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Buying a non-Vanguard ETF/ Mutual Fund in Vanguard IRA?
Old 02-21-2021, 11:18 AM   #1
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Buying a non-Vanguard ETF/ Mutual Fund in Vanguard IRA?

Hello,

I have an Vanguard IRA. Is it possible to buy a non-Vanguard mutual or ETF in a Vanguard IRA.

When I look at purchasing, it seems to be limited to Vanguard funds. I did not find instructions for this on their web site.

I do not anticipate day-trading - I am extremely slow moving - just looking for the opportunity to add a non-Vanguard fund if I so choose.

I do have a small brokerage account over there; but it is a taxable account.

Thank you.
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Old 02-21-2021, 12:31 PM   #2
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Originally Posted by MarieIG View Post
Hello,

I have an Vanguard IRA. Is it possible to buy a non-Vanguard mutual or ETF in a Vanguard IRA.

When I look at purchasing, it seems to be limited to Vanguard funds. I did not find instructions for this on their web site.

I do not anticipate day-trading - I am extremely slow moving - just looking for the opportunity to add a non-Vanguard fund if I so choose.

I do have a small brokerage account over there; but it is a taxable account.

Thank you.

I think...optimum word here is think...you have to covert the account to a brokerage account. Once you do that, you will have a settlement MMA account that has $0. You sell/transfer into the settlement, then you can purchase outside of VG from there.

This is what I have in my Roth and tIRA's and what I do.

If there are any additional steps, I apologize. Been a while since I converted to brokerage accounts. I only actually converted at the time because I misread the emails VG had sent us and thought it was required that I convert.
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Old 02-21-2021, 12:35 PM   #3
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Thank you. I do have some money in a money market within the IRA, so maybe that will convert.
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Old 02-21-2021, 01:51 PM   #4
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It's been a lonnnng time, so don't trust me on this, but I don't think you need to convert your account to a brokerage account. You can have both under the same IRA. At least I do.

In any case, VG will be happy to help you. Bottom-line: yes, no problem holding both VG mutual funds and non-VG assets in your VG IRA.
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Old 02-21-2021, 01:58 PM   #5
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It's been a lonnnng time, so don't trust me on this, but I don't think you need to convert your account to a brokerage account. You can have both under the same t-IRA. At least I do.

You are correct, I misread the emails VG sent and thought I had to convert. Doh!

But I am under the impression that to purchasing something with current tIRA or Roth shares as your currency, you had to do the brokerage bit.

Could be wrong but when I tried to purchase outside of VG in DW account, that is not brokerage, couldn't figure out how to make it work. So purchased in my Roth that I had converted to brokerage.
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Old 02-21-2021, 02:05 PM   #6
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Right. A brokerage account is required.

I'm a terrible example because Vanguard has been bugging me for years to transition to some new account structure, and I've been ignoring them. This reminds me that I should probably look into it soon.

If I recall correctly, they're trying to transition all accounts to brokerage accounts, right?
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Old 02-21-2021, 02:08 PM   #7
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I transitioned my accounts before I realized that it wasn't required to do so. So we've never have transitioned my DW's over. I suppose one of these days...
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Old 02-21-2021, 02:14 PM   #8
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Right. A brokerage account is required.

I'm a terrible example because Vanguard has been bugging me for years to transition to some new account structure, and I've been ignoring them. This reminds me that I should probably look into it soon.

If I recall correctly, they're trying to transition all accounts to brokerage accounts, right?
Yes they would like to get their customers to a code base that was developed in this century by people who are still alive.

A lot of good stuff happened in the past thirty years in technology and you can buy other types of products too. IIRC depending on when in the year you convert you may get tax documents from both systems.
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Old 02-21-2021, 02:19 PM   #9
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I had changed to VG brokerage account years ago so that I could trade ETFs.
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Old 02-22-2021, 07:15 AM   #10
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Thank you. I do have some money in a money market within the IRA, so maybe that will convert.
You need a brokerage account, and that has a cash sweep account. If you convert the IRA to brokerage, then within the brokerage you sell some MM holding and fund the cash sweep. Then you can purchase ETFs.

If the MM holding does not supply enough cash for your purpose, you'll have to sell some other holding in the IRA.

When you have a brokerage established, when you sell a holding it automatically is deposited in the cash sweep.

I don't have a Vanguard brokerage, so can't verify the general knowledge just given.
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Old 02-22-2021, 08:04 AM   #11
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I have a VG brokerage account in my IRAs (roth and traditional). I can't exchange a VG fund for anything but another VG fund, but I see that I do have options to buy non-VG funds, ETFs, stocks, bonds, CDs, etc. I assume this is from my settlement fund, so as others have said, I'd have to sell from one of my VG funds and then buy what I want in two transactions, rather than a single exchange transaction.
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Old 02-22-2021, 08:17 AM   #12
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I have a VG brokerage account in my IRAs (roth and traditional). I can't exchange a VG fund for anything but another VG fund, but I see that I do have options to buy non-VG funds, ETFs, stocks, bonds, CDs, etc. I assume this is from my settlement fund, so as others have said, I'd have to sell from one of my VG funds and then buy what I want in two transactions, rather than a single exchange transaction.
An exchange is between different funds in in the same fund family . If you want to go outside the family you must redeem the old and purchase the new.
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Old 02-22-2021, 08:45 PM   #13
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Thank ya'll. I mean to call Vanguard today, but got distracted by the "Fog of Work."

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