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Taking profits in VG funds...
Old 12-05-2006, 02:50 PM   #1
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Taking profits in VG funds...

Thanks to the forum, I got into several Vanguard funds which have appreciated quite nicely since January 06.

Is it true that there are significant redemption fees if you take your profits?

I've heard that there is a $1000 redemption fee if you pull out before 5 years?

Is this true? (I don't like to read all the mumbo jumbo in the prospectus).
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Re: Taking profits in VG funds...
Old 12-05-2006, 03:05 PM   #2
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Re: Taking profits in VG funds...

Quote:
Originally Posted by acg
Thanks to the forum, I got into several Vanguard funds which have appreciated quite nicely since January 06.

Is it true that there are significant redemption fees if you take your profits?

I've heard that there is a $1000 redemption fee if you pull out before 5 years?

Is this true? (I don't like to read all the mumbo jumbo in the prospectus).
Depends on the fund. Most have no redemption fee.

Have you considered looking at the Vanguard website? It's amazing the information available there under the "Summary" for each fund...especially for the non-mumbo jumbo prospectus reading investing public.

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Re: Taking profits in VG funds...
Old 12-05-2006, 03:15 PM   #3
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Re: Taking profits in VG funds...

Quote:
(I don't like to read all the mumbo jumbo in the prospectus).
Help me out here. If I understand you correctly, you would rather ask a forum of unknowns an important question about your specific account rather that take a few minutes to leaf through a pamphlet and do a bit of reading that will give you the exact answer?

For your own good, I recommend that you read a bit of the mumbo as well as some of the jumbo so that you will become an informed investor as many folks on this forum are.
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Re: Taking profits in VG funds...
Old 12-05-2006, 03:19 PM   #4
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Re: Taking profits in VG funds...

Quote:
Originally Posted by acg
I've heard that there is a $1000 redemption fee if you pull out before 5 years?
Some of the Vanguard funds charge a percent or two of the amount taken out if it is redeemed bfore 1 or 2 years in the funds. For the tax managed funds they charge a redemtion fee if you pull out in less than five years.

Here is a link to a list of Vanguard funds that charge a redemtion fee...

https://flagship.vanguard.com/VGApp/...e?View=EF&Sc=0

The redemption fee column lists the fees if any for redeeming before their threshold date
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Re: Taking profits in VG funds...
Old 12-05-2006, 06:37 PM   #5
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Re: Taking profits in VG funds...

No, it's not true. There is a small chance there would be a redemption fee, but it would not be $1,000.
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Re: Taking profits in VG funds...
Old 12-05-2006, 08:31 PM   #6
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Re: Taking profits in VG funds...

Quote:
Originally Posted by LOL!
No, it's not true. There is a small chance there would be a redemption fee, but it would not be $1,000.
It's possible to have a redemption fee of $1000 if the fund balance is $100,000 and the fee is 1%.
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