Another Q! Who should I setup an IRA with? I would like to purchase predominantly index funds... Also, eventually I would like to setup a taxable investment account (i.e. trading stocks, etc.).I've heard Scottrade is a recommended broker. What about Vanguard group (since i am interested in their Index fund). Thanks so much!
Who should I setup an IRA with? I would like to purchase predominantly index funds... Also, eventually I would like to setup a taxable investment account (i.e. trading stocks, etc.).I've heard Scottrade is a recommended broker. What about Vanguard group (since i am interested in their Index fund).Personally, I have become quite the Vanguard "freak" lately and have been very pleased with the accounts I have with them. My DW and I had decided to invest in index funds as opposed to individual stocks, and we were very pleased with the Vanguard offerings.Therefore, we felt it was best to open the accounts directly with the fund family that we were going to be investing in. However, many people here use Scottrade and seem to be very pleased. It appears that you can avoid some of the maintenance/low-balance fees if you go with Scottrade versus directly with Vanguard.As far as the taxable account, are you planning to invest in individual stocks or stick with index funds? Right now, we are in the process of opening a mutual fund account with Vanguard that we will use as a taxable account to invest in additional index funds. However, if you plan to invest in individual stocks, I would most likely not go with Vanguard's Brokerage Services. I would lean more towards a discount broker for that, such as Scottrade.Which brings us back to the beginning, if you would like to have all accounts at one location, Scottrade may be your best bet. You can open your IRAs with them and invest in Vanguard funds. And it would be a good spot for your taxable account as well.Personally, since we are sticking with index funds, we have opted to stay with Vanguard for the time being. My goal is to get my accounts to the levels where fees are waived and eventually where we qualify for admiral shares, which is even lower expense ratios. But if we ever decide to get back into individual stocks, I think Scottrade is where we will look first.Hope some of this helps.dt
Agree 100% with dt! But I'd go with Vanguard directly for funds if at all possible...I don't believe Scottrade will take a loss on their fund transactions forever.
Yobria-You may want to check out a thread I recently posted on Retire Early Home Page Board (found in the Speaker's Corner Folder), titled "IRA Index Funds and Discount Brokers". The first post was on 6/16. It addresses buying an IRA from Scottrade, purchasing Vanguard Index Funds. The thread was helpful to me, and Im sure it will be for you too.-kmk
Thanks for all your helpful replies. I will definitely need to do more research -- I will have to look at the other thread as well!Much appreciated!!
Kmk,Thanks, I read the thread, which unfortunately didn't shed any light on why one would choose Scottrade or Vanguard for Vanguard funds, other than Scottrade's lower fees. One reason to choose Vanguard is their website gives a lot more detail of your portfolio, gains, history, etc. The Scottrade website is truly bare-bones.Nick