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Author: synchronicity Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77550  
Subject: Re: Multiple Roth IRA's ? Date: 3/14/2006 1:52 PM
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But someone starting a new IRA with a $4000 contribution into an index fund will be paying over $20/year (2% of balance) in fees. That's pretty

You're correct on the Vanguard fund fees, but you made a math error. $20 in fees on a $4000 contribution is 0.5% annually, not 2%. Assuming you contribute another 4K the next year, that brings you down to $10 in annual fees, or .25% (give or take depending on overall growth of contributed assets)

I like Vanguard for my IRA, not so much for the Coverdell, where the 50K+ in assets doesn't help (because they look at my daughter's total assets, not mine), and you can only contribute 2K/yr. At least we made it up to 6K this year, so one of the $10 fees is gone.

-synchronicity, who's given Vanguard a fair amount of business but acknowledges their weaknesses.
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