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closing some accounts

3 Responses to “closing some accounts”

1. Another Reader Says:
   March 18th, 2014 at 08:02 pm 1395172959
   1395172959
   If you want to avoid capital gains, why not transfer/consolidate all the stocks and funds in one account at a place like Fidelity or Vanguard? You can transfer most shares without selling them. Maybe you could work with someone at either of those companies to set it up to be easy for whoever manages the account. You could have your husband go with you to meet the person you choose. That way, if something should happen to you, your husband would have someone to help him do a good job with the money.
   
   

2. snafu Says:
   March 18th, 2014 at 08:04 pm 1395173090
   1395173090
   I think it's smart to do a major review of holdings from time to time. I suggest starting by deciding the least disruptive way of combining accounts. Do you have more than one brokerage account? I suggest listing stocks in the categories they represent like Resources, Precious metal, Utilities, Finance etc. plus a determination if bought by untaxed income. Is the reason you originally bought each specific stock still valid? It helps to have all regular, individual stocks together in one self directed, low cost discount account like Scott Trade or your preference. Ask the incoming brokerage to initiate the paperwork.
   
   You may have a whack of Mutual Funds held in different Retirement Accounts [possibly from different employment situations ] but all these 401k, 403, etc were purchased with 'Tax Free' money. You can combine all your tax free tax holdings held in different accounts with a choice of selling, converted to cash without being charged Capital Gains. They can be transferred directly to either a low cost, self directed brokerage or specific MF company like oft mentioned Vanguard or Fidelity. Cash allows you to buy their specific funds without tax consequences or penalties providing the paperwork is done correctly. It must pass from one retirement classification to the new Retirement classification without passing to your account..
   
   If you have ROTH accounts they can be combined ROTH to ROTH so that you aren't taxed on income/capital gains already garnered. Before undertaking all that paperwork, I suggest you first decide on Allocation. It comes down to your personal Risk Tolerance. What percentage to distribute to Equity, International and Bond/Income segments while able to sleep at night without worrying about how your portfolio is doing. You will be required to draw down at least 4% each year and that income will be taxed.
   
   Many of us are willing to take more RISK with a ROTH type account because the earnings can be accessed without tax consequences. Later, as a senior you will be required to withdraw a specific percentage of Retirement Fund and pay income tax on those withdrawing.
   
   

3. Another Reader Says:
   March 18th, 2014 at 08:46 pm 1395175595
   1395175595
   My guess is you dabbled in some mutual funds at different companies and some DRP's and/or stocks in a brokerage account. Likely all the accounts are regular taxable accounts. I did the same thing about 15 or 20 years ago. I ended up consolidating most of them at Fidelity after selling a couple of losers. It was much easier to see them all in one place and I could make decisions over time about what to keep and what to sell. If you also have tax advantaged retirement accounts, having everything at one place is much easier to manage.

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