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Using Schwab as a noob investor?

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  1. #11

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
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    221

    If you are a US citizen and have an accessible US address, you probably can open a Schwab or Vanguard account or an account with most US financial institutions that let you open accounts online and don't care where your IP address says you are (so far only US HSBC has cared in my limited experience).

    If you invest with an institution outside of the US you'll have to deal with 30% US tax withholding, but some threads have ideas with bringing that down to 15% with I think Irish domiciled ETFs (I haven't tried this myself).

    So what works best also depends if you're a US citizen or not.


  2. #12

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
    Posts
    221

    If you are a US citizen looking to only track the SP500 you can get a fund with an expense ratio of 0.02%. Or for 0.03% you could buy VTI or SWTSX if you want to try to track the entire US stock market.

    Vanguard funds have some of the lowest expense ratios, but Schwab, Fidelity and more have started similar funds to try to compete with Vanguard in the race to the bottom with super low fee passive index tracking funds, which are the only type I can recommend, but you'll have to use your own crystal ball to figure out which exactly make the most sense according to your future views.

    I personally only have VTI and SWTSX as far as US investments. I think it's great to keep your investments as simple as possible and try to save as much as possible and still live a life that works for you.

    Last edited by LoganH; 06-07-2020 at 08:20 AM.

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