![]() If you're making 200 transactions per year the answer might be different than if you're making 12.Īs an example of controlling relative costs, if you're just starting to build your portfolio, what is the advantage of having 3 $1000 positions? There's a relative diversification advantage, of course, but in absolute terms that diversification is only buying you a few dollars a year. ![]() ![]() First think on whether you're making too many transactions, and _then_ worry about whether your transactions cost too much. In a really big year, I might make as many as a dozen stock trades, and I'm not going to accept much in the way of compromises in order to minimize that. Last year I made seven stock trades, which would have cost me $49 if I were in the lowest-asset tier - an amount I'm not going to lose sleep over. Either case is commission-free, because it's at Vanguard. So far this year, I've made 2 mutual-fund trades and 2 trades of Vanguard ETFs. I'm currently retired, living off my three-fund(ish) portfolio. The thread seems to have the question of "is Robinhood skeevy?" well in hand, my comment is actually about whether zero commissions are even interesting as a differentiator if you're using a lazy portfolio. I am wondering if you can create the (Taylor Larimore) Three-Fund Portfolio at Robinhood? And if so, what are the pros/cons vs. I recently came across the company Robinhood, which purportedly has zero commissions. But many of Vanguard's funds have a $3000 investment minimum.įor a taxable account, then, I would check out M1 Finance or Vanguard.įor a tax advantaged account, I would check out M1 Finance, Vanguard, Fidelity, and Schwab. However, ETFs are typically more tax efficient than their mutual fund counterparts in a taxable account, with the exception of many of Vanguard's mutual funds and ETFs, which share similar tax efficiencies. If you want to be able to invest in any dollar amount, mutual funds or fractional shares of ETFs are your best bet. M1 Finance offers ETFs from all the major players (Vanguard, iShares, Schwab, SPDR) commission free and allows you to buy fractional shares (unlike some other brokerages). VTI + VXUS + BND or ITOT + IXUS + AGG will get you a three fund portfolio at M1 Finance. Cant beat the simplicity and no cost to trade. Also it only takes one button for when you want to rebalance manually. You set your asset allocation at the beginning, and all new money automatically gets allocated to get you back to that allocation. M1 Finance is almost purpose-built for three fund portfolios.
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