Originally Posted by Demonpenz:
It said I needed 3000 to buy a mutual fund is that right? Maybe in a year. Also so I just pick likeIntermediate-Term Bond Index Admiral Shares and start buying that?
Individual is correct. Most (all?) mutual funds, including index funds, require minimum investment amounts usually starting around $2500.
If you can't do that and just want to park money elsewhere than a brick and mortar bank paying 0.05% interest look into an online savings account. Ally bank currently pays 1.15%, Synchrony pays 1.20%, some others are up to 1.30%. [Reply]
Originally Posted by DaKCMan AP:
Individual is correct. Most (all?) mutual funds, including index funds, require minimum investment amounts usually starting around $2500.
If you can't do that and just want to park money elsewhere than a brick and mortar bank paying 0.05% interest look into an online savings account. Ally bank currently pays 1.15%, Synchrony pays 1.20%, some others are up to 1.30%.
Synchrony's call center is in KC tht is cool. 2500 is what I need to shoot for a guess. I was looking for a Cutless so me and TheVirus could go look for some big titties and fat asses but that will have to wait. [Reply]
Originally Posted by Demonpenz:
It said I needed 3000 to buy a mutual fund is that right? Maybe in a year. Also so I just pick likeIntermediate-Term Bond Index Admiral Shares and start buying that?
That link is vbiix. Underneath the fund name, Vanguard Intermediate.., you'll see hyperlinks to the admiral share class and the ETF. The Admiral shares have lower expense ratios but cost even more to get into (10k in this case). The ETF is a stock version. They typically have the same ER as the Admiral shares and the minimum is whatever 1 share costs to buy. In this case 80 something bucks.
Both the ETF and the mutual fund hold the same underlying assets. You can start with the ETFs and shift into mutual funds once you have the minimums. Once your comfortable buying ETF as stock there aren't many reasons to purchase mutual funds though. They're pretty inferior unless you want automated investing on deposits every two weeks [Reply]
That link is vbiix. Underneath the fund name, Vanguard Intermediate.., you'll see hyperlinks to the admiral share class and the ETF. The Admiral shares have lower expense ratios but cost even more to get into (10k in this case). The ETF is a stock version. They typically have the same ER as the Admiral shares and the minimum is whatever 1 share costs to buy. In this case 80 something bucks.
Both the ETF and the mutual fund hold the same underlying assets. You can start with the ETFs and shift into mutual funds once you have the minimums. Once your comfortable buying ETF as stock there aren't many reasons to purchase mutual funds though. They're pretty inferior unless you want automated investing on deposits every two weeks
This is a great post Demonpenz.
This is a great post and I totally agree. No reason you can't just have that individual brokerage account and do ETFs, which are in a simple sense, mutual funds that can be traded like stocks.
I only purchase mutual funds in my retirement accounts as they usually have higher fees. In my individual brokerage account I'll purchase the ETF equivalent or index as it's more liquid. With Vanguard, TD Ameritrade and most other online brokerage accounts, they offer a list of Free trades with certain ETFs. With my TD Ameritrade account I have access to 101 ETFs that I can trade commission free. Meaning if I only want to invest a few hundred dollars in some ETF, I can and not get eaten up in fees for such a low initial investment. I can trade this months later and again, it's free. I think this is your best option. Watch the fees on other ETFs though. If you only plan on buying a few hundred dollars of shares at a time, the fees can eat you up pretty quick.
Pretty sure Vanguard ETFs are free with a brokerage account there though.
If you wanna make sure the ETF is free trades before buying, you can always call them. Their customer services is very good. Here's a list as well. 55 different choices on the free list from what I can tell.
So just parking cash there is your plan or buying something soon?
My plan is to park money there to see if I can grasp concepts. So I bougjt 70 dollars of this share. Should I schedule an appointment ar the lambo dealership now? Hopefully I can buy a mutual fund index fund idunno the difference. I don't make much money so it will take time [Reply]
Don't show that to HogFarmer as he got in early at around $38 or so and he bailed at $65 thinking he was smart. He may jump off the end of that chart! :-) [Reply]
