The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: wkumtrider on December 04, 2018, 09:59:32 AM

Title: Rolling ROTH IRA from Financial Advisor to Vanguard
Post by: wkumtrider on December 04, 2018, 09:59:32 AM

I plan to ditch my financial planner this week and move my ROTH IRA to vanguard.  I currently have a taxed account with Vanguard (VTSAX, VTIAX, VBTLX).  I was considering investing the IRA into ETFs.  Any con's I should be worried about?  I don't plan to use this IRA anytime soon and want to invest mostly in stocks.  Any recommendations on what ETFs to invest in?

Thanks for the info!

Title: Re: Rolling ROTH IRA from Financial Advisor to Vanguard
Post by: terran on December 04, 2018, 10:19:14 AM

ETFs make some sense in taxable because non-vanguard ETFs are more tax efficient than non vanguard mutual funds (vanguard has a patent that allows both their ETFs and mutual funds to be equally tax efficient), and if you want to tax loss/gain harvest you can have a better idea of what you loss/gain will be when you sell instead of not really knowing what the sale will close at at the end of the day. Neither of these are advantages in an IRA, so I would just go with mutual funds. Some countries also have better ETF options than mutual fund options (like Canada, I think), but in the US that's not the case.