patrick.net

I have one, and it's OK.

I find Schwab to be a bit easier to use.

I do. If you plan to trade on a margin or simply borrow against your stocks Intersctive Brokers is better - their rate is only 1.6% vs 8%+ @ Etrade.

FuckCCP89 says

I do. If you plan to trade on a margin or simply borrow against your stocks Intersctive Brokers is better - their rate is only 1.6% vs 8%+ @ Etrade.

Is trading entirely free? IB uses to have fees on stocks trades. That margin interest rate is very low, pretty good

I had an etrade account a couple decades ago I think.
Since Vanguard, Fidelity and T.Rowe Price allow stock trades I don’t have etrade anymore.
I totally love Vanguard brokerage, for what it’s worth.
I buy few stocks, most of my dough is in mutual funds and a Vanguard variable annuity.

clambo says

I had an etrade account a couple decades ago I think.
Since Vanguard, Fidelity and T.Rowe Price allow stock trades I don’t have etrade anymore.
I totally love Vanguard brokerage, for what it’s worth.
I buy few stocks, most of my dough is in mutual funds and a Vanguard variable annuity.

@clambo can you please share your experience with "variable annuity".. I don't have any investments in annuities and would be interesting to see if it makes sense.
I have brokerage account with schwab,etrade and vanguard.

I use TDAmeritrade. I do have an eTrade account only because they have the best solo 401k option for my wife when she was a contractor.

DonewithDebate says

I have brokerage account with schwab,etrade and vanguard.

Which one do you like better and why? I want to fund a very simple way to fund an account that I can easily buy and sell stocks. I'm not trying to be a day trader, just feel like I've missed out on stocks I "knew" were going to be winners. I was talked out of Facebook and Booger (I think) alerted us all to Trumps social media stock(?) a week(?) ago. I would have jumped on that one asap if I had already had a simple online stock trading platform I belonged to.

WineHorror1 says

DonewithDebate says

I have brokerage account with schwab,etrade and vanguard.

Which one do you like better and why? I want to fund a very simple way to fund an account that I can easily buy and sell stocks. I'm not trying to be a day trader, just feel like I've missed out on stocks I "knew" were going to be winners. I was talked out of Facebook and Booger (I think) alerted us all to Trumps social media stock(?) a week(?) ago. I would have jumped on that one asap if I had already had a simple online stock trading platform I belonged to.

It happens due to some legacy.
If I have to select account, here is what I will use for:
1) UTMA/529/Retirement : Vanguard. Cost effective with age based retirement and good college funds.
2) Etrade : Frequent trading. I heard that there are better ones, But I have never tried others. Vanguard interface is too poor for individual stocks. I don't much like schwab also.

I have Ameritrade and I like it, but I really don't have a basis for comparison though. Actually it used to be Aufhauser, and before that someone else, because my broker keeps getting bought out.

How about Robinhood?

Fuck Robinhood. That's for poor people anyway.

Can a a anybody answer if trading on Interactive brokers is completely free, incl. pennystocks and regardless of frequency and volume for all US stocks?

mell says

Can a a anybody answer if trading on Interactive brokers is completely free, incl. pennystocks and regardless of frequency and volume for all US stocks?

My trades show $1 commission.

Re: Variable annuity for donewithdebate

A variable annuity is like a non-deductible IRA with no contribution limit.

Recall the time before 401k were common, the IRA contribution limit was a ridiculous $2000/year.
Also, before Bush 2 capital gains taxes were higher than today. The annuity grows tax deferred and coming out it’s taxed as income.

A nice difference between the annuity and my non-retirement accounts is any change in the investments is not a taxable event.

There is no 1099 produced by the variable annuity.

The “sub accounts” in the variable annuity are identical to mutual funds.

There is an interesting characteristic of the variable annuity; its existence and contents are unknown to the IRS until you spend it. Your other retirement accounts are known.

The date to spend the annuity and how you do it varies also. You can 1. Keep the portfolio as it is, and “annuitize” it , spending a bit every month for your lifetime 2. You can do a “1035 exchange” for a fixed annuity; the payout % increases as you get older. This pays for your lifetime.

My annuity is worth about $150,000 and I paid in $24,000. If I wait to be age 70, I think I get 7% payout. I don’t remember exactly.

Today an alternative to a variable annuity is Vanguard Tax Managed Capital Appreciation Fund.
This produces little or no 1099, so it behaves like a retirement account.

I imagine what I would do if I found a suitcase of cash and later that night I had a drunken girlfriend jump out my hotel window (and survived)
Or, I got drunk and injured someone.
I buy the variable annuity the first chance and I am immune from the civil lawsuit that can ensue.
(Retirement accounts are immune from civil judgement; ask OJ Simpson).

Did, moved to fidelity. Found it easier

Re: Vanguard brokerage

I like the web interface a lot.
I can make free trades until 25, then it costs me 2 bucks.
They drop fees if you have a certain amount of total investments with them, your fees may be higher.
I can talk to a human to make a trade if I want to.
Overall I think it’s great.
I requested margin ( didn’t really use it) and the online request was very easy.
Sometimes I wish I had more balls and I would really make some money, oh well.

Question for the group. Let's say you come into a large sum of money. How do you invest/preserve it to maximize its value to you and your family?

Do you put it in a low-risk, dividend-paying mutual fund and earn like 5% in income?
Do you take some of it and buy an annuity?

I'd like to hear ideas.

porkchopexpress says

I'd like to hear ideas.

I'd like to have the $$.

Ok so you have the money. What now? Spend it?

To Porkchopexpress

If you don’t want to talk to a fee only planning guy, you could call up Vanguard and the amount of money you invested would qualify you for free advice.

Your situation has several solutions; do you want to use it for income now, or delay spending it?

Are you working or retired? Are you older or younger?

I like the idea of tax efficiency and also capital appreciation.

You could buy several funds; Vanguard Tax Managed Capital Appreciation, High yield tax free (municipal bonds)

In addition, some can go into Vanguard Wellington (balanced; stocks 60%:bonds 40%.

If more income is desired, Vanguard Wellesley Income Fund has dividend stocks and bonds.

If a variable annuity is interesting to you, check if T.Rowe Price has them; Vanguard stopped selling them.
Try to get a low fee one. I guess Fidelity has them since they seem to have everything.

mell says

Can a a anybody answer if trading on Interactive brokers is completely free, incl. pennystocks and regardless of frequency and volume for all US stocks?

Not free. You have to pay commissions on your trades especially options. Fees are minimal for stock trades.

I shorted the S&P on Friday. IBKR charged $24 for 20 contracts, which is typical. For stock options, they charge $7 for 10 contracts on average. Thus, I tend to let the options expire worthless unless it’s cutting real close.

porkchopexpress says

Question for the group. Let's say you come into a large sum of money...$5M net of taxes. How do you invest/preserve it to maximize its value to you and your family?

Do you put it in a low-risk, dividend-paying mutual fund and earn like 5% in income?
Do you take some of it and buy an annuity?

I'd like to hear ideas.

It really depends on your goal and knowledge. That would determine how the $5M should be invested.

porkchopexpress says

Question for the group. Let's say you come into a large sum of money...$5M net of taxes. How do you invest/preserve it to maximize its value to you and your family?

Do you put it in a low-risk, dividend-paying mutual fund and earn like 5% in income?
Do you take some of it and buy an annuity?

I'd like to hear ideas.

@porkchopexpress

I would first of all pay off all debt.

I'd put the majority of it in about 20 reliable stocks, preferably those that pay a dividend and only rarely change any of them. I hate mutual funds with a passion, because their business is skimming your money and none of them reliably do better than the indexes.

But would also consider some land.

But you can buy index mutual funds with low or even no fees (Fidelity Zero funds)

My Total Stock Market Index Fund at Vanguard has a 0.05% expense ratio; 500 bucks per million invested.

I have $0.79 in etrade. I don't know if I'll ever get it out of there. It became due to company stock.

I've been using td ameritrade since they bought out datek in the 90s and prefer it.

clambo says

even no fees

But then they must make their money through kickbacks for investing in certain stocks, which is bad for investors. Mutual funds are not charities, so they have to make money somehow.

Eman says

porkchopexpress says

Question for the group. Let's say you come into a large sum of money...$5M net of taxes. How do you invest/preserve it to maximize its value to you and your family?

Do you put it in a low-risk, dividend-paying mutual fund and earn like 5% in income?
Do you take some of it and buy an annuity?

I'd like to hear ideas.

It really depends on your goal and knowledge. That would determine how the $5M should be invested.

My goal is to preserve the capital and live off the interest, but rates are dogshit. That’s why I considered a lower risk dividend/income paying mutual fund like the Wellesley, but it still pays less than 3%. I could invest in a higher-paying dividend fund or individual stocks, but then the risk goes up significantly but perhaps I’m overestimating the risk.

I think my objective would be to get at least 5-6% safely and preserve the principle, which is why I’d avoid the annuity route.

Patrick says

porkchopexpress says

Question for the group. Let's say you come into a large sum of money...$5M net of taxes. How do you invest/preserve it to maximize its value to you and your family?

Do you put it in a low-risk, dividend-paying mutual fund and earn like 5% in income?
Do you take some of it and buy an annuity?

I'd like to hear ideas.

@porkchopexpress

I would first of all pay off all debt.

I'd put the majority of it in about 20 reliable stocks, preferably those that pay a dividend and only rarely change any of them. I hate mutual funds with a passion, because their business is skimming your money and none of them reliably do better than the indexes.

But would also consider some land.

I like the land idea and paying debt. Some would argue one should not pay off the mortgage given the tax break assuming you could invest it at a higher return elsewhere.

I don’t think I’m smart enough to invest in my own stocks and monitor their health to adjust my investments accordingly. I suppose this is why I like low cost mutual funds like what Vanguard has.

porkchopexpress says

monitor their health to adjust my investments accordingly

"The dead make the best investors."

There was some study that showed that the people who monitored and modified their investments the most did the worst, and the people who did the least after buying did much better, with the literal dead whose estates were tied up in probate doing the best.

Just pick the biggest holdings of the mutual funds you like. You don't need to pay them at all.

I-bonds are paying 7.12% right now:

https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm

But you'd still have to figure out what to do with the other $3,990,000.00

clambo says

Re: Vanguard brokerage

I like the web interface a lot.
I can make free trades until 25, then it costs me 2 bucks.

At Ameritrade stock trades are free. Now I do pay fees on option trades. I don't know of anyone who does free options trades.

I don’t see in any prospectus anything about a “kickback”.
In the registration process for a stock or a mutual fund would have this disclosure.
If someone wants extra diversity and convenience, mutual funds are the essence of investing.
Probably Vanguard pays a fee to Wilshire for the information about which stocks comprise the W5000 index.
Fidelity has its own method so does not pay Wilshire anything probably.

My only problem with index funds is that they don’t exclude ridiculous companies like Tesla and others, who knows if I once owned Theranos stock too?

To Porkchop:
The essence of investing is mutual funds.
The following have anything you need:
1. Vanguard =lowest fees
2. T. Rowe Price = good managed funds
3. Fidelity=good funds, a bit more expensive fees
4. Primecap Odyssey funds=excellent management, simple choices (3-4 funds)
5. Dodge and Cox=good management, low fees, simple choices (3-4 funds)

I don’t own anything at Dodge & Cox, at the others I do although most of my money is at Vanguard.

Booger says

clambo says

Re: Vanguard brokerage

I like the web interface a lot.
I can make free trades until 25, then it costs me 2 bucks.

At Ameritrade stock trades are free. Now I do pay fees on option trades. I don't know of anyone who does free options trades.

I believe Robinhood offers free options trades, but I heard you don’t get the best “order fill”; thus, you’re paying for it in one way or another.

Right, kind of a kickback scheme again.

clambo says

I don’t see in any prospectus anything about a “kickback”.

Lol, I don't think they're about to disclose the deals made on the country club golf course.

Robinhood and Vanguard are not the same animal.

Mutual funds don’t need kickbacks; they are a great cash business.

Vanguard is unique that it’s not a for profit enterprise, sort or like a credit union or something.

Since funds attract more capital if they are successful, they have an incentive to pick stocks that they believe are good, they profit from attracting more assets. They have no incentive to include a crummy stock in the fund.

Sometimes they close the funds to new investors, which benefits investors not the fund managers.
Several Vanguard funds closed to new investors.

Regarding Vanguard, I also try to invest enough to get the "Admiral" version which is a bit cheaper than the regular one.

Question is, what do I do about my $0.79 cents?

clambo says

The essence of investing is mutual funds.

You kids get off my lawn!

(just messing with ya clambo)