Why are you locked in? Did you sell some shares?Yeah, in my ignorance, I foolishly got locked into average cost basis with two of my mutual funds over 20 year ago. Years ago I got good advice from bogleheads to stop these from reinvesting their gains into themselves, but rather to divert the gains to a different mutual fund set up for specific ID. (might have been good advice from you rkhusky). My "plan," other than to leave them alone as long as possible, is to die and have my wife access them once the cost basis resets. lol. The further salt in the wound is that now, this error from long ago is going to cause annoyance once I am finally forced to move my legacy account into a modern brokerage account where auto reinvestment into different funds is not allowed.
Even if you did, I think you can still switch to specid now. That would make all previous lots appear individually, but priced at the average price that you locked in. Any future purchases, eg divs, would maintain their own price and you could choose any of those lots to sell when needed.
Also, at least in most brokerage accounts, covered and non-covered shares are tracked separately. If you sold only some shares using avg cost, the non-covered would have been sold first. If none of the covered shares were sold, I wonder if you switch to specid now what would happen. Eg maybe if no covered shares were sold, their price is not actually locked in and you'd see the orig cost basis of each lot. You'd probably want to find out before switching platforms in case that would also lock in avg price even if they weren't already.
Statistics: Posted by bongo — Thu Aug 22, 2024 2:15 pm — Replies 11 — Views 505