So, how does this work exactly when it comes to co-mingling funds. If you set this up direct through Oakmark (I'm assuming you have to do this with after-tax dollars) how can you transfer it to something like a Roth or RO IRA at Fido?

Sorry I just don't fully understand this but no there are ways to do this.

JavaJoe

Originally posted in thread: 232

Answered this on the Fido forum but not completely about the IRA transfer piece.

You can open an IRA at Oakmark online. On the site under the "investing with us tab" there's an "open an IRA account online". Then under "literature" there's an "IRA transfer of assets" form.

The form lets you transfer funds from your money market account in your IRA at Fido to the fund/funds you select at Oakmark. (I transferred about 5K each time but you could prob do it with whatever the minimum is for the fund.)Then once the money gets set up at Oakmark, if you wish, you do a transfer in kind back to your IRA at Fido. Then add NTF to OAKBX or OAKGX or whatever.

I have three accounts- Fido, Vang and TRP besides my 401k and would leave my funds at Oakmark.... but hate having another acct to check.

Hope this is sort of clear- sometimes I am a little too wordy. Erryl or Chang could explain it better! I had to have it explained to me when I did it- every single step.

I LOVE OAKBX- it's about 12% of my portfolio now- I sleep well! Best wishes....

Nancy

Originally posted in thread: 232

Okay... So just to summarize (and clarify a bit)...

The "loophole" for purchasing a fund that has been closed to major brokerages but is still open direct from the fund mgmt company is as follows:

1) Build up cash in the MMkt of your brokerage (Fido in my case)
2) Open an IRA of the appropriate type (RO/Roth) directly with the fund company such as Oakmark
3) Use the "IRA transfer of assets" form to move $ from the MM at Fido to Oakmark (sufficient to cover fund minimums)
4) Purchase the minimum amount of the desired fund(s) at Oakmark
5) Do a transfer in kind back to your IRA at Fido with your position in that fund(s)
6) Then add NTF to the funds (OAKBX, OAKGX, etc) up to whatever amount your desired AA calls for

The only fees should be small transfer fees, not short-term redemption, etc. And no tax implications either way.

Does that sound right?

Sorry for the procedural question but just want to make sure I fully understand this. Thanks in advance,

-JavaJoe

Originally posted in thread: 232

correctly. Oakmark however will not allow you to open the account on line (because it is not funded) .. you must print out the paper work and mail to them along with transfer of assets form and they will contact Fido to get the amount of money you designate. Later, you will fill out Fido paperwork to move the account "transfer in kind" back to Fido. Transfer in kind closes the oakmark account. Oakmark nor Vanguard charged me any fees to transfer the account/funds

Originally posted in thread: 232