Quote:
Originally Posted by ChiliConCarnage
Buy the ETF equivalent
https://personal.vanguard.com/us/fun...FundIntExt=INT
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.
https://investor.vanguard.com/invest...ssions?lang=en
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.
https://investor.vanguard.com/etf/li...th-end-returns
Some good reading about ETFs and free trades in the middle of this.
http://www.thesimpledollar.com/how-t...n-index-funds/