Hello,
My wife and I each have Roth IRAs that we have been contributing to for about six years. Within the accounts we have been equally contributing to the Fidelity Spartan S&P 500 Index fund and the Fidelity Freedom 2045 fund. We started these out with just the 2045 funds, not knowing much about expense ratios, therefore we probably have about 40% more money into that fund. The 2045 fund has an expense ratio of .75%, while the Spartan fund is .07%.
We stopped this month any further contributions to the 2045 fund, and we would like to sell the 2045 shares that we have and buy shares of the Spartan 500 fund - so that we only have the one with the low expense ratio.
We are new to "selling" any mutual funds. All we have ever done is keep adding more to what we have. Is there anything that we should be aware of?
The market is down now, but it doesn't seem like I'm "locking in my losses" because we would be buying the S&P 500 shares at a lower price too. I'm just trying to wrap my head around the idea and consider any negatives that may exist.
Thank you for any ideas that you may have!