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BigOrangeVols
Tennessee Fan
Knoxville
Member since Jul 2015
2600 posts
 Online 

Moving all Investments to Vanguard
I have some money in an American Century MF (TWGTX) that's performed decently over the past 8 yrs but I would like to consolidate everything onto Vanguard since that's where my roth is and I like how user-friendly they are. I was looking at buying into their Tech ETF (VGT) that has performed extremely well.

Any input or anything I should be aware of in doing this? I've spoken to a Vanguard rep but they didn't give much insight into the financial ramifications of transferring the fund. Any tax repercussions/etc.. Thank you very much!


tigerfan337
LSU Fan
Member since Jun 2012
134 posts

re: Moving all Investments to Vanguard
You may have capital gains tax to pay so I would check your unrealized gain/loss and see where you stand.

I'd probably still go through with getting out of TWGTX if you're planning to keep the money invested for the long term... There are better performing, more cost friendly alternatives available, and you could realize a loss at the end of the year anyway so just pay attention to that.

VGT is good but how much $ are we talking? If it's a significant amount, are you sure you want to put 100% into a sector etf? I'd look at putting a portion in some of the other ETFs they have. I'd consider VUG, VXUS, VTI, VOO, VIG, and maybe some of the other sector ETFs like VFH.


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21
Moots
LSU Fan
Gonzales, LA
Member since Nov 2007
973 posts

re: Moving all Investments to Vanguard
Your selling one investment to buy another...So yes, the sale of your TWGTX shares will be a taxable event.


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20
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
40007 posts

re: Moving all Investments to Vanguard
You could just do a security transfer into your Vanguard account and keep the TWGTX. At least that way you won't have to pay any capital gains tax.

However, if you sell the TWGTX either before or after a transfer, that is a taxable event. If you want to do this so that you can buy more VGT that's up to you, although I suggest you ignore how well the funds have been doing recently. As the saying goes, past performance is no guarantee of future results, and that often is true and not just CYA lawyer talk.

Edit: I haven't looked at the prospectuses but the names of the funds suggest they have different investment goals so they probably aren't directly comparable anyway other than the expense ratios.
This post was edited on 3/7 at 10:43 am


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20
geauxpurple
LSU Fan
New Orleans
Member since Jul 2014
3273 posts

re: Moving all Investments to Vanguard
If I had known 20 years ago what I know now, I would have all my $ with Vanguard.


S1C EM
Georgia Fan
Athens, GA
Member since Nov 2007
7334 posts

re: Moving all Investments to Vanguard
quote:

I was looking at buying into their Tech ETF (VGT) that has performed extremely well.


Is this the one you're referencing?

LINK


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S1C EM
Georgia Fan
Athens, GA
Member since Nov 2007
7334 posts

re: Moving all Investments to Vanguard
quote:

If I had known 20 years ago what I know now, I would have all my $ with Vanguard.


Can you elaborate on this? I'm considering throwing about $30k at them in the next couple of weeks. The VGT is of interest to me as well.


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