My sister wants to start contributing to an IRA for the first time. She would like to contribute $3k for the 2003 tax year and asked me where to go. What's the lowest cost place to invest the money? There are any number of places to get a cheap index fund, but Vanguard and many others beat you to death with quarterly fees if you don't have a lot more than three grand invested. Who takes small accounts without a lot of fuss?
I believe Vanguards extra fees go away once you exceed $10K. So one way is to go to your local bank and put it in CDs. After 3 years, you probably will have enough to move to Vanguard.Others have suggested some of the discount brokers as a good place to begin, but I don't remember which ones. At a discount broker it can be cheaper to buy SPY, the S&P 500 tracking stock traded on the AMEX, rather than a mutual fund.
I have a roth ira with scottrade and a individual account as well. I am a new investor and have had good experiences with them. If you purchase mutual funds such as Vanguard you dont pay a commision. The best part is I opened my VFINX with only $1000. When you purchase mutual funds through scottrade many of the funds waive their minimum deposit. Good luck and feel free to contact me if you have any questions.Arby
Arby:Does Scottrade have any annual account or inactivity fees?
Does Scottrade have any annual account or inactivity fees? No. Look at item 10.http://www.scottrade.com/frame_reasons.aspIF
www.tiaa-cref.comLandog *******************That was actually my first thought until I looked more carefully. Check it out: the "IRA class" of shares has expenses in the 40+ basis point range for and index fund. I don't think so.Guess it'll be Vanguard via Scottrade.
Actually they have no maintence or set up fees. If you dont like them for some reason you they have no fees to cancel or transfer into another brokerage. Im surprised they are not on the compare brokers sight. When I first looked for a brokerage I checked out quite a few and Scottrade seemed like the best, at least for me.
I recently opened four Roth accounts with Vanguard (for me, wife and two daughters). There is an annual fee of $10 until you have, I think, $5000 invested in total with Vanguard. They also have an easy way to set up and get answers on their web site. There is a $1000 minimum. You can also transfer funds within the accounts from one of their funds to another.
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