I am sorry if this is too simple — I’m simply trying to get some input on what I plan to do.
1. I have a substantial amount in a BrokerageLink account at FIDO (part of a 401k). A substantial amount currently is in a money market. Ideally, I’d like to commit a good part of that to a CD ladder.
2. I have a like amount in a rollover 401k at FIDO invested in VTI.
3. Due to plan restrictions (understandable) I cannot make a partial rollover of the amount that is still in the Plan. The Plan requires that (for what remains there) I move it all to a rollover, or move none of it. It is perfectly ok if some of it is in Plan funds and some is in Brokerage Link.
4. I’d like to stay in the Plan due to one fund in particular that it has available (these amounts are not the BrokerageLink portion of that account).
5. The Plan will not permit any investments in CDs via the BrokerageLink component of that account. I’m not quibbling with that.
6. So, to get funds into CDs, I’d need to sell the VTI in the rollover and then purchase the CD ladder of my choosing.
7. To maintain my asset allocation, I’d need to buy the VTI in BrokerageLink.
In the end I think this reduces to a fairly simple question of the ideal way to swap holdings in two accounts to make them effectively identical in terms of asset class but change the location of those holdings. And, really, the only question that gives me pause is that the amounts are a bit large (let’s say high six figures for purposes of discussion). I’m not trying to time the market really, just trying to avoid a stupid mistake if there is one there to be avoided. Because all of this is in pre-tax retirement accounts there are no tax implications (that I know of). The easiest thing would be to simply buy the VTI in Brokerage Link and place a market order to sell the VTI in the rollover IRA and then purchase the CD ladder. Is there anything I should consider in terms of sequence of moves or otherwise?
Thanks!
1. I have a substantial amount in a BrokerageLink account at FIDO (part of a 401k). A substantial amount currently is in a money market. Ideally, I’d like to commit a good part of that to a CD ladder.
2. I have a like amount in a rollover 401k at FIDO invested in VTI.
3. Due to plan restrictions (understandable) I cannot make a partial rollover of the amount that is still in the Plan. The Plan requires that (for what remains there) I move it all to a rollover, or move none of it. It is perfectly ok if some of it is in Plan funds and some is in Brokerage Link.
4. I’d like to stay in the Plan due to one fund in particular that it has available (these amounts are not the BrokerageLink portion of that account).
5. The Plan will not permit any investments in CDs via the BrokerageLink component of that account. I’m not quibbling with that.
6. So, to get funds into CDs, I’d need to sell the VTI in the rollover and then purchase the CD ladder of my choosing.
7. To maintain my asset allocation, I’d need to buy the VTI in BrokerageLink.
In the end I think this reduces to a fairly simple question of the ideal way to swap holdings in two accounts to make them effectively identical in terms of asset class but change the location of those holdings. And, really, the only question that gives me pause is that the amounts are a bit large (let’s say high six figures for purposes of discussion). I’m not trying to time the market really, just trying to avoid a stupid mistake if there is one there to be avoided. Because all of this is in pre-tax retirement accounts there are no tax implications (that I know of). The easiest thing would be to simply buy the VTI in Brokerage Link and place a market order to sell the VTI in the rollover IRA and then purchase the CD ladder. Is there anything I should consider in terms of sequence of moves or otherwise?
Thanks!
Statistics: Posted by Not Jacob Fugger — Tue Jun 18, 2024 7:16 pm — Replies 0 — Views 80