Question about Exchanging 100% of one fund for another

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SpartanBull
Posts: 131
Joined: Fri Jun 06, 2014 12:31 am

Question about Exchanging 100% of one fund for another

Post by SpartanBull »

Hi there,
To reach my desired allocation, there is one of my accounts (Roth 401k), where I want to sell all of my Total International Shares so that all of the funds in the Roth 401k are in Total Stock Market. My question is how does one sell "All" of the shares, when you have to initiate the trade before the close of business...and obviously the value in the account may go up and down on that day. So if theres $5900 in the account lets say. If I select the option of "Sell All" or "Exchange all". Will it sell everything at the end of the day for the full value of the account, or is it based on that Amount that it was from the previous day (possibly leaving a little extra in the account if stocks go up that day, or not be enough to cover the trade if stocks go down?)
Sorry if this is a dumb question, but any clarity would be appreciated. Thanks!
harikaried
Posts: 2613
Joined: Fri Mar 09, 2012 2:47 pm

Re: Question about Exchanging 100% of one fund for another

Post by harikaried »

The number of shares you own doesn't change when the price changes. "Exchange all" is what you want.
pkcrafter
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Location: CA
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Re: Question about Exchanging 100% of one fund for another

Post by pkcrafter »

Put in an order in tomorrow to exchange all international for total market in your Roth 401k. The exchange will occur at the end of the day at the closing price of international. Whatever dollar amount was in the international fund will be used to purchase total market, so you will have the same $$ amount in total market that you had in international. Sell $5900 and you buy $5900. A transfer fee might be used, but you probably won't notice. Exact share amounts don't matter with funds, but they do with ETFs.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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