Tuesday, April 11, 2006

Consolidating Roth IRA - One Last Move

I've got one lone Roth IRA account to lasso and round-up into the Ameritrade corral and I'll be fully consolidated. This account is in a 12-month CD at MetLife Bank earning a bit better than 4.00%. A couple logistics to be aware of when redeeming a CD and transferring into a brokerage account:

1. CD Timing: there is a grace period on redemption, usually 10-30 days before the CD is reinvested for a similar term at the going rate.

2. Transfer Timing: there is a minimum period of time the brokerage needs to make the external transfer. In my case, Ameritrade needs 21 days.

3. Narrow the timing to eliminate lost interest: target the redemption date with the transfer window.

4. Ameritrade's Money Market sweep account should close the gap if my timing is close on the APY of the CD. That will give me a little more time to decide how I'll invest the cash from the redeemed CD.

In my case, the CD matures on May 6th. I've got the paperwork completed and need to enclose a copy of my latest CD statement. I'll read it over one more time to make sure I've crossed all my T's. I don't want it sent back to start over and miss the CD redemption window.


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