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if don't have i think 10k combined in Vanguard accounts, u will get hit 20 maintainence fees for each MF that you own. very misleading if you ask me...
Fidelity Pros: Full service brokerage, lower stock purchase fees, lots of B&M locations. Fidelity Cons: High expense ratios, don't close funds until too late, high manager turnover.
Vanguard Pros: Low expense ratios, Index fund selection, Active funds have management teams. Vanguard Cons: Fees if you don't meet minimums for index funds or funds in IRAs, other fees.
You might consider FirstTrade, but I'm sure they will change their fee structure like Scottrade did. Leaving you with a hefty bill when you sell those MFs/stocks down the line.
kaiotes said:if don't have i think 10k combined in Vanguard accounts, u will get hit 20 maintainence fees for each MF that you own. very misleading if you ask me...since they are very clear regarding their fees, i fail to see how this is misleading.
kaiotes said:if don't have i think 10k combined in Vanguard accounts, u will get hit 20 maintainence fees for each MF that you own. very misleading if you ask me... This is wrong when talking about Roth IRAs. You need 5,000 dollars in a fund by one year after you initially invested in it to avoid any fees, otherwise you get charged 10$ for each fund in maintenance fees per year.
However, the Vanguard Star Fund has a 1,000 dollar minimum at which point you can avoid fees, and happens to do a rather good job of diversifying your investment.
Vanguard has the lowest cost, but their best fund (healthcare) requires a lot of $ to join. Vanguard can nickel and dime you with fee if you don't have the minimum balance. If you're are a set n forget type of investor, then Vanguard may the best in the long run. Once your individual fund exceeds $50K, you can join the Admiral tier for slightly lower expense ratio.
Fidelity has more quality MFs, but the management fee is a little higher. I find the traders to be quite informed about the general daily stuffs. If you tend to bounce from funds to funds to chase the market, or intend to trade stock agressively, then go with Fidelity.
Look at total costs -- expense ratios plus annual maintenance fees -- because Vanguard can be cheaper overall even if they charge $20/year, due to their expense ratios being so low.
In addition to Vanguard Star, there's Fidelity's 4-in-1 index fund that's similar, including with an expense ratio about as low.
i opened a Vangard Target Retirement 2045 this November. i contributed the max $4000 and already up $140 over 2 months. the $10 fee for having less than $5000 balance in the fund was negligible. i already had plans to contribute the max $4000 for 2007, but there was a chance that the earnings alone on the original $4000 could have met the minimum $5k balance to avoid fees.
I am in a similar situation, wanting to open an IRA for the first time for myself and my wife. I have read many posts on IRAs archived here.
I also had a dilemma , where to open and with what funds.
This is what I decided and needed some feedback, before I went ahead.
- This is going to be a passive , buy and hold strategy accounts - I am going to use AIP (automatic investment plans) for dollar cost averaging. - I prefer ONLY low cost index funds.
For myself - Vanguard IRA Express with Target retirement fund 2035
For wife: - Fidelity Simple Start IRA with Fidelity Four-in-One Index Fund (*I didnt go with a target retirement fund, since wife 403b is also at Fidelity with the target retirement fund).
If you really want to avoid the yearly fee and have $5,000 to put in, you have the option of putting 2006 money in your Roth until April 15th and then you can combine that with 2007 money.
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