I’ve been trying to educate myself on investing, and these seem like good options for complete newbs like myself. I like that you can try Stash for $5, people pay more for games on their phone! Has anyone else used one of these apps?
I’ve been meaning to open a Roth IRA before April, but haven’t read up enough to know what I want yet.Haven't, but the fees are high from looking at the website for Stash. $5 may sound great, but you are paying $12/year in fees.
Fidelity or Vanguard charge basically nothing. You can probably open an IRA at either with no minimum. For the index funds you should be buying, they will both have good ETFs with no commissions, and the funds themselves have low management expenses. I personally would suggest an IRA or brokerage account with Fidelity and set up a monthly direct deposit from your paycheck directly to it (for at least a bit more than $5). I would buy the Blackrock iShares IVV (an S&P500 index) whenever there is enough in the account to buy more, a few times/year, or whenever there is a decline in the market (like last month).
My 401K is at Fidelity and I can't get them to stop emailing me when I've opted out of everything.Never used the apps you speak of. My IRA is at Vanguard. My wife's is at Fidelity. Very much the same product in terms of choices, fees, etc. The difference I have found between the two is that Vanguard takes your deposit and leaves you the hell alone. With Fidelity I always feel like in a sales funnel for something.
You could just buy ETFs which are at the lowest expense ratio. Only negative is you can't buy fractional shares to use all your cash.Robinhood I use for stupid investing, like tinkering with options and day trading since trades are free. It's an app, so I wouldn't leave a huge balance sitting in there. It was a good thing to do on reserve, especially options, but it was more entertainment than anything.
My employer 401k is at fidelity and the expense ratios on their mutual funds are higher than Vanguard. If you don't have a Roth and qualify to contribute (under 189k as previously mentioned) be sure to put something in there. Once you have over 10k in a specific mutual fund you can move it to a different share class (they call them Admiral shares) that have even lower expense ratios. That's where my Roth IRA is and my normal brokerage account for long investments
Also if you can afford to dump the max contribution in earlier in the year there's more time to be invested, versus spreading out the $6k over 12 months
True. The Vanguard index funds at Admiral share class have the same expense ratio as the ETF (VFIAX vs VOO, .04%) so once you have enough in you can take advantage of fractional shares.You could just buy ETFs which are at the lowest expense ratio. Only negative is you can't buy fractional shares to use all your cash.
Sure. Either one would be fine. Anything is better than that Wells Fargo, Fidelity, Chase Bank actively managed fund that makes the same as these indexes and then charges you 3.5% on top for a total gain of -3.5% a year. Oh and adjust for inflation you'd have been better off just keeping the money in a mason jar out back.I like the Total Stock market VTI better because you are missing thousands of smaller companies that are also generating great profits.