When transferring funds from one institution to another, there are three different options to choose from:
- All In Cash: All your investments at your previous financial institution get sold and transferred over to your Wealthsimple account in cash to be invested in line with your plan. This is the easiest way to transfer.
- In specie (As is): This means that you wish to transfer your entire account to Wealthsimple from your previous financial institution, as is. For example, you held in your portfolio £20,000 cash, 20 shares of ABC and 56 shares of XYZ at your previous financial institution. All these assets would be transferred to your Wealthsimple account.
- Some cash: You can transfer some cash from another institution. Using the example above, you can instruct Wealthsimple to only transfer in the £20,000 cash, leaving the rest behind.
Now you know what they are. But which one should you choose?
Most of the time, we recommend transferring “All in cash.” But there are a few circumstances where you may want to transfer “in kind”. One is if your funds have exit fees and you want to wait for them to roll off, meaning that before that point there will be a fee associated with converting your portfolio into cash. Another case is where you have made sizeable gains in your assets elsewhere and you may be liable for Capital Gains Tax if the assets are sold, so may want to discuss a plan to sell them down over time.
You may also have other personal reasons to hang onto assets, otherwise we'd recommend transfer in cash so that we move you quickly into our portfolios - because that's the reason you can to us, right?
We know this stuff is a little complicated. If you have questions about transferring funds let us know and we'll be glad to help!