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Tykimeister · 02-15-2016, 05:15 AM

Hello, I have been maxing my roth IRA vanguard SP 500 account every year for the past 6 or so years. The shares changed from the standard SP 500 to the admiral shares after the first couple of years.

I want to purchase SP 500 from vanguard (to keep my accounts in one location) in a brokerage account. However, the minimum investment at Vanguard is $10,000. Will the amount of money I have in my IRA assist with me opening a brokerage account with SP500 to avoid the minimum investment? Obviously I'm trying purchase SP500 for less than $10,000. Based on what I have tried online in my account there isn't any way around the minimum. Will I be able to call them and arm wrestle?

I currently just have Vanguard Roth IRA with all SP500. And a money market fund for holding money until next years IRA, etc.

Thanks!

NgineER · 02-15-2016, 05:30 AM

The 10,000 minimum is only for the admiral shares, and you'd need to meet the minimum for each separate account in my experience.
I have S&P 500 in several different accounts, but did not get admiral shares in each of the accounts until I met the minimum in them.

Texas Proud · 02-15-2016, 11:22 AM

I have read your question a few times and I am not sure what you are really asking... more info needed...

You say you have money in an Admiral account... then talk about $10K... is that the amount you have in the S&P account?

Do you have more than this one account at Vanguard?

Are you planning to open up a brokerage account at Vanguard?

If so, then how much money are you going to be depositing for this brokerage?

Is this going to be IRA money or after tax money?

From what I am guessing, you do not have $10K sitting around to invest.... if this is so, then I do not think you can open the brokerage account (not sure of the minimum, but you say $10K).... But, if you do, there is NO requirement that you actually invest all the money... it can sit in a MM account.... you can invest the amount that you want to invest....

fosterscik · 02-15-2016, 12:11 PM

OP - you're overthinking this. The annual difference in cost for $9,000 in investor class vs. admiral class is only $11 (0.12%). Calling Vanguard to try to get admiral status would not be a good use of my time to save $11. Once you hit $10,000 the investment will automatically switch to admiral.

Tykimeister · 02-16-2016, 05:15 AM

Ok, I think I didn't explain it right.

I have a roth IRA that consists of only SP500. The shares are not admiral shares of SP500 because the balance of the account met the requirement.

To open a brokerage account at Vanguard, it shows that you must have $10k as a minimum initial investment to purchase SP500. I could care less if they are admiral or not. I just want to purchase more SP500 but do not have more than $10k to throw in it right now.

I am currious if my balance in the roth IRA will assist me in opening a brokerage account at Vanguard to purchase SP500, even though I do not have $10k to put in it ( in = brokerage account).

Thanks,
Ty

gauss · 02-16-2016, 06:15 AM

If you like the Vanguard Brokerage account, have you considered performing a trustee-to-trustee transfer of the current Roth IRA from its current Mutual Fund ownership structure into a new Brokerage account?

-gauss

meierlde · 02-16-2016, 08:26 AM

Vanguard says that the minimum investment in the S&P 500 fund is 3k. The 10k involves the $20 fee for mail delivery of statements. It is 10k for admiral class. Now this is with direct purchase. Of course if your at some other broker you could just buy the ETF for (VOO) and get about the same expense ratio, with a minimum investment of 1 share. With vanguard brokerage for the etf which trades commission free the same is true.

Texas Proud · 02-16-2016, 08:30 AM

Quote:

Originally Posted by Tykimeister

Ok, I think I didn't explain it right.

I have a roth IRA that consists of only SP500. The shares are not admiral shares of SP500 because the balance of the account met the requirement.

To open a brokerage account at Vanguard, it shows that you must have $10k as a minimum initial investment to purchase SP500. I could care less if they are admiral or not. I just want to purchase more SP500 but do not have more than $10k to throw in it right now.

I am currious if my balance in the roth IRA will assist me in opening a brokerage account at Vanguard to purchase SP500, even though I do not have $10k to put in it ( in = brokerage account).

Thanks,
Ty

You still did not answer the questions that I asked.... so, with the info you gave...

The answer is no.

But why do you not just buy in your current account? Why open up a brokerage account?

redduck · 02-16-2016, 08:58 AM

Quote:

Originally Posted by Tykimeister

... on what I have tried online in my account there isn't any way around the minimum. Will I be able to call them and arm wrestle?...

Yes, you may call Vanguard. Might even be the best way to go about it.

hnzw_rui · 02-17-2016, 10:42 AM

Quote:

Originally Posted by Tykimeister

To open a brokerage account at Vanguard, it shows that you must have $10k as a minimum initial investment to purchase SP500. I could care less if they are admiral or not. I just want to purchase more SP500 but do not have more than $10k to throw in it right now.

Umm, no. Minimum to open a brokerage account is $0 (if you choose fund account later option). I think you may be selecting the wrong S&P 500 fund. The admiral shares (VFIAX) require $10k minimum for initial investment. You want the investor shares (VFINX) which only require $3k minimum initial investment. You can avoid the $20 fee by signing up for electronic delivery.

If you only have $1k to less than $3k to invest, the only options at Vanguard are the Target Retirement funds and the STAR fund. Lower than $1k and you'll need to go the ETF route (VOO)

Tykimeister · 02-20-2016, 04:50 AM

Thank you everyone for the input. It was very helpful.

jim584672 · 02-20-2016, 10:02 PM

VOO (Vanguard S&P 500 ETF) has an expense ratio of .05% and is free to purchase in a Vanguard brokerage account, minimum purchase 1 share, under $200 right now.