When transferring funds from one institution to another, there are four different options to choose from:
- All In Kind (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.
- All In Cash: All your investments at your previous financial institution get sold and transferred over to your Wealthsimple account in cash.
- Partial: You can transfer a portion of your portfolio from another institution. Using the example above, you can instruct Wealthsimple to only transfer in the $20,000 cash and the 56 shares of XYZ, leaving behind the 20 shares of ABC.
- All Asset Mixed: You request that there is partial liquidation of your portfolio while the remainder is transferred "in kind" or "in cash." Using the previous example, you wish to liquidate the 56 shares of XYZ (and transfer the cash value), transfer the $20,000 cash and transfer the 20 shares of ABC (in kind).
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 it's better (read: cheaper) to transfer your funds “in kind.” One is if your current institution charges for trades, meaning there will be a fee associated with converting your portfolio into cash. The other is if you own mutual funds that have DSC (Deferred Sales Charge) or LL (Low Load Charge) next to their name, you'll need to make sure you don't get penalized for selling the mutual funds before their maturity date.
We know this stuff is a little complicated. If you have questions about transferring funds (or anything else) please create a request and a Relationship Manager will assist