The Motley Fool Discussion Boards	Previous Page
Investing/Strategies / Retirement Investing
URL: http://boards.fool.com/the-commissions-to-alter-the-roths-could-add-12031931.aspx
Subject: Re: edgy about 1st yr. Roth	Date: 2/23/2000 11:54 AM
Author: UUinMN	Number: 19419 of 72252
...the commissions to alter the Roth's could add up to 5% of my investments. Do you mean that if you sold these four stocks, and bought four others, or a mutual fund, your portfolio would shrink by 5%? If so, this is a bad sign. Even if you do this only once a year, that's a big drag on your return. You should try to keep your commissions down to 1% per year, or possibly 2%. You can do this by 1) Using a lower-cost broker 2) Avoiding individual stocks until you can rotate stocks for 1% of the value. 3) Using Long-Term Buy & Hold investing style. Paying several percent commission could be OK, if you pick well and hold for several years. Fool on! Michael
Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us