moving a brokerage account

[awkwardpenguin]

We currently have money in a managed portfolio at USAA.  It is a taxable investment account.  Fees are averaging 1.3%, which is too much for my liking.

I would like to move the money into a diversified set of funds at Vanguard, but I'm not sure the best way to go about it.  If we sell all the investments in the portfolio, we will have to pay capital gains taxes on the sales.  The mix of short term to long term capital gains in the portfolio is not great right now - just over 40% of the capital gains are short term.

I realize this might be one of those "talk to your financial adviser" questions, but I was wondering if anyone had experience with this.

[SJ]

You don't have to sell the funds!

Open up a taxable investment account at Vanguard in the same registration (ie your name if the USAA account is in your name, a joint account if the USAA account is a joint account)

Then ask Vanguard for transfer forms. I usually prefer to move everything over "in-kind" and then slowly diversify.

It does depend on what you are currently invested in, but most stocks, ETF's, bonds, etc. can be moved.

[awkwardpenguin]

Jan 28, 2013 13:11:26 GMT -5 SJ said:

You don't have to sell the funds!

Open up a taxable investment account at Vanguard in the same registration (ie your name if the USAA account is in your name, a joint account if the USAA account is a joint account)

Then ask Vanguard for transfer forms. I usually prefer to move everything over "in-kind" and then slowly diversify.

It does depend on what you are currently invested in, but most stocks, ETF's, bonds, etc. can be moved.

I knew this was an option, but the old portfolio is in tons of different stuff.  But what you say makes sense.  We can transfer everything over, and then slowly move into different (lower cost) funds in a way that is most tax efficient?  That's definitely more complicated, but probably makes the most sense.

[SJ]

Yes, that is definitely what I would recommend.

[Deleted]

Definitely transfer. I moved from one brokerage firm to another last year they took care of everything I just had to fill out the paperwork.

[genet313]

Jan 28, 2013 13:11:26 GMT -5 SJ said:

You don't have to sell the funds!

Open up a taxable investment account at Vanguard in the same registration (ie your name if the USAA account is in your name, a joint account if the USAA account is a joint account)

Then ask Vanguard for transfer forms. I usually prefer to move everything over "in-kind" and then slowly diversify.

It does depend on what you are currently invested in, but most stocks, ETF's, bonds, etc. can be moved.

You don't like me awkward, but this is completely true advice.  I've done it before, rolled over everything "in-kind" which was a mix of ETFs and stocks at the time.  

If you call Vanguard and explain the situation, and tell them you want to do in-kind transfers, they will go out of their way to help you complete whatever documentation you need.  I did a transfer from AXA to Fidelity, and though it was a PIA and AXA sucked, Fidelity was great and helped me through the entire process.

[CloudBee]

Definitely transfer first. Then start actively managing and moving things around.

[awkwardpenguin]

Thanks everyone. genet313, I like you just fine, I just was grumpy in that thread and you got the brunt.