First, you tell us the amount of money you want to transfer and the goals you want to move the money between. We will determine how many shares of each security in your origin goal (the goal you’re moving the money from) add up to the amount you want to transfer.
Next, we’ll move these shares into your target goal (the goal you're moving the money to). We’ll then rebalance your target goal (i.e., buy and sell some of your securities) to make sure that your goal still has the right mix of investments.
This may cause capital gains in your account. When you sell a security at a higher price than you paid for it, you incur a capital gain. That gain is the difference between a higher selling price and a lower purchase price. If a sale of your investment incurs a capital gain, you’ll need to claim that gain on your income tax forms.
A couple of important things to note:
- For now, you can’t transfer money directly from an Emergency Fund goal to another goal. Instead, you can create a withdrawal on your dashboard. When the money arrives in your bank account, you can deposit it into the goal you like.
- Taking money out of an IRA can cause IRS penalties. If you want to go ahead with it, please contact us at firstname.lastname@example.org and we’ll help you.
- Your available balance may be lower than your goal balance. New deposits can’t be moved sooner than 5 business days after they are made. And money from pending withdrawals cannot be moved.
- If the amount you enter is within 98% of your available balance, we’ll transfer your whole balance. The final amount might be slightly higher or lower due to market fluctuations.