The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Roth IRA - ETF or Stocks?||Date: 2/20/2011 4:01 PM|
|Author: Watty56||Number: 68504 of 74471|
You need to take a hard look at the expenses of buying and selling an ETF or a stock. At Vanguard a mutual might have an expense ratio of maybe 0.2% which would cost you $10 a year for your first $5,000. Paying for any stock trades would quickly increase your expenses to an unacceptable level.
If you are not sticking to just the commission free ETF's they would have the same problem.
Once you have saved up a number of years and the amounts you are working with are larger then percentagewise, the cost of a few $7 trades each year becomes more acceptable.
What to buy really depends on the rest of your holdings in any other accounts.
For now I don't see anything wrong with just using mutual funds instead of ETF's.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|