Hi Jeremy, 1) what’s your favorite brokerage 2) do you suggest selling/reinvesting all at once from tons of individual stocks, mutuals, etfs…to something simple like target date index? To explain…over time I have built accounts with different advisors. I have three Roths (vanguard, UBS, wealthfront), and multiple brokerages with high fees and low performance. (UBS .65% mgmt fee + 31% weighted expense ratio, Merrill .75% mgmt fee, etc.) I love wealthfront and with the ease of use, it encourages much more regular/incremental savings, so I feel that more than makes up for the .25% expense IMO. But it can’t transfer UBS, Merril, Vanguard to Wealth because the holdings don’t fall in line with the Wealth portfolio allocation. So they would be sold, then reinvested to fit the model. So I was thinking of 1) moving all accounts to Fidelity (since I hear the app and website are great. I want out of UBS or Merrill bc they have advisors and Vanguard app and site are way behind the times) >>> 2) have wealthfront pull in any index funds available into the app >>>3) with the remaining Fidelity account I would re-allocate the UBS, Vangard, Merrill into some 90/10 ratio slowly over time. Or, all right now?But then I would have to pay the taxes now on anything I sell. Hopefully this is clear. Just wondering your personal opinion on how/when to rebalance (from a sale/tax perspective), and where to do it (fidelity or otherwise), and all simply in a target?
Personal experience here coming from someone who was in a similar situation previously… yes, consolidation is a good thing and will give you peace of mind. I personally recommend Vanguard due to their pursuit to constantly slash expenses for their customers, but Fidelity is great too and has a better website/mobile app UI. I would def say move it all over to one brokerage and then invest it all in a target date index fund. It’s consolidated, simple, easy and will all be “managed” and rebalanced over time for about a .15% expense ratio. Can’t beat that plan. The capital gains you’ll pay in the short term aren’t as bad as paying those expense ratios and management fees over time. Again, just my opinion Jeremy is better at this.
Awesome, really appreciate your insight. Thanks for taking the time to reply!
As Tom said, consolidation is a good thing. Personally, I have my Rollover IRA w/ Vanguard (VTSAX / VTIAX / VBTLX) - 95% stocks / 5% bonds - I’m 48 but I want to be more aggressive & option to balance later). Think Jeremy would suggest more diversity and target date fund is also great. I’m pretty happy with my returns. Vanguard’s website & mobile app is average.
I have my Roth IRA (FXAIX) & HSA (FZROX) thru Fidelity and I like their website and their mobile app is great! In addition, their customer service is excellent.
You can’t go wrong with either or both. Hope this helps, good luck!
I think Vanguard is the most altruistic. Fidelity is a full featured brokerage with better interfaces and fantastic support. Schwab is also great and offers equally good index fund options. I also like Betterment and Wealthfront if you really want something easy that you can’t screw up
But basically which brokerage you pick isn’t a huge deal, more of a preference thing. The big deal is investing in index funds and putting more money in!
I generally would do the reallocation “all at once”, but you’re right there is likely a tax implication if this money is in a regular taxable brokerage account (not an IRA). If so, it’s definitely worth being aware of what that tax implication is, and probably beyond the scope of this forum to figure that out. If you have a bunch of money in there, it’s worth running the situation by a CPA.
But broad strokes, it sounds like you’re thinking about your situation perfectly and have a fantastic plan!
Vanguard will give you peace of mind!
If it helps, Charles Schwab has given a boatload of money to Donald Trump. Maybe a yacht-load. That might sway you for or against them, depending on how you feel about that.