I currently have both a taxable account and a Roth IRA with Smith Barney (opened with Legg Mason in 2003). I am really unhappy with my financial advisor and the options of funds I have. I am thinking about switching my accounts to another company. The problem is, half of my accounts are Legg Mason funds. Will this be a problem if I switch to a company like Vanguard or T. Rowe Price? What would be the best company for me to switch to? What kind of fees will I be looking at? There are many things you may want to consider.
Let's answer your most direct questions first. You will need to check with your new firm to see which funds you would be able to invest in through them. Many times, the securities can be transfered. Check with the new firm to determine which ones can be transferred. They will be your best source of information. Otherwise, those holdings will need to be liquidated to cash for transfer.
Check to see if you have any back end loads or "CDSC's" (contingent deferred sales charges) on any of your funds prior to any sale or liquidation. Take into consideration any sales load credits you might forfeit by transfering money out of an existing fund family.
Check to see if your current firm will assess any fees for closing the account. Compare the fees a new firm will charge versus ones you may already be paying.
It sounds like you are satisfied with some of your investments but not others. Why not meet with your current advisor and discuss your concerns? Remember, you can choose to work with a different advisor with the same firm - that way you can keep your accounts in the same place.
Another consideration is to leave the stuff that you are happy with at your current broker and start a new account somewhere else. You can do a partial transfer and you can explain that the current broker does not offer the investments that you want and the new place does.
A word of caution. All investments have variations in performance and so do advisors. If you switch everytime things don't go well, you may not be around when things go well and will always be going from one bad result to the next.
Good luck to you. Switching from one firm to another is not a problem. Do your due diligence when searching for a new advisor. Ask for credentials such as education, how they are compensated, and investment methodology. Any questions feel free to e-mail me...I have been in the business for 15 years...I am up front and honest with my client base. It works best for both me and my clients. | 