How are accounts and investment products different?
Think of your account as an empty garage. You can fill it with trucks, cars, bicycles, or other vehicles you like. In the same way, you can fill your account with investment products such as mutual funds, ETFs (exchange-traded funds), stocks, bonds, and more. The first step is understanding what kind of account you need. Check out your options below.
IRAs
Individual & joint
529 savings
UGMA/UTMA
Small business
Trust & organization
An IRA makes saving for the future less taxing
Both traditional and Roth IRAs give you an easy way to save for retirement, offering different tax breaks.
Want flexibility? Consider an individual or joint brokerage account.
Individual and joint accounts are general investing accounts. They aren't subject to early withdrawal penalties that apply to retirement accounts—so you can take your money out when needed. Use these accounts to save for your dream home, wedding, and more.
Opening a 529 plan can pave the way for a well-funded education
Invest in a brighter future—for you, your children, your grandchildren, or someone else.
Want to gift money to a minor but not limit it to education?
A Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account is owned by a minor but managed by you until they become an adult. After that, they can use the money for any purpose.
If you’re a business owner, you know what it means to be self-reliant
That’s why it’s important to take advantage of retirement plans designed for small businesses. Choose from a SEP-IRA (Simplified Employee Pension) or an Individual 401(k). If you have employees, consider a SEP-IRA or SIMPLE IRA (Savings Incentive Match Plan for Employees).
Looking for a way to leave assets to your loved ones?
A trust account is a legal arrangement in which the grantor allows a third party, the trustee, to manage assets on behalf of the trust's beneficiaries.
Looking to set up an investment account for an organization?
An organization account offers trading and investment features that can help your business work toward its financial goals.
An IRA makes saving for the future less taxing
Both traditional and Roth IRAs give you an easy way to save for retirement, offering different tax breaks.
Want flexibility? Consider an individual or joint brokerage account.
Individual and joint accounts are general investing accounts. They aren't subject to early withdrawal penalties that apply to retirement accounts—so you can take your money out when needed. Use these accounts to save for your dream home, wedding, and more.
Opening a 529 plan can pave the way for a well-funded education
Invest in a brighter future—for you, your children, your grandchildren, or someone else.
Want to gift money to a minor but not limit it to education?
A Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account is owned by a minor but managed by you until they become an adult. After that, they can use the money for any purpose.
If you’re a business owner, you know what it means to be self-reliant
That’s why it’s important to take advantage of retirement plans designed for small businesses. Choose from a SEP-IRA (Simplified Employee Pension) or an Individual 401(k). If you have employees, consider a SEP-IRA or SIMPLE IRA (Savings Incentive Match Plan for Employees).
Looking for a way to leave assets to your loved ones?
A trust account is a legal arrangement in which the grantor allows a third party, the trustee, to manage assets on behalf of the trust's beneficiaries.
Looking to set up an investment account for an organization?
An organization account offers trading and investment features that can help your business work toward its financial goals.
Already know what you want?
Learn more about accounts that fit your goal
Not sure which account is right for you? Use our tool to identify the account that best fits your investing needs.
What's the difference between accounts and investments?
Play our video to better understand how accounts and investments differ.
[MUSIC PLAYING]
Let's talk gardens. OK. Let's actually talk financial accounts versus products. They're two different things, but just like soil and seedlings, they come together to form something great—your investment portfolio. First up is your soil—your account. There are many different account types out there and you're not limited to choosing just one.
You might have several different accounts working toward different goals. General investing accounts can be good for short term goals and IRAs can be great if you're saving for retirement. Choosing the right accounts will set you up for success on your financial journey. Then it's time to get growing. That's where products come in.
Think of your products as seedlings. And just like your base, they're all about your personal preferences. You can choose from ETFs, mutual funds, stocks, bonds, and more. The products live inside your accounts. And just like that, you've created a personalized plan that can help you reach your financial goals. All that's left to do now is watch them grow and blossom.
[Disclosures appear onscreen. They read: “Vanguard. All investing is subject to risk, including the possible loss of the money you invest. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objective or provide you with a given level of income. For more information about Vanguard funds and ETFs, visit Vanguard mutual fund prospectuses or Vanguard ETF prospectuses to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing. ©2022 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.”
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Low fees mean you can get more back from your investments. That's why we think it's important to be transparent and share which ones you can avoid here at Vanguard.
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The experiences of these Vanguard clients may not be representative of the experience of other Vanguard clients and are not a guarantee of future investment performance or success.
Helpful resources
How to invest on your own
Get key information on how you can start a successful DIY investing journey.
Investment products
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Frequently asked questions
All account are suitable for beginners; you just have to know your investing goal. Once you know your goal, you'll be able to find an account that matches your needs.
Investors often save for retirement, future education, emergency funds, and other general savings goals like a car or a home.
You'll want to start mapping out an investment plan and consider what investments you want to hold in your account.
No. We don't charge a fee to open an account. There's a $20 annual fee for each brokerage and mutual fund-only account, but you can easily avoid this fee.
You’ll never pay a commission to buy or sell Vanguard mutual funds or ETFs in your Vanguard account.
Most Vanguard mutual funds have a $3,000 minimum, but you can invest in any Vanguard Target Retirement Fund or Vanguard STAR® Fund with as little as $1,000. (Some funds have minimums greater than $3,000 to protect the funds from short-term trading activity.)
You can buy a Vanguard ETF® for as little as $1, regardless of the ETF's share price. All stocks and non-Vanguard ETFs must be bought at market price.
An expense ratio reflects how much a mutual fund or ETF pays for portfolio management, administration, marketing, and distribution. It’s calculated by dividing the fund's operational expenses by its average net assets.
For more information about Vanguard funds or ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.
All investing is subject to risk, including the possible loss of the money you invest.
Vanguard’s advice services are provided by Vanguard Advisers, Inc., (“VAI”) a registered investment advisor, or by Vanguard National Trust Company (“VNTC”), a federally chartered, limited-purpose trust company.
The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI’s Form CRS and each program’s advisory brochure here for an overview.
VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC nor its affiliates guarantee profits or protection from losses.