 |
|
|
|||||
| « Previous thread | Next thread » |
am traveling overseas so looking for a general idea
when a fund (vanguard, fidelity) has a rule to discourage short term trades in a
fund,
something similar to "shares held less than 2 months are charged 20 dollars per 1000
(2%)", does that mean literally to not initiate a share exchange until the 2 months
is
up or can one initiate the exchange the day before since no exchanges are processed
same day?
literal example:
04/14/2007 (Saturday) purchase
06/14/2007 (Monday) is the 1st eligible day, but does that mean the request can be
submitted online 06/12/2007 Saturday ?
"rob" <r...@z...pn> wrote in message
news:5da44jF339efrU1@mid.individual.net...
> when a fund (vanguard, fidelity) has a rule to discourage short term
> trades in a fund, something similar to "shares held less than 2 months are
> charged 20 dollars per 1000 (2%)", does that mean literally to not
> initiate a share exchange until the 2 months is up or can one initiate the
> exchange the day before since no exchanges are processed same day?
You should probably check with your fund company about the specific rules.
Here's another question to ask them. Suppose you buy 1,000 shares and hold
them for three months. Then you buy 100 shares, and the next day you sell
200 shares. Are you charged for short-term trading of those 100 shares you
bought, or do they take the view that the shares you're selling are the ones
you bought three months ago?
On Jun 13, 9:27 am, "Andrew Koenig" <a...@a...org> wrote:
> "rob" <r...@z...pn> wrote in message
>
> news:5da44jF339efrU1@mid.individual.net...
>
> > when a fund (vanguard, fidelity) has a rule to discourage short term
> > trades in a fund, something similar to "shares held less than 2 months are
> > charged 20 dollars per 1000 (2%)", does that mean literally to not
> > initiate a share exchange until the 2 months is up or can one initiate the
> > exchange the day before since no exchanges are processed same day?
>
> You should probably check with your fund company about the specific rules.
>
> Here's another question to ask them. Suppose you buy 1,000 shares and hold
> them for three months. Then you buy 100 shares, and the next day you sell
> 200 shares. Are you charged for short-term trading of those 100 shares you
> bought, or do they take the view that the shares you're selling are the ones
> you bought three months ago?
This happens when I rebalance Vanguard accounts inside my 401k. NO
short term charges apply. 2X a month I buy VFINX, VEXPX, VEXMX,
VWNFX, VTRIX (and RYTFX). On June 1 I sold 1% of each as part of a
rebalance, and no short term trading fees applied.
Check with your plan, but I think the short answer is they use FIFO.
jIM wrote:
> This happens when I rebalance Vanguard accounts inside my 401k. NO
> short term charges apply. 2X a month I buy VFINX, VEXPX, VEXMX,
> VWNFX, VTRIX (and RYTFX). On June 1 I sold 1% of each as part of a
> rebalance, and no short term trading fees applied.
when you write "sold", do you really mean "exchanged" ?
On Jun 13, 11:56 am, "rob" <r...@z...pn> wrote:
> jIM wrote:
> > This happens when I rebalance Vanguard accounts inside my 401k. NO
> > short term charges apply. 2X a month I buy VFINX, VEXPX, VEXMX,
> > VWNFX, VTRIX (and RYTFX). On June 1 I sold 1% of each as part of a
> > rebalance, and no short term trading fees applied.
>
> when you write "sold", do you really mean "exchanged" ?
sold for a new position in total market bond index. Exchanged/sold...
what would difference be?
"jIM" <n...@h...com> wrote in message
news:1181741744.166993.115680@j4g2000prf.googlegroup
s.com...
> On Jun 13, 9:27 am, "Andrew Koenig" <a...@a...org> wrote:
> > "rob" <r...@z...pn> wrote in message
>
> This happens when I rebalance Vanguard accounts inside my 401k. NO
> short term charges apply. 2X a month I buy VFINX, VEXPX, VEXMX,
> VWNFX, VTRIX (and RYTFX). On June 1 I sold 1% of each as part of a
> rebalance, and no short term trading fees applied.
>
But are you prevented from purchasing new shares in those funds for a period
of time?
Elizabeth Richardson
"Elizabeth Richardson" <e...@w...att.net> wrote in message
news:1zVbi.82235$Sa4.75916@bgtnsc05-news.ops.worldne
t.att.net...
> But are you prevented from purchasing new shares in those funds for a
> period
> of time?
In general, when you sell a Vanguard fund, they prevent you from buying new
shares in that fund account online or by phone for 60 days. However, you
can still buy new shares via US Mail during that period.
jIM wrote:
> sold for a new position in total market bond index. Exchanged/sold...
> what would difference be?
quite a difference, not just semantics.
in vanguard parlance, sold means you are taking a cash position and with an
IRA or 401k plan account type, expose yourself (and they warn you before
committing the transaction) to IRS penalties & fees
exchange means that you are moving from one fund class to another, within
your IRA or 401k plan account
my guess is you did not sell, you exchanged
in fact, you would have had to select the "exchange my fund" button/link as
opposed to the "sell my fund" link
On Jun 13, 1:11 pm, "Elizabeth Richardson" <e...@w...att.net>
wrote:
> "jIM" <n...@h...com> wrote in message
>
> news:1181741744.166993.115680@j4g2000prf.googlegroup
s.com...
>
> > On Jun 13, 9:27 am, "Andrew Koenig" <a...@a...org> wrote:
> > > "rob" <r...@z...pn> wrote in message
>
> > This happens when I rebalance Vanguard accounts inside my 401k. NO
> > short term charges apply. 2X a month I buy VFINX, VEXPX, VEXMX,
> > VWNFX, VTRIX (and RYTFX). On June 1 I sold 1% of each as part of a
> > rebalance, and no short term trading fees applied.
>
> But are you prevented from purchasing new shares in those funds for a period
> of time?
>
> Elizabeth Richardson
I purchase them every month with regular contributions and no fees
have been assessed.
I did not sell whole position, maybe that makes a difference?
| « Previous thread | Next thread » |
Short-term Fund purchasing advice...
Financial Guru: Buy-and-Hold a Thing of the Past
Another suicide due to financial crisis.
Buying new car at distress prices?
Up