Will moving my money cost me money?
We are not financial advisors, and thus can't can’t tell you about your individual situation or provide investment advice or recommendations. However, here are a few general things for you to consider or discuss with your financial advisor, if you have one:
Is your money in a Roth IRA, Traditional IRA, 401(k), 403(b), or other retirement plan? If so, rolling it over to a different asset manager or into non-Vanguard funds should not cost you in taxes or fines, as long as you keep the money in that category of retirement account. Please be careful that you don’t accidentally withdraw retirement funds because that can cost you.
Have you made a profit from investments that are not in an IRA, 401(k), 403(b), or other retirement account? If so, and depending on the amount and your tax bracket, you may owe capital gains tax. One way to reduce tax liability is to roll those funds directly into a donor advised fund and use the money for charitable donations. Again, speak to an investment professional if this might be applicable to you.
Finally, you may wonder if moving your money means giving up future profit. This, of course, will depend on many variables, but many analysts believe that fossil fuels are bad investments in the long term, which is what most people invest for. Although the war in Ukraine helped to spike Exxon’s profits in 2022, we also saw the risk of fossil fuel investments clearly when Adani, a major global coal company, had its share price crash in 2022.
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