Author Topic: American Funds vs. Vanguard  (Read 1671 times)

Illini1

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American Funds vs. Vanguard
« on: April 12, 2015, 10:29:03 AM »
I Have seen various questions on this in the past I was just wondering if someone could help me out. I have some money in American Funds that I opened before finding MMM.

American funds -Me

Non retirement account:
                                                           Expense ratio      Current value
Capital world growth and income fund -    .77%                   $308.91
Fundamental investors -                          .61%                   $1,325.82
The growth fund of America-                    .66%                   $1,739.75

Retirement account

Fundamental investors-                           .61%                    $25,373.80
The growth fund of America-                    .66%                    $20,464.07

American funds Wife-

Roth IRA

Fundamental investors-                            .61%                   $1,077.85
The growth fund of America-                     .66%.                  $1,068.30

Vanguard -me

Roth IRA

VFINX-                                                   .17%                     $5,706.89

Rollover Ira

VTSAX-                                                  .05%                     $24,608.52

Vanguard - wife

Roth Ira -

Target retirement 2060-                          .18%                     $1,623.17

I guess my main question is what should we do with our American funds? The expense ratios are obviously higher in American funds. What would be the tax implications of moving the money? If we were to move all of it into Vanguard where would you recommend us putting it?




               



MDM

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Re: American Funds vs. Vanguard
« Reply #1 on: April 12, 2015, 10:56:39 AM »
I guess my main question is what should we do with our American funds?
Move them to something less expensive.  Vanguard would be a fine choice.

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What would be the tax implications of moving the money?
Zero in the tax-advantaged (tradtional or Roth).  Minimal, given the dollar amounts, in the taxable.

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If we were to move all of it into Vanguard where would you recommend us putting it?
You could do worse than the Target retirement 2060 with which you are already familiar.