Author Topic: Confused about opening taxable account at Vanguard  (Read 3840 times)

droh82

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Confused about opening taxable account at Vanguard
« on: April 20, 2015, 09:20:38 PM »
So I finally have enough to invest in a taxable account (maxed my 401k and IRA for 2015).

Went over to Vanguard to open a taxable account and was confused about which option it is.

I clicked the open new account option and got to a section that asks "Why are you investing?"

I assumed the taxable account was under general savings -> individual account (one owner) but when I click on Retirement it gives me an option for taxable account.

Can anyone tell me what the difference between these 2 are?

droh82

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Re: Confused about opening taxable account at Vanguard
« Reply #1 on: April 21, 2015, 05:22:37 AM »
80+ views and no answer?? I would of assumed at least a few of you have opened a taxable account at vanguard.

I just want to buy some VTI. Already maxed 401k and IRA.


« Last Edit: April 21, 2015, 05:26:01 AM by droh82 »

JohnnyDollar

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Re: Confused about opening taxable account at Vanguard
« Reply #2 on: April 21, 2015, 05:35:03 AM »

I'm sure they have.  However, I suspect they're trying to teach a carbon-based lifeform to fish. 

Thusly: bit.ly/1D9vMKL

Kwill

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Re: Confused about opening taxable account at Vanguard
« Reply #3 on: April 21, 2015, 05:53:38 AM »
They probably have the same thing in two places just to be sure since it is a questionnaire. But best to contact customer support and sort it out with them.

cripzychiken

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Re: Confused about opening taxable account at Vanguard
« Reply #4 on: April 21, 2015, 06:42:58 AM »
I had some issues with this when I tried to open one. 

Basically you have to open 2 accounts.  The first is just a new account - general savings (taxable).  Then the 2nd account will be a brokerage account attached to the new general savings account.

I ended up making about 4 or 5 different accounts before I got the combo to work right (and 2 or 7 calls to double check that everything was eventually working correctly).  Was a bit convoluted to get started, but once it's up and running it works fine/as expected.

forummm

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Re: Confused about opening taxable account at Vanguard
« Reply #5 on: April 21, 2015, 06:59:34 AM »
I think the purpose just lets them know what advice to give you. I ignore their advice. Just pick one and "Taxable". If you want to buy standard mutual funds, you'll use their normal account. If you want to buy ETFs (like VTI) you'll use a brokerage account. You can have multiple accounts. I don't have a brokerage account because I prefer standard mutual funds. You'll need $3k to open a standard mutual fund account with VTSMX, and can upgrade to VTSAX (non-taxable upgrade) when you hit $10k. VTI holds the same stocks as VTSMX and VTSAX.

GGNoob

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Re: Confused about opening taxable account at Vanguard
« Reply #6 on: April 21, 2015, 07:12:36 AM »
I've just did General Savings for my taxable. When I choose Retirement, it only gives me the option of Roth or Traditional IRA.

I think the purpose just lets them know what advice to give you. I ignore their advice. Just pick one and "Taxable". If you want to buy standard mutual funds, you'll use their normal account. If you want to buy ETFs (like VTI) you'll use a brokerage account. You can have multiple accounts. I don't have a brokerage account because I prefer standard mutual funds. You'll need $3k to open a standard mutual fund account with VTSMX, and can upgrade to VTSAX (non-taxable upgrade) when you hit $10k. VTI holds the same stocks as VTSMX and VTSAX.

I think they are all brokerage accounts now and can hold mutual funds or stocks/ETFs.

frugalnacho

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Re: Confused about opening taxable account at Vanguard
« Reply #7 on: April 21, 2015, 08:34:26 AM »
I've just did General Savings for my taxable. When I choose Retirement, it only gives me the option of Roth or Traditional IRA.

I think the purpose just lets them know what advice to give you. I ignore their advice. Just pick one and "Taxable". If you want to buy standard mutual funds, you'll use their normal account. If you want to buy ETFs (like VTI) you'll use a brokerage account. You can have multiple accounts. I don't have a brokerage account because I prefer standard mutual funds. You'll need $3k to open a standard mutual fund account with VTSMX, and can upgrade to VTSAX (non-taxable upgrade) when you hit $10k. VTI holds the same stocks as VTSMX and VTSAX.

I think they are all brokerage accounts now and can hold mutual funds or stocks/ETFs.

I don't remember how I set mine up, but I own vtsax and vfinx.  It won't let me purchase ETFs without setting up a brokerage account (which I apparently don't have).  I don't want to purchase any ETFs though so I don't plan on changing it.