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URL:  http://boards.fool.com/take-a-look-at-this-quotguide-to-the-roth-19849903.aspx

Subject:  Re: Roth IRA deposits Date:  11/13/2003  3:57 PM
Author:  wcfenton Number:  37805 of 75381

Take a look at this "Guide to the Roth IRA":

http://www.fairmark.com/rothira/index.htm

I've posted this link before but I think that it's worth putting on the board again.

I also believe that there is no advantage to amassing funds and only contributing to your IRA every three months or so. You had the right idea...contributing what you could on a monthly basis. It's a lot easier and Dollar-Cost-Averaging (DCA) is a proven practice.

Although $250 a month X 12 months = $3,000 (Max yearly contribution), do whatever your pocketbook will allow. The idea of "paying yourself first" works, so contribute as soon after you get paid as possible to avoid allocating the funds to something less important. I don't know who you have your IRA with, so I would check with them to see what their rules are. I know that Vanguard requires a minimum of $100 per contibution.

I also hope that you chose a passively managed, low expense, no-load, broad-based index fund as a starting fund (core fund) for you IRA. Something like the Vanguard Total Stock Market Index Fund (VTSMX).

Anyway, good luck...

Bill




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