The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/ltltltthe-index-fund-feeusually-collected-17125104.aspx

Subject:  Re: Help with my Roth IRA investments! Date:  4/25/2002  9:57 PM
Author:  mikeg1382 Number:  34354 of 75631

<<<The index fund fee(usually collected from dividnds at $2.50 per quarter) is assessed on Index funds with balances below $10,000.>>>

That sounded wrong to me, so I looked it up. The $2.50 is the regular fund fee, which is taken right out of the account, while the $10 custodial fee is pre-payable and is per fund held in the account until a balance of $5000 is reached for each fund. The following is right off of Vanguard's website, www.vanguard.com. :

To cover the cost of tax reporting, Vanguard charges a custodial fee of $10 a year for each fund account having a balance of less than $5,000 in traditional, Roth, SEP–, and SIMPLE IRAs. (The same fee applies to individual 403(b)(7) fund accounts, regardless of balance.) For example, if you have an IRA invested in two funds that both have balances of less than $5,000, you will owe two fees, or $20 for the year.


Also, the question was asked about how often to fund the IRA. Everyone is different, but I like to try to take advantage of dollar cost averaging by sending in a check every week. It makes for a lot of checks, but I don't mind. I think of it as paying myself evey week right after my paycheck comes in!

Mike in NJ
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us