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Author: UUinMN Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Re: A little knowledge... Date: 10/12/1999 10:30 AM
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Greetings, Caleb, and welcome to the Fool!

You have gotten good advice already. I'll just make a few small points:

...but I understand the minimum is $3000, which seems like a chunk to be moving at any given time

When you've got $33K invested, $3K isn't much of a move. Yes, it's a nice chunk of change, and you wouldn't want to lose it. But moving and losing are two different things.

do it gradually to minimize the capital gains nightmare ...

The 'capital gains nightmare' is partly that you have to pay taxes, and partly that you have to figure how all those reinvested divdends affect your basis. If you make a series of small moves, you can spread your taxes out, but you have even more record-keeping to do. And paying the taxes isn't totally bad. After shifting your funds, you'll have no unrealized capital gains, which reduces your future taxes.

...and go for dollar averaging

IMO, dollar cost averaging is greatly overrated. It does apply, somewhat, when you're making new investments. But that's not what you're doing. When moving money from one investment to another, the effect is much smaller.

I don't have enough confidence ...

If, despite all you read here, you still aren't comfortable with moving your funds, then do it slowly. It has to be right for you. But track your returns, and keep reading.

Fool on!
Michael
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