KATNYC wrote: ↑
Sun Jan 14, 2018 9:37 pm
jhfenton wrote: ↑
Fri Nov 10, 2017 1:45 pm
Also, if you are determined to use Vanguard mutual funds, you can make one initial purchase, and then set up free periodic investments on whatever schedule you want. So the mutual fund commission is only on the original purchase (and probably the eventual sale), not every year. (But I wouldn't use Vanguard mutual funds, or any mutual funds, at TD Ameritrade at this point.)
Can you expound on this free periodic investment?
We are more interested in Lively after dismissing them initially as a startup.
If we go with Lively, we will open 2017 accounts with $6,750 & invest in Vanguard ETF's - leaning toward VTI.
For 2018 contributions, presuming the payroll deduction is processed quickly with my megacorp, it will be a periodic investment with $300 deducted per pay period to hit $6,900 by December. Is there an option to do this for free with Lively rather than pay $6.95 commissions?
It's possible with TD Ameritrade to set up mutual fund periodic investments. For years, I had it set up for three mutual funds on a quarterly rotation in my Roth IRA at TDA. Every month, I'd put in the $416.66 ($5000 / 12) the day before the scheduled automatic investment, and it would be invested the next day. Two of the three funds had transaction fees, but I only had to pay the transaction fee the first time I bought the funds. The periodic investments and dividend reinvestments were free.
There's no reason you couldn't do the same thing with a mutual fund inside a TDA HSA brokerage account if you have money coming in on a regular basis.
But there's no way to auto-invest in an ETF.
The other option is calling up and requesting a free trade or three. I convinced TDA to give me three free trades, and I used one to invest most of my lump sum transfer into EMGF (iShares EDGE MSCI Multifactor Emerging Markets ETF). Going forward, I'm investing my quarterly transfers in commission-free SPEM. Then once a year or so, I'll ask for another free trade or two and consolidate my SPEM into EMGF. There's no reason you couldn't do the same with VTI and SPTM. (If you have other accounts there, it should be even easier for you. I no longer had the leverage of other business.)
To be honest, though, I'd use SPTM and call it a day. At 3 bp, it looks to be a fine replacement for VTI. If I hadn't decided to seize the opportunity to buy an emerging markets factor fund, I would have been happy with SPEM as a replacement for VWO.