Early Withdrawal

Question: Do I have to liquidate my portfolio in order to change investment firms?

I’m unhappy with the investment firm I’m with. I want to change to another company, but was told I would have to liquidate my portfolio in order to do so. I have no annuities or accounts that would be penalized for Early Withdrawal. Just mutual funds and stocks. If I have to liquidate, I was told I would sustain a heavy tax burden if I liquidated at this time. I was also told by a friend that transferring from one company to another is possible. It depended on what your portfolio was made up of. If anyone knows the answer to this question…Please help me out. Quickly…The liquidation is suppose to be Friday, October 26.

Answer: In most cases liquidation is not necessary. You currently own stocks and shares in mutual funds. Those are owned by you and managed by your investment firm. You are asking to change management responsibility for what you own, not a change in ownership. Talk to your new broker. They will be able to arrange a transfer of assets from your old firm to the new firm.

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