Author Topic: Vanguard Roth Questions  (Read 1297 times)

disconneked

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Vanguard Roth Questions
« on: January 30, 2017, 11:14:48 PM »
Vanguard Roth Specific:
Can you buy individual stocks in the IRA?
Can you take the dividends in cash?
Where are the dividends staged if taken in cash?
Thank you,
I realize I could call but I have terrible luck with anyone I catch on the phone (from anywhere really).

Mr Mark

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Re: Vanguard Roth Questions
« Reply #1 on: January 30, 2017, 11:53:06 PM »
Yes you can open a side brokerage account with vanguard within your IRA and But individual stocks. But dividend payments stay in the IRA. You can make withdrawals of contributions tax free but not earnings. And once it's in the Roth it's better to let earnings compound tax free. why would you take it out?

disconneked

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Re: Vanguard Roth Questions
« Reply #2 on: January 31, 2017, 07:19:47 AM »
Yes you can open a side brokerage account with vanguard within your IRA and But individual stocks. But dividend payments stay in the IRA. You can make withdrawals of contributions tax free but not earnings. And once it's in the Roth it's better to let earnings compound tax free. why would you take it out?

I wouldn't take dividends out until Im of age, but I don't want to sell the individual stocks-- especially for a commission. One of my accounts (not vanguard) will not let me take dividend distributions. They just auto reinvest so you have to sell shares. Most of my money will be indexed but I want a handful of picked stocks. MY 401k will be the main retirement account. I was thinking of using the Roth as a "bonus" by only taking dividends distributions when I turn 60. When I die it goes to my wife or kids.  I was thinking of converting it a Roth with Vanguard.

I know its different. I kind of think different. Thanks for your response.

Cwadda

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Re: Vanguard Roth Questions
« Reply #3 on: January 31, 2017, 07:49:38 AM »
I'll add that Vanguard customer service, in my experience, has been phenomenal. I've never caught a bad person on there. I even had one customer service rep advise about saving on taxes.

secondcor521

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Re: Vanguard Roth Questions
« Reply #4 on: January 31, 2017, 08:23:26 AM »
Vanguard Roth Specific:
Can you buy individual stocks in the IRA?
Can you take the dividends in cash?
Where are the dividends staged if taken in cash?
Thank you,
I realize I could call but I have terrible luck with anyone I catch on the phone (from anywhere really).

Yes, yes, and when you set up the Roth, you'll have a Vanguard money market account for your "sweep" account.  All dividends from the stocks will go to the MM account.  Any purchases of stock would come from the MM account.  Any contributions would initially go to the MM account.

I can't remember if they have a few you can pick from, or if they pick it for you.  I think one of the available ones is VMFXX.

https://investor.vanguard.com/investing/online-trading/settlement-fund