Dear Fools,
First, I am new here and apologize if I am asking questions that have already been asked and answered recently. I have many financial questions of late and will ask just a few now.
I know the Motley Fools say that if one is set on investing in a mutual fund, to use the Vangaurd 500 Index Fund, but as that has hardly any capital gains paid each year, it seems to me like that would be a fund better to own outside an IRA. A Dow 10 or Dow 5 fund would be better in an IRA, it seems to me, but the only Dow 10 and Dow 5 funds I have found have loads and high management fees, which seems crazy to me as there is hardly any management with these approaches. Does anyone know of a Dow 5 or Dow 10 fund that is no load with a low management fee, and better still, one which allows for monthly contributions of $166 so we can dollar cost average rather than have to plunk $2K into the account all at once?
Moving onto the new choices in IRAs, if one can open a tax deductible IRA in 1998 and is confident that their income for 1999 will be under $100K, is there any law stopping this person from taking a tax deduction for the IRA for tax year 1998 and then converting it to a Roth IRA in 1999 (paying the taxes on the gains during the period between opening the traditional IRA and converting it to a Roth IRA, of course)?
Finally, I read in a Roth IRA application that the account can only be rolled over once every 365 days. I take it this means if you have three separate Roth IRAs, you can roll each over into different accounts once every 365 days, so you could really be making 3 changes a year. Can anyone tell me if I am guessing right on this?
Thanks for any help anyone can give me!
Cordially,
Respectable