[Austyn]

My brother-in-law has asked for help in setting up a Vanguard account. Two questions what is vstax Equivalent that doesn’t have a minimum share requirement he wants to put in 500 to start.

And also, I think this question is personal for each person, but I’m thinking that I should set him up the type of IRA that you Do not get the tax credit now and don’t have to pay later.

My reason behind this thinking is that he is not the type that is going to know how to apply that on his taxes And I know that may sound silly, but he’s young and I am so glad that somebody pushed me to start an IRA before I had any idea what I was doing with it Those are such crucial years for compound interest.

If in 10 years, he’s super into investing and wants to set up some other type of IRA more power to him, but I’m trying to help him with the present knowledge that he has now which basically all he knows how to do is transfer money into a savings account

[Frank]

Do it at Fidelity. He can buy VTI there in fractional amounts, which is the ETF version of VTSAX.

No fees and better service.

[Jasmine]

I know some people dump on Vanguard these days, but I don’t think Vanguard is a bad choice. I also started with Vanguard because that’s the one I’d heard of.

more people generally preferred Fidelity, I decided to try that too.

I don’t really have a strong opinion on one versus the other. If I had to pick one to suggest first, I’d go with Fidelity, but I think the more important thing is to get started.

If going with Vanguard means someone gets started today, rather than procrastinating and hesitating and leaving the decision till next year, then just go with Vanguard.

[Ernest]

For the brokerage – Fidelity. “I’m hesitant to do that because I don’t know anything about Fidelity.

I’ve always dealt with Vanguard.” That’s fine – most folks just know that Fidelity is superior. Now for Traditional IRA vs.

Roth IRA – it’s a tax question. Low tax bracket now, and higher in the future – Roth.

High tax bracket now, and lower in the future – Traditional.

[Megan]

VTSAX is like Kleenex, a brand name that has become interchangable with a generic. The “VTSAX and chill” message simply means “invest in total (or broad) market index funds”.

VTSAX is one option but not the only option and I’ve seen more newer investors misunderstand the advice as “VTSAX or nothing” which can cause them to sit out the game longer than they should.

VTSAX is Vanguard’s low fee total market index mutual fund. It has an initial $3K buy in. It should only be purchased at Vanguard.

VTI is Vanguard’s low fee total market ETF. It can, like all ETFs, be purchased via Vanguard or any other brokerage (Fidelity, Schwab, etc) for no additional fees.

FSKAX is Fidelity’s low fee total market index mutual fund. It has no minimum buy in. It should only be purchased at Fidelity.

FZROX is Fidelity’s no fee total market index mutual fund. It has no minimum buy in. It should only be purchased at Fidelity.

It is close to same coverage as other total market funds but has fewer companies within it.

SWTSX is Schwab’s low fee total market index mutual fund. It has no minimum buy in. It should only be purchased at Schwab.

SCHB is Schwab’s low fee total market index ETF. It has not miniumum buy in.

It can, like all ETFs, be purchased via Schwab or any other brokerage (Fidelity, Vanguard, etc) for no additional fees.

[Heister]

If applicable, is he already contributing (up to the employer match) to his employer (Roth) 401k yet? Started funding an emergency savings acct in an HYSA (or brokerage MM fund like VMFXX) yet?

If yes, have him set up a Roth IRA at either VG or Fidelity and invest in low cost ETFs like VTI or VOO (or Fidelity equivalents).

Roth IRA option assumes his marginal tax rate is < 24% & his income is < Roth IRA income limits.

[Jule]

You can set him with a Roth IRA buying VTI shares. It’s just like VTSAX but with no minimum.

[Author]

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