Welcome to the forum.My wife and I are currently invested with Fidelity Wealth Management. I need advice on the best way to transfer my Fidelity Traditional IRA ( comprised of Fidelity Proprietary Funds) to Vanguard Traditional IRA Index Fund Account. I realize that capital gains are not a concern since it's an IRA. My concern is that all the Fidelity Proprietary Funds will need to be sold when transferring to a Vanguard IRA index fund account.Would it be advantageous, or not, for me to now have Fidelity move my IRA from the Fidelity Proprietary Funds selection to the Fidelity Index fund focused selection? Will doing so result in more of the Fidelity IRA funds directly transferring to Vanguard without needing to be sold? Or, is this not necessary? Thanks for your advice.
You could move away from the Fidelity proprietary funds to ETFs, which could be held at any custodian (Vanguard, Schwab, etc.).
Once the existing funds have been sold, you could buy VTI for US stock, VXUS for international stock, and BND for US bonds. Then, the IRA could be transferred to Vanguard using a trustee to trustee transfer or an in-kind transfer, and you wouldn't need to sell anything once it arrives at Vanguard.
This might help limit the time you spend "out of the market". Instead of being out of the market for a week or two, it might be as brief as overnight.
Regards,
Statistics: Posted by retired@50 — Fri Jan 24, 2025 6:37 pm