What Investment Accounts Do You Guys Use?

[MrNoStache]

I just opened up my first Vanguard account and I'm a little confused and new to the process. Should I be using a taxable Vanguard account or should I be buying the indexes through a Roth IRA?

[moof]

http://forum.mrmoneymustache.com/investor-alley/investment-order/

Basically you should get any 401k matches first, max out the lowest fee tax advantaged accounts next (traditional IRA if you or your spouse are eligible, Roth if not), then contribute taxable when everything else is maxed out.

[TheAnonOne]

http://forum.mrmoneymustache.com/investor-alley/investment-order/

Basically you should get any 401k matches first, max out the lowest fee tax advantaged accounts next (traditional IRA if you or your spouse are eligible, Roth if not), then contribute taxable when everything else is maxed out.

Other way around, the ROTH becomes off-limits over a set income limit.

EDIT:
THAT BEING SAID, it's a bigger topic, because if you can deduct the traditional, it's ultimately the best option for someone looking to FIRE, if you CAN'T deduct a traditional AND your income is too high, you can do a backdoor ROTH.

[MrNoStache]

Haha I'm getting mixed signals here guys. Currently I don't have an employer that offers a 401k match as I'm just a college student but I do have extra money that I have to invest. Where do I invest it?

[MDM]

Haha I'm getting mixed signals here guys. Currently I don't have an employer that offers a 401k match as I'm just a college student but I do have extra money that I have to invest. Where do I invest it?

If you don't have the ability to use one of the investment order steps, move down to the next one.

As for traditional vs. Roth, following the investment order advice to read Traditional versus Roth - Bogleheads seems appropriate.  I suspect it will lead you, as a college student and assuming you have earned income, to a Roth IRA.

[NoStacheOhio]

Important to note that you can't contribute to an IRA if you don't show earned income. If you're working part time, then you're fine, but if you're a student without any work income, then you have to go taxable.

[I'm a red panda]

I max out a Roth IRA first, then a 401k/403b, then invest in a taxable account.

[Raenia]

If you are eligible to contribute to an IRA (reporting earned income), that's your first step.  Since you're still a student, I'm assuming you're in a low tax bracket - that would make a ROTH a good choice.  If you have something left over after the maximum annual IRA contribution (5500 for 2017), then you'll have to go to a taxable account.

Since I have a 401k available at work, I max that first, followed by my HSA, tIRA (because I expect to be in a lower tax bracket in retirement, otherwise I would use ROTH), and finally going to taxable accounts.

[DarkandStormy]

Haha I'm getting mixed signals here guys. Currently I don't have an employer that offers a 401k match as I'm just a college student but I do have extra money that I have to invest. Where do I invest it?

Have you earned income in 2017?  You can contribute to a Roth IRA, up to $5,500 for 2017 (Note - you have until 4/15/18 to make the contributions).  You do, however, need to earn that much in income.  If you only made $3,000, then you are limited to a $3,000 contribution.

If you can do that, I'd opt for the Roth IRA account.  Many of the mutual funds require a $3,000 minimum.  If you can't meet that, I'd look to ETFs like VTSAX or VTI.

If you don't meet the requirements of investing in a Roth IRA, then just a brokerage account is your next step - you'll pay taxes on dividends as well as cap gains, but you won't if you can put it in a Roth IRA.

[jim555]

Low bracket income should go to the Roth.  If you are making big bucks the Traditional IRA becomes more attractive.

[Valhalla]

I would max out 401k (especially if they match), and then Roth IRA and or regular IRA, plus HSA accounts if possible.

[robartsd]

Many of the mutual funds require a $3,000 minimum.  If you can't meet that, I'd look to ETFs like VTSAX or VTI.

ETF's don't have options for automatic investment, so I chose a target date fund ($1000 minimum) when opening a new account with less than $3000.

[DarkandStormy]

Many of the mutual funds require a $3,000 minimum.  If you can't meet that, I'd look to ETFs like VTSAX or VTI.

ETF's don't have options for automatic investment, so I chose a target date fund ($1000 minimum) when opening a new account with less than $3000.

OP is a college student, so I was assuming he's looking to invest hundreds of dollars, not in the $1k-$3k range, but yes the target date funds do have a lower minimum.