Vanguard IRA question

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NewBoglehead88
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Joined: Wed Nov 27, 2019 12:05 am

Vanguard IRA question

Post by NewBoglehead88 » Sun Dec 01, 2019 9:48 pm

Opened up a vanguard IRA and just did a small contribution to understand the basics. Just $50 bucks. Can I not buy any stocks because everything under the buy and sell tabs has like 1000-3000 dollar purchase options. Or am I under the wrong section of the website?

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arcticpineapplecorp.
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Re: Vanguard IRA question

Post by arcticpineapplecorp. » Sun Dec 01, 2019 9:52 pm

that's for mutual funds. if you buy etfs you can buy just 1 share:
The minimum initial investment for Vanguard Target Retirement Funds and Vanguard STAR Fund is $1,000. A $3,000 minimum applies to most other Vanguard mutual funds. For ETFs (exchange-traded funds), the minimum initial investment is the price of 1 share. ... Vanguard provides services to the Vanguard funds and ETFs at cost.
https://www.google.com/search?client=fi ... a+minimums
Avoid the $20 annual account service fee by registering your accounts online and signing up for e-delivery.
source:https://investor.vanguard.com/ira/how-to-open-an-ira
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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Re: Vanguard IRA question

Post by Outer Marker » Sun Dec 01, 2019 9:55 pm

NewBoglehead88 wrote:
Sun Dec 01, 2019 9:48 pm
Opened up a vanguard IRA and just did a small contribution to understand the basics. Just $50 bucks. Can I not buy any stocks because everything under the buy and sell tabs has like 1000-3000 dollar purchase options. Or am I under the wrong section of the website?
Some funds have purchase limits, but you can always but the Exchange Traded Fund equivalent of most funds with no purchase limits. Without more substantial holdings, however, you will likely be subject to a small brokerage fee to do the trade Paying $6.00 commission on a $5,000 trade is not a big deal. But $6.00 on a $50 contribution is a more than 10% loss. So, minimize your transactions if you want to be invested.

Good on 'ya for starting on your way . . .

Topic Author
NewBoglehead88
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Re: Vanguard IRA question

Post by NewBoglehead88 » Sun Dec 01, 2019 10:03 pm

Thanks! If I just buy and hold though I won’t pay a fee correct?

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Re: Vanguard IRA question

Post by Outer Marker » Sun Dec 01, 2019 10:07 pm

Let me correct myself. It appears that vanguard no longer charges a fee for trading their ETF's. . . .

https://investor.vanguard.com/investing ... sions/etfs

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Wiggums
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Re: Vanguard IRA question

Post by Wiggums » Sun Dec 01, 2019 10:13 pm

NewBoglehead88 wrote:
Sun Dec 01, 2019 10:03 pm
Thanks! If I just buy and hold though I won’t pay a fee correct?
Avoid the $20 annual account service fee by registering your accounts online and signing up for e-delivery.

With only $50 in your IRA, unfortunately, you can’t buy much. Mutual funds have $1,000 and higher minimum to get started.

tesuzuki2002
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Re: Vanguard IRA question

Post by tesuzuki2002 » Sun Dec 01, 2019 10:43 pm

NewBoglehead88 wrote:
Sun Dec 01, 2019 9:48 pm
Opened up a vanguard IRA and just did a small contribution to understand the basics. Just $50 bucks. Can I not buy any stocks because everything under the buy and sell tabs has like 1000-3000 dollar purchase options. Or am I under the wrong section of the website?
You can buy the ETFs... but can you put more in the IRA??? I mean really you have a $6K limit for 2019... can you up the value and get more cash in there?

Topic Author
NewBoglehead88
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Re: Vanguard IRA question

Post by NewBoglehead88 » Mon Dec 02, 2019 1:43 pm

At the moment I cannot as I just became debt free and am contributing 20% into my 401k and building up my emergency fund. I just wanted to kind of toy around and look at the different vanguard options but may have to wait until I have 1000 to buy a mutual fund

retire2022
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Re: Vanguard IRA question

Post by retire2022 » Mon Dec 02, 2019 6:16 pm

Op the target funds are $1000 to open, go to the website for the target date when you reach 67 full retirement age

https://investor.vanguard.com/mutual-fu ... file/VTXVX

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