Author Topic: Minimum Vanguard investment after initial investment?  (Read 4497 times)

naners

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Minimum Vanguard investment after initial investment?
« on: October 16, 2015, 11:47:55 AM »
I'm just getting started with investing in taxable accounts, and I'm a bit unclear about Vanguard's minimum investment policy. I know you need $3000 for most mutual funds to get started, but after that can you invest any amount at a time? Or does every purchase have to be 3k?

Thanks!

nereo

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Re: Minimum Vanguard investment after initial investment?
« Reply #1 on: October 16, 2015, 11:56:32 AM »
I'm just getting started with investing in taxable accounts, and I'm a bit unclear about Vanguard's minimum investment policy. I know you need $3000 for most mutual funds to get started, but after that can you invest any amount at a time? Or does every purchase have to be 3k?

Thanks!
Hahaha... no. 
I know from experience you can make purchases for $25 - I'm pretty sure they'll allow $10 purchases as well (though best to double-check that).  Maybe less....

BarkyardBQ

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Re: Minimum Vanguard investment after initial investment?
« Reply #2 on: October 16, 2015, 11:58:53 AM »
I'm just getting started with investing in taxable accounts, and I'm a bit unclear about Vanguard's minimum investment policy. I know you need $3000 for most mutual funds to get started, but after that can you invest any amount at a time? Or does every purchase have to be 3k?

Thanks!
Hahaha... no. 
I know from experience you can make purchases for $25 - I'm pretty sure they'll allow $10 purchases as well (though best to double-check that).  Maybe less....

We used to have a $30 auto investment every 2 weeks setup on payday to supplement lump sums... basically anytime we'd reduce cash flow we would raise this amount. The $30 was divided 75/25 VTIAX/VTSAX... so it took a $7.50 investment just fine.

frugalnacho

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Re: Minimum Vanguard investment after initial investment?
« Reply #3 on: October 16, 2015, 12:00:00 PM »
After your initial investment you can add any amount you want to that same fund.  If you purchase a different fund though you will have to meet that fund's minimum investment.

BarkyardBQ

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Re: Minimum Vanguard investment after initial investment?
« Reply #4 on: October 16, 2015, 12:04:03 PM »
Also, since you're new to it. Once you have some money in the account, you can BUY instead of transferring money to buy later.

The difference is that transferring money takes 3 days for ACH to clear and then you can buy. If you just click "Buy Vanguard Funds", set your investment (up to your current account balance) and Vanguard fronts you the money and buys the fund at todays price (during market hours). If you ACH fails, they will liquidate the value needed from the fund... not usually a problem if you money/banks are good.

Gone Fishing

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Re: Minimum Vanguard investment after initial investment?
« Reply #5 on: October 16, 2015, 12:38:20 PM »
On a related note, can you invest the minimum, then pull out some portion that leaves you below the minimum without them balking? 

naners

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Re: Minimum Vanguard investment after initial investment?
« Reply #6 on: October 16, 2015, 01:18:36 PM »
Thanks everyone! Much appreciated.

hyla

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Re: Minimum Vanguard investment after initial investment?
« Reply #7 on: October 19, 2015, 02:51:07 PM »
On a related note, can you invest the minimum, then pull out some portion that leaves you below the minimum without them balking?

Their policies say they have the right to close an account if it drops below the minimum for any reason (including withdrawals or market fluctuations).  In practice, I've heard that vanguard tends to leave accounts open if they drop a bit below the minimum because of market fluctuations, but I imagine they would be less likely to if it was due to withdrawals. 

Gone Fishing

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Re: Minimum Vanguard investment after initial investment?
« Reply #8 on: October 19, 2015, 02:55:12 PM »
On a related note, can you invest the minimum, then pull out some portion that leaves you below the minimum without them balking?

Their policies say they have the right to close an account if it drops below the minimum for any reason (including withdrawals or market fluctuations).  In practice, I've heard that vanguard tends to leave accounts open if they drop a bit below the minimum because of market fluctuations, but I imagine they would be less likely to if it was due to withdrawals.

Thanks!

BarkyardBQ

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Re: Minimum Vanguard investment after initial investment?
« Reply #9 on: October 19, 2015, 03:04:45 PM »
If you buy 10,000 of VTSAX and the market dips you below 10,000 Vanguard will be patient for quite some time before reclassifying your VTSAX shares to VTSMX shares.

If you sell 1000 of your VTSAX and get to 9000 I think they will reclassify your shares less patiently.

They do not close accounts because the market dips.