Asset transfers to Vanguard Here are notes related to my 2019 account transfer to Vanguard.
Changes may have been implemented since then...
Will I pay any fees for my transfer?
Vanguard doesn't charge any transfer fees. However, you'll need to contact your current financial firm to see if it charges transfer fees for closing an account.
If you want to move money from a CD (certificate of deposit) that's held in a bank account and the CD hasn't yet reached its maturity date, check with your firm to see if you'll be charged any withdrawal fees or penalties. Bank CDs will be liquidated at the time of the transfer to a Vanguard account.
Is there any paperwork I need to fill out?
Many large financial firms are enrolled in the Automated Customer Account Transfer Service known as ACAT (or a similar service). The majority of ACAT transfers can be completed entirely online, with assets sent to Vanguard electronically. Some cases, such as partial transfers and changes of ownership (e.g., a joint account to an individual account) may require paperwork. If forms are required, we can prefill some of the information for you.
Some asset transfers require a Medallion signature guarantee from a bank or another financial institution. A bank officer, trust company, or member firm of the U.S. stock exchange can grant this service. (Notary publics can't provide it.) If the firm you're transferring from requires a signature guarantee, check with your bank or a financial institution near you to see if they'll provide this service.
How long will the transfer take?
The fastest transfers take approximately 7 business days. They occur when firms are enrolled in the Automated Customer Account Transfer Service known as ACAT (or a similar service), when assets are moved "in kind" (or "as is"), and when the owner's name is identical on the "to" and "from" accounts. When assets are moved "in kind," it means there's no selling or buying involved, and no gain or loss is recognized as a tax consequence.
A firm that doesn't provide automated transfers may have you fill out paperwork and will send us a check once it receives your documents in good order. This may take 4 to 6 weeks.
Assets held in a money market fund are cashed out before they're moved to the money market settlement fund in your Vanguard account, so they may arrive after your other assets.
Many brokerage CDs (certificates of deposit), limited partnerships, hedge funds, and low-priced securities can't be transferred in kind. If you hold any of these investment in your account, we may contact you to discuss your options.
Wealthtrack - Weekly Investment Show Full Episode Oct 30, 202
1:
Slow integration of TD Ameritrade accounts into Schwab My TDA accounts are grandfathered for a commission rate of just $15 to purchase non-NTF mutual funds such as Dodge and Cox or Vanguard. I'm waiting to see if Schwab honors that rate. (I suspect that I would lose that benefit if I transferred my TDA accounts to Schwab before the integration.)
Tom Madell's November Funds Newsletter @Mark. Thanks much for the excerpts! And I agree with your explanation.
1st paragraph is accurate in that
during normal times an overheated equity market (and economy) are likely to invoke Fed tightening. Eventually (late in the tightening cycle) the market cools off. Than, as the economy cools, the Fed lowers rates in hopes of reigniting growth. That’s a normal cycle. The question remains as to whether the present (as well as the past decade or two) represent “normal”.
2nd paragraph seems an accurate summary of the Fed’s position as they have relayed it through various means (press conferences, meetings’ minutes, statements). No quarrel here. That’s what
they’ve said.Than comes the following inference:
“Given this data and the fact that the overall market has shown to perform best when rates are stable, it appears likely that stocks can do considerably well until then." Here, we’re dealing in the realm of probability.
I have no crystal ball. If we’re in normal times, and if the Fed acts going forward in the way it has indicated it will, and if probabilities based on past patterns hold true …. off to the races!
Tom Madell's November Funds Newsletter From the article:
"The tables show the stock market as a whole did best when rates were steady, as contrasted with what you might expect, with an average annualized return of 26.73% during four such periods. Surprisingly, it did the worst when rates were falling with an average annualized return of -3.72, and with an average annualized return of 10.89 when rates were rising!"
Equal's - by the time the Fed reacts, raising or lowering, the results have already been generally cooked in.
Implications for Investors
"Right now, even though the Fed is highly likely to quite soon begin phasing out its bond purchases, called quantitative easing, that is not the same as actually raising rates. Since the Fed Chairman has repeatedly stated the Fed is not expected to raise rates until those purchases have ended sometime later next year, we can assume that rates will remain stable until then, as they have been since the last series of cuts ended on March 15, 2020. Given this data and the fact that the overall market has shown to perform best when rates are stable, it appears likely that stocks can do considerably well until then."
Slow integration of TD Ameritrade accounts into Schwab According to the Oct 21, 2021 issue of "Investment News," Schwab hopes to move the individual T.D. Ameritrade accounts into Schwab by "the second half of 2023." That's still around two years away!
I had expected it would be faster.
Short Term Bonds and/or Short Duration High Yield RPHYX of course now closed.Here's the August 24, 202
1 supplement to the fund prospectus:
August 27, 2021 (the "Revised Closing Date") ...
After the Revised Closing Date, the following eligible investors may also open new accounts:
· New shareholders may open Fund accounts and purchase shares directly from the Fund (i.e. not through a financial intermediary).
· Any trustee of RiverPark Funds Trust, or employee of RiverPark Advisors, LLC or Cohanzick Management, LLC, or an investor who is an immediate family member of any of these individuals.
https://www.sec.gov/Archives/edgar/data/1494928/000139834421016711/fp0068207_497.htm
Vanguard Customer Service reserving the right to reject orders exceeding ...You were given imprecise information. Fidelity, like most fund sponsors, puts in boilerplate allowing them to reject any
purchase, including a purchase via an exchange if they feel it would disrupt the fund. But not sell orders. If they did, the funds would no longer be classified as OEFs.
An open-end fund is required by law to redeem its securities on demand
https://www.sec.gov/rules/proposed/2015/33-9922.pdfBased on the
purchase dollar limit you were given for FCNTX, and the limit that I actually hit on a very new and very small Fidelity fund, it looks like Fidelity sets its fund limits at 0.
1% of AUM. (M* shows FCNTX as having $
139.5B, or roughly
1,000x the purchase limit.)
Regarding redemption in-kind, Fidelity (or any fund company) would distribute securities owned by the fund. Obviously if the fund were to sell some securities just to purchase other ones to hand you, it might as well hand you the cash since that would be no more disruptive.
As it constitutes
10.65% of the fund's portfolio, I'd expect you to get a ton of FB.
According to the latest
semiannual statement, Fidelity Contra redeemed 293,065 FCNKX shares in kind, worth $5,07
1.454. It does happen.
Asset transfers to Vanguard I transferred my Roth IRA from Fidelity to Vanguard in 20
19.
The first three comments listed in the link below provide details.
Link
Vanguard Customer Service It remains interesting. Turns out the prospectus, like most, has, or is officially reported to have, vague language about reserving the right to reject orders exceeding yada yada ...
without any figure given, said the rep.
He added that the current limit for FCNTX is $138M or something. (Coincidence that you mentioned it.)
This from the 'back desk', he said.
I was attempting 1/276 of that.
Minor irony is that on yet another day of a rising market, if I had put in my FMSDX order for a dollar under the half-mil, it would have gone through fine even as the actual sale amount would turn out to have been nontrivially >$0.5M.
Now, I am willing to believe that if you were an FAIRX or CGMFX (cheapshot examples) shareholder and sold several millions it might well take some time to settle to you.
I love the line about in-kind --- Fido are going to put a ton of VGIT or BSV into your account in lieu of cash ?
The rep did suggest next time (go, bull, next week!) to call them directly or use chat.fidelity.com ....
Asset transfers to Vanguard I have duplicate holdings at a different brokerage and wanted to consolidate them with those at Vanguard. I tried to initiate partial account transfer online at Vanguard. The first thing it asked was the other brokerage account username and password with a note that this information will be used by a third party to initiate the transfer but that Vanguard will not keep that information. I can trust Vanguard but not a third party I never did business with.
Has anybody transferred assets to Vanguard brokerage recently and what was your experience?
P.S.: I tried to reach their onboarding department by phone for the past two days and after an hour plus on the phone I received a voice mail one day and the other day it got disconnected.
I transferred assets from Vanguard to another brokerage a few clicks in a 1 minute. I thought Vanguard might have a similar, simpler process to receive assets.
Vanguard Customer Service I don't believe that funds can outright reject redemption orders (though they can postpone orders as was done in Sept 200
1 when the markets were shut down). However, funds can place restrictions that might trigger on large orders. It is easy to imagine that such atypical transactions could not be processed online.
From
the prospectus of FCNTX:
payment of redemption proceeds may take longer than the time a fund typically expects and may take up to seven days from the date of receipt of the redemption order as permitted by applicable law.
...
a fund reserves the right to pay part or all of your redemption proceeds in readily marketable securities instead of cash (redemption in-kind). Redemption in-kind proceeds will typically be made by delivering the selected securities to the redeeming shareholder within seven days after the receipt of the redemption order in proper form by a fund.
It would be interesting to know what the stumbling block was.
Short Term Bonds and/or Short Duration High Yield Agree AndyJ...great idea sharing as always!!1 It's just great to get different perspectives and research products you never looked at before.
