Opening account on Vanguard for investment

Nov 26, 2017 15 Comments

Hi I’m a new grad joining a company next year and I have about $40k in my checking acc which I plan to invest in different things including on Vanguard.

I’m in the process of signing up for an account but I’m stuck at the part where 401k from the employer is mentioned.

My work starts next year and I know I get 6% 1:1 matching but does that mean I should wait until I start working to create and invest ?? Or can I just go ahead because 401k is a completely different thing?

Just curious because it says about linking 401k account or sth

comments

Want to comment? LOG IN or SIGN UP
TOP 15 Comments
  • Microsoft resist
    Do you just want to invest? Or invest for retirement? If it's the former, then no barriers at all, just open a brokerage account and pay $6-$10 per trade depending on your broker. Be prepared to pay taxes on capital gains. If you are looking to invest for retirement, then IRA/Roth IRA is the way to do it as someone stated above. 401k is off limits until you start, so no match on your $40k :)
    Nov 26, 2017 9
    • Facebook public
      Yes 6 dollars is absolutely too much to pay for something that cost 0. If $6 is meaningless to you feel free to venmo me $6.
      Nov 27, 2017
    • Microsoft resist
      Ok then, fill me in (I honestly want to know) on the brokerage business model please. Btw, can I place an ad on Facebook for $0? It costs you nothing to move a few bits around.
      Nov 27, 2017
    • New qJKA34
      So you work for Etrade or something? Chill man, people are allowed to use a zero fee broker over one that charges fees. If the zero fee brokers are able to stay competitive and make money without charging, it's a valid option. Most of these big firms aren't making all their money from casual traders one 10 dollar trade a month anyways.
      Nov 27, 2017
    • Facebook public
      All brokers are zero free. They make money by lending and margin. The discount brokers (etrade, schwab, fidelity etc) charge for first 100 trades until you become an active trader but simply call them and ask for free trades and they will give you 100. And yes a 90 second phone call is worth 500 dollars for me. You guys pay for atms or checks too?
      Nov 27, 2017
    • Microsoft resist
      Fair enough, you made your point, however irrelevant it might be to the OP's original question. Two minor details before I leave this topic: (1) OP is not asking to be an active trader and (2) I just pulled TD Ameritrade's annual report out of curiousity and see that close to 70% of their revenue comes from fees, and only 20% are margin lending related.
      Nov 27, 2017
  • Square / Eng halftime
    Start investing now. Vanguard is a great place to start an indexed portfolio. This is likely to be your lowest income year for a while, so I'd strongly recommend maxing a Roth IRA as first step to investing this year.
    Nov 27, 2017 0
  • Amazon
    satyaBezos

    Amazon

    PRE
    Microsoft
    satyaBezosmore
    Yes, you can't before you join.. in the mean time, you can invest in IRA and stocks.. 401k comes directly from paycheck, so you can't just put money from your checking account to 401k
    Nov 26, 2017 0
  • New qJKA34
    If you're wanting a bit of automation and some hand holding, can also look at the roboadvisors like Wealthfront or Betterment, both free for initial balances. They support both IRA types, can sync with your other financial accounts and can help you get started towards retirement or other goals.
    Nov 27, 2017 0
  • Apple BnqW74
    New grad? I would throw some at crypto too 🙂
    Nov 26, 2017 0
  • SAP Yippi
    Throw it into a Roth IRA before April 2018. Regular 401k is usually required to be offered by your employer or if you’re self-employed.
    Nov 26, 2017 0

Salary
Comparison

    Real time salary information from verified employees