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Author: AlisonWonderland Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 349  
Subject: Disengaging Date: 1/26/2009 10:28 AM
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Years ago, we got a recommendation from a former friend who'd been dealing with someone from one of the big brokerages. We've gone along with their "advice," which has turned out to be less than stellar (surprise, surprise!). As an example, a so-called income builder fund has lost considerable value. While I realize that's happened to lots of investments, I've not gotten so much as an email saying something like, "yeah, things aren't going well, but here's why I think it's good/bad/otherwise to continue with this/that/the other."

We realized long ago that our interests and theirs are not always the same, but have just succumbed to inertia.

There's an IRA account, an investment account (with pseudo-drips, and I no longer have the stock certificates, so the stocks aren't exactly in my name -- street name, maybe? I've forgotten the terminology) and a checking account.

The good things about having the accounts with the brokerage are the consolidated statements and the monthly statement for checking which shows when the check was written and posted and the name of the payee printed with the check number and amount. I've used this last feature several times and it's really nice. However, it no longer seems worth the costs.

I do not want to talk to the "Financial Consultant" or his staff either in person or by phone (yeah, I'm kinda cowardly that way), but it's time to move on. I'm already dealing with paperwork for other investments and other family members, so it will mean more paper, but I don't consider that a big deal.

I don't have another financial advisor at this point, although I'd consider it. And if I did, I'd want someone who's more responsive and more concerned with me and my needs than what we've currently got.

So, any suggestions on how to disengage? Specific wording?

TIA ~~ Alison
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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 314 of 349
Subject: Re: Disengaging Date: 1/26/2009 3:37 PM
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You don't really need to come up with specific wording. What you need to do is to determine where you would like to put your assets which might be another broker, a mutual fund family, or a independant financial planner. When you decide that, you will need to fill out some paperwork opening up the account(s) indicating that the account is to be funded by a transfer from your existing brokerage. The new firm will take care of it from that point although you will likely get a call from the current broker asking why you are doing this.
You should also determine whether you want to make the transfer "in-kind" where the stocks, funds, etc. are moved as is or whether the account is to be liquidated and cash transferred. In the taxable account liquidating and transfering cash will be a taxable event and you will have capital gains and/or losses to account for at tax time. In an IRA this is not an issue as long as the tranfer is made custodian to custodian rather than having a check issued to you.
In order for the transfer to be made in kind the receiving institution must be able to hold the investments. If you own mutual funds that are propriatary to your current brokerage they will probably have to be liquidated.

Bob

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Author: AlisonWonderland Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 315 of 349
Subject: Re: Disengaging Date: 1/26/2009 4:28 PM
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Thank you for the reply, Bob.

If I were making arrangements with another advisor, I'd be letting the new one take care of much of it.

I'm glad to know the terminology for "in-kind" because I'm not sure I want to incur taxable events -- at least not without more research.

When we started with the current one, I had lots of actual stock certificates which I surrendered.

If you own mutual funds that are propriatary to your current brokerage they will probably have to be liquidated.

That's part of why I'm dissatisfied <g>.

In an IRA this is not an issue as long as the tranfer is made custodian to custodian rather than having a check issued to you.

If it were just the IRA, that is something I've done before. It's the investment and "cash management account" that are stickier.

Thanks again!

~~ Alison

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Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 316 of 349
Subject: Re: Disengaging Date: 1/27/2009 1:16 PM
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You may want to discuss your situation with a fee-only financial advisor (not fee-based).

www.NAPFA.org or www.GarrettPlanningNetwork.com

buzman

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Author: AlisonWonderland Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 317 of 349
Subject: Re: Disengaging Date: 1/27/2009 1:39 PM
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I remember previous posts of yours about Garrett, and I've actually printed out some of their online information.

Thanks for the suggestions, buzman!

~~ Alison

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Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 318 of 349
Subject: Re: Disengaging Date: 1/29/2009 3:04 PM
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Glad I could help, good luck.

buzman

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Author: AlisonWonderland Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 319 of 349
Subject: Re: Disengaging Date: 1/29/2009 6:29 PM
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Glad I could help, good luck.

Thanks again. I definitely need to do research.

~~ Alison

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