Author Topic: Timing of transfer from Chase to Vanguard  (Read 3896 times)

Lifeblood

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Timing of transfer from Chase to Vanguard
« on: June 02, 2014, 03:35:20 PM »
My wife has a ROTH IRA with Chase which we want to transfer to a Vanguard fixed date fund. Assuming we want to transfer in the next few weeks/months, are they are any tips or rules of thumb for timing the transaction?

Eric

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Re: Timing of transfer from Chase to Vanguard
« Reply #1 on: June 02, 2014, 03:41:55 PM »
I'm not sure I understand the question.  Timing for what purpose?

In general, as soon as your money show up in your Vanguard account, that's the time to buy your funds.  It's awfully hard to do it before that.

Lifeblood

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Re: Timing of transfer from Chase to Vanguard
« Reply #2 on: June 02, 2014, 03:50:00 PM »
To clarify the question - will the performance of the market on a given day have an effect on our net gain/loss when selling the Chase funds and buying the Vanguard funds? If I sell the Chase funds for $100, I assume I am then using $100 to buy Vanguard funds. Thus, if Chase is going well, and Vanguard not, I am selling high and buying low, which would be a good thing for us. Admittedly, I do not have a full understanding of how these transfers take place, so perhaps there is an inherent delay in the process which makes timing irrelevant.

Zamboni

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Re: Timing of transfer from Chase to Vanguard
« Reply #3 on: June 02, 2014, 03:55:27 PM »
Assuming you are closing the chase account and opening a Vanguard acct:  There is indeed a delay, and you can't even control the exact timing.  The exact moment of your request is not the exact moment the funds will magically zip from one place to another; it takes days if you are changing accounts from one vendor to another. The place releasing the funds might even delay it more than that with futzing around between selling your shares and getting the money to Vanguard.  So, you shouldn't worry about it.  Just do it and get it over with.  Also, Chase might have selling loads and account closing fees, so ask about these.  Sucks, I know, but I still think you should do it.

Lifeblood

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Re: Timing of transfer from Chase to Vanguard
« Reply #4 on: June 02, 2014, 04:25:31 PM »
I see. Yes, I plan to transfer, boosted by the confidence gained from Camp Mustache this past weekend! I appreciate the advice. Next step - picking the right target date funds. I hear Vanguard is a little conservative, so I may want to pick a later date than we actually want.

FrugalZony

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Re: Timing of transfer from Chase to Vanguard
« Reply #5 on: June 02, 2014, 04:48:33 PM »
Hi Lifeblood! It was great meeting you at CampMustache!

It is correct that you may loose (or gain) a little from the move, as transfers may take a few days
And it is also correct that there may be closing fees (check with Chase to be sure, how much)

Vanguard will help you with the transfer and will answer questions you have beforehand

https://investor.vanguard.com/what-we-offer/investing-help/choose-the-help-thats-right-for-you

Also a good resource to figure out your own allocation is Jim Collins, which you probably know after all the discussions at the camp
http://jlcollinsnh.com/stock-series/