Vanguard or Charles Schwab account

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sturaga86
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Vanguard or Charles Schwab account

Post by sturaga86 » Thu Jun 14, 2018 6:15 pm

I currently have an account with Fidelity.I want to open another account for index fund investing.
Is it better to open Charles Schwab account or Vanguard account?

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David Jay
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Re: Vanguard or Charles Schwab account

Post by David Jay » Thu Jun 14, 2018 6:25 pm

Both are excellent, low cost brokers.

I am at Vanguard, but I used to have accounts at both brokers. I combined at Vanguard for simplicity, and I favor Vanguard because of the company structure.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

UpperNwGuy
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Re: Vanguard or Charles Schwab account

Post by UpperNwGuy » Thu Jun 14, 2018 6:27 pm

I have accounts at both and think either one would be a fine choice for index fund investing.

AlwaysWannaLearn
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Re: Vanguard or Charles Schwab account

Post by AlwaysWannaLearn » Thu Jun 14, 2018 6:45 pm

David Jay wrote:
Thu Jun 14, 2018 6:25 pm
Both are excellent, low cost brokers.

I am at Vanguard, but I used to have accounts at both brokers. I combined at Vanguard for simplicity, and I favor Vanguard because of the company structure.
Agreed, and I'm in the same boat exactly. Like David Jay, I combined for simplicity, and favor Vanguard for the same reason. BTW, I also have a Fidelity account due to prior employer plans/inherited assets there that I've not gotten around to consolidating. As you know, Fido's fine too.

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abuss368
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Re: Vanguard or Charles Schwab account

Post by abuss368 » Thu Jun 14, 2018 7:12 pm

sturaga86 wrote:
Thu Jun 14, 2018 6:15 pm
I currently have an account with Fidelity.I want to open another account for index fund investing.
Is it better to open Charles Schwab account or Vanguard account?
Hi sturaga86 -

Welcome to the Bogleheads! Looking back, moving our investment portfolio to Vanguard was the best financial decision we ever made.

Thank you Jack Bogle!
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

ThriftyPhD
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Re: Vanguard or Charles Schwab account

Post by ThriftyPhD » Thu Jun 14, 2018 7:18 pm

sturaga86 wrote:
Thu Jun 14, 2018 6:15 pm
I currently have an account with Fidelity.I want to open another account for index fund investing.
Is it better to open Charles Schwab account or Vanguard account?
I imagine Vanguard, Schwab, or Fidelity would be fine. Is there a reason you don't want to do index fund investing at Fidelity, since you already have an account there?

Nate79
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Re: Vanguard or Charles Schwab account

Post by Nate79 » Thu Jun 14, 2018 8:25 pm

Schwab if you want customer service and lower ER.

zacf16
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Re: Vanguard or Charles Schwab account

Post by zacf16 » Thu Jun 14, 2018 8:32 pm

Schwab = $1 min investment

sir_throckmorton
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Re: Vanguard or Charles Schwab account

Post by sir_throckmorton » Thu Jun 14, 2018 8:55 pm

I have a Roth IRA at Schwab and I had considered switching over to Vanguard. Ultimately, I decided against it, partly because of the $50 fee it would incur, but also because Schwab has lowered many of their expenses below those of Vanguards. Schwab advertises it all over their web site directly comparing their rates to Vanguard. While they are fairly similar across the board, overall Schwab does offer slightly lower ERs.

It seems like it's a race to the bottom, so we are the ones that are benefiting from this competition. Whose to say that Vanguard doesn't lower their ERs even further over the next year? I don't think you could go wrong with either, but as of right now, Schwab does have less fees.

Doctor Rhythm
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Re: Vanguard or Charles Schwab account

Post by Doctor Rhythm » Fri Jun 15, 2018 12:19 am

If you already have a Fidelity account, why do you want to spread your money across two different brokerage firms (unless you're dissatisfied with Fidelity)? Their index funds are similar to those at Schwab and Vanguard (hence the term), with similar expense ratios. There's something to be said for having all your financial matter in one place and only getting one set of e-mails and letters.

But what would I know? For complicated and not particularly justifiable reasons, we have accounts with Schwab, Fidelity, and Vanguard. I'm slightly partial to Vanguard only because of philosophical alignment, but from a practical standpoint, they're equivalent. You might as well decide based on your favorite color: red (Vanguard), green (Fidelity), or blue (Schwab).

MrPotatoHead
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Re: Vanguard or Charles Schwab account

Post by MrPotatoHead » Fri Jun 15, 2018 12:55 am

You are aware that Fidelity has extremely low cost index funds, or even better commission free etfs - right? For example ishares ITOT (total stock market) with a .03% ER.

I am not sure why you would want to leave a brokerage with first tier customer service like Fidelity for a firm with customer service like Vanguard but that is up tp you. IMO, Schwab has slightly better customer service than Fidelity (I have accounts at all three, the only one I regret is Vanguard). I would really this over hard ( customer service as well as costs) if you think you are going to accumulate substantial assets. Often with more assets complications in planing enter the picture.

In answer to your question I would take Schwab over Vanguard any day.

TwstdSista
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Re: Vanguard or Charles Schwab account

Post by TwstdSista » Fri Jun 15, 2018 4:10 am

My 2 cents -- Taxable account? Vanguard. Retirement account? Schwab.

mouses
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Re: Vanguard or Charles Schwab account

Post by mouses » Fri Jun 15, 2018 4:21 am

I have an account at each. I was in the process of moving assets to the Vanguard account, when their customer service drove me crazy with a transfer hung up for weeks, so I took the remaining assets to the local Schwab office.

No question, Schwab's customer service is much much better than Vanguard's. Vanguard's website is more readable, however. Schwab seems to be tabletizing theirs, and I am not looking forward to the day the go back to classic website is no longer available.

MikeG62
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Re: Vanguard or Charles Schwab account

Post by MikeG62 » Fri Jun 15, 2018 5:52 am

Doctor Rhythm wrote:
Fri Jun 15, 2018 12:19 am
If you already have a Fidelity account, why do you want to spread your money across two different brokerage firms (unless you're dissatisfied with Fidelity)? Their index funds are similar to those at Schwab and Vanguard (hence the term), with similar expense ratios. There's something to be said for having all your financial matter in one place and only getting one set of e-mails and letters.
^ This.

In addition, you can purchase ishares index ETF's at Fidelity (I do) in addition to their own index mutual funds.

chw
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Re: Vanguard or Charles Schwab account

Post by chw » Fri Jun 15, 2018 6:01 am

This may not apply to you- if you hold DFA funds, Vanguard will make you liquidate them if you are self managing your accounts, whereas Schwab will not. This was a deal breaker for me several years ago due to capital gains on funds held from a legacy advisor. Have been with Schwab solely for years, and have been always happy with their customer service, and my assigned consultant who has offered up waived fees and bonuses on large transfers.

Jack FFR1846
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Re: Vanguard or Charles Schwab account

Post by Jack FFR1846 » Fri Jun 15, 2018 6:25 am

TwstdSista wrote:
Fri Jun 15, 2018 4:10 am
My 2 cents -- Taxable account? Vanguard. Retirement account? Schwab.
Interesting...

I have tax advantaged accounts at Fidelity and Vanguard.
Taxable at Schwab and TDAmeritrade

If you plan to "do anything" with funds, I'd stick with Schwab. If I had to reduce where I kept money, I'd dump TDAmeritrade. Although their web pages are the best of them all (in my opinion), they no longer offer free VTI trades, so my shares just sit there and dividends get transferred to my checking account.
Bogle: Smart Beta is stupid

bondsr4me
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Re: Vanguard or Charles Schwab account

Post by bondsr4me » Fri Jun 15, 2018 7:57 am

OP

Beings you already have a Fidelity account, why not open an account at both Schwab and Vanguard.

Give each firm a year to see how well you like/dislike them.
You'll get to experience the website interface, customer service and tax reporting of each firm.
You probably wouldn't buy a car solely based on what is said in this forum, so why treat a brokerage account any different.

I realize this goes against "simplicity", but it's best for YOU to find out for yourself.
There is a lot of hot air blowing around in the forum, including mine, especially about brokerages.
But you need to find out for yourself which one suites you.

Good Luck!

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praxis
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Re: Vanguard or Charles Schwab account

Post by praxis » Fri Jun 15, 2018 8:53 am

mouses wrote:
Fri Jun 15, 2018 4:21 am
I have an account at each. I was in the process of moving assets to the Vanguard account, when their customer service drove me crazy with a transfer hung up for weeks, so I took the remaining assets to the local Schwab office.

No question, Schwab's customer service is much much better than Vanguard's. Vanguard's website is more readable, however. Schwab seems to be tabletizing theirs, and I am not looking forward to the day the go back to classic website is no longer available.
ditto

There are features at both that I appreciate and use. Partly for peace of mind, not for a real danger, I have split our assets between two different companies. There are a few things, like their approach to personal analysis of portfolio, that differ, so I get a unique perspective. Another thing is tracking performance and comparing investments gives different advice and ratings approach. My experience is that Schwab has faster response time for most transactions and transfers. But either company would be a great choice. I feel better spreading it out like this. Tax reporting is good for me from both.

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