Based on true events. Details have been changed or combined to protect privacy.
Believe it or not, your Daily Money Manager (DMM) ends up saving the day in ways you never expected. What might start out as a simple decision to change financial advisors ends up becoming an overwhelming process. How can your DMM help you make a smooth transition? Let’s get to know Tracy and the transition she avoided when transferring her investment portfolio from one brokerage to another advisor brand.
After careful deliberation and interviews of candidates, Tracy decided it was time to switch financial advisors to meet her new goals and outlook on investing. Once she selected a new financial team member—one that already included an accountant, an estate attorney, and a daily money manager from Organized Instincts—it was time to get down to business.
When maintaining a complex investment portfolio, including stocks, bonds, and private equity in a variety of account types including an inherited IRA, qualified retirement balance and even trust assets, meant this transition was simply not a one-step process of signing off on a few pages of account paperwork. Rather it was a multi-step process that included deliberate action and many checks and balances.
Tracy introduced her daily money manager and new investment advisor, who then got to work. We collaborated on the details of the existing investment accounts and how these would be transferred to the new company. Her Organized Instincts DMM provided details like tax identification numbers, trust documents, and other facts that might have taken weeks or months to provide if they hadn’t been neatly assembled. This allowed Tracy to focus on other aspects of her life that brought her more joy than spreadsheets and paperwork. Along the way, she was included in the progress reports.
As the transition unfolded, a new vs. former account tracking document was created, informing all the involved parties of the movement. Not only did it prove to be valuable during the transition of funds from one location to another, it also served other purposes. First, it served as a guide to her tax accountant to help identify new accounts and the corresponding tax form that appears on the year’s tax return(s). As her DMM, we informed her to expect a one-time higher-than-normal tax preparation bill as it increases the time required to complete a return with the additional accounts. Being informed helped set expectations and eliminate surprises when the service invoice arrived. Next, it also recorded when the former accounts were fully emptied and closed at the former brokerage brand. This is essential when transferring many accounts to avoid a surprise in later years—when an “orphaned” account retains a balance and generates a tax form—creating an unwelcome variance notice from the IRS for the unreported income.
Tracy’s DMM and investment advisor created a path of least resistance. This enabled her to enjoy the life she had worked so hard to create and allowed her team to provide the best support possible.
At Organized Instincts, our seasoned team of daily money managers will eliminate many headaches of moving your complex investment portfolio. Schedule a conversation today and learn how our team can help save the day.