Author Topic: Investing within Roth IRA (Vanguard VTI)  (Read 6465 times)

notoriusjt2

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Investing within Roth IRA (Vanguard VTI)
« on: May 19, 2015, 05:44:28 AM »
I just started contributing to my Roth IRA & I have/will be putting in about $500 per month. Purchasing shares of VTI through Fidelity will cost me $7.95 per trade. Should I purchase shares each time I make a $500 contribution? or wait until I get a couple thousand and then make the purchase?

GGNoob

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #1 on: May 19, 2015, 07:16:26 AM »
Create a Roth IRA at Vanguard and there will be no commissions. Otherwise, purchase the iShares commission free ETFs like ITOT (https://www.fidelity.com/etfs/ishares).

Also, the Spartan Index Funds are a good option at Fidelity and they have some cheap target retirement funds...the Fidelity Freedom Index 20XX Funds.

forummm

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #2 on: May 19, 2015, 08:59:38 AM »
What he said. Don't pay an extra fee to buy a fund.

notoriusjt2

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #3 on: May 20, 2015, 05:51:58 AM »
Good call on the iShares @ Fidelity. Currently the S&P 500 Growth iShare has an expense ratio of 0.18%. That's a little higher than I am used to. Where do you guys draw the line when it comes to expense ratios?

forummm

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #4 on: May 20, 2015, 06:05:11 AM »
Good call on the iShares @ Fidelity. Currently the S&P 500 Growth iShare has an expense ratio of 0.18%. That's a little higher than I am used to. Where do you guys draw the line when it comes to expense ratios?

Basically, whatever Vanguard's is. That lets you know what a fund should cost without all the profit. In general, it's <0.1%, but it varies by kind of fund somewhat.

nereo

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #5 on: May 20, 2015, 07:39:05 AM »
agree with ggnoob1337 and forummm.  However, if you really want to keep using your VTI for your ROTH, then just wait until you have $5500 and invest it all at once for a $7.95 trade fee.  That will give you an additional expense of 0.14% when you purchase (and again when you sell), which is fairly negligible.

Since the VTI is just investing in Vanguard's total market, you'll wind up with the same annual expense ratio.
Buying in $500 incriments is fairly foolish, but in $5500 chunks it would just be a blip.  Your call.

forummm

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #6 on: May 20, 2015, 07:49:11 AM »
agree with ggnoob1337 and forummm.  However, if you really want to keep using your VTI for your ROTH, then just wait until you have $5500 and invest it all at once for a $7.95 trade fee.  That will give you an additional expense of 0.14% when you purchase (and again when you sell), which is fairly negligible.

Since the VTI is just investing in Vanguard's total market, you'll wind up with the same annual expense ratio.
Buying in $500 incriments is fairly foolish, but in $5500 chunks it would just be a blip.  Your call.

I really don't recommend paying $8 to buy Vanguard funds when those funds are available for free from Vanguard. Just open an account at Vanguard and invest as much or as little as you want each time. If you already opened at Fidelity, you can rollover the IRA to Vanguard. Or use the iShares or Spartan funds if you want to stay at Fidelity. Don't buy Vanguard funds at Fidelity.

frugalnacho

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #7 on: May 20, 2015, 07:50:09 AM »
agree with ggnoob1337 and forummm.  However, if you really want to keep using your VTI for your ROTH, then just wait until you have $5500 and invest it all at once for a $7.95 trade fee.  That will give you an additional expense of 0.14% when you purchase (and again when you sell), which is fairly negligible.

Since the VTI is just investing in Vanguard's total market, you'll wind up with the same annual expense ratio.
Buying in $500 incriments is fairly foolish, but in $5500 chunks it would just be a blip.  Your call.

I would just create an account directly at vanguard.  Then you can get your money working for you sooner too rather than waiting for the whole $5500 to contribute.

GGNoob

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #8 on: May 20, 2015, 07:58:43 AM »
Good call on the iShares @ Fidelity. Currently the S&P 500 Growth iShare has an expense ratio of 0.18%. That's a little higher than I am used to. Where do you guys draw the line when it comes to expense ratios?

Why are you looking at the S&P 500 Growth iShares ETF? If you are sticking with ETFs at Fidelity, invest in ITOT (iShares Total US Stock Market ETF) with an expense ratio of 0.07%.

Here's a great website for researching ETFs: http://www.etf.com/ITOT

Faraday

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #9 on: May 20, 2015, 07:35:06 PM »
Good call on the iShares @ Fidelity. Currently the S&P 500 Growth iShare has an expense ratio of 0.18%. That's a little higher than I am used to. Where do you guys draw the line when it comes to expense ratios?

Why are you looking at the S&P 500 Growth iShares ETF? If you are sticking with ETFs at Fidelity, invest in ITOT (iShares Total US Stock Market ETF) with an expense ratio of 0.07%.

Here's a great website for researching ETFs: http://www.etf.com/ITOT

The fund I'm currently in is the Fidelity Retirement 2020. It's not been so good and the expense ratio is much higher than this ETF.

But ITOT does not appear on my "list of 25 funds" in my company-sponsored 401k. Is that bogus? Do I need to just call Fidelity and move some money over to ITOT?

Thanks for the research link! It's been very informative!
« Last Edit: May 20, 2015, 09:07:07 PM by mefla »

GGNoob

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Re: Investing within Roth IRA (Vanguard VTI)
« Reply #10 on: May 20, 2015, 08:19:39 PM »

Good call on the iShares @ Fidelity. Currently the S&P 500 Growth iShare has an expense ratio of 0.18%. That's a little higher than I am used to. Where do you guys draw the line when it comes to expense ratios?

Why are you looking at the S&P 500 Growth iShares ETF? If you are sticking with ETFs at Fidelity, invest in ITOT (iShares Total US Stock Market ETF) with an expense ratio of 0.07%.

Here's a great website for researching ETFs: http://www.etf.com/ITOT

The fund I'm currently in is the Fidelity Retirement 2020. It's not been so good and the expense ration is much higher than this ETF.

But ITOT does not appear on my "list of 25 funds" in my company-sponsored 401k. Is that bogus? Do I need to just call Fidelity and move some money over to ITOT?

Thanks for the research link! It's been very informative!

Feel free to start a new thread with your 401k options (and expense ratios), age, goals, etc. and we can help you pick a good allocation.


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