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  #1  
Old 09-12-2007, 03:30 AM
the_rookie the_rookie is offline
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Default Etrade or Vanguard

I'm a newbie so forgive if my question is idiotic. Does it matter which site I use for an RIRA account?
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  #2  
Old 09-12-2007, 04:02 AM
gull gull is offline
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Default Re: Etrade or Vanguard

That's not an idiotic question. It's good that you're opening a Roth IRA.

Honestly, it doesn't matter much - either choice would be great. If you plan to invest directly in funds, I would use Vanguard. However, using E*trade to invest in ETFs is equally good.
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  #3  
Old 09-12-2007, 01:56 PM
the_rookie the_rookie is offline
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Default Re: Etrade or Vanguard

This is the more risker investment right, but with possibly greater returns? I'm probably going the passive approach and stick with index funds.
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  #4  
Old 09-12-2007, 02:08 PM
skindog skindog is offline
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Default Re: Etrade or Vanguard

ETFs are index funds, only in share form instead of in fund form. Exactly the same passive investment vehicle.

Personally I prefer ETFs because I can trade them from any brokerage acct instead of having to have an acct with the fund manager.
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  #5  
Old 09-12-2007, 03:26 PM
darinvg darinvg is offline
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Default Re: Etrade or Vanguard

When you open the account where do you put your initial deposit? It said minimum of $3K in one of like 5 choices.
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  #6  
Old 09-12-2007, 06:29 PM
Chrisman886 Chrisman886 is offline
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Default Re: Etrade or Vanguard

[ QUOTE ]
ETFs are index funds, only in share form instead of in fund form.


[/ QUOTE ]

Not all ETFs track an index. I think that most ETFs don't.
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  #7  
Old 09-12-2007, 07:18 PM
gull gull is offline
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Default Re: Etrade or Vanguard

[ QUOTE ]
This is the more risker investment right, but with possibly greater returns? I'm probably going the passive approach and stick with index funds.

[/ QUOTE ]

No, they are pretty much equivalent. For instance, Vanguard offers ETF versions of nearly all of its funds. Their performance will be identical to the funds.
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  #8  
Old 09-12-2007, 11:44 PM
ilikeaces86_ ilikeaces86_ is offline
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Default Re: Etrade or Vanguard

Vanguard
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  #9  
Old 09-13-2007, 09:36 AM
Fishhead24 Fishhead24 is offline
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Default Re: Etrade or Vanguard

ETRADE is awesome!
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  #10  
Old 09-14-2007, 10:52 PM
Preem Preem is offline
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Default Re: Etrade or Vanguard

If you're planning to invest in more than one fund, then Vanguard mutual funds might be better since they don't charge sales commissions (although, depending on the size of your account, they might charge you an annual maintenance fee).

ETFs charge a commission every time you buy or sell them, just like a stock, unless your broker waives the transaction costs (which most don't).

If you're only going to purchase one fund, hold it for a long time, and not make frequent, period additional purchases, then it's a toss up.

Vanguard won't charge you a commission when you purchase their mutual funds, whereas purchasing ETFs will cost you a commission for each purchase/sale. But ETFs generally have lower management fees than mutual funds, so over a long period of time, ETFs might be the better choice.

Vanguard offers both mutual funds and ETFs, so the only reason for going with E*Trade would be if you wanted to purchase non-Vanguard ETFs, since E*Trade's transactions costs are lower.
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