Hello PFC!
What is the best way to transition from a financial advisor to managing your own portfolio? Tax implications?
I have about $100k invested with a financial advisor that I would like to move to Fidelity or Vanguard. On a mission to decrease fees and increase my own knowledge.
Thank you!!
Leyna
Remember that it is YOUR money and NOT theirs.
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If you are uncomfortable having the conversation with them personally, set up your new account via vanguard, fidelity or whatever service you want and they will take care of of everything transferring it over with paperwork etc. Your old financial advisor may reach out because their commission is being cut if you are paying a 1% + management fee etc.
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I was in the same boat but after a few years of poor return on funds with an advisor, I switched to managed vanguard funds + self manage as well as have v (0.3% advisor fee)
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After diving deep with Jeremy on his information I am thinking for fully switching to self managed and just paying the fees associated with the account. Typically 0.03%-0.08% depending on the type of fund.
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Best of Luck !
Thank you Chad!
Yes! It absolutely is my money!
Whoa! Okay. I didn’t realize that Vanguard/Fidelity took care of the transfer. Good to know! I am not overly concerned with the conversation, just more about the process and being taxed on the gains. Another reason to get in TDIF and never sell.
Thankfully, I do not have poor returns, just high fees.
If you have retirement funds / you shouldn’t have to pay taxes on gains any since it’s a rollover from retirement funds. If it’s brokerage / non retirement vanguard may have to sell funds if they don’t offer the same ones. In that case, the vanguard or fidelity help team will be able to help answer all your questions as I’m not entirely sure how that all works.
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But both vanguard and fidelity make transferring to them very seamless and easy.
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Best of luck !