How to get started outside TSP

[PessOptimist]

There is a lot of info here, some of it old. There is also info about who did what trade in the account threads.

I have no idea about how to even start an investment account. I doubt I will have or take time to watch it closely.

Any suggestions?

[tsptalk]

I think how closely you watch an account is directly proportional to the amount of money in the account. :)

I use Scottrade and don't have many complaints. Their online charts are a little weak but as far as transactions go, fast and cheap.

Online Trading and Online Investing | Scottrade | Stocks, IRAs and More (http://www.scottrade.com/)

[Pill]

Outside my TSP, I invest with Vanguard. Customer service has been excellent.

I have a ROTH IRA in a mutual fund, for both me and the wife.

If I had extra money to invest I would also invest it in a non retirement account using mutual fund. Some like individual stocks better however I am not that active and the mutual fund suits my needs for now.

3k I beleive is the minimum to get started. For me when I started I did most of it online and called when I needed help and they walked me right through the process it was simple. Back when I had extra money (single days/no wife/no kids) I had money in non retirement accounts and when I needed the money it was simple to move it out into my bank account. But you will pay taxes on your gains only when you with draw, its like income that needs to be taxed.

Hope this help PessOptimist!

[RealMoneyIssues]

I still use USAA with my "play" money, but will probably transfer that to Think or Swim(TOS) when I transfer my IRA to TOS.

I have been using their software platform and have heard good things about their website too. I hope I don't find otherwise once I open an account :(

Well, that is what I do. Good Luck !

[Steel_Magnolia]

When I started to invest outside the TSP I had help from a message board that Tom started called ETF Talk (http://www.etftalk.com/forum.php). Although people only post sporadically, the threads contain a lot of great information about trading platforms, trading pitfalls and so on.

If I was just starting out again and starting from a zero knowledge base, I would read the Trading Platforms and Brokers (http://www.etftalk.com/forumdisplay.php?37-Trading-Platforms-amp-Brokers) section of that MB. Once you decide on a broker, you can usually open an account online by just googling that broker's name. Then the next decision is whether to trade individual stocks, ETFs or mutual funds. If you are really dedicated about learning the market then you can probably trade individual stocks after your learning curve levels off a bit. But until you are very comfortable in what you're doing I would strongly suggest ETFs or mutual funds.

I prefer ETFs over mutual funds, just my opinion only. Here is an article that explains my position pretty well: Why ETFs? (http://www.etftalk.com/showthread.php?447-Why-ETFs) A few brokers even have a list of ETFs for which they don't charge a commission to trade. For an example see "Free Morningstar Trades at Scottrade (http://www.etftalk.com/showthread.php?519-Free-Morningstar-ETF-Trades-at-Scottrade)."

And again, if I was just starting out, I would probably trade the ETFs that correspond to the various TSP funds until I was comfortable with trading on the outside. Go with what you know. So, for example, you could use AGG for F Fund, SPY for C Fund, IWM for S Fund and EFA for I Fund. Then make sure you learn about Stops (http://www.etftalk.com/showthread.php?355-Stops).

One last thing. If possible, open your first account on the outside as an IRA account. It really cuts down on the tax headaches.

Good luck, PessOptimist, and happy trading!

[parsox]

Checkout www.bogleheads.org/ (http://www.bogleheads.org/)
Read the following books to educate yourself
-the 4 pillars of investing
-a random walk down wallstreet
-all about assett allocation
-the little book of common sense investing
Consider index funds and try to get consistant gains instead of try to find actively managed funds that seek to hit a home run

[k0nkuzh0n]

Anyone have experience with optionshouse ?
$3.95 per stock trade is pretty appealing.

Barron's gave it a pretty good review.
Barron's Annual Online Broker Survey - Barrons.com (http://online.barrons.com/article/SB50001424052748704759704577267660673833538.html#a rticleTabs_article%3D1)

[nsurf9]

But until you are very comfortable in what you're doing I would strongly suggest ETFs or mutual funds.

I prefer ETFs over mutual funds, just my opinion only. Here is an article that explains my position pretty well: Why ETFs? (http://www.etftalk.com/showthread.php?447-Why-ETFs) A few brokers even have a list of ETFs for which they don't charge a commission to trade. For an example see "Free Morningstar Trades at Scottrade (http://www.etftalk.com/showthread.php?519-Free-Morningstar-ETF-Trades-at-Scottrade)."

And again, if I was just starting out, I would probably trade the ETFs that correspond to the various TSP funds until I was comfortable with trading on the outside. Go with what you know. So, for example, you could use AGG for F Fund, SPY for C Fund, IWM for S Fund and EFA for I Fund. Then make sure you learn about Stops (http://www.etftalk.com/showthread.php?355-Stops).

One last thing. If possible, open your first account on the outside as an IRA account. It really cuts down on the tax headaches.

Good luck, PessOptimist, and happy trading!

The outside TSP, I hope I can convince Long, Dailing, ETAC

[nsurf9]

But until you are very comfortable in what you're doing I would strongly suggest ETFs or mutual funds.

I prefer ETFs over mutual funds, just my opinion only. Here is an article that explains my position pretty well: Why ETFs? (http://www.etftalk.com/showthread.php?447-Why-ETFs) A few brokers even have a list of ETFs for which they don't charge a commission to trade. For an example see "Free Morningstar Trades at Scottrade (http://www.etftalk.com/showthread.php?519-Free-Morningstar-ETF-Trades-at-Scottrade)."

And again, if I was just starting out, I would probably trade the ETFs that correspond to the various TSP funds until I was comfortable with trading on the outside. Go with what you know. So, for example, you could use AGG for F Fund, SPY for C Fund, IWM for S Fund and EFA for I Fund. Then make sure you learn about Stops (http://www.etftalk.com/showthread.php?355-Stops).

One last thing. If possible, open your first account on the outside as an IRA account. It really cuts down on the tax headaches.

Good luck, PessOptimist, and happy trading!

The outside TSP, I hope I can convince FRTIB, ETAC, Long, Dailing, the unions and representatives, is a window thru the TSP main fund to a self-directed IRA in the very same classes of defined funds that represents the F, C, S, and I funds. Ones, of which already "know well" and were chosen by Congress to be tracked by TSP for their stability to safely grow a retirement.

Congress has already provided the window, but the language is to a "mutual fund." I'm not sure if the angle will be considered ultra vires (outside the originial 1986 FERS Act), but this what you are describing above is very close to what I hope to convince TSP apparatus to provide to the proactive TSP participant.

The argument against is: the 1986 Act and subsequent law provides specific language of "a mutual fund;" the dissenting FRTIB votes came as a result the notion that participants would generate more brokerage costs in the mutual funds than growth; and brokerage funds would be hawking federal employees to their platforms.

The argument for: ETFs are trade at low "bargain brokerage" cost and suffer little or no movement restrictions; Congress has already provide the window for a like purpose; Long and Dailing have already voted, twice, in favor for the window option to help solve the proactive participants' problems with the 2008 main funds restrictions; funds will be invested with participating brokerages in ETF funds very closely defined to same TSP funds we already invest; when the 1986 Act was passed, practically speaking, there wasn't even an internet with vast information and many very powerful tools to reseach and evalutate much less even buy or sell funds (in a nano-second); reduced expense and fund dilution to main fund participants; and minimized aggravation from brokerage advertising pitches; and, more nimble platform for TSP to introduce and evaluate new fund classes with little or no expensive computer programming changes to the TSP main fund.

And for us: low bargain-brokerage cost ETF trades, no 12-noon deadlines (except the 4pm close), and no IFT limits.

[bmneveu]

I've been using OH for a year now and like it. The cheap trade cost attracted me to use them. I got 50 free trades for opening an account, and I think there's even a better incentive for bigger account transfers. The software took some time to get used to, but I think that was due to me being new to trading. I now mostly trade thru their app on my phone. They also have an iPad app that it very good. OH supports extended hours trading and DRIPs. Let me know if you have any questions!

Edit: In response to k0nkuzh0n

[Bullitt]

Use Vanguard or T Rowe Price and invest in their low cost funds for now. You can set it up to contribute automatically without any transaction fees. The problem with Scottrade or any other broker is the commission costs. When you buy with, lets say $100 a month, the $7 commission is a big hit. Scottrade really only makes sense when you are buying/selling with larger sums of money.

Beware Scottrade's No Load/No Transaction Fee mutual funds. The ongoing fees attached to them are a boon because uninformed investors think they're getting a bargain. The No Transaction ETF's mentioned above are a great idea, but for the most part they are very low volume funds with no guarantee that they'll be around in a few years down the road.

I use Scottrade and T Rowe Price outside of TSP.

[Bullitt]

Scottrade is now TD Ameritrade which is soon to be Schwab - but commissions are gone.

With zero commissions everywhere now, start investing in ETF's with $100 or so a week/month. The only problem with ETF's compared to no load funds is you're never going to be putting all your cash to work unless you can buy partial shares with your brokerage.