IRA Brokerage Options?

[Anonymous]

I am opening a very last minute Roth and Traditional IRA for the first time, partly as an alternative to our low interest savings accounts and instead of a College Fund (these IRAs do suit or needs and age), however I'm having trouble deciding on the type of company. I don't really understand the pros and cons of say Vanguard/Fidelity versus Scotttrade/Ameritrade. I did try to research the difference but still don't have a strong idea. These will be longer term investments, (I'm late 30's, husband early 40's and we have toddlers). We already have 401s and very good savings. Just want to start funneling our annual max toward these new accounts in perhaps an index fund or medium growth. Would probably make changes only twice a year and will be investing $5500 initially and then each year. Please help me get the ball rolling so I can just open a darned account. I'm leaning toward a Vanguard Total Stock, but does that mean I should open with Vanguard? All advice appreciated.

[Anonymous]

Well, I have been very happy with Vanguard. I rolled an IRA over to them about 10 years ago, then a 401k upon leaving a job, then opened a Roth ira, etcetera onward and upward.

They are very helpful on the phone. Give them a call and ask your questions.

You can set it up to transfer funds over from you bank account and it is a snap to contribute over the course of the year.

I like the low cost index funds approach and the way I can do everything under one roof.

[Anonymous]

If you plan to do index funds and like vanguard funds - open at vanguard. The fees for vanguard funds and etfs at other brokerages are significant ($75 at fidelity to buy a vanguard fund). Fidelity has some decent options in their index line (spartan fund family, including spartan advantage funds that are similar to the vanguard admiral funds) that are basically the same.

I like fidelity's interface way more than vanguard, but have been transitioning over to vanguard for the funds and etfs.

[Anonymous]

OP here. Thanks 2 PP's! Opened with Vanguard today and am very excited. Never understood Roth until recently, but suddenly it just clicked. What are your favorite index funds, btw?
Thanks!

[Anonymous]

I am first PP above. Theoretically total stock market/total bond/total international ought to be all that anybody could wish for - total diversification, buying whole markets at low cost. There are very happy people (and they post at bogleheads.com) who just sock it away in those funds and never lose a wink of sleep.

But, I just... kinda like to shop. I have some S&P 500 fund, a target date fund, a bit of REIT index fund, an energy sector index fund, a touch of growth stock index, developed markets index. For a while, each year I put ira contributions into a different index that interested me.

You have to check out the fund comparison widget. It's fun!