how do you break up with your brokerage company? (mutual funds, margin, fees)

[flyingsaucermom]

We set up 529s and a taxable account with Raymond James a couple years back. I want to have everything in either Fidelity and/or Vanguard (401k and company stock is with Fidelity whereas everything else is, or will be, with Vanguard).

What is the cheapest way of doing this?

Do I liquidate the taxable account? $200 is still being automatically put into the account and it's my understanding that I'll be taxed at my marginal tax rate until a year passes, at which point I'm taxed at 15%. I was thinking I would just remove the bulk of it now and leave however much I deposited since February 2014. In April of 2016 I'll just close everything out.

I believe I can roll the 529s into another product elsewhere... correct?

[CaptainNJ]

you can probably transfer it over with no cost to you. just give them a call and tell them what you want them to do.

[flyingsaucermom]

Originally Posted by CaptainNJ

you can probably transfer it over with no cost to you. just give them a call and tell them what you want them to do.

Who do I call to do the transfer, the company I want to switch to?

[macroy]

Originally Posted by flyingsaucermom

I believe I can roll the 529s into another product elsewhere... correct?

I was under the impression that 529's are administered by the States. e.g. it's not a consumer product that you can just go to any brokerage to do.

But like the capt. said, talk to the brokerage you want to use, and they should be able to provide you the specific answers.

Some info a quick google turned up: When Should You Switch 529 Plans?

[CaptainNJ]

Originally Posted by flyingsaucermom

Who do I call to do the transfer, the company I want to switch to?

id start with the one i am switching to. they can tell you what you need to provide for them to do the transfer.

[Lowexpectations]

Originally Posted by CaptainNJ

you can probably transfer it over with no cost to you. just give them a call and tell them what you want them to do.

I'm not sure it would be at no cost, we charge every account to transfer positions electronically through the ACAT system or we will charge termination fees to close out accounts. It's possible too that some 529 plans may still have B or C share mutual funds which could charge a cdsc fee to liquidate

[bmw335xi]

Call your new brokerage

[Lowexpectations]

Originally Posted by bmw335xi

Call your new brokerage

That is the place to start to get the paperwork however they won't be able to answer the questions about all the possible cost to close or transfer

[ThisDamnLife]

The following advice might not apply to Vanguard but some brokerage run promotions that will reimburse you for transferring your account to them.

[flyingsaucermom]

Thanks everyone! I appreciate the advice and will give Vanguard a call tomorrow morning.