Friday, December 07, 2007

Finding My Way Into Vanguard

So, recently, my situation has changed and due to some restrictions related to employment, I have to get rid of some of my retirement holdings which are currently invested in ETFs. ETFs are nice alternatives, in my opinion, for people like me who really cannot afford the minimum requirements for investing into more standard mutual funds. So, rather than deal with the minimums, it is easy to open up an account at a brokerage firm and then purchase individual ETF shares which trade like stocks.

Personally, I bought VTI and VNQ. I've always liked Vanguard, and I think that these are nice solid index funds with low expense ratios that I was comfortable with. However, now that I am not allowed to own ETFs, I need to get my money into mutual funds, but I still don't have the minimum required. What to do? Using Vanguard's website I was able to do a screen that captured my major requirement: minimum investment. Fortunately, there IS a fund by Vanguard that has only a 1000 dollar requirement for minimum investment: VGSTX

So, that is my plan. It may not be my favorite of the Vanguard funds, but it beats the other loaded and expensive funds that are out there. I probably should look at T Rowe Price and some others too, but I feel like this is good enough. And it is likely that soon I will have enough so that the minimums won't be an issue.

No comments: