Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

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300bigboys
Posts: 12
Joined: Fri Dec 29, 2017 9:20 am

Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

Post by 300bigboys » Fri Jan 12, 2018 4:28 pm

I've begun the process of rolling my accounts over to Fidelty and have been pleased with the process. Until now I have had everything in FSTVX, but as the account grows (and other rollovers complete) I will be looking to add a dedicated International Fund and Bond fund. The question is this:

If you purchase a fund that requires a minimum investment of $10k, is it a problem if it drops below that point? Is it unwise to invest with just $10k even? Do you need to build in a buffer of a few thousand?

Thoughts? Experiences?

Thanks
Last edited by 300bigboys on Fri Jan 12, 2018 4:37 pm, edited 1 time in total.

livesoft
Posts: 62373
Joined: Thu Mar 01, 2007 8:00 pm

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

Post by livesoft » Fri Jan 12, 2018 4:30 pm

No, you don't need to do anything. It is really not a worry at all. Not at all. My experience is with Vanguard though and not with Fidelity.
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ryman554
Posts: 1084
Joined: Sun Jan 12, 2014 9:44 pm

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

Post by ryman554 » Fri Jan 12, 2018 4:42 pm

300bigboys wrote:
Fri Jan 12, 2018 4:28 pm
I've begun the process of rolling my accounts over to Fidelty and have been pleased with the process. Until now I have had everything in FSTVX, but as the account grows (and other rollovers complete) I will be looking to add a dedicated International Fund and Bond fund. The question is this:

If you purchase a fund that requires a minimum investment of $10k, is it a problem if it drops below that point? Is it unwise to invest with just $10k even? Do you need to build in a buffer of a few thousand?

Thoughts? Experiences?

Thanks
It's no problem at all unless you *sell* and the value is under $10k.

Don't know what would happen if you bought 10k, market tanked 20% and you rebalanced back in, but still left it under 10k.

Besides, what's the worst thing that would happen? You end up with an extra 0.05 to 0.1 ER rate. That's $10. Not the end of the world.

delamer
Posts: 5855
Joined: Tue Feb 08, 2011 6:13 pm

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

Post by delamer » Fri Jan 12, 2018 4:43 pm

livesoft wrote:
Fri Jan 12, 2018 4:30 pm
No, you don't need to do anything. It is really not a worry at all. Not at all. My experience is with Vanguard though and not with Fidelity.
My experience is the same, assuming that you are not talking about the value falling due to withdrawals of purchased shares but only due to a drop in share prices.

300bigboys
Posts: 12
Joined: Fri Dec 29, 2017 9:20 am

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

Post by 300bigboys » Fri Jan 12, 2018 4:50 pm

Great, thanks for the quick and helpful replies (as usual).

And yes, the situation I was asking about was it dropping from the market dropping, not from sales or withdraws.

I can't thank the users of this forum enough. Thank you all.

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