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May 25, 2007


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I have been buying Vanguard funds through my Roth IRA for the last few years which is with Banc of America Investments. They don't charge me a penny to buy the mutual funds or sell them. I have also been able to start a few funds with only $1000, not the $3000 needed to start one with Vanguard. I can also purchase addtional shares starting at $250. This has been a deal saver for me as I got started investing.

So, in short, I have heard struggles with buying mutual funds under other brokerages, but for me and many BOA customers, we are getting one sweet, sweet deal!

So how much can you save with the Vanguard account? Here's my situation:

I'm with Scottrade, with whom I have an IRA and regular account, I'm 22, and trying to get an early jump on retirement planning.

I just invested 3,000 in the Vanguard 2045 Retirement Fund and it cost $17 bucks for the purchase.

Would Vanguard be cheaper than this? Even once you factor in the yearly maintenance fees?

Jason: Yes. Vanguard doesn't charge anything for the purchase, and no annual maintenance fees. (Each fund does have its expense ratio, but that's built into the price, as I understand.)

I think after a certain point convenience does matter. Yes, my broker charges me $20 bucks for a purchase I could do directly with Vanguard, but if you're buying in a chuck that's about 10k in size, that's less than .2% for the transaction. If the broker was then charging something ontop of that yearly I think it's more of problem. There is something to be said for consolidation. If you're a Vanguard fundie then I would say why bother having anything but a Vanguard fund.

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