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Delta-Lawyer, Attorney
Category: Legal
Satisfied Customers: 3546
Experience:  10 years practicing IP law and general litigation
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I have money in an investment account. I had a problem with

Customer Question

I have money in an investment account. I had a problem with my advisor and am working on finding another advisor. The former advisors boss said today that I need to talk to the old advisor, find one in their company or move money out. Can they take my money if I don't move it soon. This advisor is in Texas.
Submitted: 2 years ago.
Category: Legal
Expert:  Delta-Lawyer replied 2 years ago.

In short, no, they should not be able to take your money if you do not move it soon. There are regulations and license requirements that these investment types must adhere to when conducting business that are in place. That said, you need to look at and be aware of what rights they have and penalties can be charged that should be stipulated in the contractual language to which you have agreed to in your retainer with the entity.

There can be early withdrawal penalties that are contractually owed if you mover your business. Moreover, depending on how you do it, there can be tax obligations for withdrawals from certain investment accounts. You need to have a firm grasp of all of that before you do anything.

To that end, it would be worth the effort to meet with another suitable investment specialist about turning your business over to them and have them look over your investments and information and provide you a pathway to switch and avoid as many penalties as possible.

Any reputable investment professional will be well versed in this exact scenario and should be able to give you an "escape route" with the path of least resistance.

Let me know if you have any other questions or comments.

Please rate my answer positively as well.

Best wishes going forward!

Customer: replied 2 years ago.
I do have another question. I am planning on transferring all funds on account in kind. Will there be fees if I transfer that way. The person I want to transfer to is fee based, he is very good., but expensive. I have to make sure I am making right choice for advisor. I have under 1 million so he wants 2,500 to start and same in year with quarterly fees afterward. I think I can ask him a minimum amount of questions before I pay.
Expert:  Delta-Lawyer replied 2 years ago.

Will there be fees if I transfer that way?

Likely. Most of the time, when an account is closed out, there are contractual fees associated with the closeout, including but not limited to, closeout and processing fees as well as early withdrawal penalties. As mentioned above, there can be some tax exposure as well. His fee structure does sound good though, relatively speaking - especially if he is considered to be very good at his job. In theory, if he gets you a 4-6% return on your money, you should be well ahead of the game, even when you account for his fee structure.

Expert:  Delta-Lawyer replied 2 years ago.

Did you have any other questions or comments? I just want to make sure you are as comfortable as possible moving forward. Thanks!