Should I open an account with Vanguard?

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frankie1800
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Should I open an account with Vanguard?

Post by frankie1800 » Sat Nov 04, 2017 5:40 pm

I have been with eTrade for about five years. I am just now realizing that I can get the admiral funds with Vanguard if I open my account with them. The Admiral funds have much lower expenses. I also have a Roth IRA that I would like to roll over from American Funds. I like the Vanguard Funds and intend on investing long term.

Is there any reason why I would not open an account with Vanguard?

Is a Vanguard account what most of the bogleheads use?

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JPH
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Re: Should I open an account with Vanguard?

Post by JPH » Sat Nov 04, 2017 6:06 pm

I buy Vanguard funds and like them. I'm satisfied with their customer service. If you can get lower expense ratios at Vanguard I don't know of any reason why you should not purchase their funds.
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badbreath
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Re: Should I open an account with Vanguard?

Post by badbreath » Sat Nov 04, 2017 6:24 pm

I invest in Vanguard with all my long term savings because of the good products and low ER.
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

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Sandtrap
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Re: Should I open an account with Vanguard?

Post by Sandtrap » Sat Nov 04, 2017 6:29 pm

frankie1800 wrote:
Sat Nov 04, 2017 5:40 pm
I have been with eTrade for about five years. I am just now realizing that I can get the admiral funds with Vanguard if I open my account with them. The Admiral funds have much lower expenses. I also have a Roth IRA that I would like to roll over from American Funds. I like the Vanguard Funds and intend on investing long term.

Is there any reason why I would not open an account with Vanguard?
Only if you do not want low expense ratios and a wide selection of funds.
Is a Vanguard account what most of the bogleheads use?
If it is available to them, if it fits their IPS, if they are not a "Boglehead".
I have a substantial sum in Vanguard. At one time I had funds in a variety of other brokerages but over time have consolidated to Vanguard after having "seen the light". :idea:

frankie1800
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Re: Should I open an account with Vanguard?

Post by frankie1800 » Sat Nov 04, 2017 7:02 pm

Yes this is what I was thinking of doing. I think I am going to open the account and start consolidating into it.

tigerdoc93
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Re: Should I open an account with Vanguard?

Post by tigerdoc93 » Sat Nov 04, 2017 7:03 pm

Yes :sharebeer

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Earl Lemongrab
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Re: Should I open an account with Vanguard?

Post by Earl Lemongrab » Sun Nov 05, 2017 2:23 pm

I don't hold anything at Vanguard. I get a better all-around deal with ETFs from (mostly) Vanguard but choose the custodian for other reasons. Merrill Edge is my top choice, although I'm perfectly willing to use any brokerage that will give me a transfer bonus.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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F150HD
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Re: Should I open an account with Vanguard?

Post by F150HD » Sun Nov 05, 2017 3:15 pm

frankie1800 wrote:
Sat Nov 04, 2017 5:40 pm
I have been with eTrade for about five years. I am just now realizing that I can get the admiral funds with Vanguard if I open my account with them. The Admiral funds have much lower expenses. I like the Vanguard Funds and intend on investing long term.
is this a tax deferred account you are talking about opening? or taxable? (not talking about the American funds you mentioned in a Roth).

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ruralavalon
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Re: Should I open an account with Vanguard?

Post by ruralavalon » Sun Nov 05, 2017 3:59 pm

frankie1800 wrote:
Sat Nov 04, 2017 5:40 pm
I have been with eTrade for about five years. I am just now realizing that I can get the admiral funds with Vanguard if I open my account with them. The Admiral funds have much lower expenses. I also have a Roth IRA that I would like to roll over from American Funds. I like the Vanguard Funds and intend on investing long term.

Is there any reason why I would not open an account with Vanguard?

Is a Vanguard account what most of the bogleheads use?
We have all of our accounts at Vanguard, and all of our funds are Vanguard.

I think that the have by far the best selection of low expense ratio mutual funds offered anywhere. We have had accounts there since 2005, and have always been pleased with the customer service.

I think that if you want to use Vanguard funds there is almost never a good reason to have your accounts elsewhere.
Last edited by ruralavalon on Sun Nov 05, 2017 5:05 pm, edited 1 time in total.
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Taylor Larimore
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"Vanguard Performance Report"

Post by Taylor Larimore » Sun Nov 05, 2017 4:13 pm

frankie1800 wrote:
Sat Nov 04, 2017 5:40 pm
I have been with eTrade for about five years. I am just now realizing that I can get the admiral funds with Vanguard if I open my account with them. The Admiral funds have much lower expenses. I also have a Roth IRA that I would like to roll over from American Funds. I like the Vanguard Funds and intend on investing long term.

Is there any reason why I would not open an account with Vanguard?

Is a Vanguard account what most of the bogleheads use?
Frankie:

We moved our securities from Merrill Lynch to Vanguard in 1986. It was the best financial decision we ever made.

Vanguard Performance Report

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Sandtrap
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Re: Should I open an account with Vanguard?

Post by Sandtrap » Sun Nov 05, 2017 4:16 pm

Absolutely!
Yes!
:sharebeer

MarkVH0518
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Re: Should I open an account with Vanguard?

Post by MarkVH0518 » Sun Nov 05, 2017 8:55 pm

Vanguard customer service is *not* stellar. Vanguard customer service struggles.
I buy Vanguard ETFs elsewhere. My personal favorite is Fidelity.

Mark

sco
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Re: Should I open an account with Vanguard?

Post by sco » Sun Nov 05, 2017 11:53 pm

I use Fidelity, but use all the Boglehead Principals there....


I only do this because of 3 reasons,
1. Employer accounts (401k/403b) are at Fidelity, so I'll have those accounts anyway
2. 2% cash back Visa Card
3. Simplicity, one place for all investment accounts. One Contact number, One website/platform to learn...

If the Employer relationship changes, my choice may.. But so far Fidelity is fine, they have things I like and things I don't.. It is harder to screw up at Vanguard, as other places tend to push their higher ER (Expense Ratio) products.

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peterinjapan
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Re: Should I open an account with Vanguard?

Post by peterinjapan » Mon Nov 06, 2017 12:22 am

I personally recommend Fidelity. Reasons

a) ETF centric vs Mutual Funds. $5 trades, or free, except $75 for non-free mutual funds, so you obviously want to stick to ETFs or funds that are free to trade.
b) Much more straightforward approach. I found Vanguard confusing and just a little cult-like.
c) If you have a passport and even think of living abroad, Vanguard will become your enemy and try to close your account(s).
d) Fidelity's iPhone and iPad apps are so good, they make it worth the switch alone. They are that good.

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ruralavalon
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Re: Should I open an account with Vanguard?

Post by ruralavalon » Mon Nov 06, 2017 9:29 am

I agree that if your work-based accounts (e.g. 401k, 403b, 457) are at Fidelity, then it's probably better to have your taxable account and IRAs at Fidelity for the convenience.

Fidelity does lack a large array of tax-exempt bond funds, if that is necessary for you.

Vanguard has an ETF share class in most of its index funds.

As I mentioned before, we have been with Vanguard since 2005 and have always found Vanguard customer service to be fine.

I don't know about Fidelity apps for mobile devices. I use the Vanguard app (Android on my Kindle Fire tablet), and think it is very nice.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

dbr
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Re: Should I open an account with Vanguard?

Post by dbr » Mon Nov 06, 2017 9:51 am

Most of our investments are Vanguard funds or ETFs. We have never had an account at Vanguard and see no reason to do so now. In some cases, such as the brokerage link in the 401k that would not be possible.

sport
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Re: Should I open an account with Vanguard?

Post by sport » Mon Nov 06, 2017 10:26 am

I have been a satisfied Vanguard client since 1980. I started with one fund, and eventually moved everything else to Vanguard.

frankie1800
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Re: Should I open an account with Vanguard?

Post by frankie1800 » Wed Nov 08, 2017 7:17 pm

F150HD wrote:
Sun Nov 05, 2017 3:15 pm


is this a tax deferred account you are talking about opening? or taxable? (not talking about the American funds you mentioned in a Roth).
This would be a taxable account.

tesuzuki2002
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Re: Should I open an account with Vanguard?

Post by tesuzuki2002 » Wed Nov 08, 2017 7:25 pm

frankie1800 wrote:
Sat Nov 04, 2017 7:02 pm
Yes this is what I was thinking of doing. I think I am going to open the account and start consolidating into it.

You're in good company!! Over the last 2 years I've been consolidating into Vanguard. I have one more $15K rollover that should finalize everything at Vanguard except for my company sponsored 401K.



DO IT, DO IT, DO IT!!!

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Re: Should I open an account with Vanguard?

Post by clown » Wed Nov 08, 2017 8:30 pm

I agree that Vanguard is a fine choice. Never have had poor customer service there YMMV.

One caveat -- Transferring assets in kind, rather than selling assets and moving cash, would avoid tax impact. Particularly important to do a trustee-to-trustee transfer in kind if there are tax advantaged retirement accounts; otherwise the tax impact could conceivably be really big.

frankie1800
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Re: Should I open an account with Vanguard?

Post by frankie1800 » Thu Nov 09, 2017 10:35 am

I have opened my account! From some of the posts on here and my asset allocation calling for a cash infusion into a large growth fund, I am considering making my first purchase in the total market fund (VTSAX). I split my large growth, non international between S&P index and total market (with all my accounts). I have heard that the total market is very good for a taxable account so i am going with that but would love to hear some other thoughts. I do need to balance my portfolio with the contribution. The contribution will be quite large (for me), $35,000. I intend on this investment being long term but as you could imagine, I would hate for my timing to be as impeccable as it usually is. I am sure my contribution will be the day before a 20% decline! lol None the less, if that happens, it is what it is, I am long term. But do you think it would be a good idea to contribute the $35,000 all at once or piece meal throughout the year?

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ruralavalon
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Re: Should I open an account with Vanguard?

Post by ruralavalon » Thu Nov 09, 2017 11:11 am

frankie1800 wrote:
Thu Nov 09, 2017 10:35 am
I have opened my account! From some of the posts on here and my asset allocation calling for a cash infusion into a large growth fund, I am considering making my first purchase in the total market fund (VTSAX). I split my large growth, non international between S&P index and total market (with all my accounts). I have heard that the total market is very good for a taxable account so i am going with that but would love to hear some other thoughts. I do need to balance my portfolio with the contribution. The contribution will be quite large (for me), $35,000. I intend on this investment being long term but as you could imagine, I would hate for my timing to be as impeccable as it usually is. I am sure my contribution will be the day before a 20% decline! lol None the less, if that happens, it is what it is, I am long term. But do you think it would be a good idea to contribute the $35,000 all at once or piece meal throughout the year?
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is a good choice for a taxable account, it is very tax-efficient.

Another very tax-efficient fund is Vanguard Total International Stock Index Fund Admiral Shares (VTIAX).

The wiki article "tax-efficient fund placement" has a table at the end, which lists fund types in the very general order of their tax-efficiency.

Moderator Triceratops has created a very informative spreadsheet about tax-efficiency. You can find it in the thread "2016 Relative a Tax Efficiency".

But if you look at this more your first thought, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), will probably still be about the best. Tax efficiency changes with a change in tax bracket, changes with changes in amounts and types of dividends, and is not the only criteria to use. Finally very small differences simply have very small impact, or no material impact, on portfolio performance.

I am an "all at once" guy. Just get it over with, and move on with life.
Last edited by ruralavalon on Thu Nov 09, 2017 11:31 am, edited 3 times in total.
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alpenglow
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Re: Should I open an account with Vanguard?

Post by alpenglow » Thu Nov 09, 2017 11:21 am

I have accounts with a variety of companies, including Vanguard. If I were to start over again, I think I'd put it all at Fidelity. There are some disturbing posts here about the customer service at Vanguard, including accounts "disappearing". I am displeased with Vanguard's recent 403b changes. I've had overall great experiences with Fidelity.

frankie1800
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Re: Should I open an account with Vanguard?

Post by frankie1800 » Thu Nov 09, 2017 2:13 pm

ruralavalon wrote:
Thu Nov 09, 2017 11:11 am


I am an "all at once" guy. Just get it over with, and move on with life.

Love it!

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Toons
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Re: Should I open an account with Vanguard?

Post by Toons » Thu Nov 09, 2017 2:18 pm

"The Admiral funds have much lower expenses"

Number 1 reason,expenses
Open an account :happy
Check out the slider calculator in the link to Vanguard

https://investor.vanguard.com/mutual-funds/low-cost
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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ruralavalon
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Re: Should I open an account with Vanguard?

Post by ruralavalon » Thu Nov 09, 2017 2:21 pm

frankie1800 wrote:
Thu Nov 09, 2017 2:13 pm
ruralavalon wrote:
Thu Nov 09, 2017 11:11 am


I am an "all at once" guy. Just get it over with, and move on with life.

Love it!
Here are more reasons to just get it over with.

When investing a chunk of new money, "all at once" works out better about 2/3 of the time. Please see the Vanguard paper, "Dollar-cost averaging just means taking risk later".

Here is another interesting article to read -- "What if you only invested at market peaks?"
Last edited by ruralavalon on Thu Nov 09, 2017 2:42 pm, edited 1 time in total.
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Taylor Larimore
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Good links

Post by Taylor Larimore » Thu Nov 09, 2017 2:30 pm

ruralavalon:

Thank you for two very good links.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Da5id
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Re: Should I open an account with Vanguard?

Post by Da5id » Thu Nov 09, 2017 2:33 pm

frankie1800 wrote:
Sat Nov 04, 2017 5:40 pm
I have been with eTrade for about five years. I am just now realizing that I can get the admiral funds with Vanguard if I open my account with them. The Admiral funds have much lower expenses. I also have a Roth IRA that I would like to roll over from American Funds. I like the Vanguard Funds and intend on investing long term.

Is there any reason why I would not open an account with Vanguard?

Is a Vanguard account what most of the bogleheads use?
I use Vanguard and Fidelity currently, mostly Vanguard. I think Vanguard is what most bogleheads seem to use. As to reasons not to use them, there have been complaints about customer service and the quality of the web portal, maybe relevant.

That said, you can do fine staying at eTrade with ETFs if you are otherwise happy with it. Or at many other places too for the ETFs.

dbr
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Re: Should I open an account with Vanguard?

Post by dbr » Thu Nov 09, 2017 5:15 pm

I'm not sure we know what brokers Bogleheads use. Considering the possibility that a large fraction of BH money is in corporate and government retirement plans that are usually not placed at Vanguard, probably a lot of BH money is not at Vanguard.

There is a difference between being "at" Vanguard, meaning having one's account(s) there, and being invested "in" Vanguard funds.

That said, if it were me and based on what I read here compared to my actual experience not having any accounts at Vanguard, I would not be inclined to open an account at Vanguard. I have had lifelong experience with at least four brokers that are not Vanguard that have all been perfectly fine even for holding Vanguard funds and ETFs.

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