The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: So many questions, Date:  11/4/1999  11:17 AM
Author:  pauleckler Number:  15100 of 88487

I should think you would want to make your stock purchases in 100 share round lots. Otherwise, in most cases you will pay a 1/8 per share odd lot differential. So I would accumulate funds in the account from dividends and annual contributions until they at least made the round lot minimum. In time your investments become more efficient when you make them in chunks of at least $5K. So as your account grows, increase the size rather than the number of your transactions.

You will have to check with Scottsdale for details of your account. Most accounts are set up so that any uninvested funds are swept into a money market account, where they earn some interest while they wait for your next investment decision.

None of the capital gains rules apply in the case of an IRA account. You do not have to wait a year and a day. There are no additional tax advantages to be gained by waiting.

As a rule, the Foolish stock portfolios are mechanical, and more frequent evaluation does not improve results. But ask that question on the RP4 board to find those with more expertise in that area.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us