Monday, August 07, 2006

Partial Transfer to Vanguard

Well, after a long delay, I finally called Vanguard this morning to check out the possibility of transfering my Roth IRA assets currently at Scottrade to Vanguard. I currently have a total of five funds in my portfolio and four of them are Vanguard funds: VTSMX, VWELX, VGTSX, and VIPSX. The only exception is BRSIX, which I owned since 2003. With scottrade, I have to pay $2 for each pre-scheduled transaction.

I didn't expect any problem to move those Vanguard funds to Vanguard, so my concern was on BRSIX. Before I made the call, I quickly broswed Vanguard website, but didn't find the information I wanted. So once I got connected to a Vanguard CSR, I went straightly to the question: How much fees I have to pay to purchase this fund through Vanguard.

Bad news: The fees Vanguard charges for every transaction of this fund is $35!

So it doesn't make any sense to transfer my entire account to Vanguard due to the high transaction fees Vanguard charges for non-Vanguard funds. The good news is I am able to transfer partial assest to Vangurad. Before I can find a better place to hold BRSIX, it will remain with Scottrade. For the other four Vanguard funds, moving them to Vanguard can eliminate the 2% fee I am paying.

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