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.
Retiree with a pension and a 60/40 taxable portfolio: Total Stock + Total Int'l + Total Bond + Interm Term Tax Exempt.

AlwaysWannaLearn
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Re: Vanguard or Charles Schwab account

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

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Last edited by AlwaysWannaLearn on Wed Jul 18, 2018 11:54 pm, edited 2 times in total.

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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).

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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 think 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.
Last edited by MrPotatoHead on Tue Jun 19, 2018 12:50 am, edited 1 time in total.

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.

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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.
Real Knowledge Comes Only From Experience

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.

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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.

sturaga86
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Re: Vanguard or Charles Schwab account

Post by sturaga86 » Mon Jun 18, 2018 10:02 pm

Thanks every one for the response!! I don't have anything against Fidelity just want to try something else as i keep hearing a lot about the other vendors.May be I will try and see which one i like!! :happy

iamblessed
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Re: Vanguard or Charles Schwab account

Post by iamblessed » Mon Jun 18, 2018 11:11 pm

I looked at several brokerages but Vanguard seems to pay the most for cash.

limeyx
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Re: Vanguard or Charles Schwab account

Post by limeyx » Tue Jun 19, 2018 12:54 am

TwstdSista wrote:
Fri Jun 15, 2018 4:10 am
My 2 cents -- Taxable account? Vanguard. Retirement account? Schwab.
I have the opposite and totally happy.
ETFs (all vanguard) @ Schwab (no commission due to free trades) and MF's in IRA @ Vanguard

But probably either way around works totally fine

Schwab customer service is really really awesome or I'd just move it all to Vanguard most likely

G-Force
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Re: Vanguard or Charles Schwab account

Post by G-Force » Tue Jun 19, 2018 1:22 pm

limeyx wrote:
Tue Jun 19, 2018 12:54 am
TwstdSista wrote:
Fri Jun 15, 2018 4:10 am
My 2 cents -- Taxable account? Vanguard. Retirement account? Schwab.
I have the opposite and totally happy.
ETFs (all vanguard) @ Schwab (no commission due to free trades) and MF's in IRA @ Vanguard

But probably either way around works totally fine

Schwab customer service is really really awesome or I'd just move it all to Vanguard most likely
How did you get free trades at schwab? Do they give free trades for having high balances?

Nthomas
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Re: Vanguard or Charles Schwab account

Post by Nthomas » Tue Jun 19, 2018 6:42 pm

FWIW...I just transferred/rolled over my Schwab traditional IRA into my Schwab i401k last week to allow for backdoor Roth IRA contributions. There was a tiny dividend remaining in the tIRA after the transfer and I just called tonight to inquire. I found out it would have automatically transferred at the end of the month but the CS rep reached out to two different departments to make it happen tonight even though I said I was ok waiting until the EOM. She then called me back to update me on the progress...for a tiny dividend! Schwab customer service has always been top notch for me. Can't imagine any better. I have VG as well and Schwab reps are usually light years ahead of VG reps in my experience. My VG reps vary from high school intern level to the utmost knowledgable and professional. With Schwab it seems to be more consistently high level service.

limeyx
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Re: Vanguard or Charles Schwab account

Post by limeyx » Wed Jun 20, 2018 12:14 am

G-Force wrote:
Tue Jun 19, 2018 1:22 pm
limeyx wrote:
Tue Jun 19, 2018 12:54 am
TwstdSista wrote:
Fri Jun 15, 2018 4:10 am
My 2 cents -- Taxable account? Vanguard. Retirement account? Schwab.
I have the opposite and totally happy.
ETFs (all vanguard) @ Schwab (no commission due to free trades) and MF's in IRA @ Vanguard

But probably either way around works totally fine

Schwab customer service is really really awesome or I'd just move it all to Vanguard most likely
How did you get free trades at schwab? Do they give free trades for having high balances?
I've had good success with finding a Merril Lynch transfer bonus for my current, going on chat and asking them if they can match it to keep me (I always mention I love their fantastic customer service)

They never meet the cash bonus but twice now have offered 50-100 free ETF trades which I gratefully accept

I dont think the free trades apply to MF's though (but I only have taxable @ Schwab and use ETFs in taxable so it works for me)

I guess this may not work forever though but I dont do that many trades (mostly rebalancing and investing dividends 4 times a year)

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ruralavalon
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Re: Vanguard or Charles Schwab account

Post by ruralavalon » Wed Jun 20, 2018 9:44 am

Welcome to the forum :) .

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?
All three are good firms for index fund investing.
sturaga86 wrote:
Mon Jun 18, 2018 10:02 pm
Thanks every one for the response!! I don't have anything against Fidelity just want to try something else as i keep hearing a lot about the other vendors.May be I will try and see which one i like!! :happy
What type of account do you have with Fidelity?

Are you dissatisfied with Fidelity for some reason? In general I prefer the convenience of having all accounts with a single fund firm. Please consider keeping everything at Fidelity.

What type of account do you plan on opening at the other firms?

For funds and location of accounts I usually suggest
1) Vanguard,
2) Fidelity, or
3) Schwab
in that order of preference.

Vanguard has by far the largest selection of low expense mutual funds offered anywhere. I also like Vanguard's mutual structure, Vanguard is owned by the Vanguard funds, has no other shareholders, and so conflicts of interest with shareholders don't exist. Both Vanguard and Fidelity have a larger selection of low expense index funds than does Schwab. We have all of our accounts at Vanguard, and use only Vanguard index funds.

Both Fidelity and Schwab have local customer service offices in some cities, but Vanguard does not. None have a local office near me, so that was not a factor in my choice. A local office is important for some, but in my opinion not at all necessary. We have had no problems with the rare phone consultations that were necessary. I call Vanguard once per year at most, some years not at all. Once a reasonable investing plan is set up, it requires almost no attention. Some people prefer the customer service at Fidelity or Schwab.

Schwab does not offer a total international stock index fund, both Vanguard and Fidelity do. Vanguard stock index funds are more tax-efficient, which is important if you are using a taxable account. Vanguard offers a larger selection of tax-exempt bond funds than either Schwab or Fidelity, which can be important if you are using a taxable account and are in a high tax bracket. Vanguard offers a small-cap value index fund, but Schwab and Fidelity do not, which is important if you are interested in value investing.

For index funds the differences in expense ratios are tiny, and are inconsequential.

Schwab does have initial minimum investments of just $1, which is important for very new investors with low income.
Last edited by ruralavalon on Wed Jun 20, 2018 10:07 am, edited 3 times in total.
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Sandtrap
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Re: Vanguard or Charles Schwab account

Post by Sandtrap » Wed Jun 20, 2018 10:04 am

I used to be in Fidelity, Schwab, and Vanguard, then switched to Schwab and Vanguard.
Now, all funds are in Vanguard and Schwab is Tier 1 and 2.
Vanguard's larger family of in house funds and low costs are excellent.
j

tbird
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Re: Vanguard or Charles Schwab account

Post by tbird » Wed Aug 01, 2018 9:04 am

As a user of all the sites mentioned previously I recommend Schwab. Schwab's website is light years better than Vanguard's. Vanguards site is circa 1990, it's incredibly clunky and not user-friendly at all.

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