Comments on: Index Mutual Funds or Exchange-Traded Funds? How About Both!

By: Last Week’s Roundup!! « Dollars & Sense Education

Last Week’s Roundup!! « Dollars & Sense Education — Wed, 07 Nov 2007 04:02:31 +0000

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By: Mrs. Micah

Mrs. Micah — Thu, 01 Nov 2007 17:06:55 +0000

I think the quote you used provides a good guideline. I wouldn’t want to keep paying the trading fee each month when buying funds (unless I had paid for the account with free trades). But ETFs do look like an good tool–as long as one is commission-savvy, etc.

By: bala

bala — Thu, 01 Nov 2007 16:56:35 +0000

There are now offers form BofA, Wells Fargo on certain type of accounts (Wells Fargo calls it Portfolio Management Account) that allow you to buy ETF’s without any transaction fees. I know for sure about Wells Fargo, which allows you to do 100 free trades per year (~8 per month) which I find more than adequate to meet my needs.

Only thing I am not sure is the speed of execution, or if broker, might do the trades differently, to the advantage of the buyer, if it was all paid . But I believe this will always be a question.

On a related note, my ETFs are in taxable account. Am I better of NOT reinvesting my dividends so that I can avoid complex gain/loss calculations, so that at the year end pay tax on a fixes dividend amount.

What’s the minimum detail do I need to maintain should I opt for dividend reinvestment. Any pointers on this topic will be great.