Newbie question about transferring funds

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bruindodger102
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Joined: Sat Mar 12, 2022 8:29 pm

Newbie question about transferring funds

Post by bruindodger102 »

I have all my money in my Vanguard Roth IRA and SEP IRA accounts in Vanguard VFIAX. If I move the money into another stock or into the Vanguard money market account, is there some kind of fee or tax? Thank you.
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retired@50
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Re: Newbie question about transferring funds

Post by retired@50 »

bruindodger102 wrote: Wed Sep 21, 2022 1:27 pm I have all my money in my Vanguard Roth IRA and SEP IRA accounts in Vanguard VFIAX. If I move the money into another stock or into the Vanguard money market account, is there some kind of fee or tax? Thank you.
No. Transactions within IRAs are not taxed. If you withdraw money (i.e. take it out of the IRA), that could be a different story.

The bigger question is why are you leaving VFIAX - or are you?

Regards,
This is one person's opinion. Nothing more.
Topic Author
bruindodger102
Posts: 11
Joined: Sat Mar 12, 2022 8:29 pm

Re: Newbie question about transferring funds

Post by bruindodger102 »

retired@50 wrote: Wed Sep 21, 2022 1:30 pm
bruindodger102 wrote: Wed Sep 21, 2022 1:27 pm I have all my money in my Vanguard Roth IRA and SEP IRA accounts in Vanguard VFIAX. If I move the money into another stock or into the Vanguard money market account, is there some kind of fee or tax? Thank you.
No. Transactions within IRAs are not taxed. If you withdraw money (i.e. take it out of the IRA), that could be a different story.

The bigger question is why are you leaving VFIAX - or are you?

Regards,
I just started my retirement accounts this year and only have about $20,000 in my accounts total. I am a newbie investor and am concerned that VFIAX is going to take a plunge in the upcoming months/years due to the current economic situation, so I am considering moving my funds but am worried about taxes/fees. Is this a bad approach?
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vineviz
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Re: Newbie question about transferring funds

Post by vineviz »

bruindodger102 wrote: Thu Sep 22, 2022 3:24 am I just started my retirement accounts this year and only have about $20,000 in my accounts total. I am a newbie investor and am concerned that VFIAX is going to take a plunge in the upcoming months/years due to the current economic situation, so I am considering moving my funds but am worried about taxes/fees. Is this a bad approach?
I'd argue that putting all of your portfolio investments in VFIAX is a questionable approach because it lacks the diversification you could easily achieve with something like Vanguard Total World Stock Index (VTWAX).

On the other hand the "current economic situation" is not something that only you are aware of. It's not special information that only you have so there is no reason you should believe you can improve your outcomes by acting on that information.

VFIAX is already down 17% this year because of the current economic situation or, more precisely, because investors anticipated it and/or reacted to it as it was unfolded.

VFIAX might "take a plunge" in the coming months, but that is ALWAYS true. Not just now, or even especially now. Having the discipline to keep buying when prices are low is an important trait and a key to being a successful long-term investor.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
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Shackleton
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Re: Newbie question about transferring funds

Post by Shackleton »

You’re talking about timing the market. Bogleheads say that “time in the market is more important than timing the market”. In fact, BH principles eschew market timing. Try reading through the wiki for more reasons why (I’m on my phone and too lazy to get the appropriate link, sorry. Someone will be along with a link soon.)
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton
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retired@50
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Re: Newbie question about transferring funds

Post by retired@50 »

bruindodger102 wrote: Thu Sep 22, 2022 3:24 am
retired@50 wrote: Wed Sep 21, 2022 1:30 pm
bruindodger102 wrote: Wed Sep 21, 2022 1:27 pm I have all my money in my Vanguard Roth IRA and SEP IRA accounts in Vanguard VFIAX. If I move the money into another stock or into the Vanguard money market account, is there some kind of fee or tax? Thank you.
No. Transactions within IRAs are not taxed. If you withdraw money (i.e. take it out of the IRA), that could be a different story.

The bigger question is why are you leaving VFIAX - or are you?

Regards,
I just started my retirement accounts this year and only have about $20,000 in my accounts total. I am a newbie investor and am concerned that VFIAX is going to take a plunge in the upcoming months/years due to the current economic situation, so I am considering moving my funds but am worried about taxes/fees. Is this a bad approach?
Because you're an admitted newbie investor, I'd suggest some reading to help you get familiar with the way many contributors on this forum think (myself included).

The Bogleheads Investment Philosophy is the basic approach we use.

It covers a lot of ground, and there are certainly differing opinions in the world of financial matters, but if you're just starting on your investment journey, which is likely to last 60 years or more, then reading, understanding, and practicing the Boglehead philosophy could put you in a solid position for your life as an investor.

Regards,
This is one person's opinion. Nothing more.
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