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  • RetiredERdoc
    replied
    Due to the minimum of 3k in each fund, it will take you over two years to get your 4 fund portfolio in mutual funds. You can review the boglehead wiki on ETFs to get oriented on the difference. I also would recommend starting with a target date fund for simplicity. You could add the reit etf (VNQ) if you want to get started right away with the 4 fund portfolio.

    you should use a limit order when placing the etf trade. Here are some etf buying tips.

    https://etfguide.com/7-tips-for-placing-etf-trading-orders/

     

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  • PhysicianOnFIRE
    replied


    Wouldn’t larger lots provide opportunities for TLH even with smaller ‘blips’?
    Click to expand...


    No, you can sell all the small lots at once. But if the blip occurs while you're building up cash for a lump sum investment, you won't have any lots to sell.

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  • TheAbacus
    replied




    There are actually a number of advantages to contributing regularly as you get paid. You’ll capture any gains throughout the year, and will be more likely to have tax loss harvesting opportunities on short swings. I was able to take advantage of the Brexit to TLH, even though it was just a blip.
    Click to expand...


    I have enjoyed reading that article, despite the Breuse of a comedic device, Brepeatedly. :P

    Wouldn't larger lots provide opportunities for TLH even with smaller 'blips'?

    Leave a comment:


  • Zaphod
    replied
    The difference between an ETF and mutual fund is legal structure. Yes, the etf trades during the day, not sure how this impacts anything other than it is far, far more transparent than a mutual fund which only trades on close. If you want similar pricing or the same idea as a mutual fund enter your order as "on market close", same thing.

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  • Kamban
    replied
    I would get 2 funds with the 6K you have to meet the minimums and buy the other 2 funds next year. All funds will then meet the minimums

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  • G
    replied
    I find funds easier than ETFs because you don't have to worry about the intra-day pricing.

    I agree that you should focus on one or a couple funds at a time.  If you're really a penny-pincher like me, and your risk tolerance allows just one fund, you might work on getting enough into one fund so that you can convert it to Admiral class for the lower fee.

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  • Frenchy1011
    replied


    Is there a reason you’re using the funds that require a minimum? Just get the etfs instead, it doesnt make a lot a sense to not do so.
    Click to expand...


    I guess I don't really know what an ETF is haha. I just looked at my Vanguard account and was planning on buying the Vanguard funds, didn't know much about ETFs. Any help with this and if this is easier/better to do than buying the Vanguard funds (which all have a minimum)?

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  • PhysicianOnFIRE
    replied


    My understanding was that monthly contributions to a taxable account should be avoided, as you will end up with 12 distinct lots of funds with different rates / basis etc. which can be problematic when you plan to sell (even for tax loss harvesting).
    Click to expand...


    Since 2011, brokerages are required to keep track of lots and cost basis for you. Be sure to set "Specific ID" as your cost basis (Vanguard) and you're all set.

    There are actually a number of advantages to contributing regularly as you get paid. You'll capture any gains throughout the year, and will be more likely to have tax loss harvesting opportunities on short swings. I was able to take advantage of the Brexit to TLH, even though it was just a blip.

    Leave a comment:


  • Zaphod
    replied
    Is there a reason you're using the funds that require a minimum? Just get the etfs instead, it doesnt make a lot a sense to not do so.

    Leave a comment:


  • Frenchy1011
    replied
    Yes all of this is being done in a Roth IRA account. It sounds like what might be the best thing is to try and get he minimum into each fund as I go, starting with the Stocks. Once I have enough in those accounts I can buy the minimum into the other funds and then separate out my contributions by percentage at that point. And still under the Roth account.

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  • Hatton
    replied
    Since I assume you are young just put it all in the total stock fund.  When you get more money you can diversify.

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  • TheAbacus
    replied
    Also, you might want to look into using your Roth IRA / tax protected accounts (like a 403b) for REITs, since they are not tax efficient and keeping these in a taxable account may diminish their growth.

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  • DMFA
    replied




    My understanding was that monthly contributions to a taxable account should be avoided, as you will end up with 12 distinct lots of funds with different rates / basis etc. which can be problematic when you plan to sell (even for tax loss harvesting).
    Click to expand...


    I think he's doing Roth IRA.

    Leave a comment:


  • TheAbacus
    replied
    My understanding was that monthly contributions to a taxable account should be avoided, as you will end up with 12 distinct lots of funds with different rates / basis etc. which can be problematic when you plan to sell (even for tax loss harvesting).

    Leave a comment:


  • DMFA
    replied
    Either buy the minima and round it out later, or do ETFs.

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