No. of Recommendations: 0
Hello -

I have an IRA invested in Vanguard's Index fund. This $10000 is from a company I left, and I put the money in Vanguard to grow -- not much growth in ten years....

Can I transfer the money to a discount broker and buy the stocks I feel will bring a better return? I appreciate all the help I can get to earn more, as I would like to retire in 10 years. :)
Print the post Back To Top
No. of Recommendations: 4
I have an IRA invested in Vanguard's Index fund. This $10000 is from a company I left, and I put the money in Vanguard to grow -- not much growth in ten years....

Can I transfer the money to a discount broker and buy the stocks I feel will bring a better return?


Welcome bbfree. Yes you can transfer to a discount broker, but if your invested in either the Vanguard Total Market Index Fund or the Vanguard S&P 500 Index Fund, your probably in the very best place you can be.

Gup
Print the post Back To Top
No. of Recommendations: 1
but if your invested in either the Vanguard Total Market Index Fund or the Vanguard S&P 500 Index Fund, your probably in the very best place you can be.

Maybe not the absolute best place, but when considering time/effort/etc., definitely at the top of the list.

JLC
Print the post Back To Top
No. of Recommendations: 4
If you've had $10,000 invested in the Vanguard SP 500 for the last 10 years you should have realized at least a 100% gain. I would absolutely, positively leave that money right where it is until you are ready to retire. This investment will equal what the broad market will do and 80% of us can't beat that over a 30-40 year investing cycle. Please get yourself a copy of William Bernstein's "The Four Pillars of Investing" and read it. I believe you will become convinced that your index fund is just where you want to be. When you have more monies in the future there are additional kinds of index funds you can look into but that $10,000 in the SP 500 is the right start.
Print the post Back To Top
No. of Recommendations: 2
bbfree: "I have an IRA invested in Vanguard's Index fund. This $10000 is from a company I left, and I put the money in Vanguard to grow -- not much growth in ten years...."

What Vanguard Index fund has "not much growth" over the last ten years? Was this a broad-based market index?

"Can I transfer the money to a discount broker and buy the stocks I feel will bring a better return?"

Yes you can transfer. Trustee to Trustee transfer is probably easiest and safest. Not sure on your intended level of trading, but just remember that transaction fees will need to paid from funds within the IRA.

Regards, JAFO
Print the post Back To Top
No. of Recommendations: 3
I have an IRA invested in Vanguard's Index fund.

Would you like to clarify which of the 21 Vanguard index funds you are referring to? http://flagship2.vanguard.com/VGApp/hnw/FundsByFundType?View=IndexFunds

This $10000 is from a company I left, and I put the money in Vanguard to grow -- not much growth in ten years....

The Vanguard Total Stock Market Fund has had a 10-year annualized rate of return of 10.48%, so $10,000 invested 10 years ago should have grown to a little bit over $27,000.

Likewise, the Vanguard 500 Index Fund has had a 10-year annualized rate of return of 10.99% so $10,000 invested 10 years ago should have grown to a little bit over $28,000.

The above is for "total returns", meaning that all distributions are being reinvested in that fund.

I don't find better than 10% all that shabby, especially considering that part of that period includes the recent bear market.
Print the post Back To Top
No. of Recommendations: 0
To do this contact to your discount broker and they will give you the forms you need to authorize them to directly do the transfer correctly. Do not try withdrawing the funds and doing the transfer yourself; while this is technically possible there is no advantage in it and there are lots of things that can cause problems.

You should be cautious though and realize that you have a lot to learn and with only ten years to retirement you would ideally be starting to be shifting to a less risky investment style, not a more risky style. Since you are likely to be living on your investments for another 40 years are so you do need a significant percentage of your funds in the stock markets and the diversification and low costs of index funds help reduce the risk.

It may very well be that you know a specific industry and have some special insights about some companies are that are likely to perform well, if so then I would encourage you to keep learning about the stock market and consider investing in these for a small percentage of your portfolio. Everyone was new to this at the start.

If you don't have any special reason to think that you have some special ability to perform well above average in some small segment of the stock market then your question about how to transfer accounts bothers me, not because you didn't know the answer, but because you could have found out the answer with a few minutes of research. If you are going to try to select stocks without having any special knowledge of an industry then you will be doing lots of research.

Greg
Print the post Back To Top
No. of Recommendations: 0
Thanx, Gup - I am in the Index.
Print the post Back To Top
No. of Recommendations: 0
Thank you, thank you, thank you...I trust it will move upward and appreciate the support.
Print the post Back To Top