The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/on-tue-08-apr-97-230547-0600-jeremy-wrote-10001221.aspx

Subject:  Re: IRA or no? Date:  4/13/1997  6:34 AM
Author:  RickNelson Number:  12 of 75384

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?

prime@udel.edu

>>

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
Rick
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us