1. How to Open a New Vanguard College 529 Account with less than $3,000 | 2022
  2. Are 529s Really the Best Way to Save for College?
  3. The Best 529 College Savings Plan
  4. How to open an account at Vanguard
  5. 529 College Savings Plan | The Ultimate Guide
  6. My actual 529 college savings plan investments
  7. How to Open a Vanguard Account (Step by Step for Beginners)

How to Open a New Vanguard College 529 Account with less than $3,000 | 2022

all right welcome back to attend,overnight and weve got a excellent new,episode for you because today were,going to open up a brand new college 529,account youll forgive me if you hear,frozen in the background ive got the,one-year-old watching a movie shes,running in and out so god forbid i turn,it off or shell come back in here and,tear me apart so,without much further ado lets go ahead,and get the vanguard account up on the,screen where were going to be opening,the account so when you first get into,vanguard uh you want to go ahead and,click on my accounts,and you want to open an account so were,going to jump into vanguard which is,where we hold r529 if youve not seen,the overview video where i talk about a,539 check this video out right here um,and that one is where i go into kind of,the frequently asked questions uh give,you some general tips and tricks about,it and just help you get a better,understanding every state has a 529 plan,that they offer were going to go ahead,and get into the one we have set up,through vanguard now we are uh arkansas,residents um but the vanguard 529 i set,up i think i did it in the state of,nevada for our 11 year old im just,going to go ahead and set one up here so,were going to go ahead and open a new,account and we are going to,transfer investments from another,financial firm so were going to be,doing a wire or deposit from another,bank,and pick what kind you want to do,and ive already got my,roth ira here and i already have our,sons 529 but were gonna go ahead and do,our daughters today and there we go,choose the account type complete it in,five to ten minutes watch for a,confirmation okay,tell us about you youre interested in,education,there it is theres the one called the,terror there she is college vanguard 529,now you do not have to use vanguards,thats just my personal preference im,not a financial planner im not a tax,professional use wherever youre,comfortable setting one up the purpose,of this video is just to get you to,actually do it to ask questions to get,interested and just begin every state,offers one skid on google chrome or,whatever browser you use open a new,search type in arizona 529 wyoming 529,wherever you live type that up but were,gonna go ahead and roll forward here,do you know what your own state offers,yes i do make sure pop-up blockers,turned off very good,okay im gonna go ahead and maximize,that lets go ahead and minimize me but,well go ahead and just tell us about,the beneficiary and im going to go,ahead and block out some of this,information,continue all right so here you want to,type in if youve got a spouse do that,if youre not if you dont have one uh,go ahead and type in a parent or,somebody like that that you trust,continue,choosing an investment strategy for,victorias savings all right target,enrollment manage investments based on,year of enrollment so this is a little,bit more automated its going to give,you some different options and things,like that but if you want to be in the,drivers seat and if youve got time to,research it and know what it is youre,talking about you can go ahead and click,this one here i you dont have to be an,industry expert to do that thats just,my personal preference i like to be in,control and know what im picking and be,able to see what why so custom portfolio,choose investment mix you may choose up,to five investment options and you must,allocate a minimum of five percent to,each investment option you choose okay,expand the desired portfolio type okay,investments based on your enrollment,individual heres where you get to,and if you hover over this,and click on it it will pull up the,particular portfolio youre looking at,itll give you a little summary,so the vanguard 500 index its main goal,is provide long-term growth by investing,all of its assets and the vanguard,institutional index fund you can,continue to go ahead and read through it,but its designed to track the,performance of the standard and poors,500 index the expense ratio this is,important is 0.13 percent okay so thats,0.0013,of the amount thats invested now to get,into this fund you need at least three,thousand dollars okay you may not have,that so well tell you what to do here,in a second but it tells you the risk,potential and then it has other data,down here that you can do but every,single one of them,has,that so were gonna do because were,gonna track this one as if were broke,as a joke which we kind of are and uh,well make sure that we find one that,doesnt need three thousand dollars so,good news i figured out how to do this,without three thousand dollars it just,took a little quick call to customer,support,go ahead and select your breakdown you,do not have to do what im doing i am,not a tax professional i am not a,financial advisor so you got your,breakdown it shows you where youre,going to be invested were going to hit,continue and this is the part where a,lot of people are gonna get stuck,instead of bank account one-time,contribution if youre doing less than,three thousand dollars hit check its,gonna give you some instructions here,now that youre here its gonna ask you,hey,can you chill,no,yeah,uh its gonna ask if you want to,activate this you gift,uh code,youre gonna say yes,set up how you want things delivered to,you,the one i would pay attention to is tax,ones email the mail if youre not,playing,just being a lookout hopefully doesnt,get lost but emails fine my poor wife,shes trying to rattle snacks to get her,to come over there thats hilarious you,want to set up your communication,settings,review your information which im going,to block out for privacy reasons,good to go we selected everythings,gonna come via email new gift is,activated yes now you gift uh i was,distracted by her thats so friends and,family can just uh click on a little qr,code or a code and an email or social,media post and actually contribute which,is one of the things were going to be,doing were going to be testing out,later on in the series,go ahead and consent continue and this,is where you would want to print this,okay this is what you would be mailing,in to get it set up uh were actually,just going to skip this part were going,to pretend like we did it,and then were actually just going to,make a deposit electronically,all right continue theres our u-gift,code which will show up later on we,always get that later and now its,creating the account its an odd little,error page but were going to put the,vanguard home page,well,it should show up here but were going,to give it about 24 hours to refresh it,is friday so well see if its there,all right it has been 24 hours and it,turns out i was successful even though,we saw that error screen that came up,when we tried to create the account i,waited 24 hours and it did actually,create the account so lets go ahead and,throw that up on the screen and im,going to show you how to make a,contribution to the account were gonna,go ahead and block out the names for,privacy once you log into vanguard click,on the account you wanna go into and,once it opens youre gonna see that,actually the way i have it divided up,the allocation is already in there okay,so it doesnt tell us the percentages on,this screen but you can see that when,things are invested or contributed it,does have those three breakdowns and,before we were worried that if we didnt,have that three thousand dollar,portfolio minimum we wouldnt be able to,open the account i got on customer,support had a i think i reached somebody,within 30 seconds which was amazing i,had the answer within about two minutes,done deal good to go go back and watch,the video once youre in here go to my,529 plan account the new pop-up window,so make sure pop-ups are enabled click,on the child that you want to work with,or i should say beneficiary and once,youre here click on make contribution,and were going to do that,electronically this time and make sure,your check the correct one and were,gonna go ahead and put in fifty dollars,actually

Are 529s Really the Best Way to Save for College?

[Music],lindseys weathers lindseys in,sheridan wyoming hi lindsey how are you,great thanks how are you thanks for,taking my call today sure whats up,so i was just crying my husband and i,are currently,making 529 contributions for our,daughter,and nieces and nephews and it kind of,came up in discussion what do we do,we want to be able to gift them all,equally but you know,what would be your recommendations or,thoughts on,you know if one of them went to a trade,school or something that doesnt cost,quite as much you know was kind of,thinking,you know what would we be able to do to,help them all equally if,they dont choose the same path in life,if that makes sense,if you had the same amount of money in,there what wouldnt be unequal,well my thought what you know like if,one of them went to a trade school that,only cost,twenty thousand dollars they would have,the money left over theyd have the,money left over wouldnt they,they would but i mean if it cant be,used for an educational purpose if,theyre done with their education my,thought was you know if theyre,do you have an idea like if we wanted to,perhaps help with like a,down payment on a house do you think,its wise to invest it all in a 529,or go other routes so we have more than,one option,well i mean most people do not get,enough into their 529 to pay for college,okay and so most of the time this is a,theoretical discussion,so most of the time the answer is put,all you can in 529 because its still,not going to be enough,even even for trade school now if youre,way way way ahead of the curve and,youve done a great job,and youre worried about having 200,dollars in a 529 and then they go do,something for 60 grand at a trade school,thats a valid concern then and if,youre really looking at those,actual numbers and thats actually,occurring today,then you say okay im going to split it,off im just going to put some and a,mutual fund in that kids name,and im the custodian thats exactly,what we want to do yeah and thats a,custodian because are you okay,but im not doing that if you dont if,you have five thousand dollars in your,529 youre putting 50 bucks a month in,there im not doing that,i bet you dont lindsay though because,youre talking about a down payment even,i mean are you guys,how much is in the 529 today uh,we i mean theyre all like one and two,years old,okay so you want to worry about it today,i you know i dont we,it just came up in discussion and we,thought well should we go this route,yes you should go this route you should,go this route until you have,enough in the 529 that it starts to be,an issue,and you know so if you get up to 100 or,something in a 529,after that you can start talking about,putting some of it somewhere else if you,think that kid might be a trade school,kid instead of a,uh you know a four-year kid and by the,way either ones fine with me,im great with that so uh but yeah but,but,dont dont split it off today and you,know fifty dollars or fifty dollars,there thatll drop you nuts yeah,and youre missing out on all the tax,benefits because its gonna grow,tax-free,in that 529. so the college,world is a changing its changing were,talking about that during the break,i know and theres a lot of i mean ive,heard i think probably more in the last,two years and even more so since the,pandemic and everything and,how much online has gone and everything,i mean its just its crazy,that people really are kind of,questioning okay whats education going,to look like in 20 years right she said,that theyre,those kids or the accounts are one or,two years old but if you have kit,littles and winston and i were still,funding kids college were still doing,it,um but i think it is an interesting,conversation though of what education,could look like in 20 years but you were,saying at the break youre like yeah but,its higher educations not going away,youre still,going to be using those funds but its i,dont know,no i mean are people going to,theres two things that have happened,that have jarred,everybody out of their their their uh,zombie-like sense about education and,one is,this student loan debacle epic failure,of the student loan system,and uh and one of the results of that,huge mess is that higher education is,has,shot through the roof in cost yeah so,its so stinking expensive,that its making everybody go this is,just stupid and then the second thing,thats happened is pandemic,now theyre still trying to charge for,all that online,and they and you cant go back and,youre socially distanced and so theres,four people in the class or some kind of,crap,and theyre going uh uh thats not,exactly the college experience and air,quotes i had in mind,and so theyre going no im not paying,full price for you know,online if im gonna do online im gonna,jump on somewhere and take a 29,course screw this and so that has,changed the consumers mindset,of education uh those two things have,have given,uh really given higher ed two black eyes,right now yeah and we,i know we dont have a crystal ball you,dont have a crystal ball but seriously,though what do you think,if you were to predict in 10 years i,mean like literally the online stuff has,just shaken everyone to the court,because,people are i mean everything like the,things you thought were never going to,happen happen during the pandemic and,people are so comfortable with the,internet theres i mean even ramsey plus,right we were able to launch,what was a standard class for so long,online and we,and it and its amazing so like things,are changing so,quickly in that regard i mean you dont,have a crystal ball so its unfair to,even ask but,im just curious your thoughts on what,education could look like,especially higher education where youre,paying well 40 grand a semester you know,a year at these private schools that,arent even meeting now like,well its wild obviously if they dont,start meeting,nobodys going i mean theyre theyre,going to lose all their customers,and so you know its its like if,churches dont keep meeting,dont start meeting again then you know,its going to be theres going to be a,fallout there in this country thats,going to be unbelievable,and so if people dont get past um,th the fear on these things and start,coming back together then,um and i didnt think it would take as,long as its taken i thought itd be,back to normal by now so what the crap,do i know,so i dont know anything but um but i do,think higher ed,for the first time people are stepping,back and giving it a really hard look,and not to say that its invalid because,i really do not think higher ed is,invalid i really think its valid,i if um i would want all of my six grand,babies today to get a four-year degree,that would be my goal as their papa dave,am i going to be mad at them if they go,get a vo-tech degree no im not going to,be mad at them but i think there is a,benefit to a four-year education i still,believe that,now how we go about doing it yeah 18,years from today for little charles,right there maybe a whole different way,of doing it 17 hes almost a year,okay he could do it in 16 because hes,so smart,thats right 10 months genius

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The Best 529 College Savings Plan

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How to open an account at Vanguard

Welcome!,Were excited to be your investing,partner as you take charge of your financial future.,Through this short video youll get,a sense of what to expect when opening a Vanguard account.,Theres no cost to open an account, so lets get started.,First, click Open an Account at the top of the page.,From here youll select Start your new account.,Well assume youre using your bank,to make your initial investment.,You can also rollover or transfer investments,from another company.,If youre not already a Vanguard client,,select No, Im new here.,Heres a look at the process and the things,youll need to get started.,The process will take about 5 to 10 minutes.,Once your money reaches your new account,,you can start investing.,Youll begin by selecting your goal and a related account,type.,You can always reference the frequently asked questions,on the page.,Your account will act as a container for the investments,youll choose later–such as index funds, stocks, or ETFs.,For this example, lets select a general investing brokerage,account for one person.,Next, youll provide your personal information.,You can be confident that Vanguard,uses a number of security measures,to keep your data safe.,Review your details for accuracy.,Youll then create a username and password.,In addition, youll agree to web terms and paperless documents.,Youll also set up your security questions.,Next, youll add the bank account,youll use for transactions.,All new accounts require a bank on file.,Select your bank from a list of popular banks, or search for it,manually by name.,You may see other banks with similar names,,so be sure to select the correct one.,If youre unable to log into your bank,,you can add your bank manually.,After logging in to your bank, select,which checking or savings account youd like to use.,You can add more accounts later.,Next, choose if you want to transfer money from your bank,now or later.,As a reminder, theres no cost to open an account;,however, some financial products require a minimum amount.,To fund your account now, enter the dollar amount,of your initial transfer.,In the next step, youll enter your employment information.,Certain occupations may have additional rules,and regulations.,On the next few pages, youll answer some final questions,,which are required for all new brokerage accounts.,Your answers wont affect what products you can invest in,,and you can update them at any time.,Once you review your information and accept our agreements,,youll receive a confirmation.,Congratulations!,Your first investment will go into a money market settlement,fund that comes with your account.,Youll then use this money to purchase investments.,It could take 3-7 days based on the product you select.,We look forward to helping you to achieve,your financial goals!

529 College Savings Plan | The Ultimate Guide

if you have kids its likely that one,day they would want to attend college,there are many different ways to save,for college but in this video i want to,share with you one great option called,the 529 college savings plan hi if,youre new to the channel my name is tay,from financial tortoise where we learn,to grow our wealth slow and steady,thinking about saving for your childs,education can be daunting i have two,kids and even though they wont be,college age for another 10 years i still,get nervous thinking about how i would,fund their education thankfully i,started learning about the 529 college,savings plan early on and started,funding them as soon as my kids were,born though i know it wont solve all,the unknown challenges of college,education in the future im hopeful that,it will alleviate some of the financial,burden this video is broken into three,parts so feel free to skip around the,section you will find most useful first,well review the fundamentals of the 529,college savings plan and why you would,want to consider investing in them,second well walk through some 529,investment options specifically vanguard,since this is where i keep my kids 529s,and third well cover some of the most,frequently asked questions around the,529 college savings plan all right to,start out with what is a 529 college,savings plan the name 529 actually comes,from a section number 529 in the,internal revenue code there are actually,two varieties of the 529 the savings,plan which well cover in this video and,the other a prepaid tuition which i,wont cover here the main thing to note,regarding the prepaid tuition is that,you typically pay the tuition at the,current rate and your child will have,his or her tuition cover later on,regardless of the cost of the time but a,lot of times youre limited to in-state,public colleges i personally dont want,to limit my kids college options so i,prefer the 529 savings plan which has,more flexibility the key reason you want,to save for college in a 5-9 savings,plan versus just a regular brokerage,investment account is because of its tax,benefits the 529 plan allows you to have,tax deferred growth and tax-free,withdrawals for qualified education,expenses and this is primarily from,federal taxes state tax benefits vary,upon what state you live in in essence,its very similar to a roth ira but for,education you invest post-tax dollars,and your investment grows tax-free now,the caveat here is that you need to use,the money for qualifying education,expenses such as tuition books and room,and board and there are ineligible,expenses such as health insurance and,transportation though they might be,education related they technically,arent qualified but by using a 529,college savings plan versus a regular,brokerage account you can save thousands,of dollars in taxes on all these college,related expenses you would have had to,pay for anyways another major benefit to,a five to nine college savings plan is,its flexibility around the beneficiary,the account allows you to save for,literally anyone even yourself and if,your child doesnt end up using the,money for education expenses you can,change the beneficiary it could be for,yourself or maybe another member of the,family that would benefit from it now,the key is it still needs to be used for,qualified educational expenses if you,use your 529 money for non-qualified,expenses you may incur 10 in penalty and,will also be subject to income tax tied,to the flexibility to the beneficiary is,the fact that you can open one up,anytime even if you dont have kits yet,you can open a five to nine and add them,as a beneficiary after theyre born,youll essentially just place yourself,as a beneficiary and change it in due,time the key reason you want to do this,is to get a head start on college,savings youre essentially investing,this money so the more time it has to,compound the more money youll have,available when it comes time for college,and also as i alluded to earlier in,comparison to a prepaid plan you can use,the withdrawals from the five to nine,college savings plan and any eligible,institution of higher education and that,includes not only four year colleges and,universities but also qualifying,two-year associate degree programs trade,schools and vocational schools both at,home and abroad this means that if your,child chooses to pursue post-secondary,training in their chosen field whether,its a computer scientist a mechanic or,an artist theres a good chance you can,pay for that training with your 529 plan,all right now that youre convinced that,you want to open up a 5 to 9 college,savings plan for your child lets look,at some options on how and where to open,one up my go-to investment firm is,vanguard and that is where i hold my,kids 5 to 9 plans so well deep dive,into a few of the vanguards options i,have a link to the vanguards 529 page,in the description below but you can,also just google vanguard in 529 and,find the site what you notice here is,that there are two distinct buckets of,portfolio options individual five to,nine portfolios and target enrollment,portfolio if you have a good,understanding of your risk tolerance and,the investment approach you want to take,individual five-time portfolio might be,ideal for you there are quite a few,lists of options you can choose from,they range from straightforward smp 500,index fund to bond portfolios personally,i like simplicity so i prefer the target,enrollment portfolio it is very similar,to a target retirement fund where based,on your retirement age the work of,diversification and asset allocation is,done for you by vanguard in the same,principle based upon when your child is,expected to enter college you find and,invest in that one portfolio in addition,the irs regulation only allows you to,exchange money from your current 529,investment option to a different option,only twice a year so i prefer the set it,and forget it method in order to,minimize any complications with the irs,when you click into the target,enrollment portfolio page youll see a,list of target enrollment funds with the,expected start of the school year my son,is 80 years old now so ill pick a,target enrollment,2032-2033 10 years from now when he,would ideally be starting college as you,can see here target enrollment,portfolios are diversified among stocks,bonds and cash investments it shows that,65 percent of the fund is in stocks now,because were 10 years out from when we,plan on withdrawing the money the asset,allocation each portfolio will,automatically adjust to a more,conservative mix as my son gets to the,first day of school so by the time were,ready to withdraw we would have more,money in bonds and short-term reserves,and less in stocks what we wouldnt want,to happen is to have all his college,money in stocks a day before his tuition,is due the market drops by 30 percent,and were forced to sell at a loss,because we were being too risky lets,delve a bit deeper into a specific fund,to understand the underlying funds and,cost the stocks are made up of,vanguards total stock market index fund,and vanguard total international stock,index fund great funds that i would have,chosen myself if i was designing the,portfolio and the bonds are made up of,index funds as well vanguard total bond,market index fund and international bond,index fund what i like about these,underlying funds is that there are,well-diversified index funds,diversification minimizes the risk of,being too heavily invested in one,company one industry or in this case,even one country the expense ratio of,this fund is 0.14,this means that if you have 10 000,invested in this target enrollment,portfolio youre essentially paying 14,for vanguard to manage this fund for you,for 14,vanguard is doing the work of managing,the index funds compiling them into,single portfolios and managing the asset,allocation as your child gets closer to,his first day of college all right lets,take a look at some frequently asked,questions around the

My actual 529 college savings plan investments

hey guys welcome back to the channel so,i was just looking at my kids 529 plans,and something interesting jumped out at,me that i wanted to share because i,think a lot of people go through this,when theyre looking at the performance,of their funds whether or not theyre in,a 529 plan or theyre 401k or whatever,so im actually going to go through the,529 plan that i had set up for my four,kids so theyre going to be four,separate 529 plans now one of the 529,plans because i used to one of those is,through utah now i use utahs plan,because i like it,and because im in the state of florida,so it doesnt really matter what 529,plan that i use because theres not,really any benefit to using one 529 plan,versus another because i dont have a,state income tax benefit so some states,have a benefit where you can contribute,into your own states 529 plan and,youll get a state income tax deduction,now not all states offer that even if,they have a state income tax like,california i dont believe offers that,new york does so if you use new yorks,529 plan and you contribute i believe,its still 5 000 for each person so if,youre married filing jointly thats 10,000 total as a deduction on your state,but anyways i want to talk about,performance so im going to go ahead and,pull it up on the screen here and show,you something that i find is kind of,interesting,and might help you,look at your own 529 plans and,understand how the performance works so,were going to look at some funds in,here,and were going to compare the,performance so let me go ahead and pull,it up on the screen here okay so here is,the 529 plan and im probably going to,have to do a whole lot of blurring out,of the account numbers but i want to,show you the performance lets scroll,down here and look at my daughters plan,right here now year to date its at 7.32,percent,now that could be good that could be bad,right so you have to have it relative to,something else to realize how well,youre doing so lets go ahead and flip,over to this chart right here now this,is the s p 500 year-to-date at 18.23 so,if youre comparing it to the s p no it,doesnt look like its doing that well,or,is it so heres heres what i find a lot,of people miss when theyre looking at,the performance they look at the rate of,return which is exactly what theyre,giving to you and this is called the,personal rate of return which im going,to talk about that in a minute,so,if we just look at the actual positions,now ive already queued them up so we,can,quickly look at them but we could see,the positions here in the symbols now i,didnt realize this at first but the,symbols in this 529 plan and this may or,may not be the case if youre using a,different 529 plan theyre using their,own symbols but they do they do they did,give us the conversions so we can go out,and actually look these things up so,anyways ive already queued them up and,i want to compare all of these,particular positions so im using some,vanguard theres two vanguards and two,dfa funds,dimensional dfa if youre not familiar,with them,and,look at that that is a complete,different story so you can see here the,hot pink is the s p 500 and year to date,most of the funds,have outperformed the s p 500.,so the best performer right here is this,dfa us small cap value,and then we have this other value that,did really well,and then we have this small cap index,fund as well,that did not do as well oh this is not,the value this is the growth fund so,thats whats lagging is the growth,so the only position thats down is the,small growth side where the blend fund,seems to be up,and,the large cap fund that i have in here,but,im not talking about diversification,were just talking about performance in,this in this video,so your initial reaction is probably the,portfolio wasnt doing quite as well as,you had hoped but then when you start to,dig into it and you look at this rate of,return its called the personal rate of,return which includes both inflows and,outflows so it doesnt give us a really,true rate of return now it might be the,rate of return of the overall portfolio,from where we started and where we,finished but its not really helping us,understand how well the actual,investments are doing,so and thats really in my opinion is,the only way to calculate a rate of,return which is also known as the time,weighted rate of return so it this way,really is affected by how often youre,making these contributions when you make,these contributions and if you think,about it just think about it for a,second right if you contributed lets,just make easy math ten thousand dollars,at the beginning of the year,and then you wait all the way to the,year,uh all the way for the rest of the year,and then you make another contribution,of lets say whatever ten thousand more,dollars you made a total contribution of,twenty thousand dollars but you made it,on say december 30th so it literally had,one day to get put into the market and,to grow over one day but then at the end,of the year youre gonna look at the,rate of return and say,you made a 100 rate of return okay so,that means your 10 000 that you,originally put in there doubled and now,20 000,but nothing happened on that last day so,at the end of the year you have 30,dollars right well if you did that at,the beginning of the year youd have,forty thousand dollars so its really,important when youre making that,contribution when it comes to the,performance but you wouldnt you,wouldnt blame it on the investment,if you were looking at that you would,blame it on nothing youd just say we,made a contribution at the end of the,year we missed the upturn in the market,thats it so the personal rate of return,isnt going to explain that,um so you really want to make sure more,of like a goal if youre goal oriented,which is exactly what this stuff is you,want to look at that but if youre,comparing rates of return somebody says,oh i got a 7.5 rate of return i got a 20,rate of return,that might not be apples to apples and,thats thats happens all the time when,were looking at performance of not just,529 college savings plans but also 401ks,and other retirement plans or any other,portfolio when youre making those,comparisons now im always calculating,the time weighted return to remove those,contributions,and also distributions because that,affects it so,i mean just think if you took out half,the portfolio at the end of the year and,even if it did really well throughout,the course of the year youre going to,have less money in the portfolio because,you took out so much so thats the,effect that youre going to have in,these types of scenarios,so really what you want to take a look,at here are the contributions and i,scroll down here and we could see when,we made some of these contributions in,this portfolio and you can see that im,making monthly contributions pretty,frequently now and ive upped that over,over the years i think this thing is,only like two years old its really not,that old um lets see if we can take a,look ill show you,all the rows here,um,can we just go and sort them,we could sort them here and we can look,at the contributions,so you could see a lot of these,contributions i want to show you when i,started because i wasnt making that,that much of a contribution in the very,beginning,and i cant even figure out,how to find it lets take a look lets,put it in the other order,i guess the dates that are here oh,thats the problem i didnt have it up,there lets just put it to 2000 we,didnt start this in 2000.,we can go all the way down now there we,go okay so if we go over here i do,transaction type just so we could see,them and then the contributions we could,scroll kind of to the bottom in 2019 so,i was only making 25 contributions to,this thing and then i kicked it up in,november and december of last year to,make much bigger contributions,so that money,wasnt,i mean we only had one contribution at,500,before we even hit january and then,another one but then a lot of the bulk,of these contribut

How to Open a Vanguard Account (Step by Step for Beginners)

all right so were going to start out by,just opening up vanguard.com,and we will go to the sign up page from,here so in addition to showing you how,to actually sign up for vanguard we are,also going to talk about,when you may or may not want to use them,as their brokerage because they are a,great company theyre a huge company but,it does,have its downfalls and there are some,other options if,you are looking to do some things but,not others so well get into that in,just a minute so were going to click on,this personal investors,and this is going to take us to our,investor page which is the main page,that you will usually land on when you,are using vanguards site so if you,already have an account this is where,you would log on,but since we dont have an account were,going to click open an account and from,here,we are going to say open a new account,if you are wanting to transfer an,existing account that you already have,through another brokerage thats where,you would choose this other option,but were just going to choose this,first option so im just going to walk,through the different sign up pages and,what you have to do on each of those,because that can be helpful to see,if you have never opened up an investing,brokerage account before,so this first page is how will you fund,your account,for most people thatll just be an,electronic bank transfer,so if you have an online bank if you,have a traditional bank with an online,account thats what you would use,or if you are doing something like with,your 401k,or you are transferring from another,brokerage thats where you would pick,those other two options so were going,to go ahead and click continue,and we do not already have a login,because we are making this account for,the first time so we select this,no im new here button um so were going,to click continue,and now were going to start the process,of actually signing up so were going to,click,no we are not registered we do not have,an account i dont know why they ask,that like three times but here we go,this is the page where we need to,actually decide what type of account we,are going to be,opening so you can open an ira a roth,ira,you can open just an individual account,you can also open up a sep,ira or these other business account,types,and again this is a super easy process,the application,really only takes five to ten minutes as,they say so were going to click,continue and on this next page we first,are going to select that account type,that we want whats nice about this is,that when we click on these,some of them will have this extra,information at the bottom and this is,where you can actually compare these,account types unfortunately vanguard is,not,super great about the user experience on,their site and,they also have a tendency to like,randomly not update these,individual little help bubbles or the,help pages if something is confusing or,just,doesnt look like it matches up do,google it and usually they will have a,page with the correct information,but like here you can see that they,still have the information up from 2015,and 2016. its 2020 my friends um this,information,is inaccurate so just keep that in mind,when you are actually going through,their accounts,something important to note here is that,i had the ira or the,retirement accounts selected this tells,you the minimums but it has the little,asterisks and it has more information at,the bottom so what this is telling you,is that for an ira or a roth ira,if you are opening an account and you,intend to invest in any vanguard,funds the the target retirement funds,that they have,and these star funds have a minimum of,one thousand dollars to start investing,in them and,with other funds so their other mutual,funds and their other index funds,youre going to usually have an,investment of around,three thousand dollars so i did do a,previous video on,the different index funds and etfs and,whatnot,so if we actually go to one of those,pages that has all of,the vanguard mutual funds listed out,youll see,that this is where it gives you the,information for,what these minimums actually are so if,you are wanting to,actually invest in one of these mainly,do go and check these pages and actually,check the minimums for the specific,funds that you are wanting to invest in,a popular one that you hear people,talking about,is vt sax so im going to open up this,one and just show you what i mean so if,we click on that page,its going to give us this overview,where we can see this investment minimum,now what this is saying is that there is,also an etf available the etfs that they,have,do not have that minimum amount an etf,is priced kind of like a stock theres a,cheaper price,you buy it it trades like a stock again,i have previous videos on this but if,all youre wanting to do,is invest in etfs like for example if,youre wanting to buy,vti which theyre saying is the,equivalent etf,version of that fund you dont actually,have to buy it through,vanguard you can buy this vanguard etf,through someone else so if you want to,use fidelity if you want to use td,ameritrade if you want to use robinhood,you can buy vti on all of those you,dont,necessarily need a vanguard account but,if you are wanting to invest,in that actual mutual fund that they,have then you are going to need a,vanguard account to be able to do that,but it is going to come,with that higher minimum so that was,kind of a lot of information but going,back,to that sign up page check those funds,if thats what youre wanting to invest,in,make sure that you are actually going to,be able to invest in what you want to,invest in and then you can proceed with,opening your account so here if we were,doing a roth ira,thats what we would select and then we,would select continue on this next page,is going to ask you,why youre investing and where the money,that youre investing is coming from so,for primary investment is going to give,you a few options,so capital preservation means that,youre pretty much just like hanging on,to that money and you need somewhere to,put it,income this would be like dividend,investing or if you are intending on,buying and selling stocks pretty often,growth would be,if youre trying to go after like the,apples and googles and youre using this,for retirement youre anticipating that,this account is going to grow and grow,and grow and youre going to hang on to,it that would be growth,and speculation would be more of your,day trading or,investing in more speculative industries,or stocks and then you can select a,secondary,objective which it gives you the same,options there so source of funds where,is that money coming from that you are,putting into your account so for most,people this is going to be that first,option where its salary or social,security benefits,so the money would be coming from the,money you that you make but maybe,someone gave you,money and it was a gift and thats what,you would select for that,so just select whichever options that,are relevant to you and you can select,multiple ones,so after we actually make our selections,then were going to press continue and,then on this next page its going to ask,you for your basic information you are,going to have to put in your social,security number,as well as your citizenship status so do,just be,aware of that next is going to ask you,for your address and your phone number,and obviously you just enter those as,you normally would now this next page is,going to ask you about your employment,status as well as your income,i will link an article from the sec,below that tells you why because i know,that people do sometimes have questions,on that and mainly its to prevent fraud,and to make sure,that the users who are signing up are,actually legitimate but every single,brokerage,that you use or that you try to sign up,for is going to require this information,so just be aware of that so employment,status for most people is going to be,employed choose whichever is relevant to,you and then it is going to as

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