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Why I Changed From TD Ameritrade To Vanguard - YouTube
Channel: Mind Over Finance
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i recently decided to change brokerages
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i changed from td ameritrade a brokerage
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that i was very happy with
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to vanguard why well you're gonna have
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to keep watching to find out
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my name is dash and this is mind over
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finance and for the sake of all that is
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good and algorithm
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please chest stomp that like button
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[Music]
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i've been with td ameritrade for several
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years but after seeing one of my recent
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statements i decided to change what i
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saw on my statement was a
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17 fee when buying the vanguard index
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fund
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v f i a x and what it made me do
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is it made me go back and look at other
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statements and i realized that i had
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been paying that fee
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every time i would buy more of the fund
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and it was a fee that i wasn't really
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thinking about because it wasn't right
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in my face
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but it was there and i know to somebody
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listening seventeen dollars might not
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sound like a lot of money to you
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it might not sound like a lot to pay for
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a brokerage fee
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but if we look at the current price of
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vfia x i'm just gonna look on my
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computer really quick
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so the current price for vfia x is
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314.26
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that's about 5 of a share of vfiax
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and that really does add up over time
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and if
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this index fund is something that i'm
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going to keep investing in over time
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it doesn't make sense for me to waste
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that kind of
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money on a brokerage fee and how does
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warren buffett say it
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the first rule of investing is not to
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lose money and the second rule of
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investing is not to forget rule number
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one
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yeah and when it comes to retail stock
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investing
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the kind of investing that most of us
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common investors do
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the goal of the game is to keep those
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brokerage fees and management fees to a
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bare
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minimum otherwise it can start munching
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away at what your investment earns
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over time
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[Music]
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you have to keep in mind that your index
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fund even if it's a good one
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like vfiax like vt sax
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it already has a management fee
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associated with it
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it's called an expense ratio and with a
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good index fund you end up paying
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far lower fees than you would for any
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other type of mutual fund
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but i figured if i'm going to end up
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paying 17
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in td ameritrade brokerage fees on top
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of that expense ratio
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then i'd lose the low cost advantage of
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that index fund
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right there it doesn't make good
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financial sense to pay fees that you
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don't have to
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so here's what i did because i'm still
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very much a satisfied tj ameritrade
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customer
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and to be honest i like their platform a
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lot better for buying and selling stocks
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i decided to keep my stock holdings with
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td ameritrade
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not to mention that when you buy and
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sell stock with td ameritrade
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it is commission free just like it is
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with vanguard
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so i wouldn't get any added benefit by
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moving my individual stock portfolio
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to vanguard i did decide to move all of
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my vanguard index funds and etfs
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straight to their source by becoming a
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vanguard customer
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so that's going to eliminate that fee
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that i was having to pay every time i
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would buy into that vanguard fund
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and instead i can use that money to buy
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more of vfiax
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or whatever vanguard fund i choose to
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invest in
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and i'm not sure if there was a benefit
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to me moving my etfs over to vanguard
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but for me it helps me to keep things
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organized in my brain
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i now know that my index funds and etfs
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are with vanguard
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and my individual stocks are over here
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with td ameritrade
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so in the end to slash those management
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and brokerage fees
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and to continue doing so over the long
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term i decided to become both a
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vanguard and td ameritrade customer
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well that'll do it for today's video
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guys as always thank you so much for
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watching
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if you enjoyed today's video please
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don't forget to matthew mcconaughey that
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like button
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[Music]
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share and if you're brave enough
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subscribe
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and join me on this journey to grow mind
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over finance
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to 1 000 subscribers
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and i'll catch you in the next video
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peace
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