Author Topic: Rookie Vanguard IRA Questions  (Read 742 times)

kroozin

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Rookie Vanguard IRA Questions
« on: March 16, 2019, 10:04:14 AM »
There's a decent chance this is a stupid question, but clearly there's a step here that I'm not understanding. I just transferred my ROTH IRA from Northwestern to Vanguard (my traditional IRA is pending transfer now).

On Vanguard, it shows my balance as about 2/3 in GAIOX with the other 1/3 in cash. Based on the advice I've read on this blog/forum and elsewhere, I'd like to move all of that into VTI, but that isn't offered as either an exchange on the GAIOX.

I see an option to "Trade Vanguard ETFs", but that only lets me use the cash, and it seems like it will leave me with some odd funds leftover. Is there a way to convert my entire balance (cash and GAIOX balance) into VTI?

MustacheAndaHalf

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Re: Rookie Vanguard IRA Questions
« Reply #1 on: March 16, 2019, 10:27:28 AM »
You'll eventually have to face whatever fees are involved with selling the American funds investment you've made, so I'd sell that all at once.  Once it's in cash, you can invest the cash in VTI.

Are you only investing in the U.S. stock market?  What about some invested in VXUS (Total International index)?

terran

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Re: Rookie Vanguard IRA Questions
« Reply #2 on: March 18, 2019, 10:21:55 AM »
You can exchange mutual funds, but not a mutual fund for an ETF. You'll need to sell GAIOX, let it settle (become cash), then buy VTI. You may, however be able to exchange GAIOX for VTSAX, which is the mutual fund version of VTI. There isn't really an advantage to holding VTI instead of VTSAX, and I'm pretty sure you can exchange VTSAX for VTI by calling Vanguard if you decide you do want the ETF version at some point.

kroozin

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Re: Rookie Vanguard IRA Questions
« Reply #3 on: March 19, 2019, 06:58:43 AM »
Thank you for the responses! These felt like stupid questions, but I guess the difference, as terran pointed out, is that VTI is an ETF and not a mutual fund. I put in a sell order the other day on my GAIOX fund, and today I can buy the VTI.

As for the VXUS (International) - I haven't looked into it much yet, but it may be something I invest in down the road. For now I'm just keeping it simple as I get my feet wet!