[Jill]

I’ve been in the process of transferring tIRAs and Roth IRAs from high fee Sammons funds to Vanguard VTSAX.

I have to liquidate first as Sammons doesn’t allow in-kind transfers.

We’re down about $100,000 since I started the process.

This might be a dumb question, but do I want to wait to recover before I go ahead with the transfer?

Or am I overthinking this and down is down, regardless of what funds I’m in and what I’m transferring to?

[Ron]

If the transfer takes 1 month and the market recovers 5% you’ve permanently lost 5% of your investment.

That’s the reality others are ignoring here. You are not over thinking, rather thinking rationally.

It can’t always be avoided, but better to pay 1% higher AUM or ER expenses for 3 months more (0.25% more for a quarter) than to be out of market with a large amount of money during even a 1% jump, no?

That said, the out of market risk might not be avoidable forever. Personally I would:

-split up the transfer so less of your money is on the line each time. — if old custodian doesn’t block it.

-know the ins and outs of both sides of the transfer to make the out of marlet time as minimal as possible.

-Potentially wait for a time of lower volatility, though that doesn’t look like it is coming any time soon.

Just my recommendations, and good luck!!

[Christopher]

If you sell low, but then also buy low, it’s a wash. A fine thing to do.

Selling low, and then waiting until it’s high again to buy back in, that’s where fortunes are lost.

[Endri]

Makes no sense because if you recover, the prices will be higher.
Actually I think it might be a little better not to recover as the growth in the sammons fund has higher fees/ and withdrawing a high amount too.

Than the growth that would happen on VTSAX.

Better to grow a smaller amount of money on VTSAX.

[Eva]

In the same boat with Ascensus. What I’m doing is repurchasing with cash I have on sidelines since in also in transition to a risk parity model so my large cap index will likely end up in a brokerage.

Otherwise, I’d have to be out of market for up to 6 weeks

[Prasad]

I wouldn’t try to time the market and get to my target asset allocation asap once the $ is in Vanguard.

BTW, I hope your destination custodian is indeed Vanguard since you say VTSAX. You can just use VTI everywhere these days.

For amounts over $25K for ETF purchases, I would just call the company and ask them how to best execute.

[Author]

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