nuts and bolts question about Vanguard

[seraphim]

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.

[MichaelB]

Quote:

Originally Posted by seraphim 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.

[Midpack]

Quote:

Originally Posted by seraphim 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.

[grasshopper]

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.

[justplainbll]

Our Vanguard ROTH account limits investments to mutual funds.

[braumeister]

One small point.
Not all brokerages will let you own the lower cost Vanguard Admiral shares; just the regular Investor class shares.

[LOL!]

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.

[grasshopper]

Quote:

Originally Posted by justplainbll 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.

[LOL!]

Quote:

Originally Posted by justplainbll 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.

[seraphim]

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.

[JP.mpls]

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

[grasshopper]

I have had a brokerage account with Vanguard longer than I can remember. Works fine, no fee, preFlagship and after.

[RunningBum]

Quote:

Originally Posted by JP.mpls 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.

[LOL!]

Quote:

Originally Posted by JP.mpls 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).

[seraphim]

Is there an increase in the cost buying Vanguard through WellsFargo?

[LOL!]

Quote:

Originally Posted by seraphim Is there an increase in the cost buying Vanguard through WellsFargo?

So far, not for me.

[seraphim]

Thanks