Author Topic: Exchanging Vanguard fund in IRA  (Read 1867 times)

sheepstache

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Exchanging Vanguard fund in IRA
« on: November 09, 2015, 02:57:27 PM »
I want to exchange my whole S&P 500 fund into the Total Market fund. Since it's in an IRA there's no concern about taxes.

Obviously I'd rather do it on a day when the market's not too volatile, but if I could see the future I wouldn't be invested in broad index funds.

Any other concerns I should bear in mind?

Frankies Girl

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Re: Exchanging Vanguard fund in IRA
« Reply #1 on: November 09, 2015, 03:43:11 PM »
Only thing that comes to mind is if there is any short term trading/holding penalties. I did something like this in my 401k a while back and incurred about $30 in fees for the few shares that were considered short term when I sold them all off. Not a huge deal to me tho.


sheepstache

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Re: Exchanging Vanguard fund in IRA
« Reply #2 on: November 09, 2015, 03:52:10 PM »
Like, a fee from the company that administered the 401k? I think that would be okay, because Vanguard, rather than charging a fee, just blocks you from further redemptions or unscheduled purchases for 30 days. That's why I want to do it now, because I maxed the IRA a month ago so it's been a month since I purchased anything and a month til I _can_ purchase anything.

Thanks!

Frankies Girl

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Re: Exchanging Vanguard fund in IRA
« Reply #3 on: November 09, 2015, 03:54:56 PM »
Like, a fee from the company that administered the 401k? I think that would be okay, because Vanguard, rather than charging a fee, just blocks you from further redemptions or unscheduled purchases for 30 days. That's why I want to do it now, because I maxed the IRA a month ago so it's been a month since I purchased anything and a month til I _can_ purchase anything.

Thanks!

No, like a short term trading fee enacted by the fund itself. It should be in the fees and distributions section and read something like "a fee of 1% will be assessed on any fund held less than 90 days" or similar. If it doesn't have anything like that in there, then it doesn't have those types of fees.

iamlindoro

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Re: Exchanging Vanguard fund in IRA
« Reply #4 on: November 09, 2015, 04:02:49 PM »
Like, a fee from the company that administered the 401k? I think that would be okay, because Vanguard, rather than charging a fee, just blocks you from further redemptions or unscheduled purchases for 30 days. That's why I want to do it now, because I maxed the IRA a month ago so it's been a month since I purchased anything and a month til I _can_ purchase anything.

Thanks!

I might be mistaken, but I believe that within that window, you can still purchase, so long as you transact via mail.

https://personal.vanguard.com/us/whatweoffer/overview/exchangepolicy

sheepstache

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Re: Exchanging Vanguard fund in IRA
« Reply #5 on: November 09, 2015, 04:34:39 PM »
Like, a fee from the company that administered the 401k? I think that would be okay, because Vanguard, rather than charging a fee, just blocks you from further redemptions or unscheduled purchases for 30 days. That's why I want to do it now, because I maxed the IRA a month ago so it's been a month since I purchased anything and a month til I _can_ purchase anything.

Thanks!

I might be mistaken, but I believe that within that window, you can still purchase, so long as you transact via mail.

https://personal.vanguard.com/us/whatweoffer/overview/exchangepolicy

Ah yes, don't want to spread misinformation. I just knew that when I've exchanged anything in the past I could still do my scheduled automatic purchases. In this case I could do the exchange without worrying about the next automatic scheduled purchase being into the old fund by accident.