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Emily asked in Business & FinanceInvesting · 1 month ago

Trouble transferring mutual fund (Pershing brokerage) to index fund (Vanguard)?

I created a Roth IRA and an individual investment account through a financial advisor at First Command. I received some not great advice, and the fee was pretty high so I decided I wanted to transfer both of these accounts to Vanguard and set it and forget it. Ideally I want index funds, but both of my accounts with Pershing are mutual funds, so I just elected to transfer to whatever vanguard’s website automatically selected (it says vanguard mutual fund) It said this couldn’t be transferred “in kind” because the account types are different. I don’t see any option to “liquidate and transfer”. So I thought maybe I would just liquidate my accounts with Pershing and then (within 60 days to avoid the fee/ taxes) invest that money in vanguard. But I can’t seem to figure out how to liquidate my assets with Pershing. It was created by my First Command financial advisor. I saw him today and he said it should be easy to do online, but he never actually helped me accomplish the transfer, understandably. Am I filling out the transfer online incorrectly, or does it have to be liquidated?

Please speak like I’m a child. I don’t know financial terms. 

5 Answers

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  • 1 month ago

    Call Vanguard for help on a tax-exempt rollover. They are salaried people who will not get paid commissions, and they can handle the paperwork for you. I have > $1.5 million in Vanguard, and they are very nice and gracious - plus honest!

    Load funds' "advisors" are not fiduciaries: they are sales people who get paid commissions.

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  • Eva
    Lv 7
    1 month ago

    You need to set up a Roth IRA with Vanguard and then do the trustee to trustee transfer of the Roth account. You'll also need to set up a regular open account with Vanguard to transfer your other assets. You should not have to liquidate your funds if they are funds that can be sold by any brokerage.

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  • 1 month ago

    If you want to transfer from a Roth, then make sure that you are transferring to a Roth. Vanguard does Roths, but you may not have clicked the right thing to tell their website that you needed to set up a Roth.

    Call Vanguard. They should be able to help you.

    And don't liquidate and reinvest; the risk of missing the 60 day window and being taxed is too great. Do the trustee-to-trustee transfer, even if it takes longer.

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  • 1 month ago

    Are you in the military??  RUN, RUN, RUN from 1st command.  Work directly thru Vanguard.   I don't know how much money you have with them (1st command), but I wouldn't give them anymore.  Maybe Vanguard has some ideas.  Otherwise you might need lawyer help.  Did you sign paperwork (a contract) with them??  

    • Emily1 month agoReport

      Yes and I’m trying to run. I don’t have much money with them. My FC advisor said select “liquidate and transfer” with the vanguard transfer application, but that’s not even an option. It only says “transfer in kind” So I guess I have to liquidate on my own (no idea how to do that...)

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  • Judy
    Lv 7
    1 month ago

    I'll bet that if you called Vanguard they'd help you

    • Emily1 month agoReport

      Thanks

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