UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76396  
Subject: Re: Transferring an IRA Date: 1/3/2004 1:20 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I did a "check to me then my check to another broker" type transfer last week. Not sure why everyone thinks that things will go wrong.

It's not that things WILL go wrong. On the contrary, they very often go just fine. But IF things go wrong, they can go VERY wrong.

Basically, the risk is proprotional to the amount of the rollover. For an IRA with a couple thousand dollars, the risks aren't that great. If you were doing a rollover with a few HUNDRED thousand, then I wouldn't recommend taking the risk.

I saved about $60 by not having to pay for a "partial transfer of funds" (Schwab).

And how much did you spend in commissions to liquidate all of your positions? And acquire new positions (in the same securities?) in the new account.

That's another advantage of a direct transfer. The securities themselves can be moved without having to convert everything to cash.

I guess it's just a bit of professional caution. You can almost never go wrong by doing a trustee-to-trustee transfer. When the IRA owner gets the cash is when things can turn messy.

--Peter
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement