Of course, here is a detailed and lengthy post on the topic 'how to transfer out of vanguard'.
Your Guide to a Smooth Vanguard Account Transfer
Thinking of moving your investments from Vanguard to another brokerage? Whether you're consolidating your accounts, seeking a new platform with different features, or simply looking for a change, the process can seem daunting. But don't worry, it's a common and straightforward procedure if you follow the right steps. Let's get this done together!
Step 1: Get Prepared and Gather Your Information
Before you initiate the transfer, let's make sure you have everything you need. This is the most crucial step, so let's get it right.
First things first, what's your reason for leaving? Understanding your "why" will help you choose the right destination for your investments. Are you looking for a brokerage with lower fees, a different trading platform, or more advanced research tools? Reflecting on this will help you ensure your new home is the right fit.
Identify your new brokerage: Have you already opened an account at your new brokerage? If not, do that now. You'll need the account number and other details from your new brokerage to start the transfer.
Gather your Vanguard account information: You'll need your Vanguard account number(s), your account type (e.g., Traditional IRA, Roth IRA, taxable brokerage account), and the contact information for your new brokerage.
Know your investments: Take a quick inventory of the assets you hold in your Vanguard account. Are they Vanguard-specific mutual funds, ETFs, or individual stocks? This is important because not all brokerages can hold all types of investments. While most can handle ETFs and stocks, some may not be able to accept certain mutual funds. If you hold Vanguard mutual funds, you'll need to check if your new brokerage has them available for transfer or if they will need to be sold and the proceeds transferred as cash.
Step 2: Understand the Two Main Transfer Methods
There are two primary ways to move your assets: a Full Transfer or a Partial Transfer.
Full Transfer (Recommended for most): This is the most common and often easiest method. You transfer all your assets from your Vanguard account to your new brokerage in one go. This closes your Vanguard account once the transfer is complete. This is the cleanest way to move everything and avoid managing multiple accounts.
Partial Transfer: This involves transferring only a portion of your assets while leaving the rest at Vanguard. This is useful if you want to keep some of your investments with Vanguard or if your new brokerage can't accept all of your holdings.
Step 3: Initiate the Transfer from Your New Brokerage
Here's the key: you initiate the transfer from the receiving brokerage, not Vanguard.
Log in to your new brokerage's website. Look for a section related to "transfers," "funding," "move an account," or "account transfers."
Select "Transfer an External Account." You'll be asked to provide details about the account you're transferring from (Vanguard).
Provide your Vanguard account information. You'll need your account number and indicate whether it's a full or partial transfer.
Choose the type of transfer: The most common and recommended transfer method is an ACATS (Automated Customer Account Transfer Service) transfer. This is a standardized system that allows for the electronic transfer of securities. It's fast, secure, and what most brokerages use.
Complete the transfer form. You may need to fill out a digital form or print and sign a form to authorize the transfer. You might also need to upload a recent statement from your Vanguard account to verify your holdings.
Review and submit. Double-check all the information you've entered before submitting the request. A small error can cause significant delays.
Step 4: The Waiting Game and Tracking the Transfer
Once you've submitted the request, your new brokerage will handle the heavy lifting. They will communicate with Vanguard to facilitate the transfer.
Timeline: The transfer process typically takes 5-10 business days, but it can vary. The duration depends on the complexity of your holdings and the efficiency of both brokerages.
Monitor the status: Your new brokerage will usually have a status tracker where you can monitor the progress of your transfer.
Avoid trading during the transfer: It is crucial to avoid buying or selling any securities in your Vanguard account once the transfer is initiated. This can cause the transfer to fail and require you to restart the process. The account will likely be "frozen" during the transfer period.
Watch for fees: Be aware that Vanguard charges a fee to transfer out of an account. As of our last check, this is typically a flat fee per account. Your new brokerage may offer to reimburse this fee, so be sure to ask them about their transfer reimbursement policy.
Step 5: Verify Your Holdings in the New Account
Once the transfer is complete, a crucial final step is to verify that all your assets have been transferred correctly.
Log in to your new brokerage account.
Check your holdings. Make sure all your stocks, ETFs, and mutual funds are there.
Verify the cost basis. This is incredibly important for tax purposes. Make sure the cost basis (the original price you paid for a security) has transferred correctly. If it hasn't, you'll need to contact your new brokerage's customer service to have it corrected.
Step 6: Closing Your Vanguard Account (if applicable)
If you performed a full transfer, your Vanguard account will be closed automatically. If you did a partial transfer and want to close the remaining account, you may need to take a separate step.
Check the account balance. Make sure there is a zero balance and no remaining positions.
Contact Vanguard customer service to confirm the closure of the account.
10 Frequently Asked Questions (FAQs)
How to transfer an IRA from Vanguard?
You can transfer an IRA (e.g., Traditional or Roth) from Vanguard to another brokerage using the ACATS transfer method. You'll initiate the transfer from the receiving brokerage and specify that you are transferring an IRA to an IRA. This is a non-taxable event.
How to transfer a taxable account from Vanguard?
Similar to an IRA, a taxable brokerage account transfer is initiated from the receiving brokerage using the ACATS system. The holdings will transfer "in-kind," meaning the securities themselves move, not just the cash value. This also does not trigger a taxable event.
How to transfer Vanguard mutual funds to another brokerage?
First, check if your new brokerage can hold Vanguard mutual funds. If they can, they will transfer "in-kind." If not, you may need to sell the mutual funds at Vanguard and transfer the cash proceeds. This sale would be a taxable event.
How to transfer an account from Vanguard to Fidelity?
To transfer to Fidelity, you would log in to your Fidelity account, navigate to their "Transfers" section, and initiate an "ACATS" transfer from Vanguard. You'll need your Vanguard account number and other details to complete the online form.
How to find my Vanguard account number?
Your Vanguard account number can be found on your account statements, trade confirmations, or by logging into your Vanguard online account and navigating to your account summary.
How to track the status of my Vanguard transfer?
You can track the status of your transfer by logging into your new brokerage's website. They will have a status tracker for your initiated transfer request. You may also receive email updates.
How to avoid transfer fees from Vanguard?
Vanguard charges a flat fee for outbound transfers. While you cannot avoid the fee from Vanguard, many brokerages offer a "transfer reimbursement" of up to a certain amount to cover the fee. Check with your new brokerage's policy.
How to transfer only a few investments from Vanguard?
You would initiate a "partial ACATS transfer" from your new brokerage. On the transfer form, you'll be prompted to specify which assets (securities) you want to transfer.
How to transfer money from Vanguard to a bank account?
To transfer cash, you would not use the ACATS system. Instead, you would link your bank account to your Vanguard account and initiate an electronic funds transfer (EFT) or an ACH transfer from your Vanguard online portal.
How to transfer assets if I have a joint account at Vanguard?
For a joint account, the transfer process is similar, but all account holders on the Vanguard account must also be listed on the new account at the receiving brokerage. Both parties may need to sign the transfer authorization form.
