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Crescent Connection
New Orleans Saints Fan
Lafayette/Nola
Member since Jun 2008
1500 posts

Can I trade Vanguard mutual funds for stock in IRA? Fsly related
Currently have an old rollover traditional IRA with about $40k in VTSAX. Wife has her rollover with about $20k in VIGAX. I don’t see the option to exchange for individual stocks, but I assume I can sell into my settlement funds, then purchase Fastly or Sea Limited once the transaction in the settlement funds clear? Got on the Fastly train in early May after reading cgrand’s advice, and I don’t see this slowing down anytime soon. Would rather the 400% ROI than the 18-22% with VTSAX and VIGAX.

Also contemplating withdrawing those IRA funds, taking the 10% penalty and paying taxes, and transferring that money to Robinhood to purchase FSLY, SE, and maybe AMZN. Looking to purchase a house in the next 2-3 years (not my first home purchase, so do not benefit from that penalty exclusion), and thinking that I can gain much more in those aforementioned stocks to cover the 10% penalty and taxes, have returns to help for a down payment, and payback our IRAs in full.

Thoughts?


bovine1
LSU Fan
Walnut Ridge,AR via Tallulah,LA
Member since Dec 2004
1061 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
If you have a Vanguard Brokerage account you can. Sell the mutual funds and buy the stocks when your money settles and becomes available.


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IM4LSUTIGERS
LSU Fan
Member since Dec 2006
799 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
I see no reason to take the penalty & pay taxes to move to Robinhood. Sell some mutual fund shares, when settles buy the stocks you want. Keep all funds in the current Rollover IRA.


lsu xman
Member since Oct 2006
13446 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
That $40K becomes $25K. Ouch. I would not do it.


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cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
21932 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
as to the how, open a brokerage acct at vanguard and sell the mutual fund shares to fund the new acct.

only you can decide whether that’s a good idea or not


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USA
Member since 2001
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EA6B
Navy Fan
TX
Member since Dec 2012
10314 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
Do a IRA rollover to a online brokerage like ETrade, and make any kind of trade you want. No 10% penalty, or taxes when transferring into another IRA. No taxes owed on gains from stock trades unless the money is withdrawn from the IRA.


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BEATbama05
LSU Fan
Benton, LA
Member since Oct 2008
603 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
Putting all your money on a single equity is rarely a good move. Good luck if you do it
This post was edited on 6/28 at 9:15 pm


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LSUtiger89
LSU Fan
Baton Rouge
Member since Dec 2007
1732 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
Well that 40k then becomes 28k. Rule of 72 that out.
At 9% average, that money doubled every 8 years.
8 years -24k lost
16 years - 48k lost
24 years - 96klost
32 years - 192k lost
I don’t know how old the individual is but that is a lot of potential loss take the taxes and penalty.


Crescent Connection
New Orleans Saints Fan
Lafayette/Nola
Member since Jun 2008
1500 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
I'm 34 and currently max out my employer Roth 403(b) and my wife contributes 5% to her 401(k). It's hard to ignore the parabolic returns on FSLY.


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03
TheGuitarMan1
Member since Jun 2020
9 posts

re: Can I trade Vanguard mutual funds for stock in IRA? Fsly related
You want to go from a 4-star, low cost Vanguard Mutual Fund to a stock where a lot of people have already made the Easy Money? I'd suggest learning a little more before you take that leap. You can free trades at any brokerage firm now. The old school firms will have research that that is worth setting up an account. Schwab or Fidelity would be better choices than Robinhood.

You are welcome.

... with that said ... you only find out how it will /would have gone, if you put some into the stocks you want to buy... for better or worse.


This post was edited on 6/30 at 12:19 pm


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