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tc101
Joined: 20 Feb 2007
Posts: 1164
Location: Atlanta - Retired in 2004 at age 54
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 Posted: Thu Nov 05, 2009 10:27 am Post subject: If Admiral shares go below $100K, do they change ? |
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If Admiral shares go below $100K, do they change to investor shares? Could you move $100K into short term investment grade admiral, then a week later move half of that into another fund, leaving $50K in the admiral class of shares?
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The most important thing you should know about me is that I am not an expert. |
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Blues
Joined: 10 Dec 2008
Posts: 152
Location: Blue Ridge Mtns
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| Posted: Thu Nov 05, 2009 11:08 am Post subject: |
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If the value falls below $100K due to market fluctuation they will not change it. If it was due to the sale of a significant number of shares then they will.
As to your second question...if you do that it will cause the original fund to change class. |
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retcaveman
Joined: 21 Oct 2009
Posts: 95
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| Posted: Sat Nov 07, 2009 9:24 pm Post subject: |
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| I recently asked a Vanguard Service Rep this question and was told they would not immediately change class shares but that if the fund balance stayed below the minimum for an extended time (not defined) they would notify you to give you a chance to add to the fund before reclassifying the shares. |
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grok87
Joined: 27 Feb 2007
Posts: 2509
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| Posted: Sat Nov 07, 2009 9:39 pm Post subject: |
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| retcaveman wrote: | | I recently asked a Vanguard Service Rep this question and was told they would not immediately change class shares but that if the fund balance stayed below the minimum for an extended time (not defined) they would notify you to give you a chance to add to the fund before reclassifying the shares. |
Interesting. I though Blues answer was right- I think I was also told that by a Vanguard rep. I know that Fidelity's policy is what retcaveman had said. I always thought Vanguard was kinder!
cheers,
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tc101
Joined: 20 Feb 2007
Posts: 1164
Location: Atlanta - Retired in 2004 at age 54
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| Posted: Sat Nov 07, 2009 10:08 pm Post subject: |
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Isn't there some rule that if you have had the fund for a certain number of years you only need $50K for admiral shares? How many years is it?
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The most important thing you should know about me is that I am not an expert. |
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DSInvestor
Joined: 04 Oct 2008
Posts: 1711
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livesoft
Joined: 01 Mar 2007
Posts: 8011
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| Posted: Sat Nov 07, 2009 11:09 pm Post subject: |
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| FWIW I have a fund that went Admiral after 10 years. I sold off enough to leave only $30K in the fund a few years ago. It has $39K in it now and it still is Admiral even though it has been well below $50K for a few years now. |
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Judsen
Joined: 24 Feb 2007
Posts: 555
Location: Birmingham, Al.
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| Posted: Sun Nov 08, 2009 8:44 am Post subject: |
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One of my funds stayed below 100k for about half a year before I got a letter about it being changed to investor class. Because it is in an IRA I would have to work and earn income to add to it. That's not gonna happen. So my ER went up in that fund.
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teacher
Joined: 05 Oct 2008
Posts: 309
Location: California
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| Posted: Sun Nov 08, 2009 10:52 am Post subject: |
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Judsen wrote:
| Quote: | | One of my funds stayed below 100k for about half a year before I got a letter about it being changed to investor class. Because it is in an IRA I would have to work and earn income to add to it. That's not gonna happen. So my ER went up in that fund. |
I am hoping that won't happen to my 10+ year old IRA admiral fund. It hasn't since the market dropped it below 100k this year so my fingers are crossed. The 10+ years should provide some protection, I hope. |
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