Hey there Jeremy, hope you and your family are safe during these times. Do vanguard and fidelity require a minimum amount of money to invest in a TDIF?
Ex. I wanted to buy into a tdif using chase bank, however I need a minimum of 1,000 dollars to start investing into my specific fund. As in everytime i want to put money into my account, it has to be a minimum of 1000 dollars.
Vanguard target date funds have a $1,000 minimum, Fidelity’s target date index funds have no minimum. Note that once you reach the minimum, you can invest any additional amount of money. And also note that target date index funds are designed to be an “all in one” fund. So you only need to buy one of them ever.
So to put it into practice, if you wanted to buy the Vanguard 2060 fund (VTTSX), you could save up $1,000, and make your first purchase. Then set up an auto contribution of $200/month (or whatever) to keep it growing forever!
Alternatively, Fidelity’s version of the same fund (FDKLX) you could start right off the bat with your $200/month (or whatever) since they have no minimum initial purchase.