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Old 05-05-07, 11:33 AM
llamagatekeeper llamagatekeeper is offline
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A few questions...

Hello again everyone!

I just rolled over an old CD I had for 2 years into my savings and it has been sitting there while I am researching what to currently put it into next. I'm a big fan of ETFs along with Dann, but would it be wise for such a small sum amount of around 3000-5000? I'm going to be working through vanguard since I already hold my IRA through there. Anyone have some good suggestions for holding my money extremely long term? Thanks in advance!

-Brett
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Old 05-05-07, 12:52 PM
aquaswim47 aquaswim47 is offline
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Hi

Is this 25+ year money? If it is, I suggest SSO or DDM.

Zecco allows you to invest with as little as $2,500. They allow up to 40 trades per month and on those days where you want to trade, you're allowed up to 10. If it's an individual account, you'll pay nothing and an IRA account costs $30 per year. Scottrade charges $7 per trade but for long-term trading, you'll mostly be concerned with the buying transaction. Most likely, that sell trade will have a present value of under $1 if this is 25 year + money.

Because of the free trading, you could consider buying stocks that make up the Dow Jones Industrial Average and those company competitors or you could buy DIA and pay 0.2% expense ratio per year. The downside to buying all the stocks in the DJIA is that it will take three days to get the entire index for free. $3.50 extra for each trade that you exceed 10 trades per day or 40 per month. It would take 4 or 5 months to have the DJIA and four company competitors to each company index as it would be between 135-150 companies (as some companies may have competitors in the DJIA).

I also suggest SPY, DIA, QQQQ, VTI, EEM, EWJ, VGK, FEZ, VPL, MDY, VO, VBK, PZI, EWM, EWT, or EWO. Check these symbols out either at Yahoo or Google Finance or with your brokerage account (Scottrade/Zecco/Ameritrade/ETrade/Fidelity/Vanguard/T Rowe Price/TIAA Cref) The stock symbols show the name of the ETF and what it invests in; most of the ETFs I choose are index funds for the US/Europe/Japan/Pacific and emerging markets. The more diversified you are, the more likely you will be satisfied.

Check out http://www.falkininvesting.com/forum...-everyone.html

With $3,000 to $5,000, you will have to remit to Vanguard $10 per year. $3,000 to $5,000 is adequate for an ETF. You should use either Zecco or Scottrade depending on which best meets your needs. I'd suggest VGTSX or VTSMX if you choose Vanguard. Enter those into Yahoo! Finance - Get stock quotes, market news, mortgage rates & currency info.

Last edited by aquaswim47; 05-05-07 at 01:51 PM.
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Old 05-05-07, 01:27 PM
llamagatekeeper llamagatekeeper is offline
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Once I get home from work today I will complete the forms and check it out. It sounds like too good of a deal, but otherwise a really good deal by saving money on the commission part of ETFs which is the biggest negative in my opinion.
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Old 05-05-07, 01:36 PM
aquaswim47 aquaswim47 is offline
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Good

The only concern I have with Zecco is that it hasn't been in existence that long and I'm concerned somewhat about its security. However, I think the free trades is a great feature and when I get $2,500, I will use it instead of mutual funds.
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Old 05-09-07, 07:29 PM
JasperRealtor JasperRealtor is offline
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I am new here. I had never heard of Zecco and the free trades. I will check it out. I learned something already.
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Old 05-09-07, 10:08 PM
aquaswim47 aquaswim47 is offline
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Hi

Well, I hope that our assistance goes beyond free trades. Good luck with investing. Be careful with your next 5 stocks or better yet, choose an ETF. An ETF is a diversified product of either hundreds or thousands of stocks in most cases, thus you don't bear company-specific risk. That's really important in long-term investing; you don't want a bad quarter to wipe out your entire investment.

Last edited by aquaswim47; 05-10-07 at 01:40 PM.
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Old 05-10-07, 03:08 AM
JasperRealtor JasperRealtor is offline
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Thank you for the reply, aquaswim47. I have plenty to learn. I am lucky to have found this resource.
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Old 05-10-07, 10:48 PM
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Journal Writer Journal Writer is offline
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Last year (while I was busy with my real job) I stuck most of my investments in Vanguard ETFs that I bought through Ameritrade for a one time $9.99 fee. I like ETFs better than index mutual funds because the fees are even lower. VB, VO, VV and VWO were the ones I bought - they cover the broad indexes (VWO is the international play).
Btw, only buy ETFs with limit orders IMHO. They fluctuate on emotion more than a mutual fund does.

My Trader’s Journal
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