Mechanics of a Vanguard IRA rebalance

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BeaverFood
Posts: 22
Joined: Fri Jul 26, 2013 1:29 pm

Mechanics of a Vanguard IRA rebalance

Post by BeaverFood »

I'm trying to figure out the mechanics of re balancing within an IRA account held at Vanguard.

After the 1st of the year, I need to move everything I put in VTTSX (about $1k) as a placeholder + my 2015 IRA contribution into VGTSX to keep my asset allocation on track across all accounts.

I'm guessing I need to do this as a 2 part trade. Move the VTTSX and the $5,500 IRA contribution into a cash account of some sort and then purchase the shares of VGTSX with the entire amount?

If so, what's that interim location I'd move my investments to? Is it VMMXX which has a $3k minimum investment? If so, then how do I get that $1k from VTTSX over to VGTSX?

I feel like this should be simple, but I'm just not seeing how to do this cleanly on the Vanguard site.

Thanks for the help.
livesoft
Posts: 85971
Joined: Thu Mar 01, 2007 7:00 pm

Re: Mechanics of a Vanguard IRA rebalance

Post by livesoft »

One could use VMMXX as an interim, but I don't understand why you would not buy VGTSX with the $5500 directly. Then exchange from VTTSX to VGTSX in a separate transaction.
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