Roth Ira

[imported_Lothar]

Originally posted by: Passions
Anyone have any advice on Bank of America Roth IRAs? I'm wondering if I should go with Vanguard or BofA.

Vanguard > any local bank.

 

[imported_Lothar]

Originally posted by: DaveSimmons
There's usually no go reason to shift existing money out of index funds like VFINX or the Vanguard target funds. At some point you'll probably also have a regular brokerage account in addition to the IRA, and you can try other investments there if you want.

I've never had a reason to move an IRA from one company or another, but if this is a serious concern you can send an email to vanguard to ask them what's involved if you can't find it by searching the website.

Unlike T. Rowe Price and many others which charge $35+, Vanguard doesn't have transfer fees for money comeing in or flowing out.

 

[grohl]

Another vote for Vanguard.

I have my IRAs with Fidelity and my brokerage acct there. My 401k and 529s are with Vanguard, both are good choices really.

 

[davestar]

Originally posted by: Lothar

Originally posted by: Passions
Anyone have any advice on Bank of America Roth IRAs? I'm wondering if I should go with Vanguard or BofA.

Vanguard > any local bank.

(1) Bank of America is hardly a local bank
(2) Bank of America lets you invest in Vanguard, Fidelity, T. Rowe Price, etc, etc
(3) If you meet simple requirements (e.g. have a BofA checking account), there are no fees imposed by BofA

 

[Azurik]

Originally posted by: Lothar

Originally posted by: Beattie

Originally posted by: Special K
For a small amout to invest, I would consider the Vanguard Target Retirement funds. You pick a target retirement year, or as close to it as you can get, and the fund managers will periodically rebalance it over time. It's a good fund to start with, as it has a low minimum investment amount and offers good diversification.

Those funds are pretty bad. You are much better off just investing in decent growth stock/agressive growth type funds and let it ride.

Why are they bad?

They're not bad - they are pretty good actually. They offer a good solution for most people - and the majority of people are confused about investments. A few complan about it being a tad too conservative during the early stages (more bond exposure), but it's not really that much... and in a bear market, you'll probably appreciate it more. Really low expenses to boot.

 

[dud]

Originally posted by: Lothar

Originally posted by: DaveSimmons
There's usually no go reason to shift existing money out of index funds like VFINX or the Vanguard target funds. At some point you'll probably also have a regular brokerage account in addition to the IRA, and you can try other investments there if you want.

I've never had a reason to move an IRA from one company or another, but if this is a serious concern you can send an email to vanguard to ask them what's involved if you can't find it by searching the website.

Unlike T. Rowe Price and many others which charge $35+, Vanguard doesn't have transfer fees for money comeing in or flowing out.

I have a LOT of money invested in T. Rowe price and have never been charged a fee. My wife has a vanguard account for years and, for the most part it has languished. This is why I went with T. Rowe price. It's allpersonal preference ...

OP, choose your fund on your own. It's really easy to tell what funds cost (expenses), if they have a load (go for no-load if possible) and VERY easy to track the fund's perormance. I once went to my financial "advisor" asking for his recommendation for a fund. I told him (twice) that I wanted a no or low-load fund with low expenses that performed well against its peers.

Guess what? The idiot tried to get me into a Transamerica fund with a 6.5% load! i would have to pay $6.50 for every $100 I invested! Tool ...

 

[hiromizu]

Originally posted by: dud

Originally posted by: Lothar

Originally posted by: DaveSimmons
There's usually no go reason to shift existing money out of index funds like VFINX or the Vanguard target funds. At some point you'll probably also have a regular brokerage account in addition to the IRA, and you can try other investments there if you want.

I've never had a reason to move an IRA from one company or another, but if this is a serious concern you can send an email to vanguard to ask them what's involved if you can't find it by searching the website.

Unlike T. Rowe Price and many others which charge $35+, Vanguard doesn't have transfer fees for money comeing in or flowing out.

I have a LOT of money invested in T. Rowe price and have never been charged a fee. My wife has a vanguard account for years and, for the most part it has languished. This is why I went with T. Rowe price. It's allpersonal preference ...

OP, choose your fund on your own. It's really easy to tell what funds cost (expenses), if they have a load (go for no-load if possible) and VERY easy to track the fund's perormance. I once went to my financial "advisor" asking for his recommendation for a fund. I told him (twice) that I wanted a no or low-load fund with low expenses that performed well against its peers.

Guess what? The idiot tried to get me into a Transamerica fund with a 6.5% load! i would have to pay $6.50 for every $100 I invested! Tool ...

Ditto. I've got my Roth IRA in a T. Bowie target retirement fund and they've never charged me a dime.

 

[Ns1]

Originally posted by: Yossarian

Originally posted by: tagej

Originally posted by: DisgruntledVirus
I would like to know why you say Vanguard funds are bad. I have two aunts that both have done very well from Vanguard funds. One retired by late 40's and the other will be very well off financially at retirement due in part to Vanguard funds.

Pretty much all the funds have fairly high fees associated with them. 12b-1 fees, redemption fees, management fees, administrative fees etc etc. It doesn't seem like much, but those smal fees drag down your return over the years. I work in the mutual fund industry so I know all about how just about everyone has their hand in the pot, with the end consumer funding it all.

Personally, unless you know what you're doing and you have a significant amount to invest, your best bet is just to buy some sector ETF's or index funds and let it ride. You can get plenty of index funds (such as S&P 500) without having to pay a load, so you can buy small amounts each month. It all adds up.

What you have written has nothing to do with the Vanguard funds in question.

talking out of your ass FTL

 

[imported_Lothar]

Originally posted by: dud

Originally posted by: Lothar

Originally posted by: DaveSimmons
There's usually no go reason to shift existing money out of index funds like VFINX or the Vanguard target funds. At some point you'll probably also have a regular brokerage account in addition to the IRA, and you can try other investments there if you want.

I've never had a reason to move an IRA from one company or another, but if this is a serious concern you can send an email to vanguard to ask them what's involved if you can't find it by searching the website.

Unlike T. Rowe Price and many others which charge $35+, Vanguard doesn't have transfer fees for money comeing in or flowing out.

I have a LOT of money invested in T. Rowe price and have never been charged a fee. My wife has a vanguard account for years and, for the most part it has languished. This is why I went with T. Rowe price. It's allpersonal preference ...

Transfer your IRA from T Rowe Price to Vanguard and let me know if they charge the $35-50 closing fee that's listed on their website.

T Rowe Price and Fidelity charges closing costs/transfer fees to transfer your IRA asset to another company.
Vanguard doesn't.

That was the same point I answered in my previous post that you quoted.

 

[imported_Lothar]

Originally posted by: davestar

Originally posted by: Lothar

Originally posted by: Passions
Anyone have any advice on Bank of America Roth IRAs? I'm wondering if I should go with Vanguard or BofA.

Vanguard > any local bank.

(1) Bank of America is hardly a local bank
(2) Bank of America lets you invest in Vanguard, Fidelity, T. Rowe Price, etc, etc
(3) If you meet simple requirements (e.g. have a BofA checking account), there are no fees imposed by BofA

Are you saying If I want to buy stocks and index funds, I can do so without any commission fees as long as I have a BoA checking account?

Since when did BoA become like Zecco in offering free trades with no commission?

 

[imported_Lothar]

Originally posted by: hiromizu

Originally posted by: dud

Originally posted by: Lothar

Originally posted by: DaveSimmons
There's usually no go reason to shift existing money out of index funds like VFINX or the Vanguard target funds. At some point you'll probably also have a regular brokerage account in addition to the IRA, and you can try other investments there if you want.

I've never had a reason to move an IRA from one company or another, but if this is a serious concern you can send an email to vanguard to ask them what's involved if you can't find it by searching the website.

Unlike T. Rowe Price and many others which charge $35+, Vanguard doesn't have transfer fees for money comeing in or flowing out.

I have a LOT of money invested in T. Rowe price and have never been charged a fee. My wife has a vanguard account for years and, for the most part it has languished. This is why I went with T. Rowe price. It's allpersonal preference ...

OP, choose your fund on your own. It's really easy to tell what funds cost (expenses), if they have a load (go for no-load if possible) and VERY easy to track the fund's perormance. I once went to my financial "advisor" asking for his recommendation for a fund. I told him (twice) that I wanted a no or low-load fund with low expenses that performed well against its peers.

Guess what? The idiot tried to get me into a Transamerica fund with a 6.5% load! i would have to pay $6.50 for every $100 I invested! Tool ...

Ditto. I've got my Roth IRA in a T. Bowie target retirement fund and they've never charged me a dime.

Transfer your IRA out to Vanguard or Fidelity and they'll charge you more than a dime.

 

[Uppsala9496]

Vanguard does charge a $20 or $25 fee yearly if your account is under $10,000. I forget if it's $20 or $25.

 

[Vette73]

Originally posted by: Uppsala9496
Vanguard does charge a $20 or $25 fee yearly if your account is under $10,000. I forget if it's $20 or $25.

i think they wave that if you have paperless statements.

I moved my wifes to vanguard and we have 10k+ yet they sent a e-mail saying they would wave the fee, if it applied, if we went paperless.

 

[Uppsala9496]

Interesting. Thanks.
I just set and account up a couple of weeks ago and am a little below the $10k mark.

 

[FallenHero]

Edward Jones FTW!

 

[Double Trouble]

Originally posted by: Ns1

Originally posted by: Yossarian

Originally posted by: tagej

Originally posted by: DisgruntledVirus
I would like to know why you say Vanguard funds are bad. I have two aunts that both have done very well from Vanguard funds. One retired by late 40's and the other will be very well off financially at retirement due in part to Vanguard funds.

Pretty much all the funds have fairly high fees associated with them. 12b-1 fees, redemption fees, management fees, administrative fees etc etc. It doesn't seem like much, but those smal fees drag down your return over the years. I work in the mutual fund industry so I know all about how just about everyone has their hand in the pot, with the end consumer funding it all.

Personally, unless you know what you're doing and you have a significant amount to invest, your best bet is just to buy some sector ETF's or index funds and let it ride. You can get plenty of index funds (such as S&P 500) without having to pay a load, so you can buy small amounts each month. It all adds up.

What you have written has nothing to do with the Vanguard funds in question.

talking out of your ass FTL

Yeah, ok :roll:
Even the vanguard funds that have relatively low expense ratios (in the 20 to 25 basis points for some) are trounced by the ETF's with rates like Street & Smith SPDR 500 (11 bp). Of course, ETF's have their drawbacks, including having to pay a transaction commission to purchase them etc.

Nothing wrong with the Vanguard funds per se, I prefer getting the same coverage without some of the tax implications of mutual funds (capital gains distribution timing etc), and I prefer lower expense ratios.

I have my Roth IRA with Schwab by the way, pretty happy with them, though I don't know if they have minimum requirements.

 

[Azurik]

Originally posted by: tagej

Originally posted by: Ns1

Originally posted by: Yossarian

Originally posted by: tagej

Originally posted by: DisgruntledVirus
I would like to know why you say Vanguard funds are bad. I have two aunts that both have done very well from Vanguard funds. One retired by late 40's and the other will be very well off financially at retirement due in part to Vanguard funds.

Pretty much all the funds have fairly high fees associated with them. 12b-1 fees, redemption fees, management fees, administrative fees etc etc. It doesn't seem like much, but those smal fees drag down your return over the years. I work in the mutual fund industry so I know all about how just about everyone has their hand in the pot, with the end consumer funding it all.

Personally, unless you know what you're doing and you have a significant amount to invest, your best bet is just to buy some sector ETF's or index funds and let it ride. You can get plenty of index funds (such as S&P 500) without having to pay a load, so you can buy small amounts each month. It all adds up.

What you have written has nothing to do with the Vanguard funds in question.

talking out of your ass FTL

Nothing wrong with the Vanguard funds per se, I prefer getting the same coverage without some of the tax implications of mutual funds (capital gains distribution timing etc), and I prefer lower expense ratios.

His question was concerning a ROTH IRA though, so there isn't any tax implications when it comes to mutual funds.