This week, after getting all the necessary forms from Vanguard to perform a rollover, I eventually decided not complete the transaction.
Advantages
- With the market moving around like it is today, I’m keeping myself from making a big mistake. The market has been shooting up recently, and I don’t want to miss out on the upswing. If I were to have rolled it over into TD Ameritrade as I had planned, I would have had to leave a portion of my funds in a cash account for a couple of days. Felt it was better to wait until the market was more stable.
- Less paperwork
Disadvantages
- If my account ever drops below$5,000, I’ll be charged custodial fees. The market would have to crash really badly for that to happen, but it’s something on my mind.
- Because I am no longer with my employer, I can’t make any contributions to this account. Not a big deal for me.
- It’s another account I need to manage. Another password. Another firm that might go under.
