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Investing/Strategies / Retirement Investing
|Subject: Re: edgy about 1st yr. Roth||Date: 2/23/2000 11:54 AM|
|Author: UUinMN||Number: 19419 of 76418|
...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.
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