Investing General Discussion

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Borzak

Borzak

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Anyone recomend a low fee, low minimum investment bank that will do mutual funds? I may have been the one that posted it going no fee for a few banks a while back. Someone I know wants to get into it and I have a hunch they need a really low minimum to get into it.
 
Sanrith Descartes

Sanrith Descartes

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Borzak said:
Anyone recomend a low fee, low minimum investment bank that will do mutual funds? I may have been the one that posted it going no fee for a few banks a while back. Someone I know wants to get into it and I have a hunch they need a really low minimum to get into it.
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Define low. Fidelity has fairly low mins and in some cases none at all. Are we talking sub 2 grand? $2500 gets you an account just about anywhere. Once you have an account you can by fractions of a share now. Some individual Mutual Funds might have a share transaction minimum but just find a similar fund.

And curious, why mutuals at all? The costs for mutuals tends to be higher than a similar ETF?
 
Furry

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Start him on a roth IRA at vanguard or some other major investment firm. They are basically the perfect vehicle for what you want. Trade in ETFs not mutual funds.

There are no downsides, its the best future looking investment you can make, and the principal can be withdrawn at any point like the money is in a bank.
 
Furry

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Sanrith Descartes said:
Fidelity. No minimum to open a traditional IRA.

Traditional IRA | Benefits & Options on How to Open a Retirement Account | Fidelity

Discover how to grow your earnings tax-deferred for retirement with a traditional IRA. Open a traditional IRA from the top IRA provider, Fidelity.
www.fidelity.com
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Roth IRA is superior to a traditional IRA in every situation and is the best savings vehicle you can have. The only reason to do a traditional is if you don't qualify for a Roth. When you have matching money from an employer, other methods can be superior, but getting a kid started on a roth and having them stick to it could be an incredible boon to their future if they are semi-responsible.
 
sleevedraw

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Furry said:
Roth IRA is superior to a traditional IRA in every situation and is the best savings vehicle you can have. The only reason to do a traditional is if you don't qualify for a Roth. When you have matching money from an employer, other methods can be superior, but getting a kid started on a roth and having them stick to it could be an incredible boon to their future if they are semi-responsible.
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Traditional could be better if it's a low earner/temp worker not covered by a 401 who qualifies for a full deduction and is disciplined enough to reinvest the refund. Admittedly that's a pretty small contingent.
 
Furry

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sleevedraw said:
Traditional could be better if it's a low earner/temp worker not covered by a 401 who qualifies for a full deduction and is disciplined enough to reinvest the refund. Admittedly that's a pretty small contingent.
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A low owner isn't paying much in taxes anyways. Their taxes will be almost exclusively payroll, which deductions do not help with. A meager tax savings is not worth eventually paying taxes on 40 years of compounded money.
 
U

Unidin

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You guys are assuming he has earned income to do an IRA. You also are going to have to deal with the fact that a minor can't own the account outright without a parent/guardian being involved. HIs parents could also open an UTMA (Open a Custodial Account with Fidelity - Fidelity for example).
 
sleevedraw

sleevedraw

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Furry said:
A low owner isn't paying much in taxes anyways. Their taxes will be almost exclusively payroll, which deductions do not help with. A meager tax savings is not worth eventually paying taxes on 40 years of compounded money.
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It may. At least 10 states exempt or partially exempt retirement plan income from taxes, so many retirees wind up in a lower bracket than they anticipated in retirement. And by playing around with this NerdWallet calculator, Traditional usually starts outpacing Roth when income bracket is about 3% lower in retirement, which is completely feasible if someone works in a state that collects income tax but moves to a reduced/no income tax state in retirement.

This also isn't factoring in any additional Saver's Credit that might potentially be earned by a traditional pushing someone into a higher "credit bracket".

Again, not saying that Roths aren't better in the vast majority of cases, just that there are niche scenarios where Trads may be better.
 
Attog

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If he is a dependent and he gets along with his parents, the best overall deal by far is a 529, let his parents take the incredible state tax break. Then in a few years open up that ROTH.
 
Furry

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529 is an excellent vehicle too. It should always be second to a Roth unless the intended recepient plans to go to college, then it is superior.
 
Furry

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World markets up today on a lot of rosy talk from figureheads. It's interesting to see the german stocks down anyways, which is probably the country with the biggest cohort of prep-minded people.

Since the US is what I'd consider the second country in that list, It wouldn't surprise me to see this global support get broken down and the dow to end on a loss again.
 
TomServo

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Furry said:
World markets up today on a lot of rosy talk from figureheads. It's interesting to see the german stocks down anyways, which is probably the country with the biggest cohort of prep-minded people.

Since the US is what I'd consider the second country in that list, It wouldn't surprise me to see this global support get broken down and the dow to end on a loss again.
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Please be more specific with your delphic oracular powers. How many points specifically?
 
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Fogel

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The fact that the markets opened up and continued up probably signals we'll stay in correction territory and avoid full blown recession.
 
Furry

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grumblethorn said:
Please be more specific with your delphic oracular powers. How many points specifically?
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My original prediction in january was a slide of 20% from highs at the start of march to mid-late april or so with a buy-in of around ~24k.

I think my original estimate was a bit optimistic, but if you wish me to stick to the original guess that's what it was. Today is just information on how people are reacting, it's not too important in the bigger picture.
 
Locnar

Locnar

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Well I used a few thousand cash in hand to buy some more of IVV this morning (no i did not sell anything last week). Up a couple percent already. I just hated to see a dip i did not buy into and could not hold back any longer. Hope springs eternal.
 
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Fogel

Fogel

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Btw if you have Costco stock, it looks like you can thank all the preppers. Up 9% today so far.
 
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