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Learning, Sharing, and Teaching => Investor Alley => Topic started by: vincefu8 on May 25, 2020, 08:56:20 AM

Title: Timing when to switch brokerage
Post by: vincefu8 on May 25, 2020, 08:56:20 AM

     Morning family Last year I started an individual account with WealthFront while I build up the account to reach 3k. I have wanted to move to Vanguard for a while now and finally i am ready to make the move. With all the commotion around would it be wise to move right now or wait it out? (I am getting charged about $0.56 a month)

Thanks for the help

Vince

Title: Re: Timing when to switch brokerage
Post by: terran on May 25, 2020, 09:36:50 AM

Doesn't Wealthfront invest you in Vanguard ETFs? If so, you should be able to transfer in-kind to Vanguard meaning the actual investments transfer so it doesn't matter when you do it from a volatility standpoint since you'll be fully invested the whole time anyway.

Title: Re: Timing when to switch brokerage
Post by: MustacheAndaHalf on May 26, 2020, 02:50:50 AM

It sounds like you might be able to transfer your entire account without paying an additional fee:
https://support.wealthfront.com/hc/en-us/articles/115003462743-Can-I-transfer-the-securities-in-my-account-to-another-firm-

You would need to ask Vanguard about it: they would initiate the transfer from Wealthfront to Vanguard.  You would probably wind up with a bunch of ETFs, and cash.  At Vanguard, buy/sell of ETFs is $0/trade.

With $3000 you could either put everything in VTSAX, and meet their minimum, or you could use ETFs.  Vanguard Total Stock Market ETF (VTI) holds the exact same assets as VTSAX, but the minimum is one share (currently about $150).  ETFs offer more flexibility when you are close to the mutual fund minimums, but either is a good choice.