Investor to admiral shares conversion question

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am
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Investor to admiral shares conversion question

Post by am » Wed Apr 11, 2018 7:07 am

My partners brokerage currently has Vang. Intermed. Muni fund investor shares. Yesterday, I invested enough to have over 50k in the fund and am eligible for admiral shares. Can I do the conversion myself online (investor—>admiral vwiux) or should I call? Is this a taxable event if I do it myself online? Thanks.

retiredjg
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Re: Investor to admiral shares conversion question

Post by retiredjg » Wed Apr 11, 2018 7:23 am

This will happen on its own with time. Or call them. I do not believe you can do this online.

tibbitts
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Re: Investor to admiral shares conversion question

Post by tibbitts » Wed Apr 11, 2018 7:38 am

am wrote:
Wed Apr 11, 2018 7:07 am
My partners brokerage currently has Vang. Intermed. Muni fund investor shares. Yesterday, I invested enough to have over 50k in the fund and am eligible for admiral shares. Can I do the conversion myself online (investor—>admiral vwiux) or should I call? Is this a taxable event if I do it myself online? Thanks.
I don't know what a "partners brokerage" is. Admiral shares aren't available in many non-Vanguard accounts. In a Vanguard mutual fund account you can do the conversion online. If you can't do that in a Vanguard brokerage account, that's a sad commentary on Vanguard brokerage accounts.

retiredjg
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Re: Investor to admiral shares conversion question

Post by retiredjg » Wed Apr 11, 2018 7:49 am

tibbitts wrote:
Wed Apr 11, 2018 7:38 am
In a Vanguard mutual fund account you can do the conversion online.
I am using the old style mutual fund account. I don't ever recall seeing this. Is there a special button or something?

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jhfenton
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Re: Investor to admiral shares conversion question

Post by jhfenton » Wed Apr 11, 2018 9:24 am

retiredjg wrote:
Wed Apr 11, 2018 7:49 am
tibbitts wrote:
Wed Apr 11, 2018 7:38 am
In a Vanguard mutual fund account you can do the conversion online.
I am using the old style mutual fund account. I don't ever recall seeing this. Is there a special button or something?
Yes. I've only done it once, back in December, so I don't remember where it was exactly, but the button appeared next to the holding the day after I bought enough to bring my Vanguard Emerging Markets Bond fund over the Admiral threshold.

retiredjg
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Re: Investor to admiral shares conversion question

Post by retiredjg » Wed Apr 11, 2018 1:03 pm

jhfenton wrote:
Wed Apr 11, 2018 9:24 am
retiredjg wrote:
Wed Apr 11, 2018 7:49 am
tibbitts wrote:
Wed Apr 11, 2018 7:38 am
In a Vanguard mutual fund account you can do the conversion online.
I am using the old style mutual fund account. I don't ever recall seeing this. Is there a special button or something?
Yes. I've only done it once, back in December, so I don't remember where it was exactly, but the button appeared next to the holding the day after I bought enough to bring my Vanguard Emerging Markets Bond fund over the Admiral threshold.
Well, isn't that nifty? I guess there's a reason I have not seen it.

sport
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Re: Investor to admiral shares conversion question

Post by sport » Wed Apr 11, 2018 1:36 pm

The conversion is not a taxable event.

retiredjg
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Re: Investor to admiral shares conversion question

Post by retiredjg » Wed Apr 11, 2018 1:55 pm


tibbitts
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Re: Investor to admiral shares conversion question

Post by tibbitts » Fri Apr 13, 2018 7:54 am

retiredjg wrote:
Wed Apr 11, 2018 7:49 am
tibbitts wrote:
Wed Apr 11, 2018 7:38 am
In a Vanguard mutual fund account you can do the conversion online.
I am using the old style mutual fund account. I don't ever recall seeing this. Is there a special button or something?
Yes, there is an icon that identifies it as available for conversion. I've used this twice when an index fund hit $10k and then once with International Growth (oh no, an active fund!) hit $50k. Or just wait for it to happen automatically, but I've never done that.

sport
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Re: Investor to admiral shares conversion question

Post by sport » Fri Apr 13, 2018 9:32 am

tibbitts wrote:
Fri Apr 13, 2018 7:54 am
retiredjg wrote:
Wed Apr 11, 2018 7:49 am
tibbitts wrote:
Wed Apr 11, 2018 7:38 am
In a Vanguard mutual fund account you can do the conversion online.
I am using the old style mutual fund account. I don't ever recall seeing this. Is there a special button or something?
Yes, there is an icon that identifies it as available for conversion. I've used this twice when an index fund hit $10k and then once with International Growth (oh no, an active fund!) hit $50k. Or just wait for it to happen automatically, but I've never done that.
It is better not to wait for the automatic conversion. If the value of the holding becomes large enough to convert, it may drop back below the required amount before the automatic conversion occurs. In that case, you would have to wait until it went back up. If you convert manually, it will stay there, even if it drops back due to market conditions. Of course, if the value drops back due to withdrawals, Vanguard may convert you back to Investor shares.

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jhfenton
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Re: Investor to admiral shares conversion question

Post by jhfenton » Fri Apr 13, 2018 10:19 am

sport wrote:
Fri Apr 13, 2018 9:32 am
It is better not to wait for the automatic conversion. If the value of the holding becomes large enough to convert, it may drop back below the required amount before the automatic conversion occurs. In that case, you would have to wait until it went back up. If you convert manually, it will stay there, even if it drops back due to market conditions. Of course, if the value drops back due to withdrawals, Vanguard may convert you back to Investor shares.
+1 That's actually what happened with my Vanguard Emerging Markets Bond conversion in late December. It dropped a bit immediately after I converted, and it's still not quite back to $50,000 (~$49,800). (It's still my best performing bond fund YTD.) But it's still been Admiral the whole time, even with a balance at $49,xxx.

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HueyLD
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Re: Investor to admiral shares conversion question

Post by HueyLD » Fri Apr 13, 2018 10:32 am

am wrote:
Wed Apr 11, 2018 7:07 am
My partners brokerage currently has Vang. Intermed. Muni fund investor shares. Yesterday, I invested enough to have over 50k in the fund and am eligible for admiral shares. Can I do the conversion myself online (investor—>admiral vwiux) or should I call? Is this a taxable event if I do it myself online? Thanks.
It will be faster if you do the conversion yourself.

If you don't see a conversion button online, just give Vanguard a call after April 17.

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