spammagnet wrote: ↑Mon May 23, 2022 12:49 am
ResearchMed wrote: ↑Sat May 21, 2022 12:48 pmWhy can't you use mutual funds at the new brokerage firm?
I hadn't heard that Chase allows no mutual funds in the clients' brokerage accounts.
Schwab certainly does, and I've heard they may have some sort of "welcome bonus", but I don't have direct experience. (I do know that they can waive fees on some funds that might otherwise have had transaction fees.)
Then you could even transfer in kind and not worry about time out of market.
ETFs are 100% portable; not all mutual funds are.
Right.
However, surprisingly, we've found that mutual funds - or entire mutual fund families - that supposedly "can't be purchased" at Brokerage A can, in fact sometimes be transferred in kind to Brokerage A, and then, at least sometimes,
more can be purchased there. This was a surprise, especially when several reps at Brokerage A insisted that was "impossible". But one can't count on that.
I found this out accidently, when TIAA stated that funds from mutual fund families A and B could not be transfered in kind when our 403b plan was moved from Vanguard or Fidelity. TIAA said if we didn't liquidate them or move the money to something else, *they* (TIAA) would liquidate them for us. I left some funds intact prior to the transfer, and... they showed up intact in the new 403b account at TIAA. So I tried to purchase more, especially as some of them had no transaction fees, and... the purchases went through immediately.
However, I certainly could not have counted on that.
But UserFace wrote:
UserFace wrote: ↑Sat May 21, 2022 12:33 pm
Overall I have a slight preference for mutual funds to ETFs due to trading mechanics - I tend to do automatic investing and like being able to buy w/a set $ amount and not worry about intraday fluctuations. The cost difference is so negligible that it doesn't matter.
However, the main reason I would consider switching to ETFs is I have major FOMO about these brokerage bonuses I'm missing out on.
I was trying to respond to UserFace's concern about it definitely being possible to get "welcome bonuses" from brokerage firms that include "mutual funds"... that using mutual funds does not necessarily preclude getting those bonuses by transfering them to other brokerage firms.
And their goal was to transfer to get those bonuses.
There are certainly *many* mutual funds that are transferable. If a certain $$$ amount is needed for the transfer bonus, use those that can be used, and after some allowable time, transfer back to the firm of choice if desired. Or transfer to a third firm to get yet another bonus.
UserFace specified Chase in particular. Is Chase more restrictive than most firms in which mutual funds it will allow?
RM
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