Liquidating investment

While they are passive in their style, it also means they are passive in their defense of the assets.That is, the underlying equities in the fund will still take a hit in a down market, and then under perform in an uptick.If you are just moving your account to another custodian like Schwab, E-Trade, TD Ameritrade, etc...you can transfer the account with all of your investment as they are at Fidelity without the need to sell the investments.This will be treated as a disposal of their shares for CGT purposes, and so they will pay CGT based on the cost of their shares, and how long they have owned them.GOLDEN RULE: Do not assume that liquidation will always be better than a dividend.

Steve and Jane decide to get the cash out of the company.If you transfer your investments without selling them there will not be a tax issue. The only time a tax issue is created is when you sell all of your investment and transfer the cash. If this is an IRA account there is not a tax issu... If you keep the investments the same or it is in a qualified plan there should be no tax issues until you sell any of your current holdings.I would personally advise against most target date or fixed date funds.I have a brokerage account with Fidelity consisting of a mix of low-cost index ETFs and some actively managed mutual funds.I would like to transfer all assets to passive management strategy, perhaps a target retirement age fund...ideally with Vanguard.

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