Roth IRA - Vanguard or Fidelity? If a college student had to pick one? (funds, pay)
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These are the only two options I will consider at this point, since I was in a very indecisive state, but have managed to narrow it down to these two. It seems that mostly everybody is recommending either Fidelity or Vanguard.
I am a college student who will earn some "official income" money during the spring, but not a lot (very minimal part-time job). I also have about $500~$1000 that I received from relatives and saved up over the years.
As for utilities, emergency fund, transportation, etc, my parents and supportive extended family (we are from a culture where there is no such thing as personal business ) are saying JUST GO AND START INVESTING YOUR MONEY and do not worry about the other issues. Just focus on excelling at school and start investing NOW for the long-term future; you will need it!
As for a little bit of background of my future plans, I plan on going to get a PhD right after graduating from college, and hope to continue in academia if I can (to become a professor). Thus, at least until my PhD is done, it's likely that I won't be making any money, or very little (I will try but I don't want to be too optimistic when taking things into account)...
With these goals and future plans in mind, does anyone know which is better for someone in my situation, between Vanguard and Fidelity? A lot of people have been suggesting me to go ahead invest in an ETF for now although I don't really know how it works. I just need to know which of the two, Vanguard or Fidelity, is the most optimal decision (for someone living in Texas) who's in my shoes, and also why?
[EDIT]-> Or possibly a mutual fund instead of an ETF.... I don't know, I'm so confused
Last edited by avant-garde; 12-22-2011 at 03:46 PM..
I agree withmathjak107 - I have had retirement accounts with both but closed with Vanguard and consolidated with Fidelity several years ago for the same reasons - they offer more and the level of service I found to be better as well.
That said, I believe that Vanguard may have lower minimum amounts for initial investments than Fidelity.
As for a little bit of background of my future plans, I plan on going to get a PhD right after graduating from college, and hope to continue in academia if I can (to become a professor). Thus, at least until my PhD is done, it's likely that I won't be making any money, or very little (I will try but I don't want to be too optimistic when taking things into account)...
Personally, I like Vanguard better because I think Fidelity is has too many wild and aggressive funds. Fidelity funds also changes their managers too frequently.
But Fidelity does have some good funds. You just have to pick the right ones for you.
As for getting a PhD...unless you're going to get the PhD at an Ivy League school, you're chances of becoming a tenured professor anywhere are quite slim (unless it's a really in-demand field...but if it was, you probably wouldn't be wanting to be a professor).
Here is a good blog on this subject. It's aimed at people who want to get PhDs in arts & humanities, although I hear even some hard sciences also have a glut of PhDs.
Personally, I like Vanguard better because I think Fidelity is has too many wild and aggressive funds. Fidelity funds also changes their managers too frequently.
But Fidelity does have some good funds. You just have to pick the right ones for you.
As for getting a PhD...unless you're going to get the PhD at an Ivy League school, you're chances of becoming a tenured professor anywhere are quite slim (unless it's a really in-demand field...but if it was, you probably wouldn't be wanting to be a professor).
Here is a good blog on this subject. It's aimed at people who want to get PhDs in arts & humanities, although I hear even some hard sciences also have a glut of PhDs.
one big negative for vanguard if your going to do stock trading is their research section is awful.
That's nice, but not important for someone just starting out. Very few people make money trading individual stocks. Heck most people don't even earn the published returns of mutual funds because they jump in and out at the wrong times.
I know you're not one of those people....but most of the reast of us are like that. Most people simply do not have the education or the temperament to buy and sell individual stocks.
i agree 100% but its still a difference i wanted all to be aware of.
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) are saying JUST GO AND START INVESTING YOUR MONEY and do not worry about the other issues. Just focus on excelling at school and start investing NOW for the long-term future; you will need it!
