Exchange funds aka Swap funds
Anyone here swap their company stock holdings into an exchange fund? My advisor is recommending I do this to avoid tax penalties while gaining quick diversification. Wondering if others have done this and what their experience is. Thanks!
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Okta vQLr43 Aug 19, 2020
ever do do it? i’m interested in your results
Microsoft LAun17 Aug 27, 2020
Interested as well. I will likely qualify shortly (it seems you need $5M in investable assets, does not include your primary residence but you don't have to substract liabilities) and I'm starting to explore. The pros are obvious (instant diversification with no tax impact). So far the main cons seem to be high fees, 7 years lockup with stiff penalties for early withdrawal and (surprisingly) no dividends from either the stock you contribute or the joint pool.
I'm interested in this too. What is the fee structure?