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Author: fclough Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Sell Mutual Funds to buy Stock? Date: 4/16/2000 9:10 PM
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Hi all.
I have some money in a growth mutual fund...just read most of the Fools (yeah!) and have started to see the light. Would be interested to hear some opinions on whether I should sell out of my mutual fund to start buying stocks or leave it in and start from scratch...the only thing I would add is that if I start from scratch, I'd have significantly less to start with!

Thanks in advance
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21270 of 75340
Subject: Re: Sell Mutual Funds to buy Stock? Date: 4/16/2000 9:27 PM
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Hi all.
I have some money in a growth mutual fund...just read most of the Fools (yeah!) and have started to see the light. Would
be interested to hear some opinions on whether I should sell out of my mutual fund to start buying stocks or leave it in
and start from scratch...the only thing I would add is that if I start from scratch, I'd have significantly less to start with!


You have two items to consider.

You will owe state and federal taxes on the profit from the sale of the fund.

Your stock investment will have to perform better than the fund and earn back the tax you paid.

You will have to assume a rate of return on each investment and run the numbers.

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Author: fclough Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21271 of 75340
Subject: Re: Sell Mutual Funds to buy Stock? Date: 4/16/2000 9:55 PM
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Thanks Bob.
Two items that conciously I realized, but in my initial excitement, put on the back burner. Your advice is well taken

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Author: andyk01 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21295 of 75340
Subject: Re: Sell Mutual Funds to buy Stock? Date: 4/17/2000 8:24 PM
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If the funds are in a brokerage IRA, such as at Fidelity (not to push them, just an example) then you have the option to put the mutual funds into cash reserves and then into stocks without having to cash in the IRA and thus would avoid the tax liabilities. If the account has grown some that could really be an issue! Something to ponder. If your current institution does not offer that option, perhaps a roll-over would be in order?

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Author: razuli Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21296 of 75340
Subject: Re: Sell Mutual Funds to buy Stock? Date: 4/17/2000 9:42 PM
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I have several years till retirement but I am starting to read and learn in order to be foolishly prepared.

In 97 I converted my regular IRA to a Roth, a year later, after much reading of books and the message bds I sent my funds to a discount broker, sold all and purchased five stocks. Although I lost about 1K in back end sales cost, within 3 months gained that back plus xxK. So although, I have the burden of paying the taxes now, I am paying on the money from before sale.

I am happy with my decision. And owe my education to FOOL.com

Since you are already retired, the rules are different.

Why not consider selling one mutual fund and reinvesting in stock, when you have done your homework of course.

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