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  • Move individual stock to Vanguard?

    I have some (gasp) individual stock. My grandmother bought Kellogg stock under my name when I was a kid. It's worth maybe 2-3k nowadays and I have done absolutely nothing with it for at least the past 2 decades besides automatically reinvest the dividends. This was all done directly with Kellogg rather than vanguard or anyone else. For purposes of simplification and being able to see the balance without waiting for a paper statement, I would like to transfer them to my taxable account at Vanguard. Is this possible? If so, what are the logistics? Also, I recognize I could just sell it and buy index funds in my taxable account but my grandmother has passed away and I think it would be nice to hang onto her gift, plus it's a pretty small percentage of my portfolio

  • #2
    Yes, you just need to find the transfer form on the site of the custodian where the account is located. You should be able to handle it all online.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      .............and I think it would be nice to hang onto her gift........

      this is the phenom of attributing sentimental value to  fungible money.  You value the K shares at $67/ share + emotional value. Only you can decide the price at which you would actually sell.  $100/share ?  $1000/share ?    Similarly, my wedding ring is worth more than it's  scrap metal value + design value.  I imagine if I ever divorced, it's emotional value would plummet.  Consider contacting a Vanguard rep on the method of transfer.

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      • #4



        ………….and I think it would be nice to hang onto her gift……..

        this is the phenom of attributing sentimental value to  fungible money.  You value the K shares at $67/ share + emotional value. Only you can decide the price at which you would actually sell.  $100/share ?  $1000/share ?    Similarly, my wedding ring is worth more than it’s  scrap metal value + design value.  I imagine if I ever divorced, it’s emotional value would plummet.  Consider contacting a Vanguard rep on the method of transfer.
        Click to expand...


        My grandmother gave me shares of two bank stocks, over a period of three years, $10k per transaction, at least ten years ago. I sold them immediately. There are better ways to remember one's grandmother, IMO. My rationalization was that most of all, my grandmother wanted me to be happy, and it made me happy to sell the stocks immediately.

        More recently, as a Bat Mitzvah gift, my father gave my daughter 50 shares of Lilly stock (LLY), transferred to her brokerage account. I sold shares those immediately, too.

        So I guess you know what my advice would be.

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        • #5
          How are much are bar/bat mitzvahs setting one back these days? Won't be paying for one for atleast 15 years.

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          • #6
            Vanguard can help walk you through this.

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            • #7
              The transfer agent for Kellogg stock is Broadridge. Here is the home page for the Kellogg stock plan: http://shareholder.broadridge.com/kelloggcompany/

              The Legal Transfer form you need to facilitate the transfer can be found at: http://shareholder.broadridge.com/pdf/default-forms/legal_transfer_form.pdf

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              • #8
                You could also give it away, for a pretty low cost... Your basis in the stock must be tiny! But the charity would get the current value! You'd not have to pay taxes on the gains.

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                • #9




                  You could also give it away, for a pretty low cost… Your basis in the stock must be tiny! But the charity would get the current value! You’d not have to pay taxes on the gains.
                  Click to expand...


                  You know, that's a great idea if the OP is so inclined. And, just to clarify, the charity would not only get the current value, but the OP w/b able deduct the full value as an itemized deduction.
                  Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                  • #10
                    I second/third the option of giving it away.  You avoid taxes on capital gains, get to donate the entirety where you want, with a donor-adviced fund.  I have one with Fidelity, low cost, super-easy no hassle.  Donating stock is as quick as filing out one online form and then mailing a registered letter (even with *cough* paper stock certificates).

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                    • #11
                      Don't sweat the taxes, long term capital gain is not a huge deal.  I would only give it away if it was part of my planned giving for that year. Don't let the tax tail wag the dog, etc.

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