Ask Terry Questions Vanguard mutual fund account

Vanguard mutual fund account

By Terry Savage on June 21, 2024 | Financial Planning / Retirement

1. Would I be better off taking funds from above & putting funds in T Bills. I do take my required
minimum distributions.
2. Will there be a penalty?

Terry Says

If you have a tax-qualified account such as an IRA, and if you want to become more conservative without withdrawing your money and paying taxes, then just switch some of your mutual funds to the government securities money market fund INSIDE your IRA!

If your mutual funds are NOT held inside a retirement account, and you sell some of the shares, you will pay capital gains taxes on the gains.  If you’ve held the fund shares for over a year, this is the lowest tax rate you’ll pay — depending on your other ordinary income.

Recent Financial Planning / Retirement Questions



a personal
finance question