Investment company?

[Addicting]

Treat me like I’m a 16 year old with his first check.

I was paying an extra 550 a month on my mortgage. At 2.25% it is a dumb move when I can be earning triple that in an investment account. At 6% return I can pay it off several years earlier.

I know nothing of investing but wish to park that same monthly amount into the S&P500.

What investments company should I use?

JP Morgan
Fidelity
Berkshire

That’s the three I know of off my head.

 

[mdhunter]

What’s your risk tolerance? Personally I would never pay off 2.25% debt except timely. Glad your cash flow gives you you options.

 

[Brad W]

Charles Schwab (brokerage)
Pick a low fee ETF like the Vanguard SP ETF (VOO).

 

[brymoore]

Vanguard. Vanguard 500 Index Fund Admiral Shares.

VFIAX-Vanguard 500 Index Fund Admiral Shares | Vanguard

investor.vanguard.com

 

[Addicting]

What’s your risk tolerance? Personally I would never pay off 2.25% debt except timely. Glad your cash flow gives you you options.

I just want to park it in a fund that matches the 500. That was my TSP strategy and it worked well for us. But now that I’m retired I can no longer contribute to that.

So we just put it on the mortgage as an easy button. I didn’t realize how dumb that was until now.

I’m just looking for which company is user friendly and not heavy on fees.

 

[Brad W]

I use Charles Schwab(originally E-trade but purchased by Schwab). Interface is simple, works well and I have never had an issue. There are no fees for the type of trade you are asking about.

 

[Mallardsx2]

Fidelity

FID500 (FXAIX)

Fidelity is the easiest and the best inmho.

 

[Addicting]

Vanguard. Vanguard 500 Index Fund Admiral Shares.

VFIAX-Vanguard 500 Index Fund Admiral Shares | Vanguard

investor.vanguard.com

Not sure why they have a 3k minimum to open an account. Seems the others are 0 to open.

 

[brymoore]

Not sure why they have a 3k minimum to open an account. Seems the others are 0 to open.

I think they have beginner level funds too.

Quick fee search showed Fidelity had the lowest fee amount.

 

[Marshian]

I’ve been happy with vanguard the total stock market index fund. I have probably 90 percent of my 401k in.

 

[Salmonchaser]

Vanguard and JPMorgan have been good for us. I’ve been retired since 2011 and actually have more money in the market than when I retired. I’ll go to Africa again this spring. They do a good job of managing my risk aversion/tollerance
I’ll start hitting mandatory minimum withdrawals this year so probably start seeing those balances come down a little. I would recommend you diversify to some extent. On different days I’ll lose or make money with each company but by not the same amount.

 

[Wildabeest]

I’ve been happy with Fidelity.

 

[Salmonchaser]

With JP Morgan I get Fidelity and Vangard investments through their accounts. Been happy with them.

 

[TN2shot07]

No issues with vanguard or fidelity for us. I do like fidelity’s interface a little better but you there’s not really an issue since once you set it up you’re good to go.

I agree on just an s&p or total market index.

 

[marksjeep]

A few others not mentioned. T. Rowe Price, Merrill Lynch, Morgan Stanley. Account aggregation is a very useful tool if you have accounts spread across the land. It will query external accounts (eg. TSP, mortgage, credit cards) and allow you to view your assets and liabilities all at the same time. Ml and MS have this on their interface. Not sure about the others in the thread.

 

[Tmbrgost]

Vanguard has been a good place for me to store & invest on my own. If I remember right Fidelity has some lower fees?

 

[NDGuy]

I’m just looking for which company is user friendly and not heavy on fees.

The only answer in here is
Fidelity
Vanguard
Schwab

Fidelity has come a long way with low fees and options. I love them, great company.

Any other firm charges exorbitant fees that are beyond insanity in today’s age of low cost ETF and Mutual funds.

 

[Steiny77]

I've got a little different view than most here. I'd continue to work hard to pay off your mortgage. Having a paid for home is a great feeling and reduces financial risk in event of a major surprise like a job loss, health emergency, etc. considerably. You'll then have all of that money freed up each month to invest however you see fit.

You don't mention your age, but if 35 or older you should also be investing heavily towards retirement at the same time. In this case, some sort of combination to pay off the home early plus invest for the future would be ideal. If an employer funded 401K is available, take advantage of that.

As far as companies go, I hear Vanguard has about the lowest cost to investors, but any of the names you mention would be fine.

 

[Addicting]

I've got a little different view than most here. I'd continue to work hard to pay off your mortgage. Having a paid for home is a great feeling and reduces financial risk in event of a major surprise like a job loss, health emergency, etc. considerably. You'll then have all of that money freed up each month to invest however you see fit.

You don't mention your age, but if 35 or older you should also be investing heavily towards retirement at the same time. In this case, some sort of combination to pay off the home early plus invest for the future would be ideal. If an employer funded 401K is available, take advantage of that.

As far as companies go, I hear Vanguard has about the lowest cost to investors, but any of the names you mention would be fine.

I sat down and ran the numbers yesterday.

That extra payment money gets my mortgage paid off in July 2035. I will save about 12,500 in interest from the original loan.

That same money invested gets my mortgage paid off in Oct 2035. That is in a lump sum payment from just the principal I saved. Any interest I make on that money in the market is profit. At 6% return over the same 10 years worked out to about 23k. I have to pay taxes on that 23k. A 6% return is pretty low risk investment.

23k profit vs having to pay 3 extra $1035 payments to payoff.

Makes zero sense to keep paying it on the mortgage for a low risk investment.

 

[Nick87]

Are you guys saying that a FA is not worth the money in any instance? Thats a serious question as I have a meeting with one next week. Ive been looking at my retirement (pension and 401A) ive git 16 years until im eligible and the way those numbers are playing out theres no way its gonna be enough at least mot by my math. Which I'm pretty sure is by design. So ive got 16 years to try and make some things happen on my own. I'd really like to go at 55 and collect my pension. I'll never stop working as long as im physically able but I'd like to collect that money and do something else where I can pretty much take the fall off or whenever I want for that matter. Sorry if im derailing your thread here @Addicting I figured this was a food time to ask while we've got all the bean counters in one thread lol.