quick question regarding IRA

[Lithium381]

As long as the money stays within the fund, i do not pay a penalty for changing stocks/funds ???? as often as i want?

 

[thomsbrain]

to the best of my understanding, yes.

but as far as i can tell, you need to have enough cash in the account to cover the transaction costs or you can't "afford" to make any changes until the next time you are allowed to contribute. so when you buy, you need to save enough cash to be able to sell again. 😉

i think somebody else better confirm that info , though.

 

[PAB]

Originally posted by: Lithium381
As long as the money stays within the fund, i do not pay a penalty for changing stocks/funds ???? as often as i want?

It DEPENDS, for example.

I own JSVAX through Janus. They have a 2% surrender charge if you sell for cash withinn 90 days. If you buy JSVAX and decide its not for you, you will incur that charge if you own it less than 90 days. However, if you want to EXCHANGE to a different fund inside their family, you can normally do so without charge or front end load.

Also, when you say "trade anytime" - a MF is not an ETF. Orders to buy/redeem are transacted at the end of the day when they tabultate NAV.

 

[Lithium381]

for example, with my ocntribution, i've purchaced mutual fund X, 6 months later i decide i want fund Y, i can just sell X(for cash) and buy Y(with cash), so long as the money stays in my account right and no withdrawl is taken?

 

[zinfamous]

I thought you were wondering how to join the Irish Republican Army, and needed an "in."

*slowly backs out of thread, all shifty-eyed*

 

[PAB]

Originally posted by: Lithium381
for example, with my ocntribution, i've purchaced mutual fund X, 6 months later i decide i want fund Y, i can just sell X(for cash) and buy Y(with cash), so long as the money stays in my account right and no withdrawl is taken?

It depends what fund you're going from and what fund you're going to. I need more details if you want an accurate answer.

 

[EagleKeeper]

Originally posted by: Lithium381
As long as the money stays within the fund, i do not pay a penalty for changing stocks/funds ???? as often as i want?

As long as all the funds are from within a designated IRA, you do not have to worry about Federal taxes.
What the fund manager does has no bearing on your taxes - however, they may charge you fees.

 

[PAB]

Originally posted by: EagleKeeper

Originally posted by: Lithium381
As long as the money stays within the fund, i do not pay a penalty for changing stocks/funds ???? as often as i want?

As long as all the funds are from within a designated IRA, you do not have to worry about Federal taxes.
What the fund manager does has no bearing on your taxes - however, they may charge you fees.

It depends on whether you define "Penalty" as an IRS penalty, a surrender/early redemption charge/load.