Author Topic: Investing Vanguard  (Read 1356 times)

heybro

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Investing Vanguard
« on: January 30, 2016, 02:47:45 AM »
Edited.
« Last Edit: February 03, 2016, 09:22:58 PM by heybro »

seattlecyclone

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Just be aware that there could be tax consequences every time you hit the "sell" button. I don't think switching from ETF to Admiral shares is a non-taxable event like switching from Investor to Admiral is. If you would rather be in Admiral shares instead of ETF shares for the long term, just start out with Investor shares right now. On a $3,000 balance, the difference in expenses between a 0.05% fund and a 0.17% fund is 30/month. The short-term capital gains tax you would pay on a conversion from ETF to Admiral could easily be many times higher than this.

heybro

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Edited.
« Last Edit: February 03, 2016, 09:22:22 PM by heybro »

seattlecyclone

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My personal preference is the mutual funds because you don't need to worry about trading them during market hours or intra-day price fluctuations or bid/ask spreads. Plus you can buy fraction shares which allows you to invest 100% of your money. There's nothing really wrong with holding ETFs forever though.