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Subject:  Re: Foolish Four IRA Date:  12/4/1998  11:04 AM
Author:  TMFPixy Number:  6991 of 88062

Greetings, Mobyduck, and welcome. You asked:

<<I don't have an IRA at this time. Can I set up a F4 port as an IRA? If anyone could give advice on how to do this I would be indebted. Thanks much!>>

Yes, you can. All it takes is and some money and a self-directed IRA that any discount broker can open for you. Keep in mind that all you can put into an IRA is $2K per year. If you're intent on following the F4, that means you will have to make about four trades per year. The first year you'll buy the first F4, and the following year you'll sell two and buy two (on average). That means to start you must spend about $40, and maybe more depending on your choice of brokers. That comes to at least 2% of your starting portfolio, which is about the maximum we believe you should pay in trading costs. Ideally, those costs should be even lower. If you can't come up with $2K right away, then prior to starting the F4, you may want to consider using an index fund or money market fund until you can build up a minimum pot to make the trades economically.


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