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Hi Paul,

Thanks for your quick reply. Your reply is pretty clear on some of the issues that I am thinking of.

Besides commission fees, what kind of common limitation or service fees that will occur if I invest it in the Internet Broker?




>Vanguard has many excellent low expense ratio, no load funds. Vanguard >500 Index fund is the best know S&P 500 Index fund. It is an excellent >place to begin if in doubt. You could be better off to open your IRA >directly at Vanguard if you plan to invest exclusively in Vanguard >funds.

>A brokerage account is somewhat more versatile in that you can also >purchase stocks if you want to. However, there is often the problem of >some limitation on which mutual funds are available and some service >fees associated with holding them in a brokerage account. If you go >with a brokerage account, an alternative to the Vanguard funds is SPY >the S&P 500 Index tracking stock traded on the Amex. It also has a low >expense ratio. However, you must pay commissions to your broker on >purchases. That should not be a big deal at a discount broker, but you >may want to limit the number of transactions per year to keep costs >under control. Mutual fund companies as custodians for your account >are usually much less of a hassle in this regard.
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