Does Vanguard allow 401k tranfers into closed funds?

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Gort
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Joined: Sat Mar 17, 2007 5:07 pm
Location: Idaho

Does Vanguard allow 401k tranfers into closed funds?

Postby Gort » Sun Jan 27, 2013 12:09 am

Friends,
If I was ready to retire and transfer my company sponsored 401K (Hartford acct) to Vanguard, would Vanguard allow me access to closed funds? Just wondering.
Thanks,
Gort

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JamesSFO
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Joined: Thu Apr 26, 2012 10:16 pm

Re: Does Vanguard allow 401k tranfers into closed funds?

Postby JamesSFO » Sun Jan 27, 2013 12:23 am

Some closed funds are accessible to Flagship customers.

But in the abstract a 401K-to-IRA rollover wouldn't magically get you access to a fund that is closed to new investors.

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rustymutt
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Re: Does Vanguard allow 401k tranfers into closed funds?

Postby rustymutt » Sun Jan 27, 2013 9:39 am

You could ask Vanguard. 1800-345-1344
Knowledge is knowing that the Tomato is a fruit. Wisdom is knowing better than to put the tomato in a fruit salad.

Dandy
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Joined: Sun Apr 25, 2010 7:42 pm

Re: Does Vanguard allow 401k tranfers into closed funds?

Postby Dandy » Sun Jan 27, 2013 10:45 am

In general, it is not a good idea to invest in closed funds. Many companies don't close a fund and the portfolio manager has to deal with a fund that has more money than he/she can invest wisely - according to the fund's strategy and his/her expertise. Vanguard is being responsible by closing funds to new investors to try to keep the fund's performance up. Many times the fund is included in 401k or similar plans and they are still allowed to invest. But when a company decides to close a fund it is a red flag that they are concerned about having too much money to invest wisely. My advice is find another fund you are probably interested in the closed fund based on it's past perfomance and they are signaling that the future is probably not as bright.


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