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Subject:  Re: vanguard index fund Date:  10/5/1999  2:08 PM
Author:  BGPenhollo Number:  14241 of 87994

"But $10/year is fairly typically for IRA account fees. At least, I pay that on the others I have."

The idea is not that $10 is a high fee but in relationship to $1,000 investment it's 1%.

The point is that it may be better to select very few Mutual Funds for an IRA because each fund may charge $10 or so in fees. Thus 5 funds with $1,000 each will generate $50 in IRA fees or 1% whereas one fund with $5,000 may charge a $10 IRA fee or 0.2% in IRA fees.

While diversity is suppose to help reduce risk - too much diversity can reduce returns by increased individual IRA fees.


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