Author Topic: Non-Admiral VTSAX on Vanguard  (Read 2969 times)

jamesbond007

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Non-Admiral VTSAX on Vanguard
« on: March 15, 2017, 10:38:23 AM »
Hi,


This is the first year that I put money in Roth IRA. So I only have $5500. I wanted to invest in VTSAX but it is Admiral only and hence has a $10,000 minimum.


So my question is what is the non-admiral fund for VTSAX? I guess Vanguard automatically puts me in the admiral shares once meet the minimums? Or should I do something entirely different with my Roth IRA. I don't have any tIRA. All my taxable investments are in VFIAX. I am going to start investing my taxable part in VTSAX going forward.


TY.

Philociraptor

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Re: Non-Admiral VTSAX on Vanguard
« Reply #1 on: March 15, 2017, 10:39:06 AM »
VTSMX.

tarheeldan

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Re: Non-Admiral VTSAX on Vanguard
« Reply #2 on: March 15, 2017, 10:40:38 AM »
Yes, VTSMX as Philociraptor said. Once you hit 10k they will automatically convert to Admiral, but you can make it happen right away if you log in to your account online and select the option after you reach the threshold.

jamesbond007

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Re: Non-Admiral VTSAX on Vanguard
« Reply #3 on: March 15, 2017, 10:45:49 AM »
Yes, VTSMX as Philociraptor said. Once you hit 10k they will automatically convert to Admiral, but you can make it happen right away if you log in to your account online and select the option after you reach the threshold.

Thanks. Not sure I understand properly. I still need to meet the minimum threshold though, right? For now, I will invest in VTSMX and I will contribute more into my Roth IRA in a couple of months. Then I will choose VTSAX? Since it is Roth, I don't have to worry about gains or dividends.

tarheeldan

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Re: Non-Admiral VTSAX on Vanguard
« Reply #4 on: March 15, 2017, 10:51:39 AM »
Yes, you'd start with VTSMX. Then, once you have 10k you log in and click on the "convert to Admiral shares" option and they will process the conversion. It doesn't matter since it's a Roth but the conversion is actually not a taxable event so you could do this in a taxable account without worrying about that too.

jamesbond007

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Re: Non-Admiral VTSAX on Vanguard
« Reply #5 on: March 15, 2017, 10:52:38 AM »
Great. Thank you.

jamesbond007

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Re: Non-Admiral VTSAX on Vanguard
« Reply #6 on: March 15, 2017, 10:52:53 AM »