Author Topic: Reset my Vanguard account to "The Simple Path to Wealth" method  (Read 2765 times)

Auggie

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Reset my Vanguard account to "The Simple Path to Wealth" method
« on: February 01, 2018, 07:39:59 PM »
Hello to all,

I have a recently opened a Vanguard account and initially I opened it with the idea that I would only invest in VOO the Vanguard S&P 500 ETF. Long story short I ended up buying some individual stocks along with some VOO shares.

I have been reading The Simple Path to Wealth by JL Collins and I really want to follow the recommendations in his book.

How should I go about getting rid of all my individual stocks and buying solely into VTSAX?

I have attached screenshots of my small portfolio.

It has only been a month since I invested my $6,500 and has grown a little north of $200.

I want to invest as aggressive as possible since I am 28 yrs old with no debt and hardly any expenses at the moment.

I have $80K in my regular checking account which I am holding for a downpayment on real estate.

ulzxhi

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #1 on: February 02, 2018, 09:36:48 AM »
Oh hello "other-me"! Sorry I don't have any advice to give, but my situation is eerily identical to yours. I will be lurking here and good luck!

toganet

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #2 on: February 02, 2018, 10:57:53 AM »
I'm not sure if you are asking for advice beyond, "sell everything and buy VTSAX with the proceeds, keep buying VTSAX until it's time add some bonds."

Are you worried about capital gains, or is this about the mechanics of the Vanguard site?

Whatever it is, you've come to the right place :)

Auggie

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #3 on: February 02, 2018, 11:15:23 AM »
Yes my question is more so about the capital gains tax on the $200+ dollars (if any taxes are due , not sure how that works) And if there are any penalties or fees.

boarder42

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #4 on: February 02, 2018, 11:26:47 AM »
who the hell cares about 250 bucks in capital gains just pull the cord sell it and move on.  you'll pay at your marginal rate if you've owned it less than 1 year but cmon now we're talking about pennies in the grand scheme of life here.

Auggie

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #5 on: February 02, 2018, 11:37:15 AM »
who the hell cares about 250 bucks in capital gains just pull the cord sell it and move on.  you'll pay at your marginal rate if you've owned it less than 1 year but cmon now we're talking about pennies in the grand scheme of life here.

You know what! You’re damn right! Silly me

GGNoob

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #6 on: February 02, 2018, 11:52:03 AM »
Have you maxed out your IRA for 2017/2018? If not, you could sell and move the money into an IRA.

jdhansen

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #7 on: February 02, 2018, 12:52:36 PM »
Sell all the individual stocks and put it into VTI, which is the same thing as VSTAX just in ETF form.  You might have a little money over, but with regular contributions it will get into circulation soon enough to not matter.

I agree with everyone else, don't stress the capital gains, they won't matter in the long run.

caracarn

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #8 on: February 02, 2018, 02:55:59 PM »
I just went through this.  Much larger portfolio so it was thousands in capital gains, so  I did move it over as things converted to long term.  With this small amount, just go with it and avoid the headache.  I also did it in a Vanguard account so that costs were minimized.

Auggie

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #9 on: February 02, 2018, 03:26:09 PM »
Sell all the individual stocks and put it into VTI, which is the same thing as VSTAX just in ETF form.  You might have a little money over, but with regular contributions it will get into circulation soon enough to not matter.

I agree with everyone else, don't stress the capital gains, they won't matter in the long run.

Have you maxed out your IRA for 2017/2018? If not, you could sell and move the money into an IRA.

What about maxing out my Roth IRA with VTSMX?  according to The Simple Path to Wealth it should convert over to VTSAX when it accumulates to 10k. And in the meantime put the remainder in VTI in my regular brokerage account

Thanks guys

caracarn

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Re: Reset my Vanguard account to "The Simple Path to Wealth" method
« Reply #10 on: February 05, 2018, 07:45:39 AM »
Sell all the individual stocks and put it into VTI, which is the same thing as VSTAX just in ETF form.  You might have a little money over, but with regular contributions it will get into circulation soon enough to not matter.

I agree with everyone else, don't stress the capital gains, they won't matter in the long run.

Have you maxed out your IRA for 2017/2018? If not, you could sell and move the money into an IRA.

What about maxing out my Roth IRA with VTSMX?  according to The Simple Path to Wealth it should convert over to VTSAX when it accumulates to 10k. And in the meantime put the remainder in VTI in my regular brokerage account

Thanks guys
That is the direction I took at one point.  The mutual funds tend to run a little less expensive in expense ration than the ETFs and also easier to trade with the Vanguard interface IMHO.