Hey, relatively newbie investor here, running a plan by you all so that I don't do something silly.
I recently made the decision to move my taxable investments from Betterment to Vanguard. Right now I'm trying to figure out whether it makes sense to try to transfer the assets in kind, or just to cash out and re-invest in vanguard.
Details:
Current assets are ~55k, stock-only betterment allocation
Want to change allocation somewhat in vanguard, but ETFs would overlap significantly
All assets would fall under short term gain/loss (<1 year). Overall portfolio is at a slight loss currently
I live/work in the US
Main questions:
What are the tax basis/wash sale implications if I cash out Betterment, then buy into Vanguard? (Would probably be buying some of the same ETFs I just sold, but not an exact match to the betterment portfolio)
With the market being at medium volatility right now, is it "risky" to take money out of the market rather than doing an in kind transfer?
Are there any major considerations beyond those two?
Things I don't want this post to devolve into:
Betterment vs Vanguard (vs Wealthfront)
Asset Allocation Strategy
Thanks!