Alternative to $3,000 minimums at Vanguard

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jrthmas
Posts: 3
Joined: Wed May 15, 2019 11:28 am

Alternative to $3,000 minimums at Vanguard

Post by jrthmas » Mon Jun 17, 2019 9:28 am

Happy Monday all!

I want to start putting $1,000 a month into Roth IRA's through Vanguard. My thinking is alternate between my wife and I's account every month....so $1k per month for 12 months = 2 IRAs at $6k each every year.

I noticed that the standard 3 account profile of:

Vanguard Total Stock Market Index Fund (VTSAX)
Vanguard Total International Stock Index Fund (VTIAX)
Vanguard Total Bond Market Fund (VBTLX)

Have $3k minimums....what are some alternatives to these accounts that have $1k minimums.

Thanks for the insight and help!

goblue100
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Joined: Sun Dec 01, 2013 10:31 am

Re: Alternative to $3,000 minimums at Vanguard

Post by goblue100 » Mon Jun 17, 2019 9:32 am

Just do a Target date fund until you have at least $9000 in your account. Or start with VTSAX and add other funds when you have enough money.
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

Mike Scott
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Re: Alternative to $3,000 minimums at Vanguard

Post by Mike Scott » Mon Jun 17, 2019 9:32 am

The Target Date funds have 1000 minimums. You could just save up to the 3000 minimum and then buy or you can start with a Target Date fund and convert it to whatever fund you want when it gets to 3000.

OnLevel
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Joined: Mon Feb 12, 2018 1:14 pm

Re: Alternative to $3,000 minimums at Vanguard

Post by OnLevel » Mon Jun 17, 2019 9:34 am

Fidelity offers funds similar to the Vanguard funds you're thinking about and has no minimums.

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Alternative to $3,000 minimums at Vanguard

Post by lakpr » Mon Jun 17, 2019 9:53 am

I will second the recommendation on Fidelity. It has the zero index funds which have no minimums or no costs.
You can also alternatively choose Schwab, many of their ETFs have just $100 minimum to start with.

mortfree
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Joined: Mon Sep 12, 2016 7:06 pm

Re: Alternative to $3,000 minimums at Vanguard

Post by mortfree » Mon Jun 17, 2019 9:56 am

Use the ETF version of the funds you listed.

VTI, VXUS and BND.

Jack FFR1846
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Re: Alternative to $3,000 minimums at Vanguard

Post by Jack FFR1846 » Mon Jun 17, 2019 9:59 am

Vanguard is pretty much the only good place left who is hanging on to these antique minimums. Fidelity, Schwab, TDAmeritrade don't. Or just go with ETFs.
Bogle: Smart Beta is stupid

snailderby
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Joined: Thu Jul 26, 2018 11:30 am

Re: Alternative to $3,000 minimums at Vanguard

Post by snailderby » Mon Jun 17, 2019 10:03 am

+1 to the suggestions listed above.
  • Fidelity (no minimums for FSKAX, FTIHX, and FXNAX)
  • Schwab ($1 minimum for SWTSX, SWISX, and SWAGX)
  • Vanguard ($1000 minimum for its target-date funds, which you can later convert to a three-fund portfolio)
  • M1 Finance ($500 minimum to open a Roth IRA, which you can then divide between VTI/VXUS/BND or ITOT/IXUS/AGG)
Last edited by snailderby on Mon Jun 17, 2019 10:06 am, edited 1 time in total.

Chris K Jones
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Re: Alternative to $3,000 minimums at Vanguard

Post by Chris K Jones » Mon Jun 17, 2019 10:05 am

Most of my stuff is at Vanguard, but my son just opened a Fidelity account with $100. For most common funds, Fidelity is quite competitive with Vanguard. Many think Fidelity has better customer service.

22twain
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Re: Alternative to $3,000 minimums at Vanguard

Post by 22twain » Mon Jun 17, 2019 11:33 am

goblue100 wrote:
Mon Jun 17, 2019 9:32 am
Or start with VTSAX and add other funds when you have enough money.
This. After you have the three funds in place with their minimums, you can add new money to them in any amounts you like. It won't kill you to have an imperfect asset allocation for 9-12 months at the very beginning of your investing "career."
My investing princiPLEs do not include absolutely preserving princiPAL.

BV3273
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Re: Alternative to $3,000 minimums at Vanguard

Post by BV3273 » Mon Jun 17, 2019 11:42 am

No one mentioned trading costs. Schwab is $4.95. Tough to beat in my book.

mervinj7
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Re: Alternative to $3,000 minimums at Vanguard

Post by mervinj7 » Mon Jun 17, 2019 11:52 am

BV3273 wrote:
Mon Jun 17, 2019 11:42 am
No one mentioned trading costs. Schwab is $4.95. Tough to beat in my book.
Trading costs are rarely mentioned since most folks are not trading individual stocks or even non commission-free ETFs.

Silence Dogood
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Joined: Tue Feb 01, 2011 9:22 pm

Re: Alternative to $3,000 minimums at Vanguard

Post by Silence Dogood » Mon Jun 17, 2019 12:00 pm

The Vanguard Target Retirement funds ($1,000 minimum) include the three funds you've listed above, along with a small amount of international bonds (30% of the bond allocation).

They also automatically rebalance, so they require very little work.

Just make sure that you are comfortable with the asset allocation.

My portfolio is 100% in a Vanguard Target Retirement fund. I have enough to buy the underlying funds separately, but I like the simplicity of an all-in-one fund.

Keep in mind that the amount you are able to save will matter much more than small differences in asset allocation and expense ratio.
Last edited by Silence Dogood on Mon Jun 17, 2019 12:09 pm, edited 2 times in total.

transient_academic
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Joined: Thu Oct 04, 2018 10:06 am

Re: Alternative to $3,000 minimums at Vanguard

Post by transient_academic » Mon Jun 17, 2019 12:03 pm

I was also stymied by the minimums (which used to be higher I think?) when I was starting. I think the ETFs are a good way to get yourself set up with the allocation you want until you have enough to convert to the mutual funds. Since it's a Roth you don't have to worry about any capital gains when you convert. There are some differences but the main reason to convert to the mutual funds when you can is Vanguard won't do automated investing in ETFs but will do it into mutual funds. If you prefer buying the mutual funds one at a time like others recommend that will be fine too.

ETF > MF
VTI > VTSAX
VXUS > VTIAX
BND > VBTLX

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