Vanguard Roth IRA going over $10k question?

[MikeBear]

I have a question about Vanguard. I'm in the VGSIX REIT investor shares fund. I'm about to go over the $10k barrier. When I do so, do they automatically upgrade me to VGSLX Admiral shares?

[johnny847]

Yes, but it can take some time before it gets triggered automatically.

That's not a problem though. From your Vanguard account, go to Buy & Sell, and the click Convert to Admiral Shares

[MikeBear]

Yes, but it can take some time before it gets triggered automatically.

That's not a problem though. From your Vanguard account, go to Buy & Sell, and the click Convert to Admiral Shares

Ok, thanks! If you do that, what happens if during normal fluctuations it then goes below the $10k barrier for a bit? I like this fund a lot, but it is quite volatile.

[johnny847]

Yes, but it can take some time before it gets triggered automatically.

That's not a problem though. From your Vanguard account, go to Buy & Sell, and the click Convert to Admiral Shares

Ok, thanks! If you do that, what happens if during normal fluctuations it then goes below the $10k barrier for a bit? I like this fund a lot, but it is quite volatile.

I've heard from the Bogleheads forums they do not force you back down to investor shares because of market fluctuations (but they do downgrade you if you dip below $10k because you sell shares). I do not know if this is official Vanguard policy.

Regardless, your shares are in a Roth, so there shouldn't be any tax consequences either way

[Roots&Wings]

I spoke with Vanguard about this recently and the customer service representative said they do random quarterly reviews and will either upgrade to (or downgrade from!) Admiral share status depending on the balance. 

There is not currently an option to receive notification when you hit the Admiral milestone. For those of us who want to convert asap we have to monitor the balance and request the conversion as johnny847 noted...unless you are patient and wait for the random quarterly review upgrade.

[MikeBear]

Great, thanks for the replies!

[Roots&Wings]

And congrats in advance for your soon-to-be Admiral status!  It's exciting for us mustachians, but few others :)

[MikeBear]

 Well, it's going to take longer then I'd like to get over that $10k barrier. I only had $15 to go, but I lost $204.35 overnight on VGSIX.

[johnny847]

Who knows, maybe you'll gain $204.35 overnight!

[MikeBear]

Who knows, maybe you'll gain $204.35 overnight!

I'd need $219.35, I was $15 short of $10k to start. This fund does good, but like I said above it's very volatile. Big see-saws back and forth. It seems to do best with gains when the stock market goes DOWN for that day. So, my other accounts should compensate for today's loss in this, with a big gain.

[Jacana]

We just went over 10,000 in 2 funds in our Vanguard Roth after our 2015 contributions, and a week or so later I received a notice saying that the shares were eligible for upgrade if we wanted. But we had to actively change it; it didn't happen automatically. I had to fill out some online forms for each upgrade and they gave me the option not to upgrade. It showed up in Mint as transactions: a 'sell' of investor shares and 'buy' of admiral shares.

I'm glad they notified me of the option because I would have forgotten otherwise. If we hadn't done it, would it happen automatically at some point or is it always elective? And would there ever be a reason to decline?