Best Alternative to Vanguard (Taxable Investing)

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Kywildcat
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Best Alternative to Vanguard (Taxable Investing)

Post by Kywildcat » Wed Jun 28, 2017 12:54 pm

In the last year, I have started investing in a taxable account as I have maxed out my 401k, Roth, and HSA space. My Roth and taxable is at Vanguard. There is a chance that in the future (anywhere from 8-10 years from now), I will not be allowed to have investments at Vanguard or in Vanguard funds. This wouldn't be a big deal for my Roth as I could sell without any tax implications, but I'm thinking it might be good to be proactive and have my taxable invested in something that's not Vanguard to a avoid a situation of unwanted capital gain taxes. My taxable is currently 100% invested in the total stock index. In your opinion, what would be the best alternative? Thanks.

aristotelian
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by aristotelian » Wed Jun 28, 2017 12:55 pm

If you don't mind me asking, what is the reason you would not be allowed at Vanguard? You would want to make sure that reason does not apply with another custodian.

Chip
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Chip » Wed Jun 28, 2017 12:57 pm

Would Vanguard ETFs be allowed? If so, Schwab or Fidelity would be fine. Or buy Schwab ETFs at Schwab or Fidelity. Fidelity has very low cost index funds, but they aren't as tax efficient as similar cost ETFs.

Jack FFR1846
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Jack FFR1846 » Wed Jun 28, 2017 1:05 pm

Schwab or TDAmeritrade. I have taxable accounts at both and would recommend them. I hold SCHB at Schwab and VTI at TDAmeritrade. Get the bonus going in and sign up for free ETFs at TDAmeritrade.

Fidelity is also not a bad option but I believe the bonuses are currently not available. (I have IRA and Roth there)

All of these places have good investment options, good web pages and 24/7 support. Oh....they all have brick and mortar offices in case you want that kind of thing.
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WhiteMaxima
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by WhiteMaxima » Wed Jun 28, 2017 1:10 pm

Fidelity, Schwab

Kywildcat
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Kywildcat » Wed Jun 28, 2017 1:37 pm

aristotelian wrote:If you don't mind me asking, what is the reason you would not be allowed at Vanguard? You would want to make sure that reason does not apply with another custodian.
In the industry that I work in, you have to be indpendent of clients (no investment in the company or funds). As you progress in the career field, these restrictions become more impactful. Good point though on assessing if the alternatives are impacted as well.

radiowave
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by radiowave » Wed Jun 28, 2017 1:39 pm

WhiteMaxima wrote:Fidelity, Schwab
+1

Both have reputations for excellent 24/7 customer service, both have well regarded cash management accounts and debit cards that do not have foreign transaction fees (and no annual fee). At least Fidelity (not sure abt Schwab) reimburse ATM fees.
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Voltron
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Voltron » Wed Jun 28, 2017 1:46 pm

Schwab or Fidelity.

I love Schwab customer service.

That said, perhaps your 401K is serviced by one of the two custodians above? Sometimes simplicity if you choose a taxable in same custodian if it is one of those too.

afan
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by afan » Wed Jun 28, 2017 1:47 pm

Kywildcat wrote:
In the industry that I work in, you have to be independent of clients (no investment in the company or funds). As you progress in the career field, these restrictions become more impactful. Good point though on assessing if the alternatives are impacted as well.
Problem is that the fund companies do turnover their accountants, custodians, and lawyers at times. 8-10 years out, it would be hard to predict who might be serving Vanguard, Schwab or Fidelity, or whether you will have moved to a different firm in the same field. You could avoid Vanguard now to avoid future conflict. By the time it comes up you could find that Vanguard would be fine, but Schwab and Fidelity are forbidden.

Best idea might be to ask the more senior people at the firm what they do.
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aristotelian
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by aristotelian » Wed Jun 28, 2017 1:57 pm

Kywildcat wrote:
aristotelian wrote:If you don't mind me asking, what is the reason you would not be allowed at Vanguard? You would want to make sure that reason does not apply with another custodian.
In the industry that I work in, you have to be indpendent of clients (no investment in the company or funds). As you progress in the career field, these restrictions become more impactful. Good point though on assessing if the alternatives are impacted as well.
Got it. Thought it might be that you are overseas, in which case the answer could be completely different.

I have Schwab in addition to Vanguard. No complaints.

Generator515
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Generator515 » Wed Jun 28, 2017 2:22 pm

Recently just started a job that is requiring me to shut down my vanguard account. Decided to go with Schwab so I could set the mutual fund investments at $0 and have it all be automatic (no worry about $10k min or trading ETFs). Still in the process of moving it all over but to date their customer service has been excellent as advertised.

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ruralavalon
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by ruralavalon » Wed Jun 28, 2017 3:41 pm

radiowave wrote:
WhiteMaxima wrote:Fidelity, Schwab
+1

Both have reputations for excellent 24/7 customer service, both have well regarded cash management accounts and debit cards that do not have foreign transaction fees (and no annual fee). At least Fidelity (not sure abt Schwab) reimburse ATM fees.
My suggestion as well.
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Pete12
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Pete12 » Wed Jun 28, 2017 4:04 pm

Assuming OP works for PWC he/she/they may be interested in this question I asked a while back: viewtopic.php?t=196357

masonstone
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by masonstone » Fri Nov 30, 2018 9:14 pm

Have these recommendations changed over the past 1.5 year?

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ruralavalon
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by ruralavalon » Sat Dec 01, 2018 8:48 am

masonstone wrote:
Fri Nov 30, 2018 9:14 pm
Have these recommendations changed over the past 1.5 year?
No change.

My suggestions in order of preference still are:
1) Vanguard;
2) Fidelity; and
3) Schwab.
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KyleAAA
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by KyleAAA » Sat Dec 08, 2018 2:35 pm

Fidelity is great. You can buy ishares ETFs for free. The Schwab ETFs are also good. Most of my taxable investments are st Fidelity.

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ruralavalon
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by ruralavalon » Sat Dec 08, 2018 3:01 pm

KyleAAA wrote:
Sat Dec 08, 2018 2:35 pm
Fidelity is great. You can buy ishares ETFs for free. The Schwab ETFs are also good. Most of my taxable investments are st Fidelity.
Vanguard now offers a very large number of ETFs of other firms commission free (pdf list) including Fidelity, Schwab, BlackRock (iShares), State Street (SPDR), and others.
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TomatoTomahto
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by TomatoTomahto » Sat Dec 08, 2018 3:23 pm

Generator515 wrote:
Wed Jun 28, 2017 2:22 pm
Recently just started a job that is requiring me to shut down my vanguard account. Decided to go with Schwab so I could set the mutual fund investments at $0 and have it all be automatic (no worry about $10k min or trading ETFs). Still in the process of moving it all over but to date their customer service has been excellent as advertised.
That would have been financially destructive for us, so we asked if maintaining a Mutual Fund Only account could be grandfathered in for us. The new employer accepted that.

02nz
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by 02nz » Sat Dec 08, 2018 3:27 pm

I recently moved all of my investments out of Vanguard, after a series of mistakes on their part. Merrill Edge offered an attractive bonus so I took advantage of that. So far so good but I haven't really done much with them. I converted mutual funds to ETFs at Vanguard before moving things over. I believe that I could hold Admiral shares at ME but would not be able to purchase more; Investor shares don't have the same restriction, IIRC. But ETFs are easiest of all, so if you think you might be moving away from Vanguard in the future, that may be the way to go.

I also briefly used Schwab and liked the platform. That would've been my first choice post-Vanguard except for ME's bonus.

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Pete12
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Re: Best Alternative to Vanguard (Taxable Investing)

Post by Pete12 » Sat Dec 08, 2018 5:24 pm

Vanguard for taxable/Roth IRA, and Fidelity for i401k here. Both have been great.

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Re: Best Alternative to Vanguard (Taxable Investing)

Post by KyleAAA » Sun Dec 09, 2018 12:38 am

ruralavalon wrote:
Sat Dec 08, 2018 3:01 pm
KyleAAA wrote:
Sat Dec 08, 2018 2:35 pm
Fidelity is great. You can buy ishares ETFs for free. The Schwab ETFs are also good. Most of my taxable investments are st Fidelity.
Vanguard now offers a very large number of ETFs of other firms commission free (pdf list) including Fidelity, Schwab, BlackRock (iShares), State Street (SPDR), and others.
Yes I know, but Vanguard is pretty bad as a brokerage.

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