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Question on Selling Funds in Brokerage Account
Old 10-18-2013, 09:43 AM   #1
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Question on Selling Funds in Brokerage Account

Okay, so for 15 years we have been adding money to our Roth IRA's and taxable brokerage account. Its all index funds and I have left it on auto pilot but as we move closer to considering ER I will want to start moving some of the funds into cash/fixed income.

If I sell a fund in a taxable brokerage account does that trigger a taxable event? In our 401K's we have guaranteed/stable value funds to move the money to but it seems like a money market is the only option in the brokerage account if I do a fund to fund transfer.

Thanks in advance
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Old 10-18-2013, 09:47 AM   #2
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Yes it will trigger a taxable event, either be a long term or short term Capital Gain/Loss depending on the holding period.

Stable value funds are basically only offered in 401k type plans. Closest thing you'll find at a brokerage is mm fund.
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Old 10-18-2013, 11:00 AM   #3
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Originally Posted by RockyMtn View Post
Yes it will trigger a taxable event, either be a long term or short term Capital Gain/Loss depending on the holding period.

Stable value funds are basically only offered in 401k type plans. Closest thing you'll find at a brokerage is mm fund.
Ya, that's what I thought. It just seems odd to me when looking at the MM funds they have an expense ratio 0.45%-0.62% which is higher then the 0.10%-0.29% for the index funds. I also have become a little skittish with some of the things I have read regarding what will happen to MM funds if/when then default happens.
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Old 10-18-2013, 05:40 PM   #4
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You can have the sales proceeds sent to your bank account, where you can move it into a savings account, money market or CDs there or at any other institution.
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Old 10-18-2013, 10:56 PM   #5
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An online MM account is nice for short-term cash, at a little less than 1% interest rate. Not as good as a SV fund, but simple and the best unrestricted option that I know of. Ally, Barclays, GE, and Sallie Mae are possibilities. FDIC insured, so about as safe as you can get.
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