Taxable accounts

[xmanz3]

What are some of the taxable account options out there you are using to put your money away for ER?

 

[brewer12345]

Um, a brokerage account where I can buy just about anything does it for me. Did you have something specific in mind?

 

[xmanz3]

Not really. I'm currently putting some of my money away on a ROTH IRA, Mutual Funds and MM.

 

[brewer12345]

So the funds and MM are after tax investments, right A taxable brokerage account is nothing special. You just have access to a wide array of mutual funds, plus bonds, ETFs, stocks and other vehicles.

 

[xmanz3]

What brokerage account are you using and how much do they charge?

 

[brewer12345]

What brokerage account are you using and how much do they charge?

I use Schwab. They used to be significantly more expensive, but after a few rounds of price cuts, they are competitive with Fidelity, VG, Ameritrade, etc. Like most brokers, they seem to give better service if you have more assets with them. Each broker also has strengths and weaknesses. Schwab, for example, is sometimes lacking in low cost index funds, but with access to ETFS I don't really care.

 

[Nords]

What are some of the taxable account options out there you are using to put your money away for ER?

X-man, I think one of the reasons you're having so much trouble teasing out a response is because posters are afraid of being accused of not taking you seriously.

You're asking a big, broad, vague question along the lines of "How do you save money?".  I can't figure out what you're really trying to learn.  

Investors use mutual funds from individual companies, or brokerage accounts that will hold those funds as well as stocks & bonds and other assets, or credit unions for CDs & money markets.  ETFs are generally held through brokerage accounts.  Brokerages are generally the most flexible ways to handle all your investments in a single account, although the caveats & exceptions are numerous.

Two of the bigger & better brokerages out there are Fidelity & Vanguard.  There are a dozen others tied for first or second place with these gorillas, and they all specialize in various niches for various fees.  They're all relatively cheap with various degrees of hand-holding, and each one is fiercely defended by their supporters or scathingly criticized by their detractors.  Some charge less for bigger accounts, others charge less for less service.  Search this board for the keywords or Google "brokerage rankings" for more reading.

But you don't need a brokerage to hold taxable assets.  You can continue to buy & hold mutual funds from the fund companies that offer them.

Tell us more about what's on your mind and what you want to know, and maybe you can get a better answer.

 

[LOL!]

For our taxable accounts, we use 3 different places currently:

1. TDAmeritrade - we have been long time TDWaterhouse customers and it was bought by Ameritrade.  In this account we have invested in stock and options, but nowadays we have mostly ETFs.  Trades have always been $9.95 for us.

2. Vanguard - we have been long-time Vanguard customers.  We like the return of the MM fund for cash, the free financial plan, the website's portfolio analysis software.  Besides the MM fund, we own Vanguard HealthCare and some funds in rollover IRAs.  We have used their index funds, but we are into ETFs nowadays and not Vanguard index funds.

3. WellsFargo - we have our checking account there (free everything) and a linked brokerage account.  We had to switch from TDWaterhouse bank when TDW was bought by Ameritrade.  That got us into the brokerage at WellsFargo as well, where our trades are $2.95 (even for those funds with transaction fees like Dodge&Cox, much much cheaper than TDAm).  Eventually our trades will be free.  I think this is the best deal going if you have have enough assets.  The MM fund used for the sweep pays 4.6%, not as good as Vanguard, but much, much better than TDAmeritrade.  Anytime we sell something in our TDAmeritrade account, we transfer the cash to our WellsFargo account.

Indeed, I have the dilemma of Vanguard vs WellsFargo when it comes to which is better.

Vanguard has better MMfund rate than WF -- the difference amounts to $500 a year interest for us, but at WF I can even DCA into ETFs for virtually no cost and I get all the perceived benefits of intraday trading, limit orders, margin, options, etc.  It takes a day or two to transfer funds from Vanguard to WF and back.  Vanguard is a bit slow and stodgy for my tastes, but you can't argue with success.

 

[xmanz3]

Nord,

I really don't know where are you getting your information, but I just posted this topic not even an hour ago and I already received 5 responses including yours. It seems that you are a highy critical person and there is nothing wrong with that. I am a young individual that doesn't have too much experience investing, but I enjoy coming to this forum and read about people perspectives regarding all kind of financial topics.

In reference to my topic, I don't see anything wrong asking other members what are some of the taxable accounts or vehicles they use to invest.

If someone else find my topic "vague" as Nords stated, I'm open for your comments.

 

[Nords]

X-man, I think one of the reasons you're having so much trouble teasing out a response is because posters are afraid of being accused of not taking you seriously.

I really don't know where are you getting your information, but I just posted this topic not even an hour ago and I already received 5 responses including yours. It seems that you are a highy critical person and there is nothing wrong with that.

Blam! Right between the eyes...

In reference to my topic, I don't see anything wrong asking other members what are some of the taxable accounts or vehicles they use to invest.
If someone else find my topic "vague" as Nords stated, I'm open for your comments.

There's nothing wrong with what you're doing.  I'm just having a difficult time figuring out what you're asking since your first question seemed extremely broad.  Comparing your second question to your first helps a little but it also could make someone wonder where you're headed.

There are thousands of variations on this subject between this board and other investing boards like M* or Yahoo!.  There are also dozens of articles based on Consumer Reports & J.D. Powers research.  It seems to me that they'll give you just as good an answer, if not a better one, without having to reinvent the question.

But hey, I hope you find what you're looking for.

 

[eridanus]

If someone else find my topic "vague" as Nords stated, I'm open for your comments.

It just seemed like a beginner question, that's all.

I recommend Scottrade, if you want inexpensive stock commissions. I have my Roth with them. I also have a traditional brokerage account with them where I own some emerging market ETFs. (Though the WellsFargo account LOL mentioned sounds pretty damn good.)

Vanguard is a great choice but only if you have the minimum needed to avoid the account fees. Don't use them for stock/ETF trades -- too expensive.


LOL, you have to tell Ameritrade that you want your cash to be sweeped into a money market. Or so I just read.

 

[xmanz3]

Nords,

Thanks for the advise and I would keep that in mind next time I post a question.

 

[LOL!]

LOL, you have to tell Ameritrade that you want your cash to be sweeped into a money market. Or so I just read.

In our TDAm account cash is swept into a money market.  It's just that the MM pays a doodly squat interest rate.

TDAm has a better web site than WF, so I use WF only to pull the trigger.  I use TDAm for research and quotes that are not available for free elsewhere.

Eventually, our TDAm account will hold only long term ETF and stock positions.  All cash will be transferred elsewhere and we will make no trades in that account ... unless they give us a block of free trades.

 

[SteveR]

My 2 cents..well actually a bit more than that....

Vanguard...brokerage account. MM account. Various funds.

Citigroup (formally Smith Barney..formally Brown..formally I can't remember what else)-brokerage...Muni bond fund. I have a couple of IRA rollover accounts there and they give me a break on the sales commissions.

E*Trade--brokerage account.

Credit Union-CD, MM fund, savings accounts

Piggy bank at home.

 

[mathjak107]

i shifted most of my income generating stuff to my ira's and buy my stocks and funds thru my taxable....it can add a lot by not paying taxes now on dividends and interest while taking advantage of low capital gains rates and loss write offs in the taxable accounts

 

[cons]

I use TRP brokerage and Scottrade for the taxable accounts. i think scottrade charges $7/trade but it's been a long time since i've bought anything through them. i only have mutual funds in my TRP brokerage account, all NTF, thus i don't pay any commission fees.

what do you plan on buying for your taxable account? stocks, etfs, mutual funds, etc that may make a difference on what may/may not be a suitable choice.

as for me, i don't play with individual stocks. only mutual funds....and MAYBE etfs in the future, but i stay away from individual stocks.

I do have a couple of MM/savings accounts but i personally don't count them towards my retirement portfolio as those funds are there to be used for the near/short term.


good luck

eddie