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American funds

By Terry Savage on January 22, 2024 | Investments

Hi Terry
Thanks for answering about American funds little disappointed about the fees .
My daughter is 21 last yr college works part time makes 20.000 or so she has 9000 in American funds wants to take out 2000 put in Roth then wondering if she should leave the rest in there or move it out of American funds to fidelity or vanguard into one of there funds with lesser fees . She afraid of the taxes she’ll have to pay once she starts to a full time job if she waits to move it .
Thanks again

Terry Says

Is her account at American funds an IRA? If so, she can do a direct rollover to Fidelity or Vanguard, and no taxes are involved. Read this:

If it is a stock market mutual fund and not inside an IRA, she would have to sell it and move the money to open a new account at Fidelity or Vanguard. It’s unlikely that she currently has enough income to pay any taxes on it. So this would be a good time to make the move.



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