Buying TRF's with Scottrade

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Investor50
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Joined: Mon Jan 03, 2011 4:41 pm

Buying TRF's with Scottrade

Post by Investor50 » Wed Apr 13, 2011 5:14 am

Hey guys,

I have a Scottrade account with about 10k in it, half is already allocated towards emerging markets and doing quite well. The other half is just sitting there as cash, as I have not invested the monthly deposits lately. ( P.S. my biggest gripe with Scottrade is no DRIP)

Does it make any since to just put the 5k cash into VTHRX through Scottrade. I'm tired of the cash sitting in there and not doing any work. I'm not quite ready to switch from Scottrade to Vanguard, although its a possibility.

what fees while I have over the .18.

Thanks

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anthau
Posts: 146
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Location: Laramie, WY

Post by anthau » Wed Apr 13, 2011 8:30 am

There's not enough information to answer your question: Please read Asking Portfolio Questions and edit your post.

Scottrade will charge $17 to purchase and $17 to sell a TF fund. One can do dividend reinvestment with mutual funds at Scottrade, but not with stocks or ETFs.
Best, | | Anth

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anthau
Posts: 146
Joined: Wed Feb 21, 2007 5:29 pm
Location: Laramie, WY

Post by anthau » Wed Apr 13, 2011 9:09 am

I read your first post, and from it I gather that you're 27 and have about 40% in your Scottrade account (though it's unclear whether this is a Roth IRA, traditional IRA, or taxable), and about 60% in a 457 plan with no match.

Allocation is roughly:

Scottrade
20% Cash
20% Ivy Asset Strategy Y (WASYX) (ER 1.0%)
Edit: Or in a newly-acquired emerging markets fund

457 Plan
50% Vantagepoint Milestone 2035 (VPRLX) (ER 1.0%)
10% Divided among three other funds

Question 1: What kind of debts do you have and at what interest rates?
Question 2: Does your 457 plan have any options with an expense ratio (ER) of 0.5% or less? If so, what? If not, what's the cheapest fund available?
Question 3: What kind of account do you have at Scottrade (Roth, traditional, or taxable)?

I'd still read Asking Portfolio Questions, above; answering these questions is just a start.

Also, you can reinvest dividends from mutual funds at Scottrade, just not from ETFs.
Last edited by anthau on Wed Apr 13, 2011 9:44 am, edited 1 time in total.
Best, | | Anth

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nisiprius
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Post by nisiprius » Wed Apr 13, 2011 9:27 am

Just a caution. IMHO the phrase "your money should be working harder" is typically a sales pitch from someone who wants you to invest your cash in something they're selling. Money doesn't work. You worked to earn that money. Set aside fantasies of yourself as Simon Legree cracking that whip at your money and saying "Back to work, you lazy money you!"

What you can do with the money you worked for is risk it in hope of the potential for more reward. It's usually a pretty good idea to take some risk with some of your investments. But the thing is, the thing is, that potential was always there. If you are willing to take the risk now, why weren't you willing to take it before?

It's sucky that lower-risk investments are earning so little now, but sometimes that happens. You want to be really careful about understanding your own risk tolerance.

Cash is good. It's no crime to have cash sitting around earning nothing. There can be worse things than a 0% return:

Image

P. S. Half cash, half emerging markets seems weird to me. Rice-crispies-with-Habañero peppers. Why not just make it all Target Retirement 2030?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

Default User BR
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Joined: Mon Dec 17, 2007 7:32 pm

Post by Default User BR » Wed Apr 13, 2011 12:17 pm

Old Seinfeld routine:

I'm not an investor. People always tell me, you should have your money working for you. I've decided I'll do the work. I'm gonna let the money relax. You know what I mean? 'Cause you send your money out there - working for you - a lot of times, it gets fired.

You go back there, "What happened? I had my money. It was here, it was working for me."

"Yeah, I remember your money. Showing up late. Taking time off. We had to let him go."



Brian

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