Of course! Here is a comprehensive guide on how to transfer your investments from Wealthfront to Vanguard.
Ready to Make the Switch? A Step-by-Step Guide to Transferring from Wealthfront to Vanguard
Thinking about moving your investments from Wealthfront to Vanguard? You're not alone. Many investors, from those just starting out to seasoned pros, consider consolidating their accounts to simplify their financial life and potentially save on fees. The good news is, transferring your account doesn't have to be a complicated, paper-filled nightmare. Let's walk through the process together, step by step.
Step 1: Get Prepared and Gather Your Information
Before you dive into the transfer process, you need to know exactly what you're moving and where it's going. This is the most crucial step, so let's get organized!
First, tell me a bit about your accounts. What type of account are you looking to transfer? Is it a taxable brokerage account, a Traditional IRA, a Roth IRA, or something else? Knowing this will determine the specific steps you need to take.
Once you've identified the account(s), gather the following information from your Wealthfront account:
Your Wealthfront Account Number: You can find this by logging into your Wealthfront dashboard and navigating to "Settings." It will likely start with "8W."
RBC Clearing & Custody - DTC Number 0235: Wealthfront uses RBC Clearing & Custody as its clearing firm. You will need this DTC (Depository Trust Company) number to initiate the transfer.
Your Most Recent Account Statement: Have a copy of a statement from within the last 90 days. This will provide all the necessary details about your holdings, including the specific securities and their share counts.
Account Registration Information: Make sure the name, address, and Social Security Number (or Tax ID) on your Wealthfront account exactly match the information on your new Vanguard account. Any discrepancy can cause significant delays.
Step 2: Open a Vanguard Account (If You Don't Have One Already)
This is the receiving end of your transfer. If you don't already have an account at Vanguard, now is the time to open one.
Choose the Right Account Type: Be sure to open a Vanguard account that is the same type as your Wealthfront account. For example, if you're transferring a Wealthfront Traditional IRA, you need to open a Vanguard Traditional IRA.
Complete the Application: You can do this online on the Vanguard website. The process is straightforward and will require your personal information, like your Social Security number and contact details.
Step 3: Initiate the Transfer from the Vanguard Side
This is a critical point to understand: The transfer must be initiated by the receiving firm, which is Vanguard. You will not be initiating the transfer from your Wealthfront account.
Log in to Your Vanguard Account: Once your new Vanguard account is open and active, log in to the Vanguard website.
Find the "Transfer an Account" Section: Look for a section related to "transfers" or "moving assets." Vanguard has a dedicated online process for this, which is designed to be user-friendly.
Select Wealthfront as the "Transferring Firm": You will be prompted to select the institution you are transferring from. Choose Wealthfront.
Provide Your Wealthfront Account Details: This is where you'll use all that information you gathered in Step 1. You'll enter your Wealthfront account number, the DTC number, and other required information.
Choose the Transfer Method: You will typically have two options:
In-Kind Transfer: This is usually the preferred method. In an in-kind transfer, your investments are moved "as is" to your new account without being sold. This is a non-taxable event for taxable brokerage accounts and helps you stay invested in the market throughout the process. Wealthfront allows for in-kind transfers of its Automated Investing and Stock Investing accounts (including IRAs) via the ACATS (Automated Customer Account Transfer Service) system.
Liquidation and Cash Transfer: In this method, your investments are sold, and the cash proceeds are transferred. Be aware that liquidating securities in a taxable brokerage account is a taxable event. This could trigger capital gains or losses, and you should consult with a tax advisor if you're considering this option. For an IRA, the liquidation is not a taxable event as long as the funds are rolled over directly into another IRA. Wealthfront will liquidate your positions and send the cash to Vanguard for IRA transfers to non-ACATS eligible firms.
Step 4: Review and Submit the Paperwork
Digital Transfer: In many cases, especially for ACATS-eligible transfers, the process can be completed electronically. You will review the details on the Vanguard website and submit the request.
Paperwork Required: If your transfer requires paperwork, Vanguard will likely provide a pre-filled form for you to print, sign, and mail to them. This is often the case for certain IRA transfers or if there are name or address mismatches. For some IRA transfers, a Medallion Signature Guarantee may be required. Wealthfront also suggests this may be needed for IRA transfers and that you can upload completed paperwork through your dashboard.
Step 5: Track the Transfer and Wait
Once you've submitted the request, the ball is in Vanguard's court.
Vanguard Takes Over: Vanguard will contact Wealthfront to initiate the transfer of assets.
Stay Updated: You can track the progress of your transfer on your Vanguard account dashboard. You'll likely receive notifications as the process moves forward.
Be Patient: The timeline can vary. Digital transfers through ACATS can be as quick as 5 to 7 days, but some transfers, especially those requiring paperwork or manual processing, can take 2 to 4 weeks, or even longer. Do not close your Wealthfront account until the transfer is fully complete and all your assets have settled in your Vanguard account.
Important Considerations
Fees: Wealthfront states there are no fees to transfer from your account to another broker. However, it's always a good idea to confirm with both firms.
Partial vs. Full Transfer: You can choose to transfer all or some of your assets. Keep in mind that for a partial transfer, certain rules may apply, especially for IRAs.
Tax Implications: As mentioned, a transfer of a taxable account "in-kind" is not a taxable event. However, a liquidation and cash transfer will be. Consult with a qualified tax advisor to understand the full implications for your specific situation.
Unsupported Investments: Be aware that if your Wealthfront portfolio contains certain securities (like mutual funds) that Vanguard does not support, they may be liquidated and transferred as cash.
Frequently Asked Questions (FAQs)
How to initiate an in-kind transfer from Wealthfront to Vanguard? You must initiate the transfer from the Vanguard side. Go to the "Transfer an Account" section on the Vanguard website and select Wealthfront as the transferring firm. Choose the "in-kind" option to move your investments without selling them.
How to transfer an IRA from Wealthfront to Vanguard? For an IRA transfer, you should still initiate the process with Vanguard. Be prepared that Wealthfront may liquidate your positions and send the cash proceeds to your new Vanguard IRA, especially if the transfer is not through the ACATS system. You may need to provide signed paperwork and a Medallion Signature Guarantee.
How to transfer a taxable brokerage account from Wealthfront to Vanguard? You can transfer your taxable account "in-kind" through the ACATS system by initiating the transfer from Vanguard. This is a non-taxable event.
How to find my Wealthfront account number and DTC number? You can find your Wealthfront account number (it starts with 8W) by logging into your Wealthfront dashboard and going to "Settings." The DTC number for their clearing firm is 0235.
How to check the status of my transfer? You can track the progress of your transfer directly on your Vanguard account dashboard. They will also send you updates as the transfer moves through the different stages.
How to avoid taxes when transferring from Wealthfront to Vanguard? For taxable accounts, perform an "in-kind" transfer, which moves the securities without selling them, thus avoiding a taxable event. For IRAs, as long as the funds are transferred directly from one IRA to another, it is a non-taxable rollover.
How to contact Vanguard's transfer department? Vanguard has a client services team for personal investors available on weekdays. You can find their contact information on the Vanguard website, typically in the "Contact Us" or "Support" sections.
How to ensure my personal information matches between accounts? Before you begin the transfer, log in to both your Wealthfront and Vanguard accounts and compare the name, address, and Social Security number on file. If they don't match, update the information on one or both accounts to ensure a seamless transfer.
How to transfer only a portion of my Wealthfront account? When you initiate the transfer with Vanguard, you'll be given the option to choose a full or partial transfer. If you choose a partial transfer, you can specify which assets you want to move.
How long does it take to transfer from Wealthfront to Vanguard? An electronic transfer through ACATS can take as little as 5-7 business days. Transfers that require manual paperwork or liquidation may take 2-4 weeks or longer. Patience is key!