Found out today that the will has been settled .... I will inherit a ballpark figure of $170K worth of CD's that mature at different times. The first not until Jan 2023. I won't know how many there are until I receive the Wells Fargo packet via Fed-X on Friday. It's in another state and confusing to me. Why do I "need" to open an account with Wells Fargo to get my inheritance? Is it because the CD accounts are with them? I need part of the money now, not 2023.
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You can cash out the cd's but you will pay early withdrawal penalties.
The CD's are likely Wells products. They are an agreement to keep money at wells for interest.
You inherited that agreement, basically.
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Yes. They will transfer the CDs into your name and then you can sell the CDs if you want but will get ripped off.
You can transfer the CDs to another brokerage and sell them a little cheaper. I would recommend Fidelity. You will probably only be charged $1 per CD and get a pretty decent price price.
Wells will charge you $95 to transfer though.
If the CDs are paying any decent kind of interest, you will get at least the full value of the CDs because those are very valuable.Comment -
If you are dealing with Wells, you could have CDs with their bank division or you could have brokerage CDs. Those are handled differently. You indicated brokerage CDs so you can just sell those any time. Bank CDs you pay a penalty.Comment -
Oh yeah, if you transfer to Fidelity, they will pay the $95 transfer fee that Wells charges you. You just have to request it.Comment -
That is extremely good. You will get way above par on that.Comment -
Once you get the CDs into your account, you will be able to see what the CDs are being priced at. That will give you some idea of what you will get when you sell. You should get somewhere around that amount. They will low ball you but it will be a decent price to get out. You will get the amount above par (face value) plus the interest earned through that date.
Don't deal with any broker though. Do it yourself. A discount brokerage company will help you out.Comment -
The Wells Fargo advisor told me today to just include a voided check so they can put money directly into my checking account.. Then his assistant called and got a lot of information...about me.. Even my net worth within certain parameters, everything. She emailed me forms about the legal dealing with Wells Fargo..She was very nice, Had known my mother over 20 years..That doesn't mean much when it comes to money. I don't know Anyone in the brokerage business.Comment -
Yeah, they are required to get that information. They can set up a link to your brokerage account.
Wells Fargo is extremely shady though. I would not deal with them. Any brokerage can do that.
Basically you will probably get $1030 or $1040 per CD if you sell depending on how far out the CD is in 2023 because a 2-year CD goes for just 0.2% right now. You will basically get all the interest that will will pay until that point and they will knock off a percent and charge you a dollar per CD most likely. That assumes you transfer to Schwab, Fidelity or ETrade.
I've sold CDs through Fidelity and they are the most fair in getting price and charging. They will put it out for bid to multiple dealers and give you the best price. It should be a pretty hot commodity.Comment -
It is possible that Wells Fargo will give you a similar price. But if you are not getting at least $1030 don't agree to sell. I think you will probably get better by transferring. But you can find out what they will give you without selling. They will put it out for bid or just offer you a price themselves and you agree to it or you don't.Comment -
Whatever you do, do not tell the Wells Fargo broker to just sell it. Find out what price you can get and if it is acceptable sell it. But don't just tell him to sell it. That is a good way to get ripped off.Comment -
Roger Thanks for the great advice. I did not know anything. Had heard Wells Fargo was shady also. I will be carefull. I want to see exactly the amount of the CD that matures in Jan. 2023. He did not say on phone the amount. I have a baseline to go on now at 1030/1000.Comment -
Yeah, make sure you get above par. Those CDs are valuable. You cannot get that on a 30-year bond. The problem with CDs and bonds is that brokers have a license to steal.
If it was me, I would just transfer to Fidelity. That will only take a week. Then you can request a bid on the CD or CDs and you will get an email in about 15 minutes. That way you do not get ripped off. With $170,000, you could easily get ripped for $1,700 minimum.
At least that way you know you get a fair deal.Comment -
Wells will lend u 80% of their maturity value on site, probably at 2% interest.
Very easy to get cash on thisComment -
They may put it out to bid or they may just make an offer. They can do what they want. They can mark you down as much as they want. if they want to give you 1% less or 2% or 3%, they can do it. So you never know what you are getting when you sell a bond or a CD but you are always getting ripped off when you sell a bond or CD. You will lose $1,700 on $170,00 under the best of circumstances if you sell.
Wells Fargo is not a full brokerage like Fidelity so they may not put it out for bid. I just know how Fidelity does things and you can't really improve on what they offer as a discount brokerage. They are the best to deal with in this particular situation. Somebody may be able to offer you the same but not better. You can't do anything but lose.Comment -
You are paying the same in taxes regardless. The inheritance is based on the value of the transfer. Not what you sell. You have to pay the tax on the interest either way so it is the same.
On 20K, you will pay $20 for the trade and get marked down about $200 versus keeping. But the markdown could be steeper depending on who you do it with. I don't know what Wells Fargo charges for CD trades. They just charge a "markdown." It is whatever they want and think is reasonable.Comment -
Let’s come to a gambling forum to ask financial advice. What could go wrong.Comment -
I was very disappointed in the Wells Fargo FedEx pack that came yesterday.. It was only for me to sign and date papers giving them authority to Open and account in my name and also pages to sign to transfer money into my checking. Absolutely 0 information on the amounts and dates of Cd maturity. Will call them next week when they get the returned forms from Fedex. What a nuts way to get an inheritance.Comment -
Good comment LongBall. The advice you have received is pretty solid. No one is trying to sell you anything or tell you what to do with the money, they are giving you opinions that you can take to a financial advisor to confirm.
Pretty cool that people are helping out. Needless to say, you know more today than you did 3 days ago. Good luckComment -
Well Fargo Advisors page, not a banking page . They are called Advisors, but have a lengthy legal paperwork that seems to protect them but not me.Comment
