I have a long standing relationship(10+yrs) with a CFA at Morgan Stanley. My time with MS has been profitable even though it has been a relatively expensive experience.

Long story, short. I have a much smaller portfolio after buying a house last year. I am now in the process of building my portfolio back up. I would like to remain with my trusted advisor, but SB is not built for beginning investors, IMO. High trading commissions and no DRIP for partial shares.

These are options I need to build back up.

Question, anyone have experience making a similar change and any advice for someone about to go through it? What costs can I expect, avoid?

I'm sure my advisor will understand, as it's purely business.

TIA

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Posted by jeepfreak

Back in the BR

Member since Oct 2003

19433 posts

Posted on 2/26/14 at 2:45 pm to Oenophile Brah

Merrill Edge

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Posted by slackster

Houston

Member since Mar 2009

84605 posts

Posted on 2/26/14 at 3:54 pm to Oenophile Brah

quote:
any advice for someone about to go through it? What costs can I expect, avoid?

Should be pretty simple to do an ACAT in-kind transfer with your new brokerage firm. May pay some sort of account closing fees with Morgan Stanley prior to closing the account, but that usually isn't more than $50. All you need to bring in is your most recent account statement in most cases.

If, however, your holdings at MS cannot be transferred in-kind, I highly suggest you call your broker and have your account liquidated at your discretion, rather than it being done by default.

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Posted by Oenophile Brah

The Edge of Sanity

Member since Jan 2013

7540 posts

Posted on 2/26/14 at 4:59 pm to slackster

quote:
May pay some sort of account closing fees with Morgan Stanley prior to closing the account, but that usually isn't more than $50

Ok. That's not too bad.

quote:
If, however, your holdings at MS cannot be transferred in-kind, I highly suggest you call your broker and have your account liquidated at your discretion, rather than it being done by default.

This is my concern. Most of my portfolio at SB is tied up in "trak" system. I'm fairly certain that will need to be liquidated.

I'm going to take a pretty serious cap gains hit. I've had those funds a long time.

Thanks