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How To Buy Vanguard VTSAX For Your Roth IRA Or Brokerage Account - YouTube
Channel: Brad Finn
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So a couple of weeks back I made a video
talking about VTSAX and exactly what it
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was. It was pretty much a beginner's
guide and my email and DM blew up from
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people that loved the video that were
down from VTSAX but they wanted to
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know the next step they wanted to know
how do i buy it how do I set up a
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Vanguard account the whole nine so in
this video I want to go through show you
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how to open a Vanguard account and then
how you can add BTSAX or any other
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mutual fund from Vanguard to your Roth
IRA or other accounts inside Vanguard
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before we dive into that if you are new
to the channel my name is Brad I make
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videos with tips and motivation on how
to get out of debt save money invest for
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retirement all in the hopes that we all
can reach financial independence there
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is no shame in being a little bit
intimidated by opening up a Roth IRA or
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investing in mutual funds I have been
there if you've seen the film playing
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with fire even Scott and Taylor had to
call customer service and help
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themselves get through the process so
don't feel ashamed but don't let that
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intimidation keep you from doing it it's
a really really simple process and I
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promise you if I could do it and I can
learn from somebody two years ago that
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didn't even know what a Roth IRA was to
now having almost $10,000 in it you can
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do the same and if Vanguard is not your
style and you want to go with another
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company the process that I'm going to
show you are pretty much the same for
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each company so you could pretty much
apply it to whatever institution that
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you'd like so let's get started let's
get you investing in your Roth IRA for
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those of you that already have a
Vanguard account you can skip ahead a
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little bit I'm going to go through the
process of starting one but if you don't
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have one here's from scratch first thing
we're going to want to do is go to
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Vanguard comm from this homepage you'll
see a tab that says investing if you
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click on that tab and go down below
you'll see open an account you are gonna
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click open a new account next they're
gonna start to ask you a couple
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different questions about your financial
journey and what your goal specifically
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are the next thing they're gonna want to
know is how are you going to fund this
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account now just in general purposes
most of us are going to be using some
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sort of checking account so you're going
to want to click electronic bank
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transfer or
their Vanguard account the next page is
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going to be there to ensure that you
don't have another Vanguard account so
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it's gonna ask you once again if you
don't you're gonna say no I'm not
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registered next it's going to bring you
to a page and it's pretty much gonna
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give you a rundown of the things that
you're gonna need simply you're gonna
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need a bank routing number and also your
bank account and legally they need to
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know the information about your employer
and even if you are self-employed you
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still have an address or some sort of
p.o box you're gonna need those two bits
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of information and then generally what
type of account you want to open when
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you click next it's gonna bring you to
that page where you are going to choose
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your account type now in this example
we're gonna open a Roth IRA but this
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would be the same if you were gonna open
a brokerage account a traditional IRA a
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529 or any sort of account for investing
that you would want to open you would
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choose that right here and this is an
exactly set in stone this is just to get
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you started
once you open that online account you
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were gonna be able to add things later
so say you don't want a 529 now but
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you're gonna want one later don't worry
about not clicking 529 now you'll be
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able to add things as you go on so right
now just as for general let's just open
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and Roth IRA next we're gonna ask what
your goal for your money is and I'm not
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really sure why they asked this
information may be its first statistics
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or in case I want to market you to
something later on down the line but for
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me I just put growth and income and then
it's gonna ask for where the source of
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these funds are gonna come mine's comes
from retirement / general savings you
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could look at the different options
there but for most of us that's where
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the funds are going to come from the
next screen is where you're gonna start
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to put in your personal information now
I've I've already done this so I didn't
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want to go through it again
but it's pretty self-explanatory you're
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gonna need things like your social
security number and your address pretty
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basic information about you this is how
they're going to contact you how they're
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gonna mail you invoices and make sure
that you're a real person
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the next tab will be establishing funds
now this is the part that kind of takes
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a day or two when you're first setting
up your account essentially what you're
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gonna do is you're gonna go in you're
gonna put in your routing number and
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your bank account and then what Vanguard
is gonna do is in a business day or so
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they're gonna put two transfers into
and it's gonna be like 34 cents and 68
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cents it's gonna be two random deposits
into your bank count that's how they are
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going to ensure that we have the right
bank account for the right person when
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you see that hit your checking account
you go back to Vanguard you'll already
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have a login then you're gonna put in
those two deposit amounts 34 cents and
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64 cents and that's how you link a bank
account with Vanguard once you have all
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that set up then you're just going to
review you're gonna sign some paperwork
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it's gonna be all great done online and
then you have an online account you are
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ready for the fun stuff so now that you
set up your online account and you've
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linked a bank it is time to invest in
some mutual funds we're gonna go to
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investing account type and then for this
case a Roth IRA it'll bring you to a
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page and on the top right you will see
open a Roth IRA click that and we can
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begin
so first let's understand exactly what
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this IRA is doing so the IRA is a
vehicle and then we're gonna throw a
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bunch of things inside and we are going
to make that vehicle run now there's
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pretty much going to be two basic parts
there's gonna be some sort of settlement
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fund and then there are going to be your
investments on top of that the
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settlement fund that Vanguard uses is
the Vanguard federal money market
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account and like I said it's generally
just a savings account it returns a
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little less than 2% interest which is
less than my favorite Capital One money
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market account so I don't personally use
a savings account but if you hated
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online banks or something this would be
a place where you could open your
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savings account with Vanguard and let
that money sit inside of that settlement
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fund but you need to understand that
these are different from your
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investments I heard horror stories of
people that had been contributing to
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their Roth IRA for years but it was just
going into that settlement account and
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not into investments so essentially for
10 years they just had a glorified
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savings account after you put money into
that settlement fund you have to then
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take the second step and move money into
your investments now for me I just have
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VTS ax but you can add as many funds
here as you want then when you go in
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later and start putting money and you
get to choose your funds and how much
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you want to contribute to each one
I'll show you that in just a second now
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to put money into the settlement fund or
into VTS ax
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you're gonna go to the top where it says
buy and sell and then towards the bottom
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I'll say contribute to a Roth IRA here
it'll tell you what the contribution
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limits are for your specific year and
also tell you how much money you've
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contributed into your Roth IRA so far
that year and remember you have till
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April 15th to fun and max out that Roth
IRA now because this is a Roth IRA and
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it's not an employee sponsored plan
you'll just click no for that particular
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option and then below that when you come
back you will see all the funds that are
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inside your IRA so for me like I said I
just have the federal money market
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account and I also just have VTS ax but
this is also the place where you are now
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going to add whatever funds you'd like
once you've added the funds that you
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want in this case we're talking about
VTS ax you will see a little box next to
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that fund you have the option you could
put money into your settlement fund or
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into VTS ax now why would you want to do
that well here's a couple reasons why so
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you might want to put money right into
the settlement fund that's kind of like
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your inbox then you could take the money
from there and you could distribute it
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into the different funds inside your
Roth IRA another reason to go into the
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settlement fund first would be you're
just not ready to invest maybe we're on
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a super high spike and I'm not saying
you should ever try and time the market
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so this isn't the best option but maybe
you just want to hold the money in there
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and a settlement fund until you make
your final decisions or you're doing
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research about a new mutual fund it's
just it's a holding place for your money
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getting 2 percent interest so pretty
much keeping up or if anything losing
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money to inflation and the last case in
which you might want to use that
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settlement fund and it's the reason that
I had to because some funds inside
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Vanguard have minimum investment amounts
for VTS ax right now it's currently
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$3,000 so if you don't have that upfront
$3,000 to start you can't invest in VTS
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ax right now so what you do is you start
building up that settlement account
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until you get to 3,000 and then boom you
can invest it in now it's not 3,000
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every time it's
just to get that initiated after you
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have that 3,000 and you've bought VTS ax
then you can contribute partial shares
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as you grow that account personally
right now I'm just gonna go right into
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VTS ax so I'm gonna click that box and
it's gonna ask me how much I want to
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contribute I'm gonna put that amount
right there
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once I click continue it's gonna ask me
where I'd like those funds to come from
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and you'll see a couple options you have
that settlement account no so if you've
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been building up that settlement account
you can move the money right from there
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into VTS ax this would be the case where
you're trying to save 3,000 now you have
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3,000 that settlement account you would
fund VTS ax from right here me I have a
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couple different bank accounts that I've
attached to this very angered account so
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I'll just choose one of those banks and
if later on you want to add another Bank
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you could do so from this spot as well
it will ask you to review and submit and
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that is it you wait a couple days just
like when you pay your student loans you
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gotta wait for the banks to talk to one
another you have to wait for the funds
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to move but that it's as simple as that
you can do this all on an automated
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system as you guys know I'm a huge fan
of automation that's how I have mine set
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up pretty much takes the money out puts
it right into VTS ax if that's something
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that you want me to explain to you how
to do let me know in the comments below
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just be like hey Brad can you show me
how to set up automated investments I
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will help you out with that I'll make a
video just like this showing you exactly
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how you can have on a specific day of
the month when you come right from your
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checking account right into your IRA and
never have to worry about it again I
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hope this video helped to ease some that
intimidation of investing in Vanguard
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and VTS ax if it did please I beg you
give this video a thumbs up to help with
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YouTube's algorithm if you're still not
sure what VTS ax is I will put that
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video right here it's a perfect
explanation for a beginner down here
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will give you something that YouTube
thinks that you might want to watch and
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until I see you on the next one guys
stay positive work really really hard
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always importantly be kind to other
people I hope you have an amazing day
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and a better tomorrow
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