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Learning, Sharing, and Teaching => Investor Alley => Topic started by: CRG on April 27, 2016, 08:17:50 AM

Title: What to do with American Funds in Vanguard Account?
Post by: CRG on April 27, 2016, 08:17:50 AM
I moved over all of my funds from Edward Jones to Vanguard about three years ago and many of these were (no surprise) American Funds. I've since left these funds alone, instead opting to contribute toward a Vanguard target fund in my Roth and VTSAX in taxable. I'm curious what I should do with the American Funds, if anything.

Fund details are as follows:

CWBFX - Exp. Ratio 0.93% - $3k invested
AEPGX - Exp. Ratio 0.83% - $13k invested
AWSHX - Exp. Ratio - 0.58% - $17k invested

Both AEPGX and AWPGX are front loaded funds @ 5.75%. No wonder I didn't make shit for gains when I was with EJ.

Your suggestions are appreciated.
Title: Re: What to do with American Funds in Vanguard Account?
Post by: Jack on April 27, 2016, 08:20:50 AM
Depends. What funds are they? What are the expense ratios? Do they have back-end loads or redemption fees?
Title: Re: What to do with American Funds in Vanguard Account?
Post by: NoStacheOhio on April 27, 2016, 08:24:57 AM
Odds are they're pretty crappy funds. Liquidate and invest it like you invest any other money.
Title: Re: What to do with American Funds in Vanguard Account?
Post by: forummm on April 27, 2016, 09:29:42 AM
I'd sell them and buy Vanguard funds.
Title: Re: What to do with American Funds in Vanguard Account?
Post by: CRG on April 27, 2016, 09:30:33 AM
Depends. What funds are they? What are the expense ratios? Do they have back-end loads or redemption fees?

Fund info added to original post
Title: Re: What to do with American Funds in Vanguard Account?
Post by: dandarc on April 27, 2016, 09:38:54 AM
I'd sell them and buy Vanguard funds.
If these are in an IRA, then for sure do this - you'll save .4% to .7% on the fees or so.  That adds up over time.

If it is a taxable account, how much of a capital gain would you have?  What would your capital-gains tax be?
Title: Re: What to do with American Funds in Vanguard Account?
Post by: Jack on April 27, 2016, 09:46:49 AM
Depends. What funds are they? What are the expense ratios? Do they have back-end loads or redemption fees?

Fund info added to original post

Yeah, ditch 'em (pending the answer to dandarc's question about capital gains):

CWBFX -> VBMFX
AEPGX -> VTIAX
AWSHX  ->VFIAX (or VTSAX, if you wanted to switch from S&P 500 to total-market)
Title: Re: What to do with American Funds in Vanguard Account?
Post by: CRG on April 27, 2016, 10:14:08 AM
I'd sell them and buy Vanguard funds.
If these are in an IRA, then for sure do this - you'll save .4% to .7% on the fees or so.  That adds up over time.

If it is a taxable account, how much of a capital gain would you have?  What would your capital-gains tax be?

These are all within a Roth IRA brokerage account.
Title: Re: What to do with American Funds in Vanguard Account?
Post by: forummm on April 27, 2016, 10:30:40 AM
I'd sell them and buy Vanguard funds.
If these are in an IRA, then for sure do this - you'll save .4% to .7% on the fees or so.  That adds up over time.

If it is a taxable account, how much of a capital gain would you have?  What would your capital-gains tax be?

These are all within a Roth IRA brokerage account.
Do it and enjoy all the savings!