Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
nuts and bolts question about Vanguard
Old 04-13-2012, 10:13 AM   #1
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
nuts and bolts question about Vanguard

I'm not asking advice, just want to know what's possible when using a discount brokerage.

Are all funds available, irregardless if the money used is taxable or tax exempt? For example, if I have an IRA account, a taxable account, and tax deferred money from a third source, could I set up the three different accounts but buy into the same balanced fund; like buying shares Vanguard 500 in each account.

A simple question, but I'm firming up my plans and want to make sure I understand how the system works.
__________________

__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-13-2012, 10:18 AM   #2
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,465
Quote:
Originally Posted by seraphim View Post
I'm not asking advice, just want to know what's possible when using a discount brokerage.

Are all funds available, irregardless if the money used is taxable or tax exempt? For example, if I have an IRA account, a taxable account, and tax deferred money from a third source, could I set up the three different accounts but buy into the same balanced fund; like buying shares Vanguard 500 in each account.

A simple question, but I'm firming up my plans and want to make sure I understand how the system works.
seraphim, at any brokerage you can buy or sell stocks or ETFS. Not every mutual fund is available at every brokerage. If you are thinking about relocating all your assets to one online brokerage, you should check first to make sure that all the funds you want are available there.
__________________

__________________
MichaelB is offline   Reply With Quote
Old 04-13-2012, 10:34 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
Quote:
Originally Posted by seraphim View Post
I'm not asking advice, just want to know what's possible when using a discount brokerage.

Are all funds available, irregardless if the money used is taxable or tax exempt? For example, if I have an IRA account, a taxable account, and tax deferred money from a third source, could I set up the three different accounts but buy into the same balanced fund; like buying shares Vanguard 500 in each account.

A simple question, but I'm firming up my plans and want to make sure I understand how the system works.
Absolutely. We have 5 accounts with Vanguard, 1 taxable and 4 IRAs - and you can buy any stock or fund (Vanguard or many others) as you wish for each account (including the same fund in several as you asked specifically).

I don't think you're asking, but in case ("third source"), you can also have your statements show your holdings at other institutions (automatically updated). For example, while I was working our portfolio statement showed our 5 Vanguard accounts plus our 401ks which were at Schwab and Prudential. Handy to be able to see them all in one place, and especially for viewing portfolio analysis/asset allocation all together.

But as Michael pointed out, all these features are probably available at any brokerage, not just Vanguard. If anything, Vanguard tends to be a little behind others in terms of statements and tools offered, though Vanguard meets the needs of most investors.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 04-13-2012, 10:44 AM   #4
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,670
I have 6 accounts at Vanguard 2 Roth's 2 tIRA's and 1 joint account, 1 joint brokerage account. 5 have the same balanced fund in them.
__________________
For me experiences are not good or bad, just different
grasshopper is offline   Reply With Quote
Old 04-13-2012, 12:10 PM   #5
Recycles dryer sheets
justplainbll's Avatar
 
Join Date: Sep 2011
Location: Easten Long Island
Posts: 414
Our Vanguard ROTH account limits investments to mutual funds.
__________________
justplainbll is offline   Reply With Quote
Old 04-13-2012, 12:14 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,610
One small point.
Not all brokerages will let you own the lower cost Vanguard Admiral shares; just the regular Investor class shares.
__________________
Pas de lieu Rhône que nous.
braumeister is offline   Reply With Quote
Old 04-13-2012, 12:51 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,625
And not all brokers charge the same commissions for the various products that you may wish to buy. For example, Vanguard allows to some extent no commissions when you purchase a Vanguard ETF, but Vanguard charges a commission when you purchase a non-Vanguard ETF.

As for Vanguard Admiral shares: it is true that non-Vanguard brokers often will not sell them. Some brokers will sell Admiral shares of the non-index funds such as GNMA or Wellington, but not the Admiral shares of the index funds such as Total Stock Market Index. OTOH, they may sell the Vanguard Signal shares which have the same low expense ratio but a much lower initial minimum investment. That is, there are some brokers that are even better for Vanguard products than Vanguard.
__________________
LOL! is offline   Reply With Quote
Old 04-13-2012, 01:58 PM   #8
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,670
Quote:
Originally Posted by justplainbll View Post
Our Vanguard ROTH account limits investments to mutual funds.
Years ago, and maybe still you were allowed to set up a Self Directed IRA in a Vanguard Brokerage Account.
__________________
For me experiences are not good or bad, just different
grasshopper is offline   Reply With Quote
Old 04-13-2012, 02:21 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,625
Quote:
Originally Posted by justplainbll View Post
Our Vanguard ROTH account limits investments to mutual funds.
That's because you need to open a Vanguard Brokerages Services account in order to buy anything but Vanguard mutual funds. And your VBS account cannot be used to buy Vanguard mutual funds. So your Roth will need to have 2 accounts at Vanguard if you want Vanguard mutual funds and other investments such as Fidelity mutual funds or stocks or Vanguard ETFs.
__________________
LOL! is offline   Reply With Quote
Old 04-13-2012, 03:30 PM   #10
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
Thanks all. I thought that would be the case, but wanted to be sure before I called. The Vangard funds seem suitable for our needs, and I'm not intending to use a broker: just invest in some of the balanced index funds

Just getting my feet wet.
__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Old 04-15-2012, 01:04 PM   #11
Recycles dryer sheets
 
Join Date: Mar 2011
Posts: 64
LOL!,
What does Vanguard charge to open a Vanguard Brokerages Services account?

Have you done this? If yes, did it work out as planned? Were there extra fees or perks that you were not expecting?



Thanks,


JP
__________________
JP.mpls is offline   Reply With Quote
Old 04-15-2012, 01:31 PM   #12
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,670
I have had a brokerage account with Vanguard longer than I can remember. Works fine, no fee, preFlagship and after.
__________________
For me experiences are not good or bad, just different
grasshopper is offline   Reply With Quote
Old 04-15-2012, 03:05 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,193
Quote:
Originally Posted by JP.mpls View Post
LOL!,
What does Vanguard charge to open a Vanguard Brokerages Services account?

Have you done this? If yes, did it work out as planned? Were there extra fees or perks that you were not expecting?



Thanks,


JP
No charge to open the account. I get 25(?) free trades as a Flagship member. Other than that it doesn't seem different from any other discount brokerage. I can't tell if they do as good of a job filling orders but I haven't noticed that they don't.
__________________
RunningBum is offline   Reply With Quote
Old 04-15-2012, 03:26 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,625
Quote:
Originally Posted by JP.mpls View Post
LOL!,
What does Vanguard charge to open a Vanguard Brokerages Services account?

Have you done this? If yes, did it work out as planned? Were there extra fees or perks that you were not expecting?
As the others have written, it costs nothing to open a VBS account. We have done this. It has basically worked out as planned with no extra fees. BUT ....

1. We do not purchase non-Vanguard products.
2. We have enough money at Vanguard to avoid the $20 annual fee.
3. VBS always is at least 24 hours late posting dividends to your account. That is, you get your money a day sooner if you use another free broker. This is an "anti-perk" of VBS.
4. VBS does not update your transactions instantly which all my other brokers do. Even if you only make 1 or 2 trades a year, this is annoying.

If you want a recommendation and you have the $25,000 or $50,000 minimum to open a WellsFargo PMA package with free online trades, then do that instead of Vanguard. Both Vanguard and non-Vanguard products are no-commission with the WellsFargo discount online broker (which is not to be confused with the in-bank rip-off WellsFargo advisors of similar name).
__________________
LOL! is offline   Reply With Quote
Old 04-17-2012, 04:35 AM   #15
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
Is there an increase in the cost buying Vanguard through WellsFargo?
__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Old 04-17-2012, 05:36 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,625
Quote:
Originally Posted by seraphim View Post
Is there an increase in the cost buying Vanguard through WellsFargo?
So far, not for me.
__________________
LOL! is offline   Reply With Quote
Old 04-17-2012, 06:48 AM   #17
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
Thanks
__________________

__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 03:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.