An investor felt anxious after an ACAT transfer request from TIAA to Fidelity did not complete following a market up day. A long-term perspective reframes the risk: missing a short transfer window can mean missing an up day or a down day, with markets up more often than down. ACAT transfers can be completed quickly, sometimes in about five days, but typically take a couple of weeks. Custodian-specific friction can slow transfers, including incompatibilities between TIAA and other firms and the need to use the correct outbound paperwork from the sending custodian. Market context can be favorable, but transfer timing remains uncertain.
"“You gotta remember that you're a long-term investor. I know that. And you're as likely to miss a down day as you are up days,” he said, citing the rough base rate: “I think it's 75% of the months are up and 25% are down. It's about the same when it comes to years. It's about 3 out of 4 years the market's up and 1 quarter when it's down.”"
"“TIAA and Charles Schwab don't get along all that well,” he said, adding that the same friction “may be the same with Fidelity.” A clean ACAT “could be as quick as 5 days” and typically takes “a couple of weeks at the outside if they're done right.” TIAA also requires its own outbound paperwork: “TIAA does not accept any Schwab paperwork. You have to, if you're moving money from TIAA to Schwab, you gotta use their paperwork.”"
"“recently there was a big up day in the market and I had put in a ACAT transfer request from TIAA to Fidelity, and it didn't go through,” and admitting “I know logically it shouldn't make any difference outside of the time that the money would be out of the market, but it made me nervous.”"
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