Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Retirement Planning > Saving for Retirement > IRAs

Vanguard Triples Minimum Requirements for IRAs

X
Your article was successfully shared with the contacts you provided.

Vanguard Group on Tuesday tripled the minimum initial investment for individual retirement and custodial accounts for all but one of its mutual funds to $3,000.

The minimum requirement for opening a regular account in Vanguard’s funds, except for the Vanguard STAR Fund (VGSTX), remains $3,000. The STAR Fund continues to require a $1,000 minimum for general and custodial accounts, and for IRAs. Vanguard has required a $3,000 minimum for general accounts for its other funds since 1989.

Vanguard said the new uniform minimums “more fairly reflect the economics of our business,” and will be more easily understood by shareholders and prospective investors. Accounts with small balances can be more expensive to service than large ones.

Vanguard also raised the minimum initial investment for education savings accounts from $1,000 to $2,000, the maximum annual investment permitted by law.

Contact Bob Keane with questions or comments at: [email protected].


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.