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#1
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Opening accounts
I want to open an investment account. I will be investing in index funds.
In the sticky, ETrade and TDAmeritrade are suggested. However, I hear a lot about Vanguard Index Fund ETFs on this board as being the best choices. Can I purchase Vanguard funds through an E-Trade account? I will be investing pretty small amounts - $4k to begin with and (hopefully) more in the future. |
#2
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Re: Opening accounts
Are you openening a retirement account?
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#3
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Re: Opening accounts
Go to www.vanguard.com and put your 4k in a roth IRA if you can and purchase something like their total stock market fund. If you already have IRA's for 2007 then just put the 4k in the total stock market fund.
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#4
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Re: Opening accounts
I would advise against ETFs because you will be making regular (smallish) deposits and transactions costs will eat away at returns.
Open a ROTH at vanguard and go with their lifecycle 2050 funds (most aggressive) or some other fund. |
#5
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Re: Opening accounts
I am a student with no earned income, so I can't do an IRA, right?
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#6
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Re: Opening accounts
You can open an account with a discount brokerage. There, you can buy ETFs.
Or you can open an account directly with Vanguard. There, you can essentially desposit money into an index fund. If you have no earned income, then you cannot do an IRA. You are correct. Scholarships do count as earned income, by the way. |
#7
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Re: Opening accounts
[ QUOTE ]
You can open an account with a discount brokerage. There, you can buy ETFs. Or you can open an account directly with Vanguard. There, you can essentially desposit money into an index fund. [/ QUOTE ] So could I buy, say, Vanguard ETFs using e-trade? Or would I be better off buying a different ETF using E-Trade? Since I will be depositing such small amounts into taxed accounts, would I be better off avoiding the fees for now and just going with a high-yield savings account and then maxing IRAs when I graduate or get a summer job? |
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