Author Topic: Best all-in-one account (or few-in-one accounts) for newbie invester  (Read 1409 times)

NumberJohnny5

  • Pencil Stache
  • ****
  • Posts: 626
I promise I used the search function first, I'm sure this info has been gone over a hundred times by now, but I couldn't find it.

All I have is a Roth IRA. I'll finally be able to contribute more than the $5.5k, so I'm looking at the best way to do so. Man, it was so much easier with just a Roth.

Is there a link walking a newbie through all this?

Ideally, I'd have something like the Vanguard Advantage account that I can use like a checking account and invest in an index fund such as VFINX Vanguard 500 Index (I don't think I can actually do this with that account, I'm just describing what I'd like to have). Any money not actively being used would be invested. I wouldn't mind needing two accounts, but I'd prefer to be able to instantly transfer between them. Money into checking account, immediate transfer to account holding index fund. Need more money than in the checking account, pull from the account with the index fund (it'd be great if some of this could be automated, i.e. if the checking balance is $50 and a $100 charge comes through, it'll simply pull $50 from the other account with no penalty).

Starting to feel like an adult! If only I hadn't been an adult for nearly two decades now....

forummm

  • Walrus Stache
  • *******
  • Posts: 7357
  • Senior Mustachian
Re: Best all-in-one account (or few-in-one accounts) for newbie invester
« Reply #1 on: July 02, 2015, 08:12:34 PM »
Do you have a 401k at work? That would be a good place to contribute. If not, just open a taxable account at Vanguard. I don't know why you'd want the Vanguard Advantage account during the accumulation stage. Just move over money to the Vanguard account when you have it. You can't sell and then re-buy index funds (other than money market funds) that quickly. And you'll have small short term capital gains. Just buy and hold for the long term.

NumberJohnny5

  • Pencil Stache
  • ****
  • Posts: 626
Re: Best all-in-one account (or few-in-one accounts) for newbie invester
« Reply #2 on: July 02, 2015, 09:35:09 PM »
Do you have a 401k at work? That would be a good place to contribute. If not, just open a taxable account at Vanguard. I don't know why you'd want the Vanguard Advantage account during the accumulation stage. Just move over money to the Vanguard account when you have it. You can't sell and then re-buy index funds (other than money market funds) that quickly. And you'll have small short term capital gains. Just buy and hold for the long term.

I don't work, so 401k is out.

I can transfer funds now, but it can take 2-3 days in each direction. I'd like it to be instantaneous. Get a direct deposit into account A and either have account A be an all-in-one account, or be able to immediately transfer to an account B (and vice versa).

I know, the "wait up to or over a week for funds to make a round-trip" thing is normal, but I don't like being normal. It's also my first time setting up a taxable account, it'd be nice if there was a how-to for newbies like me. Hrm, maybe an Investing for Dummies book. Shoulda thought of that earlier.