Where to open IRA and taxable account for both "Robo advisor" and picking ETFs and stocks.

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doctorsas
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Joined: Thu Feb 22, 2018 6:00 pm

Where to open IRA and taxable account for both "Robo advisor" and picking ETFs and stocks.

Post by doctorsas » Thu Feb 22, 2018 6:27 pm

Hello all, I opened a Roth IRA by mistake in NWM and want to get out. Only has $3K. My current salary is around 50k but in a few years I hope will be $300-500k (I'm a doctor still in training) and will like to get my accounts straight now and that will work in the future when my situation changes. I'm looking for advice on where to open a Roth IRA and my first taxable account. Will like to have both in the same place. What will you recommend if I'm looking for automatic management and rebalancing (Robo advisor type service) of both accounts but will also like the opportunity to have easy access (good webpage and app) and low cost and fees to be able to choose specific ETFs, Funds and stocks that I like to trade with relatively frequency (2-3 times a year) to manage myself. I Have research a lot about it but still cannot decide between a Robo Advisor like Wealthfront or the more common names like Vanguard or Schwab is better for me.

Any input is greatly appreciated! Thanks!

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Tyler Aspect
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Re: Where to open IRA and taxable account for both "Robo advisor" and picking ETFs and stocks.

Post by Tyler Aspect » Tue Feb 27, 2018 1:49 am

Exiting a Robo managed position can be messy. I saw someone posting a message about the result of exiting Wealthfront, and ended up with 40 individual stocks and ETFs. It is my impression that Robo is used for initial hand-holding, but eventually the latent fees start to kick in.
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ruralavalon
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Re: Where to open IRA and taxable account for both "Robo advisor" and picking ETFs and stocks.

Post by ruralavalon » Tue Feb 27, 2018 12:37 pm

Tyler Aspect wrote:
Tue Feb 27, 2018 1:49 am
Exiting a Robo managed position can be messy. I saw someone posting a message about the result of exiting Wealthfront, and ended up with 40 individual stocks and ETFs. It is my impression that Robo is used for initial hand-holding, but eventually the latent fees start to kick in.
I agree.

Exiting a taxable account with a robo-advisor can be a nightmare. They use complex portfolios with a large number of funds or ETFs, there will be tax issues when you sell, and a fee for selling each.

Instead I suggest opening a Roth IRA at a low cost provider like Vanguard or Fidelity, where you can invest long-term and not worry about tax consequences.

Also invest in any work-based plan currently available (like a 401k, 403b, 457, TSP) especially if there is an employer match offered.

A taxable account should be at the bottom of your priorities for investing. Please see the wiki article "Prioritizing Investments".
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KSActuary
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Re: Where to open IRA and taxable account for both "Robo advisor" and picking ETFs and stocks.

Post by KSActuary » Tue Feb 27, 2018 3:02 pm

Smart getting away from NWM while you can.....

Vanguard or Fidelity would be my choice.

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