Author Topic: Moving from Betterment to Vanguard  (Read 3909 times)

CeruleanSerpent

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Moving from Betterment to Vanguard
« on: March 21, 2016, 03:28:14 PM »
Hi, I'm a longtime lurker here, but this is my first post. I'm trying to move my and my husband's investment accounts over to Vanguard from Betterment. We both have a Roth IRA and I have a regular taxable account as well. I'm wondering if I should have the taxable account transfered over directly, or should I withdraw the money and buy the exact vanguard funds I want. The account has lost money since it's been at Betterment (they show a -$1900 'gains' on the taxable account) so I would assume that means I wouldn't owe any taxes if I withdrew it? I want to have a 3 or 4 fund 'lazy portfolio' a la Bogleheads instead of the 6 or so funds that betterment has me in so that I can keep expense ratios as low as possible. I'm just learning about wash sales as well.. just getting confused and not sure what I should do.

To complicate it, I'm wanting to recharacterize my 2015 and 2016 Roth contributions into a traditional IRA. Betterment will do it for me, and then I am wanting to move the IRA's to Vanguard as well. I am very new at navigating investments and taxes and I'm trying to figure out the most efficient way to get all of my investments moved over to vanguard without triggering any tax bills.

Sorry for the newbie questions, I've been tearing my hair out trying to figure this all out for a few days now.

MDM

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Re: Moving from Betterment to Vanguard
« Reply #1 on: March 21, 2016, 03:34:56 PM »
Call Vanguard.  They love to help people move money from other firms.

Based on your post, you will not owe any taxes due to this move.  In fact your capital loss will likely reduce your taxes when you file next year.

Spork

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Re: Moving from Betterment to Vanguard
« Reply #2 on: March 21, 2016, 04:23:44 PM »
Since Bettermint is selling Vanguard funds... it might even be possible to move the funds without selling.  Vanguard will know.  Their phone support is really good.

CeruleanSerpent

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Re: Moving from Betterment to Vanguard
« Reply #3 on: March 22, 2016, 02:38:20 PM »
Ok, I'll give them a call. Good to know their phone support is so helpful.

dandarc

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Re: Moving from Betterment to Vanguard
« Reply #4 on: March 22, 2016, 02:40:11 PM »
Since Bettermint is selling Vanguard funds... it might even be possible to move the funds without selling.  Vanguard will know.  Their phone support is really good.
This - in kind transfer.  Is good even for non-Vanguard funds that you will sell.  Less time for the check to be in the mail if you transfer in-kind first and sell and buy the funds you really want once it is all already at your chosen broker.

CeruleanSerpent

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Re: Moving from Betterment to Vanguard
« Reply #5 on: March 22, 2016, 05:24:42 PM »
Ok, I was wondering if that was the best option or not. Some of the funds Betterment chooses are ones I'd probably keep anyway. I got Betterment to recharacterize my IRA contributions, so at least that's taken care of.