Author Topic: Minimizing Vanguard Fees/Loads  (Read 1519 times)

Anus Hurricane

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Minimizing Vanguard Fees/Loads
« on: December 14, 2014, 02:20:02 PM »
I'm pulling the plug on my Edward Chodes ROTH and moving to Vanguard.  Eddie has lost me 13 percent over seven years.  Awesooooome.  I would tear my own eyes out with a fork, but that won't help anything.

Vanguard has fees/loads, too.  Please advise on how to minimize them or direct me to yon thread wherein this is extensively bloviated.  Eddie was taking five percent off the top and one percent of everything sold.  Craptastic.  VG has $10-20/yr to operate (I don't even have $10,000 yet since I am a disgrace) but also "basis points"?  This is the 0.2 percent, where does that come out, every time I put money in?  If I'm trying to max the ROTH at $5500/yr, I'll need to put in more than $458.3/month, so as to account for this loss, ja?

shuffler

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Re: Minimizing Vanguard Fees/Loads
« Reply #1 on: December 14, 2014, 03:23:41 PM »
Vanguard has fees/loads, too.  Please advise on how to minimize them ...
Just pick funds that have low expense ratios.  Since you're using Vanguard, they should be pretty easy to find.

Vanguard has different 'classes' of funds.  Compare their "Investor Shares" vs. the "Admiral Shares" of their Total Stock Market Index:
https://personal.vanguard.com/us/funds/snapshot?FundId=0085&FundIntExt=INT
https://personal.vanguard.com/us/funds/snapshot?FundId=0585&FundIntExt=INT
The investor shares have an expense ration of 0.17%, while the admiral shares are 0.05%, but you have to have a minmum of $10k invested in the fund in order to purchase the admiral shares.

VG has $10-20/yr to operate (I don't even have $10,000 yet since I am a disgrace) but also "basis points"?  This is the 0.2 percent, where does that come out, every time I put money in?
It would be helpful if you shared a link to a Vanguard page where you found this information.
I found this: https://personal.vanguard.com/us/content/Funds/FundsVanguardFundsLowBalanceDisclaimerJSP.jsp
.... but it only explains the $20/yr fee, and also says that you can get out of it.

If I'm trying to max the ROTH at $5500/yr, I'll need to put in more than $458.3/month, so as to account for this loss, ja?
Nein.  You can't put in more than $5500/yr.  If the funds/brokers where you choose to put your contributions happen to have fees (and they all do), then that's just the cost of doing business.  You can't put in *more* than $5500 to try to even it up.

shuffler

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Re: Minimizing Vanguard Fees/Loads
« Reply #2 on: December 14, 2014, 03:28:20 PM »
If you haven't, you might want to check out the BogleHeads wiki for their investing start-up kit:
https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit

... and for the bit about expenses, which is more directly related to this thread:
https://www.bogleheads.org/wiki/Expense_ratios