Making the Transition

Sensible Financial usually recommends that you establish accounts with a custodian with whom we have a "master account." This keeps our trading and reporting costs low - we can transact in multiple accounts simultaneously, and access transaction and position data electronically. We offer our clients a choice among several efficient investment custodians. We began in 2002 with Ameritrade (now TD Ameritrade). In 2004, we established a link with TIAA-CREF (TIAA-CREF does not support the most efficient trading arrangements, so we do not encourage transferring assets into new accounts there). In 2006, we retained Fidelity to provide custodial services as well.

We prepare all necessary paperwork for your signature, and track account setup and asset movements through to completion.

To the extent that your percentage of assets in each asset class differs from our recommended percentage, we may recommend that you sell some of your current holdings in order to establish the recommended balance.

If you have large unrealized capital gains in your current portfolio, it may be sensible to make a phased transition to the recommended funds even if the portfolio is not in perfect balance immediately. If your current holdings align closely to Sensible Financial's recommendations in both asset allocation and expense, it may not be worthwhile to trade.