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Brokerage suggestions for a very low balance 401K rollover account.. - Printable Version

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Brokerage suggestions for a very low balance 401K rollover account.. - fenders53 - 05-31-2020

Long story short my daughter recently started growing up.  Her employer offered a 401K w/match and I talked her into participating.  A few months later and they are cutting staff.  She has a new job already but can't do a new 401K there soon.   She messed up and the 401K liquidation check showed up at my house.  She was excited until I ripped the check from her hands.  Big Grin   I explained she would be penalized hard if she spends it now and Dad would make the check a bigger if she'd cooperate.   She agreed.  It's only about $500.  She'll have a new 401K someday but for now I'd like to make this a learning experience.  When I leave this world and will her a large stock port I don't want her to be investing illiterate.  She is smart enough to succeed but clueless about investing now.   

It's required the account has zero annual account fees.  Free trades of course but that part is easy.  I want her to pick at least one stock so I'd like some research capability like printing an analyst report as my TD Ameritrade ACCT offers.  Better yet it wouldn't be TD and I would have access to additional research.  Partial shares would be very good so I can teach her about diversification, but I don't want to do some flaky brokerage like Robinhood.  She doesn't need to day trade on her phone.  For years her account balance will be like a rounding error in mine.  Education is the point. I am going to hope for a few DGI stocks to get hit this summer, and I'll let her pick something more exciting and learn how growth stocks work too.  I'll let you guys and gals know what interests her so I can get some advice.


RE: Brokerage suggestions for a very low balance 401K rollover account.. - MikeWa - 05-31-2020

Check Schwab. I moved there one of my accounts and am satisfied so far. They are about to introduce stock "slices" soon, according to their website.
https://www.schwab.com/stock-slices

It sounds very interesting especially for new investors. They will be able to buy partial, $5 worth pieces of the company.


RE: Brokerage suggestions for a very low balance 401K rollover account.. - ChadR - 06-01-2020

I have E*Trade. Has everything that you want and you can do fractional shares when you select the dividend reinvestment. Very easy to use.


RE: Brokerage suggestions for a very low balance 401K rollover account.. - fenders53 - 06-01-2020

Thanks guys. I used Etrade but it was over 20 years ago. I've heard they are good. Schwab always gets great reviews.I do think the fractional shares thing would be very good. I don't want to be confined to sub $50 stocks.


RE: Brokerage suggestions for a very low balance 401K rollover account.. - EricL - 06-02-2020

I like Schwab. Easy to use, no fees, and is a big company so less chance of them being acquired and causing you to need to move accounts again.


RE: Brokerage suggestions for a very low balance 401K rollover account.. - rayray - 06-29-2020

I had vanguard and fidelity, vanguard is great if you want vanguard funds and I can't say enough great things about Fidelity.


I'll have fidelity for maybe forever, if I would open a second, it would probably be Schwab.


RE: Brokerage suggestions for a very low balance 401K rollover account.. - fenders53 - 06-30-2020

(06-29-2020, 04:07 PM)rayray Wrote: I had vanguard and fidelity, vanguard is great if you want vanguard funds and I can't say enough great things about Fidelity.


I'll have fidelity for maybe forever, if I would open a second, it would probably be Schwab.

I think Vanguard is also very suitable for a stock portfolio with their current format, but only if you are investing.  They prefer you purchase their no low fee funds, and definitely have a few rules in place to discourage day trading of anything.