Comments on: Index Fund Checklist: Don’t Leave Home Without It – Episode #23

By: ethan

ethan — Mon, 15 Dec 2008 08:54:33 +0000

It is possible but would be unwise to buy Vanguard Index Funds in your Fidelity brokerage account, because Fidelity will charge you something like $75 per transaction. That being said Fidelity's own Index Fund offerings are second to Vanguard, I own some in one of the portfolios I manage, you can research the different ones we've talked starting here: http://www.thewaytobuildwealth.org/ultimate-ind....

I should add, the biggest downside to Fidelity's Index Funds is the minimum initial investment of 10k that is attached to most Fidelity offered Index Funds. Depending how much cash you have to invest this can be tragic as it is forcing you to take a massive position right off the bat and if you happen to be buying at the wrong time, this could be painful and will be more difficult to average out using a dollar cost averaging process; which I'll be talking about on tomorrows (Tuesday) show.

In regards to your question about setting up automatic purchase, this is possible through both Fidelity and Vanguard and if you are buying their specific Index Funds there are absolutely no commissions or transaction fees attached.

Hope this helps [I will respond to your email later today with more details].

Cheers.

Ethan

By: ethan

ethan — Mon, 15 Dec 2008 08:54:33 +0000

Hope this helps [I will respond to your email later today with more details].

Cheers.

Ethan

By: AC

AC — Mon, 15 Dec 2008 03:31:14 +0000

If I wanted to by a Vanguard index fund, am I able to do it from my previously existing Fidelity brokerage account, or do I need to get a Vanguard brokerage account to buy the Vanguard index funds? If still possible to buy Vanguard index funds from Fidelity accounts, will there be more fees for me to deal with?

Also, is there a way to set up automatic monthly purchases of index funds? Would there be trade fees associated with each monthly purschase?

By: AC

AC — Mon, 15 Dec 2008 03:31:14 +0000

Also, is there a way to set up automatic monthly purchases of index funds? Would there be trade fees associated with each monthly purschase?

By: ethan

ethan — Fri, 12 Dec 2008 23:02:42 +0000

Glad to be of service.

Cheers.

Ethan

By: ethan

ethan — Fri, 12 Dec 2008 23:02:42 +0000

Glad to be of service.

Cheers.

Ethan

By: Thai

Thai — Thu, 11 Dec 2008 13:37:48 +0000

Dude, thanks for answering that man.

Sometimes it's the little nagging questions, that when answered, are most empowering.

By: Thai

Thai — Thu, 11 Dec 2008 13:37:48 +0000

Dude, thanks for answering that man.

Sometimes it's the little nagging questions, that when answered, are most empowering.

By: ethan

ethan — Wed, 10 Dec 2008 19:49:52 +0000

Great question Thai. The reason that International Index Funds have higher expense ratios is because they are more challenging to put together and operate. You have to remember these are comprised of the stocks of international companies that trade on international exchanges in international currencies. All of this adds multiple layers of complexity to the to setup and operation of a passively managed international index fund.

That is the main reason for the higher expense ratios attached to International Index Funds. Hope that helps!

Do let me know if you have any further questions.

Cheers.

Ethan

By: ethan

ethan — Wed, 10 Dec 2008 19:49:52 +0000

Great question Thai. The reason that International Index Funds have higher expense ratios is because they are more challenging to put together and operate. You have to remember these are comprised of the stocks of international companies that trade on international exchanges in international currencies. All of this adds multiple layers of complexity to the to setup and operation of a passively managed international index fund.

Hope that helps!

Do let me know if you have any further questions.

Cheers.

Ethan