Your step by step approach on getting started on Schwab's account page is much appreciated and exactly what I was hoping to find. Yes, I subscribed as well...Thank You So Much!
Good explanation - thanks. Finally set up a monthly plan and was confused for the longest time why not automatic investing in ETFs is possible in the US. Going for Schwab's SWISX and SWPPX now and no longer need to spend time thinking about whether today is a good day to buy with all that recent volatility
So it doesn't you an option to buy a certain amount of funds, like if the price goes up than you would buy less and if the price goes down than you would buy more? or does it buy whatever price it is?
8:00, you said that there are a few that have automated stocks. I wish I had a broker that would let me buy each month, at market value, my stock 1, 2, 3 ,4 etc, and then rotate back to 1. Is there such a thing?
I don't have an IRA with Schwab, but on my brokerage, it won't let me set up an automatic investment on SWPPX. It said to make sure that it has sufficient funds. I tried setting up a recurring transfer first that matches the amount to be invested, and that did not work either. I tried setting the auto investment to be executed a few days after the auto transfer, and that didn't work either. I gave up and use SoFi invest instead, which allows recurring invest on ETFs also. I actually want to put money into Schwab to spread out my investments into different accounts, but I'm too lazy to do this manually.
For your Roth, I notice that it is composed of Mutual funds and ETF which cover the same ground (total stock Market and international). Why not consolidate into one ?
Great question! I actually invested in the two mutual funds you see purely for the purposes of making this video. This Roth IRA typically only has the 2 ETFs you see, no mutual funds.
@@AlexQuinnYT fantastic! Definitely had me curious. Are you able to put your own spin on a video about staying the course in investing and any new strategems in a high interest environment? Thanks and keep up the great content
Helpful video... Really wish they would offer this for stocks and ETFs as those are my primary investments for my IRAs and Brokerages.. This is why I set my wife up with Fidelity instead of Schwab. Very easy to automate everything to my liking... I'm debating moving everything to Fidelity, but really don't want to lose my entire investment history. Already have automated transfers set up, so it's not a huge deal, but would be nice.
For Fidelity, uninvested cash is automatically swept into your choice of 3 money market funds daily. But I can't get figure out how to set it up with Schwab. It seems like they sweep it into only 1 money market fund and they make you move it to another money market fund manually. Any suggestions since the yield difference between the funds are .45% vs 4.48%
Is November 2023 still a good time to invest in index fund? I am new to investing. I have some money I rolled over to a traditional IRA. I am planning to invest in SWTSX but not sure if this is a good time? Thanks
Correct. That said, Charles Schwab does offer a "Charles Schwab Intelligent Portfolio" which is essentially a robo-advisor that auto-invests in a pre-selected number of ETFs. However, you need at least $5,000 to opt into this portfolio option and it tends to carry a higher cash percentage which can drag down your returns.
It's like that on most of the big old school brokers. Only E*Trade is the exception for ETFs. New school brokers like M1 Finance, SoFi, Robinhood, and Webull allow ETF investing automation.
You know, that's a great question. I can't seem to find anything about that online. My gut says that it will match whatever you have set up currently in your portfolio, because you're not able to set up automatic investing for a specific mutual fund until you buy into that mutual fund first.
Too much held in cash. Only good for lottery winners, big lawsuit winners, or huge family inheritance. Better choices are SWPPX, SWTSX, or SNXFX in an IRA.
Another great video!! Very detailed, lots of great information and walk through tips. just wish Schwab moves on faster with technology like M1 Finance. Give me that automation so I can consistently invest and give me that technology and flexibility to manage my finances (ie Pies and graphs)
Wow, very informative video! It literally answered 3 questions without me having to search all over the place 😂. I do have one question. I have an old 401k at an old job that I can not contribute to, so I'm just wondering what on earth should I do with this? Is it a good idea to transfer to Schwab Index Fund or rollover to a traditional IRA? It only has around $4,000 in it. (all can answer this question 😇)
Thank you for watching! Great question. First - just want to clarify something. A Schwab index fund is a specific investment. A Roth IRA is an account that you can make investments in. They're different categories. So in your example, you can have a Roth IRA in which you invest into a Schwab index fund. Regarding what you should do with your old 401(k), you have a few options: 1) Keep it with your old employer. Usually not recommended because it's easy to forget about and employer-managed accounts often charge higher fees, especially if you're no longer an employee at that company. 2) You didn't specify whether your 401(k) is traditional (pre-tax) or Roth (post-tax). I'm going to assume it's traditional. You could roll it over into a Traditional IRA at a brokerage like Schwab, where you have a lot more oversight and control over the account. If your 401(k) is also traditional, rolling it over into a Traditional IRA won't be considered a taxable event since you're keeping it in the same "format". When you eventually withdraw the money to use for retirement, you'll have to pay taxes on it just like you would in its current location in a Traditional 401(k). 3) If your 401(k) is traditional (pre-tax) you could also consider rolling it over into a Roth IRA at a brokerage like Schwab. Major warning: this is a taxable event. You're converting a pre-tax account into a post-tax account. This means that you'll need to pay taxes on the money you contributed / roll over. (I'm not a tax professional and I can't remember off the top of my head exactly how it's taxed, but I'd estimate between 20 and 40% depending on your income.) If your income is low and you're in a low tax bracket, this might make sense to do. Remember: Roth accounts are essentially the opposite of Traditional accounts. Instead of getting taxed when you withdraw the money, you get taxed when you contribute it. So if you roll it over to a Roth IRA, you'll pay taxes now, but you won't have to later. Basically - rolling it over into an IRA is probably your best bet. Whether you roll it over into a Traditional IRA or a Roth IRA will depend on your current 401(k) type and whether you want to keep the money in the same type. Personally - I typically keep it in the same account type (Roth to Roth or Traditional to Traditional) because it's much simpler and I'm in a relatively high tax bracket. Now that I've typed this all out, I'm wondering if I should make a video on the topic! You're definitely not the first person to ask me this question. :) Hope this helped!
@@AlexQuinnYT Oh thank you so much young lady! And yes, make a video because some people say leave it at the old job, but I prefer to know where everything is located! I think others (my age 😇) will benefit from the future video.
It may not have been available at the time the video was made but Fidelity allows automated investing in stocks and ETFs!! As of now, Schwab still doesn’t allow automated investing in ETFs.
Why must I buy mutual funds? I just want auto-invest in some low-cost index funds, like $VOO, $VTI, $QQQ, $SPHD, etc. etc., and Schwab makes it so bloody difficult.
Mutual funds can be index funds too. ETFs can be actively managed too. SWPPX is an Index mutual fund that follows the S&P 500. VOO follows the same index, but it is an Index ETF.
@@PhilipposACosta SCHX, SCHB, SCHK, SCHG, and SCHD aren't bad choices for Index ETFs. Check their performance on portfolio visualizer. I do agree that Schwab wants people to use their funds. Same as Vanguard and Fidelity.
Thanks for the video! I am just afraid that I am going to exceed my limit of 6000 USD per year because it will just keep contributing and I may not notice Is there an option to deposit in the next year once I reach the limit?
Great question. My guess is that Schwab will just cancel your remaining contributions if you reach the contribution limit, but I'm not sure. You can also just work it out mathematically - currently the IRA limit is $6,000, so if you make monthly $500 contributions, you'll max it out by the end of the year without going over.
How would one do a 3 fund portfolio with Charles Shawb? I think that would be a great video. I see a lot of 3 fund portfolio with other brokerages expect for Charles shawb.
Awesome! You’re the reason why I opened a Roth IRA through Charles. I learned so much from you. I just recently maxed out my 2020 contribution. Keep up the great content.
i like how she laughed at the 4/20 date... right now
😆 haha! I noticed that too and headed straight for the comment section to see if anyone else noticed. IYKYK
Your step by step approach on getting started on Schwab's account page is much appreciated and exactly what I was hoping to find. Yes, I subscribed as well...Thank You So Much!
Glad it was helpful, thank you for watching!
thanks so much, the UI on schwabb is so non-intuitive. this was super helpful, thaks!
Thank you for watching! Glad it was helpful. :)
Good explanation - thanks. Finally set up a monthly plan and was confused for the longest time why not automatic investing in ETFs is possible in the US. Going for Schwab's SWISX and SWPPX now and no longer need to spend time thinking about whether today is a good day to buy with all that recent volatility
Thank you for this. It helped me set up automatic investing in SWLGX and SWPPX in my HSA account (which has triple tax advantage).
You have HSA account with Schwab?
@@thehiddenexperience4116 yes, my old HSA was with TD Ameritrade but Charles Schwab bought them , so my HSA transferred to CS.
Thank you!! I’ve been looking for a video to explain this in this much detail.
Ty so much for this video series. Your timing couldn't have been better for me
How do you buy an ETF with a dollar amount? I don’t see that feature on my Schwab account. It’s weird!
Hi to invest 500 index funds have to buy either mutual funds or etf.
So it doesn't you an option to buy a certain amount of funds, like if the price goes up than you would buy less and if the price goes down than you would buy more? or does it buy whatever price it is?
8:00, you said that there are a few that have automated stocks. I wish I had a broker that would let me buy each month, at market value, my stock 1, 2, 3 ,4 etc, and then rotate back to 1. Is there such a thing?
CS should pay you for all these videos. Keep it up!!!
Thank you so much!
I don't have an IRA with Schwab, but on my brokerage, it won't let me set up an automatic investment on SWPPX. It said to make sure that it has sufficient funds. I tried setting up a recurring transfer first that matches the amount to be invested, and that did not work either. I tried setting the auto investment to be executed a few days after the auto transfer, and that didn't work either. I gave up and use SoFi invest instead, which allows recurring invest on ETFs also. I actually want to put money into Schwab to spread out my investments into different accounts, but I'm too lazy to do this manually.
I love Schwab!!! Great stuff Alex....✌️
Thanks for the video, I think the menu options have changed a bit but was able to figure out the options. Subscribed for future posts too
Thanks for calling that out! I'll probably remake this video at some point. :)
Nice breakdown as always!!
I am new to investing and your videos are amazing! Thank you!!
Really great video! Saved me so much research time. Thumbs up!
when does a trade get executed. How can you set the trade up to be bought at a certain price.? automatically
Usually end of day. Either the 5th and/or 20th of the month.
For your Roth, I notice that it is composed of Mutual funds and ETF which cover the same ground (total stock Market and international). Why not consolidate into one ?
Great question! I actually invested in the two mutual funds you see purely for the purposes of making this video. This Roth IRA typically only has the 2 ETFs you see, no mutual funds.
@@AlexQuinnYT fantastic! Definitely had me curious. Are you able to put your own spin on a video about staying the course in investing and any new strategems in a high interest environment? Thanks and keep up the great content
Hi. can i automate my ETF's monthly? thanks-
Thank you for the super clear instructions!!
Helpful video... Really wish they would offer this for stocks and ETFs as those are my primary investments for my IRAs and Brokerages.. This is why I set my wife up with Fidelity instead of Schwab. Very easy to automate everything to my liking... I'm debating moving everything to Fidelity, but really don't want to lose my entire investment history. Already have automated transfers set up, so it's not a huge deal, but would be nice.
Could you do a video defining what personal value and Day change mean? As well as how to check/know how much money you’ve earned?
Please 😊
I am trying to find where to stop an automatic transfer from a checking account.
If you go to the Online Transfer page and scroll down, do you see anything listed under "Recent Transfer Status"?
@@AlexQuinnYT Oh yes! I see that now. I didn't see the edit/delete buttons before. Thank you!
No problem!
Thank you very much Alex! Well, explained.
For Fidelity, uninvested cash is automatically swept into your choice of 3 money market funds daily. But I can't get figure out how to set it up with Schwab. It seems like they sweep it into only 1 money market fund and they make you move it to another money market fund manually. Any suggestions since the yield difference between the funds are .45% vs 4.48%
I but one but i dont know how to mine can u do a video for me
Is November 2023 still a good time to invest in index fund? I am new to investing. I have some money I rolled over to a traditional IRA. I am planning to invest in SWTSX but not sure if this is a good time? Thanks
Perfectly explained. Thanks!!
Good job!
So the vanguard ETFs can’t be auto invested? Or I am doing something wrong.
In my experience, no they can't be auto invested.
Correct. That said, Charles Schwab does offer a "Charles Schwab Intelligent Portfolio" which is essentially a robo-advisor that auto-invests in a pre-selected number of ETFs. However, you need at least $5,000 to opt into this portfolio option and it tends to carry a higher cash percentage which can drag down your returns.
It's like that on most of the big old school brokers. Only E*Trade is the exception for ETFs.
New school brokers like M1 Finance, SoFi, Robinhood, and Webull allow ETF investing automation.
And M1 Finance.
So helpful! Thank you. Does this auto invest option automatically reinvest dividends and capital gains?
You know, that's a great question. I can't seem to find anything about that online. My gut says that it will match whatever you have set up currently in your portfolio, because you're not able to set up automatic investing for a specific mutual fund until you buy into that mutual fund first.
Good stuff A.R. 👍🏾
4:20 blaze it!
What do you think about intelligent portfolios?
Too much held in cash. Only good for lottery winners, big lawsuit winners, or huge family inheritance.
Better choices are SWPPX, SWTSX, or SNXFX in an IRA.
Another great video!! Very detailed, lots of great information and walk through tips. just wish Schwab moves on faster with technology like M1 Finance. Give me that automation so I can consistently invest and give me that technology and flexibility to manage my finances (ie Pies and graphs)
Totally agree! Thank you very much for watching. :)
Wow, very informative video! It literally answered 3 questions without me having to search all over the place 😂.
I do have one question. I have an old 401k at an old job that I can not contribute to, so I'm just wondering what on earth should I do with this? Is it a good idea to transfer to Schwab Index Fund or rollover to a traditional IRA? It only has around $4,000 in it. (all can answer this question 😇)
Thank you for watching! Great question. First - just want to clarify something. A Schwab index fund is a specific investment. A Roth IRA is an account that you can make investments in. They're different categories. So in your example, you can have a Roth IRA in which you invest into a Schwab index fund.
Regarding what you should do with your old 401(k), you have a few options:
1) Keep it with your old employer. Usually not recommended because it's easy to forget about and employer-managed accounts often charge higher fees, especially if you're no longer an employee at that company.
2) You didn't specify whether your 401(k) is traditional (pre-tax) or Roth (post-tax). I'm going to assume it's traditional. You could roll it over into a Traditional IRA at a brokerage like Schwab, where you have a lot more oversight and control over the account. If your 401(k) is also traditional, rolling it over into a Traditional IRA won't be considered a taxable event since you're keeping it in the same "format". When you eventually withdraw the money to use for retirement, you'll have to pay taxes on it just like you would in its current location in a Traditional 401(k).
3) If your 401(k) is traditional (pre-tax) you could also consider rolling it over into a Roth IRA at a brokerage like Schwab. Major warning: this is a taxable event. You're converting a pre-tax account into a post-tax account. This means that you'll need to pay taxes on the money you contributed / roll over. (I'm not a tax professional and I can't remember off the top of my head exactly how it's taxed, but I'd estimate between 20 and 40% depending on your income.) If your income is low and you're in a low tax bracket, this might make sense to do. Remember: Roth accounts are essentially the opposite of Traditional accounts. Instead of getting taxed when you withdraw the money, you get taxed when you contribute it. So if you roll it over to a Roth IRA, you'll pay taxes now, but you won't have to later.
Basically - rolling it over into an IRA is probably your best bet. Whether you roll it over into a Traditional IRA or a Roth IRA will depend on your current 401(k) type and whether you want to keep the money in the same type. Personally - I typically keep it in the same account type (Roth to Roth or Traditional to Traditional) because it's much simpler and I'm in a relatively high tax bracket.
Now that I've typed this all out, I'm wondering if I should make a video on the topic! You're definitely not the first person to ask me this question. :) Hope this helped!
@@AlexQuinnYT Oh thank you so much young lady! And yes, make a video because some people say leave it at the old job, but I prefer to know where everything is located! I think others (my age 😇) will benefit from the future video.
Video was very helpful
When I get paid I automatically spaz into the stock market. I probably should do this instead though. 😅
Do you work with charles swabs?
Who?
This video need an update ❤
Thanks, very useful.
It may not have been available at the time the video was made but Fidelity allows automated investing in stocks and ETFs!! As of now, Schwab still doesn’t allow automated investing in ETFs.
Why must I buy mutual funds?
I just want auto-invest in some low-cost index funds, like $VOO, $VTI, $QQQ, $SPHD, etc. etc., and Schwab makes it so bloody difficult.
Mutual funds can be index funds too. ETFs can be actively managed too.
SWPPX is an Index mutual fund that follows the S&P 500. VOO follows the same index, but it is an Index ETF.
Why do you think they make it bloody difficult? They want to make you buy the shitty options that they offer.
@@PhilipposACosta SCHX, SCHB, SCHK, SCHG, and SCHD aren't bad choices for Index ETFs. Check their performance on portfolio visualizer.
I do agree that Schwab wants people to use their funds. Same as Vanguard and Fidelity.
thank you
Their website is so hard to use. Its like they purposely made it hard. Its ridiculous.
Thanks for the video!
I am just afraid that I am going to exceed my limit of 6000 USD per year because it will just keep contributing and I may not notice
Is there an option to deposit in the next year once I reach the limit?
Great question. My guess is that Schwab will just cancel your remaining contributions if you reach the contribution limit, but I'm not sure. You can also just work it out mathematically - currently the IRA limit is $6,000, so if you make monthly $500 contributions, you'll max it out by the end of the year without going over.
How would one do a 3 fund portfolio with Charles Shawb? I think that would be a great video. I see a lot of 3 fund portfolio with other brokerages expect for Charles shawb.
That's a fantastic idea, thank you! I'll add that to my video list. :)
Awesome!
You’re the reason why I opened a Roth IRA through Charles. I learned so much from you. I just recently maxed out my 2020 contribution. Keep up the great content.
That's so nice to hear, thank you! 🥰 I'm so glad you've found my videos helpful!
First
Worst platform ever, fidelity makes it 100000000 times easier
SCHWAB SUCKS!