Author Topic: VTI in my TDAmer Roth IRA account...or open new Vanguard account for VTSAX?  (Read 437 times)

HankWilliams

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Hi folks,
First post, new to the FIRE community. Saw Mr. Mustache on PBS in Oct and since then, I've learned a ton. Very exciting.

I bought Jim Collin's "Simple Path to Wealth" and want to invest in VTSAX.
However, my Roth IRA is at TD Ameritrade. I have some VTI in that account.

In regards to FIRE and my Roth IRA, should I...
a) Keep investing in VTI via my TD Ameritrade Roth IRA?
or
b) Open a Vangaurd Roth IRA to invest in VTSAX there?

Pros, cons? Thanks a lot...

FIREandMONEY

  • 5 O'Clock Shadow
  • *
  • Posts: 46
  • Age: 32
  • Location: North Richland Hills, TX (Fort Worth)
They're the same.

As long as you don't plan on doing intra-day trading, stick with VTI in your current account.

terran

  • Handlebar Stache
  • *****
  • Posts: 1674
If I was investing at TD Ameritrade I would use SPTM which is similar to VTI/VTSAX but trades without a commission there. But I'd probably move it unless you have a good reason to keep it at TD Ameritrade.

HankWilliams

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Ugh... I'm still so confused. My wife says just leave it in TD and stick with VTI (or SPTM). She says they're the same so why open a Vanguard account.

However... I don't want to miss out if the FIRE "hero's" (Mr. Mustache, Paula Pant, ChooseFI, Jim Collins, etc.) are talking VTSAX nonstop.
Am I splitting hairs?
« Last Edit: December 06, 2018, 10:22:01 PM by MinorSwing »

bacchi

  • Magnum Stache
  • ******
  • Posts: 3201
Ugh... I'm still so confused. My wife says just leave it in TD and stick with VTI (or SPTM). She says they're the same so why open a Vanguard account.

However... I don't want to miss out if the FIRE "hero's" (Mr. Mustache, Paula Pant, ChooseFI, Jim Collins, etc.) are talking VTSAX nonstop.
Am I splitting hairs?

Yes. They're the same. VTI = VTSAX. They track the same index and VTI has enough liquidity so that the spread is meaningless.

Create a chart somewhere and add VTI, VTSMX, VTSAX, and SPTM. They track one another very closely.

HankWilliams

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Ok thanks folks. If you feel like SPTM as good as Jim Collin's VTSAX recommendation, then I'll stick with TD and SPTM.

dsw

  • 5 O'Clock Shadow
  • *
  • Posts: 22
One reason you might consider opening a Vanguard account is that transactions for their ETFs are free. If you're regularly contributing, it adds up. As the other posters mentioned, VTI is essentially the same, so you can continue to buy it there, but without transaction fees.

HankWilliams

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Yes, I would like to start contributing as much as I can. I'm 43 and would like to make regular contributions. Hummmm...

dsw

  • 5 O'Clock Shadow
  • *
  • Posts: 22
Yes, I would like to start contributing as much as I can. I'm 43 and would like to make regular contributions. Hummmm...

Then if it were me (and this is actually what I do), I would open a Vanguard account and buy VTI there. Having another account is a minor inconvenience and over time it will save you all of the transaction fees plus the compounding you get on investing the money that would have gone to fees.

turtlefire

  • 5 O'Clock Shadow
  • *
  • Posts: 9
I suggest you read the "Random Walk Down Wall Street" by Burton Malkiel. I like his ideal of life-cycle portfolio management. Which is known to produce better results than just throwing your money into one fund, like VTSAX. I'm not saying VTSAX isn't a good fund, it just shouldn't be your only fund.