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Subject:  Re: IRA or no? Date:  4/13/1997  6:34 AM
Author:  RickNelson Number:  12 of 88775

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.

Good Luck
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