chiefie: I would suggest, sync it up to iTunes (PC/Mac) and use encryption on backup. Once that is done, plug the new iPhone in, and it will offer to restore from a previous iPhone backup. The reason with encryption turned on is, all passwords related and some system data will be able to restored without prompting user for configuration, or in some cases, configure from scratch.

You can use iCloud sync (backup/restore) but it will be slow as it will be over WiFi, so if you're nearby to a computer, it is probably easier and faster doing it through computer.