Author Topic: Question about VTSAX  (Read 5460 times)

Scubatoad

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Question about VTSAX
« on: May 13, 2014, 08:04:44 AM »
Bottom Line is that I want to invest into index funds. 

The one that seems most recommended on this site an several others is the VTSAX, along with the bond one and the international one.

I currently have an account through USAA that I use for all stock purposes.

I searched through USAA for the VTSAX symbol and it comes up as an actively traded stock.  I didnt try to buy it - so I wanted to come here and ask the question:

Is it possible to buy VTSAX through another company other than vanguard?  If so, would you pay the same fees that the vanguard site people pay and also any transaction fee from the other site? (ie USAA)

matchewed

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Re: Question about VTSAX
« Reply #1 on: May 13, 2014, 08:11:50 AM »
That all depends on the company you are trying to purchase shares of VTSAX through. Correct, you would be paying the expense ratio to Vanguard management and then whatever additional fees are put on from USAA or whatever company.

I'd highly recommend not doing it that way as there is no reason to do so investing through Vanguard is not a complicated process and there is no good reason to pay additional fees for the same fund.

dadu007

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Re: Question about VTSAX
« Reply #2 on: May 13, 2014, 08:24:01 AM »
I use USAA for my insurance (auto and home).  They are a great company for insurance.  However USAA will tack on  a hefty fee just to purchase the VTSAX fund, and may add other expense fees just for administrative purposes.  So I have a separate Vanguard account for purchasing Vanguard index funds.
matchewed is correct:  Set up your own Vanguard account

Scubatoad

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Re: Question about VTSAX
« Reply #3 on: May 13, 2014, 08:27:24 AM »
Thanks for the replies.

Main reason I asked is because I have a few days remaining on a "no transaction fee" for buying and selling stock at USAA, and thought maybe I could take advantage of it before I lose it.

Really the only reasons I dont want to open a vanguard account - is that it would be another app on my phone, another username/password to remember, another site to log into every now and again - plus the small hassle of transfering funds and such.

I know all of that is a very small concern - but I just was interested if many others do it this way, or if they just prefer to go through Vanguard's site.

The only downside I can see to buying it through USAA is that if I want to buy more or sell in the future, I would have to pay the 6.99 transaction fee.  But if there is additional fees ontop of the transaction - then it would definitely not be worth it.

Jack

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Re: Question about VTSAX
« Reply #4 on: May 13, 2014, 08:30:59 AM »
Main reason I asked is because I have a few days remaining on a "no transaction fee" for buying and selling stock at USAA, and thought maybe I could take advantage of it before I lose it.

Well, you could buy VTI (the ETF equivalent of VTSAX).

Don't forget that if you're starting a new account you'll need $10,000 minimum for VTSAX (or $3,000 minimum for VTSMX, the slightly-higher-expense share class). If that's a problem for you, you could buy the ETF at Vanguard, USAA or elsewhere and then transfer to the mutual fund after you've built up to the minimum.

Scubatoad

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Re: Question about VTSAX
« Reply #5 on: May 13, 2014, 08:43:11 AM »

Well, you could buy VTI (the ETF equivalent of VTSAX).

Don't forget that if you're starting a new account you'll need $10,000 minimum for VTSAX (or $3,000 minimum for VTSMX, the slightly-higher-expense share class). If that's a problem for you, you could buy the ETF at Vanguard, USAA or elsewhere and then transfer to the mutual fund after you've built up to the minimum.

$10,000 was the ballpark I was planning on commiting - which probably makes even more sense to just go through Vanguard.

I am going to be honest and say I do not fully understand the difference between the VTI and the VTSAX in this scenario.

matchewed

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Re: Question about VTSAX
« Reply #6 on: May 13, 2014, 08:59:09 AM »
http://www.bogleheads.org/wiki/ETFs_vs_Mutual_Funds

This is a decent summary on the differences.

TonyPlush

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Re: Question about VTSAX
« Reply #7 on: May 13, 2014, 09:19:51 PM »
Main reason I asked is because I have a few days remaining on a "no transaction fee" for buying and selling stock at USAA, and thought maybe I could take advantage of it before I lose it.

Well, you could buy VTI (the ETF equivalent of VTSAX).

Don't forget that if you're starting a new account you'll need $10,000 minimum for VTSAX (or $3,000 minimum for VTSMX, the slightly-higher-expense share class). If that's a problem for you, you could buy the ETF at Vanguard, USAA or elsewhere and then transfer to the mutual fund after you've built up to the minimum.
Although transferring from ETF to the mutual fund means incurring taxes along the way, correct?

George_PA

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Re: Question about VTSAX
« Reply #8 on: May 13, 2014, 10:51:26 PM »
Make things simple and go to Vanguard directly to setup the account.  Get the mutual fund version.  If you get the ETF you will have to pay a brokerage a commission every time you get new money that you want to add into the investment.  Even if that commission is only $5 a trade, if you are adding money from your paycheck every 2 weeks to buy more shares, that is a bunch of money being wasted.  In contrast, going through vanguard directly with the mutual fund (VTSAX) allows you to buy additional shares for free. 

Also, there is really no point in trying to get a vanguard fund through USAA, it may or may not work.  Bottom line is that it would be an extra hassle, will probably cost you more, and lead to plenty of confusion and stress, and an extra layer of management.

I know change can be tough, I used to have a brokerage account I used for years for buying and selling until learning the ways of MMM, I parted ways with my old technique of investing and setup an account with vanguard directly, it seems strange at first, but after a month or two it will become familiar and second nature to you.
« Last Edit: May 13, 2014, 10:53:40 PM by George_PA »