moving from index funds
With tech stocks dominating the markets and weakening diversification, I am concerned about my Vanguard Wellington funds. Is there a way I can transfer Wellington funds into something safer without incurring a tax hit? And what funds would be safer?
Terry Says
Ifyou hold your funds INSIDE an IRA, there is no tax hit. You just ask them to switch to a more conservative fund.
But if the account is NOT an IRA, then capital gains taxes apply. If you have gains in the fund, and if you happen to have losses in another fund, they can be offset. IF not, capital gains taxes are the price you pay for success!
