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How to roll over your 401k from Fidelity to a Vanguard IRA | 401k rollovers suck - YouTube
Channel: Uprise - Finance For Young Professionals
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hey guys jessica here today i'm going to
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be showing you how to roll over a 401k
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from fidelity into a vanguard ira
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so this is actually my personal
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situation i have a old fidelity 401k
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from a previous employer sitting there i
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figure i was overdue and rolling it over
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into an ira and simultaneously i figure
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i'm not the only one going through this
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painful process so i thought i'd record
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it break it down step by step and hope
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you guys find it useful
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all right so the first step is to create
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an account with vanguard or actually two
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accounts one
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account to hold my roth retirement
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savings and one account to hold my
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traditional retirement savings
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and so i'm going to do that first
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okay what would you like to do
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open a new account
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or move an account or assets to vanguard
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i think that is what i want to do
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first select the account type held at
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the other firm it's a 401k
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make sure you have an eligible vanguard
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account to move the assets into
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so pre-tax contributions
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must be moved into rollover iras or
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traditional iras roth contributions must
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be moved into roth iras and if you're
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transferring both you'll need to open
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one account for each type
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so i want to open a new vanguard account
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it's in your employer sponsored plan
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account that's correct that's a mouthful
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do you know what your employer-sponsored
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plan needs from vanguard
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so they just need the vanguard account
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number tell us more about your
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employer-sponsored plan account
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do you have any roth 401k contributions
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you would like to roll over yes and i
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would assume this would actually be very
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common that's confusing if you're
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transferring both roth and pre-tax
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contributions you'll need to go through
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this process twice one for each
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contribution type
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would you like to roll over your pre-tax
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contributions now yes you indicated that
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you have both pre-tax and post-tax roth
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assets to transfer both asset types
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you'll need to open two iras
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a rollover ira for your pre-tax
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contributions and a roth ira for your
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roth or post-tax contributions next
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steps select no for question 2
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and yes for question three to proceed
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with your roth ira rollover request
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when you're finished return to open
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account to request your rollover ira for
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your pre-tax contributions
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select no for question one
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to proceed with your rollover ira
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request okay so it wants me to
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select no
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and just focus on the roth first
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i'm not quite sure why in this order but
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i'll follow those instructions
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what's your goal for this money
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uh it's retirement right okay so primary
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investment objective
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is growth source of funds
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retirement and general savings
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select what you'd like to do with your
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dividends and capital gains this
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selection will apply to all eligible
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holdings in your account
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so for everybody who's listening to this
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like
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make sure you select reinvest
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if it goes into the money market
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settlement fund it's basically like cash
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and
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it will
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not give you the opportunity to take
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advantage of compounding over time
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thank you for choosing to roll over your
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employer sponsored plan account to
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vanguard
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to complete this process simply follow
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these steps
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okay so make the check payable to
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vanguard fbome roth ira all right so it
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seems like the
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roth ira account is open
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now i have to go back and create the
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traditional ira so i'm back on the
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screen tell us about your employer
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sponsored account do i have any 401k
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roth 401k contributions
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no
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what's my goal growth
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it's retirement savings
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i would like to reinvest my dividends
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and capital gains all right now i have
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both of these instruction sheets i am
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going to save these and give fidelity a
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call
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thank you for calling fidelity
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investments workplace planning and
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advice what can i help you with today
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i'd like to start a rollover
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for my ebay 401k
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i will be rolling it over to my vanguard
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ira
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understood understood you've had a
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chance to speak with an advisor make
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sure that's the best decision for you
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ma'am yeah i'm sure that's what i want
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to do
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okay got it
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i'd be happy to help you out got you
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fully verified i'm looking at an ea 401k
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plan is that right that's correct well
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i'll go ahead and get this process
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started
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you know exactly how vanguard wants this
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check made payable
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uh yeah so i have roughly half of it is
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in roth and half of it is traditional
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and so i have two separate uh two
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separate
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accounts um to roll into got it got it
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so what is the made payable name there
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um so for the
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traditional it says
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make the check payable to
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vanguard
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fbo
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um jessica roll over ira
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got it
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and i assume it's just rain guard or
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vanguard roth ira for the next one yeah
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vanguard fbo jessica roth hiring all
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right
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have this all set up i'll go ahead and
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read it back in just a moment here
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we'll have a trade date of july 9th
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which is tomorrow 4 p.m eastern it's a
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full payout pre-approved transaction the
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form of a rollover 159 276 dollars total
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subject to fluctuation
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the pre-tax amount is in 75 627.78
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we'll go to your rollover ira and the
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roth has broken down into two portions
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contributions 25 344.71
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and earnings 58 303.61
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which will go to your vanguard roth ira
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federal estate taxes will not be
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withheld this is a rollover
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you can expect these rollover checks to
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arrive to your address on file on or
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before the 20th
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hey guys finally got the check in the
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mail um let's go and deposit this
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quickly because if you sit on this thing
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for too long uh the irs is gonna assume
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that you
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wanted to take your money out and charge
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you huge penalties for it so let's go do
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it
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all right so finally got the fidelity
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401k check here i am now going to
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deposit it into the vanguard app not the
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most elegant
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envelope opening okay yes so it's very
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clear this one is for the ira and then
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this one is for the roth ira perfect
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okay now i'm going to sign both
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and upload okay
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so now i have my vanguard app here and
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i'm going to hit contribute
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and
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going to go let's do the roth ira first
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so this one here
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and i'm going to put the money into sort
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of the federal money market fund it'll
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go in there first and then
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pick investments after that okay from
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go in here select mobile check
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investment which is what i have
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there's terms and services
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great
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accept
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is this a rollover from your
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employer-sponsored plan yes it is so
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make sure to check that
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is this a rollover from a designated
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roth sponsored plan yes it is okay
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perfect and then
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the amount
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now take photos
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and then you have to hit submit
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and then at the bottom we have another
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check invest another check okay so this
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one is um the traditional so go in here
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and then pick
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the
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traditional one and then this is also
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going to go into the federal money
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market
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from a mobile check investment
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this is a rollover yes
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and
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the amount
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then take a photo
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and submit
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all right so going into my email
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there's two confirmation emails that
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both of the checks have been received
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it's not confirmed yet that the
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funds have gone through so definitely
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don't throw away the checks just yet
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wait until you get that follow-up email
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from vanguard
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but that's it for now
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all right guys so now i'm going to be
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investing the money that is in the
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account um i'm going to be doing this on
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web because it's easier for me to record
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this way but obviously you can also do
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this on
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the app
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so you can see here that the money has
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arrived in the account
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it's sitting in the vanguard federal
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money market fund they don't
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automatically invest it for you so you
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actually have to take this extra step to
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make sure that the money is invested in
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the market
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but here's the money that is in the
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rollover ira and then down here the roth
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portion is sitting in a separate account
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for for
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roth ira
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and basically what you want to do here
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is you want to go into transact so this
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is not user friendly at all
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and you want to select the one that says
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trade vanguard etfs i'm assuming you
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want to put it into ets but obviously
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you could also you know put it into a
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mutual fund
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in my case what i'm going to be doing is
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putting 60 into vti and then uh 40 into
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vxus
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but obviously you should do what makes
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the most sense for you um so
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in here you want to click buy
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and then in this case i want to buy vti
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and i said 60 right so
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i previously already did this
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calculation but 60 of this 75 985 guess
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me to 45 591 and you can go here
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calculate dollars to shares so i think
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it was 45 591
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gives you 199 estimated shares use this
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quantity
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i'm going to put a market order because
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you know vti is incredibly liquid so
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no huge issues there
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preview order
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review and submit all looks good 199 of
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vti
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right here
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perfect
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submit all right so that part is done um
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and then let's go back to accounts
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and do the same thing for the rest of it
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the remaining 40
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so this account here
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transact
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and so here i'm going to use the rest of
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the money in the account
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i'm going to buy
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vxus
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calculate dollars to shares the rest of
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the money
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oh
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466.
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uh this
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so and 466 ends up being a little bit
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too much so i'm going to just change
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this uh so ends up being 464 to get to
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30 000 so just a little bit below the
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funds available to trade and then
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preview the order and
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vxus the rollover ira
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all looks good go ahead submit all right
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and that's it um i'm going to be going
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and doing the same thing in that other
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roth ira account that i showed you guys
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um but that's pretty much the process
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i hope you guys found it helpful i know
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that these uh you know vanguard fidelity
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these guys are not super user friendly
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and so knowing where to sort of sign up
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for accounts in what order what to click
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this kind of stuff i hope you guys found
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it helpful if you'd like us to take a
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look at your specific situation and how
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to optimize
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we'd be happy to do it completely for
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free we are startup on the mission to
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take the tax and financial optimization
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strategies of the rich and make it
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available to everybody completely for
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free uh just sign up on our website um
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i've linked to it in the description
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below
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and other than that if you got value out
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of this video please hit the like button
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thanks
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