Disbanding
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Disbanding Our club is considering disbanding. Our broker is also the broker for four of our members. If each of the remaining members establish an account with our club broker, can the annuities be transferred into their individual accounts in the amount of the each members' share value of each annuity we hold? Sharon Vestal MAM$ Treasurer Usually, but only approximately. No quantity of shares will exactly equal anyone's valuation, so some cash is always (99.99% of the time?) necessary. But, cash can also be transferred to their accounts. Bob > On 01/18/2024 2:46 PM EST Sharon E. Vestal via bivio.com <user*10767600001@bivio.com> wrote: > > > Our club is considering disbanding. Our broker is also the broker for four of our members. If each of the remaining members establish an account with our club broker, can the annuities be transferred into their individual accounts in the amount of the each members' share value of each annuity we hold? > > Sharon Vestal > MAM$ Treasurer I highly doubt that "annuities" can be distributed to the members. Perhaps you meant "securities"? Ira Smilovitz Usually, but only approximately. No quantity of shares will exactly equal anyone's valuation, so some cash is always (99.99% of the time?) necessary. But, cash can also be transferred to their accounts. Do you really hold annuities in your club? Bob > On Jan 18, 2024, at 2:46â¯PM, Sharon E. Vestal via bivio.com <user*10767600001@bivio.com> wrote: > > Our club is considering disbanding. Our broker is also the broker for four of our members. If each of the remaining members establish an account with our club broker, can the annuities be transferred into their individual accounts in the amount of the each members' share value of each annuity we hold? > > Sharon Vestal > MAM$ Treasurer I stated that incorrectly. Our portfolio are not annuities, I meant to say securities or stocks. I appreciate your the information you have given. Sharon. On Jan 18, 2024, at 12:14 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote: I highly doubt that "annuities" can be distributed to the members. Perhaps you meant "securities"? Ira Smilovitz Usually, but only approximately. No quantity of shares will exactly equal anyone's valuation, so some cash is always (99.99% of the time?) necessary. But, cash can also be transferred to their accounts. Sharon, My club just disbanded as TD transferred to Schwab with each member opening a Schwab account. As Treasurer for 28 yrs, I had Pres ask for Volunters to meet and be involved so members would be comfortable with my choice to transfer winners and sell loosers and the few stocks remaing as we transferred groups of stocks containg each lot to insure no member got stuck with large gains of any one Company. With up to 4 lots and the Broker errors this took a month to complete four separate groups of stocks and a final cash withdrawal to members accounts. Bivio handled transfers and TD and Schwab loved getting a copy of the withdrawals along with TD's DTC form that only had Stock and quantity no purchase date or cost. Cindy Gerke Coles River Investment Group. Our club is considering disbanding. Our broker is also the broker for four of our members. If each of the remaining members establish an account with our club broker, can the annuities be transferred into their individual accounts in the amount of the each members' share value of each annuity we hold? Hi Cindy, You and I have a lot in common with our longevity with a Club. I joined this one in 1999 and have been the Treasurer for about 16 years. I know I will need a lot of information to make the distribution equitable. We just decided at our meeting last night that we were going to disband, so I am just now beginning to gather all the information to present at our February meeting. I had not yet considered the "lots" that need to be taken into consideration. Thanks for that information, especially. Another member and myself will be meeting next week to do a thorough evaluation of our portfolio with the SSG program from Better Investing to help make the decision for a couple of stocks we might be selling and which stock or stocks we may want to buy with that money. Did you have a membership with Better Investing? Our membership renews in March and ideally we don't want to renew it. About how long from start to finish did it take to complete all the transfers? I will have to contact Bivio to see what assistance they can give us in this process since we are using Edward Jones. I hope it isn't just TD and Schwab they assist with. I hope you won't mind me e-mailing you again if I have additional questions about your experience in disbanding a club. Sharon Vestal MAM$ On Jan 18, 2024, at 4:33 PM, cindy gerke via bivio.com <user*17338100001@bivio.com> wrote: Sharon, My club just disbanded as TD transferred to Schwab with each member opening a Schwab account. As Treasurer for 28 yrs, I had Pres ask for Volunters to meet and be involved so members would be comfortable with my choice to transfer winners and sell loosers and the few stocks remaing as we transferred groups of stocks containg each lot to insure no member got stuck with large gains of any one Company. With up to 4 lots and the Broker errors this took a month to complete four separate groups of stocks and a final cash withdrawal to members accounts. Bivio handled transfers and TD and Schwab loved getting a copy of the withdrawals along with TD's DTC form that only had Stock and quantity no purchase date or cost. Cindy Gerke Coles River Investment Group. Our club is considering disbanding. Our broker is also the broker for four of our members. If each of the remaining members establish an account with our club broker, can the annuities be transferred into their individual accounts in the amount of the each members' share value of each annuity we hold? There seems to be a few misunderstandings about cost basis and withdrawals floating through this conversation. There are withdrawal idocuments in the help files. You especially might look at this one: https://www.bivio.com/trez_talk/mail-thread?p=69428600003 Mostly what I see in this conversation is concerns about transferring stocks and the cost basis in those stocks. When a member withdraws, their cost basis in the stock(s) they receive is related to the person's cost basis in the club, not the club's cost basis in the stock. I'm sure Ira or one of the other experts will speak up. Linda's comments regarding Cindy's post are correct. When you process a full withdrawal and transfer stock to the withdrawing member, that member does not assume the club's cost basis in the stock transferred. The member's stock cost basis is their club tax basis less any cash distributed as part of the withdrawal. The correct cost basis for the member in each stock received is shown on their withdrawal report. This cost basis needs to be given to the broker who holds the member's personal account. Some brokers will adjust the cost basis based on the withdrawal report, some will not. (They aren't required to do this.) It is up to the member to retain the withdrawal report and make any adjustments to the capital gain reported by the broker when they finally sell the transferred shares. Ira Smilovitz There seems to be a few misunderstandings about cost basis Linda. Schwab moved our TD transfer from Nov to Sept. Their office is 20 min away so we delivered all paperwork. They lost one DTC form (member DTC and Bivio withdrawal stapled together and all placed in folder) for each transfer within their companies and we sold any stock remaining in those lots. We waited to submit next transfer to verify Bivio and Broker matched. On last transfer a 4th TD advisor said Medalion or notorized signatures on DTC were not needed TD had an Internal form if they verified signature.. It took about 4 weeks to transfer stocks out. Schwab received dividends in Sept and we closed account in late Nov. Bivio paid till March 6th allowing me to file taxes end of Feb. Club was in NAIC and I did get Better Investing and Tool Kit for years. I met Ira and many very knowledgeable people in early 2000's when I took classes in NC to teach Checklist and SSG. I then taught Checklist at Mansfield, MA NAIC Investment Fairs a couple of years. I want to thank them for all they do for Club's. Cindy Gerke
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