Re:The Financial Industry Is Having Its Napster Moment
by newjersey on Thursday April 07, 2016 @08:54PM
(#11451870)
My understanding is there is no fee when putting in money towards your Vanguard Index Fund. I don't think they charge any extra money per transaction. You probably get screwed a little based on how quickly prices update and what price you pay per share (I don't know if you do but I'm just guessing). However, as people who don't have a day job in buying and selling financial instruments, I think we are probably better off buying and holding. And hoping and praying the US economy and the world economy will overall grow in the next fifty or so years.
https://personal.vanguard.com/us/whatweoffer/stocksbondscds/...
Re:The Financial Industry Is Having Its Napster Moment
by aianus on Thursday April 07, 2016 @08:44PM
(#11451837)
> If you are the type who wants to invest X% of every paycheck (i.e. making multiple trades a month), are only investing a small amount of money, or are only investing for the short to medium term, you are likely better off with the the higher fee and lower commission.
Roboadvisors like Wealthfront solve this problem more elegantly and at lower cost.
It will depend on your bank, but anecdotally it seems commission free mutual funds are more common than commission free ETFs. If you are the type who wants to invest X% of every paycheck (i.e. making multiple trades a month), are only investing a small amount of money, or are only investing for the short to medium term, you are likely better off with the the higher fee and lower commission. Retirement savings tend to be none of those three categories, so ETFs are almost universally better in that regard.