Investing with Vanguard other than retirement

[MaxPowers]

I have a Roth IRA with Vanguard. Have $1200 left to contribute for this year.
Anyway, how does trading and investing work when I don't do it for an IRA? If I just want to buy some shares in a company or MF and sell them a few weeks later. Not going to say I want to make fast money, but the market is interesting and to learn more about it I need to get into it more. I am still in the learning phase. I want to take advantage while the market is low and put some money in other than retirement. Does Vanguard do this? How do I start and what are the fees like?

[sweeps]

Vanguard does it, but the commissions are higher than you can get at other places -- for example Scottrade.

[Broken Arrow]

Wow, looks like Vanguard's fees have gone up since the last time I looked.

[kork13]

Wow, looks like Vanguard's fees have gone up since the last time I looked.

Mostly just idle curiosity, but who do you normally trade through?

[Broken Arrow]

Scottrade. I blame sweeps for that.

[poundwise]

I believe that Firstrade is the lowest cost broker for mutual funds.

One side note FWIW: When buying mutual funds outside of a tax-advantaged account, the turnover ratio becomes an important factor to consider.

[MaxPowers]

So I am still trying to find the best place to trade with. I have a USAA account. Are they good to trade with?
How does it work? I buy shares in a company, pay like a $6 fee, then I sell when it goes up? That is basically it right? Just have to have patients? When I sell, it locks in that price? So to make a profit, it just has to go up enough to make up the fee?

[sweeps]

Yes, *if* the stock goes up, you can sell for a profit. The profit is called a "capital gain" which you must pay taxes on. So ideally you will make enough to make it worth (a) your time in researching and monitoring the stock, (b) the commissions to buy AND sell the stock, and (c) the taxes you will pay on the gain.

I recommend reading up on stock trading (either in a book or on web sites) before going forward.

[Broken Arrow]

Sweeps brings up an interesting phenomenon that seems to be popping up lately, and I don't know why.

Sure, I trade stocks, but make or lose money, I do enjoy the process. That's really the only reason why I keep doing it....

As far as investing goes, no frills mutual funds will do just fine. In fact, without the interest and commitment to research and keep up with stocks, individual stocks can pose a greater risk to your portfolio than it needs to be. If I ever lose interest in stock trading, that's what I'm going to do too, just stick all of my money in diversified mutual funds.

So... I'm not entirely sure why the sudden interest....

[kork13]

So I am still trying to find the best place to trade with. I have a USAA account. Are they good to trade with?
How does it work? I buy shares in a company, pay like a $6 fee, then I sell when it goes up?

Also keep in mind that there are restrictions on that fee.... Yes, their fees are as low as $5.95.... with the provisions that you a) make 25+ trades per 90 days or b) make 16+ trades per 90 days AND hold a brokerage balance of at least $50k. Otherwise, they will sock you $11.95/trade.

Always read the fine print... just my own advice....

[jIM_Ohio]

I believe that Firstrade is the lowest cost broker for mutual funds.

One side note FWIW: When buying mutual funds outside of a tax-advantaged account, the turnover ratio becomes an important factor to consider.

I agree turnover ratio might indicate a taxable event.

In this market many fund managers might have decided to sell some losers so they have capital losses they can carry forward to other tax years.

I would not look at turnover alone, I would look at turnover AND yearly distributions. If you see both frequently, the tax bite will be large. Turnover in and of itself does not signify anything negative.

[poundwise]

I agree turnover ratio might indicate a taxable event. ... I would not look at turnover alone, I would look at turnover AND yearly distributions. If you see both frequently, the tax bite will be large. Turnover in and of itself does not signify anything negative.

Agreed.

My point was simply that it is largely a non-factor in a tax-advantaged account, like the OP's Roth IRA, but it (and, as you point out, distributions) become something to note when investing outside of such an account.

[MaxPowers]

So if I want to invest in mutual funds and individual companies what would be the best place to go with?

[Broken Arrow]

Well, each company and brokerage have their pros and cons, and you don't have to stick with only one.

I have two accounts from two different companies for my two different needs. One is for trading and one is for investing. That's what I would recommend.