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Author: AliFool Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Whos responsible: Me, Waterhouse, or Vanguard? Date: 11/4/1999 5:12 PM
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I rolled my 401K (previously held by Vanguard) into a brokerage account (currently at Waterhouse).

On the Vanguard form, there is something that stated that I could "transfer shares in kind." To me, that meant that all of my S&P 500 shares would transfer directly to Waterhouse AS SUCH. I knew that Waterhouse offers the fund, so I never suspected a problem.

So, my money finally shows up in my Waterhouse account in the form of -- CASH! In a money market fund! This is NOT what I wanted! My shares were liquidated!

Vanguard said that it is their policy to liquidate ALL 401K funds and issue a CHECK to the broker. But how can this be if they had a form that said to transfer shares "in kind"? And why didn't Waterhouse immediately repurchase my fund?

Waterhouse is saying this is Vanguard's fault and Vanguard is saying this is Waterhouse's fault. Meantime, my money has been OUT of the nice run-up from 115 to 125.

Each company is saying that it is the other's responsibility to give me a "day-of trade," which is to essentially go back to the day my money was transferred, and get me back into my S&P 500 fund at the price it was on the day I my money was transferred. Neither of them wants to eat the losses they'd incur in doing this.

What should I do?! Help is MUCH appreciated!

--AF
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