This might be a long post, so i will try and keep it short and update it with information as soon as i have that information.
I am new to the mustachian way, I like to say i just recently had my financial revolution! Anyways. I have moved all my investments to low cost vanguard funds, so im good on that front. However, my MIL (who lives with us and takes care of my children) has her investments with Fidelity, All her investments are 1% -4% in ER, which to me is outrageous. Plus on top of that she is paying them to manage for her at 1.05% on top of the ER. I have explained to her that they are raking her over the coals and that i can help her manage her investments and put them in low cost index funds that will likely produce better returns and DRASTICALLY reduce her expenses.
She currently has an IRA ($123k) and a Taxable account ($123k).
With the IRA i can move it to Vanguard or keep at Fidelity and sell the high cost funds and replace with lower cost funds without paying any capital gains taxes. Is this right?
With the Taxable, I can have her move it to Vanguard, or keep at Fidelity) but to swap out the funds, it would require selling and paying capital gains tax. Is this Right?
She is on SS disability and has farm income. Her total income is around 50k a year. She is a widow. So if she files as a married widow, she could transfer around 20k a year to new funds without paying any capital gains because she would be in the 15% tax bracket. Is this correct?
Can she sell some of the funds with tax loss harvesting and buy different funds? Not sure how that works.
Sorry for the long post. Any help would be appreciated, I will get any information for you that you need to help answer my questions.