do an in-kind transfer from Betterment to Vanguard. This means they will move your holdings as they are now to your Vanguard account. If you choose to sell and buy new funds at Vanguard, you'll pay your taxes then. Keep in mind that any non-Vanguard ETF will have a trading fee when its at Vanguard. What you want to find from Vanguard is the "Brokerage In-Kind Account Transfer Kit." Since Betterment doesn't have traditional account numbers available to view, you may need to get some information from Betterment to complete this (there is actually an account number if you go to the Transfer page and click on "wire transfer," but you may want to confirm that with Betterment).
« Last Edit: May 22, 2015, 01:20:53 PM by GGNoob »

forummm

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Re: Moving from Betterment to Vanguard
« Reply #2 on: May 22, 2015, 01:33:49 PM »
If the capital gains are small, you might just sell the non-Vanguard funds, if any, that you have to consolidate everything in Vanguard funds.

dave__

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Re: Moving from Betterment to Vanguard
« Reply #3 on: May 22, 2015, 02:12:54 PM »
Thanks for the replies!

I should have searched better, since there is already a topic on it here: http://forum.mrmoneymustache.com/investor-alley/going-with-vanguard-no-more-betterment/

forummm

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Re: Moving from Betterment to Vanguard
« Reply #4 on: May 22, 2015, 04:39:42 PM »
Glad to be of service <tip of the top hat>