Exchanging Vanguard fund in IRA

[sheepstache]

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]

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]

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]

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]

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]

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.