The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: IRA or no?||Date: 4/13/1997 6:34 AM|
|Author: RickNelson||Number: 12 of 77871|
On Tue, 08 Apr 97 23:05:47 -0600, jeremy wrote:
I am 21 years old and interested in investing. I plan to follow the Foolish Four or some variation of it. I only have about $500 of beginning capital....
... My last question concerns brokers. Are there any that will accept a $500 initial deposit?
I just saw Meto's posting as well. Its good to some early planning.
I just opened an IRA with Waterhouse. There is no setup or maint. fee and their are $12/trade (until 3/31/98). I figure if they really crank their rates up then I can always look elsewhere. They do have a $25 closing fee which I view as cost of handling the paperwork.
I posted a similar question about the amount to start trading with in the "Beating the Dow" forum. Realize the the smaller the amount the larger a hit commissions will take on your portfolio (percentage wise). One reply advised a 2% max for commisions over the course of the yr. With a Foolish Four (8 trades/yr) you are talking about $96 (@ $12/trade) in commissions or 19% of your initial investment.
Don't let that discourage you though. Just keep saving and you'll be there in no time. You're way ahead of most of your peers.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|