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Not investment advice. Educational reading. See Disclaimer.
L.6 · BEGINNER · 2 MIN

Funding Your Account and Your First Buy

You have an account -- now fund it and make your first buy. You move money in with an ACH transfer (a free electronic bank-to-broker transfer that takes 1-3 business days). Once the cash lands, you buy your fund. Since May 2024 US trades settle in one business day (T+1), meaning the shares are officially yours the next business day -- but for a buy-and-hold investor that timing is irrelevant.

Quiz · 5 questions ↓
§ 01
Order typeWhat it doesUse it when
Market orderBuys at the current price, immediatelyBuying a liquid index fund or ETF -- simplest, fills instantly
Limit orderBuys only at a price you set or betterYou want price control on a thin or volatile name; it may not fill
§ 02

For a broad index fund or ETF, a market order is almost always fine -- the bid-ask spread is tiny and you are holding for decades, so a few cents does not matter. Limit orders earn their keep on illiquid or volatile single stocks, not on VTI.

§ 03
Link your bank, start an ACH transfer of an amount you won't need soon, and set up an automatic recurring buy of a total-market fund every payday. Then close the app.
§ 04

The highest-yield move after your first buy is the boring one: automate a recurring investment every payday so the decision is made once and never re-litigated when markets get scary. Automation beats willpower.

§ 05
You want to buy a broad index ETF you'll hold for 20 years. Which order type is the simplest sensible choice?
Five questions · AI feedback

Sit with the ideas.

After funding your account, what is the single highest-impact habit for long-run returns?

Why:
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