The price of bond funds doesn't seem to fluctuate very much, or at least not nearly as much as stock index funds. Does that mean my capital gains are likely to be very small from selling the bond fund?
I want to see exactly what the tax consequences would be of selling shares in my VWIUX before I actually do so. The problem is that when I go to my Vanguard account and click through the steps of exchanging shares using Specific Identification, I get to this message:
Does this mean I have to complete a "test" sell/exchange transaction to have access to SpecID for all future sell/exchange transactions?For trades placed today, the FIFO method will be used because it'll take us a day to provide detailed lot information. SpecID will be available for subsequent trades of this fund within 1 to 2 business days. If you want to use SpecID for this trade, complete this transaction online, then call us at 800-284-7245 to ensure the appropriate lots are sold. Call us with your lot details no later than the close of regular trading on the NYSE (usually 4 p.m., Eastern time) on the next business day.
Would I be better off not selling anything in a taxable account to do a rebalance, and instead adjust future contributions accordingly, even if it would take a long time to reach the new target asset allocation?