I've opened a Roth IRA acct with Ameritrade, perhaps prematurely. My plan was to make an initial investment of about $500 (with 100-200 additional every month) in an index fund like Deutsche or Vanguard. Now I'm finding that there is an $18 fee every time I want to put more money into the fund. I guess I could let the money sit around for a few months before buying, but that kind of defeats the purpose of making regular contributions. Is there a broker that can accomodate small monthly additions without charging up the wazoo?
Well, why not just open an account at Vanguard and deal directly? It's what I do with my Roth but then I like the idea of mutual funds(One in my Roth is up 15% this year so far which isn't too shabby if you look at the Fool's ports).JB
If you are only going to be purchasing mutual funds with your Roth, then why not go directly to the mutual fund family and make your purchases commission free?You might research at www.gomez.com to see if any of the discount brokers offering Roth IRAs have commission free mutual fund purchasing if that is really what you want.Jenn
Just wanted to add another source to the one Jenn gave you:http://www.sonic.net/donaldj/-For broker research and all that they offer, and don't offer.HTHBmF
Have your account at Vanguard and put it on automatic investment, if you want to put in small monthly contributions. While normally Vanguard wants a larger amount, they'll take small increments if it is set up as an automatic monthly contribution, which you can stop at any point. No fees for the contributions! Best wishes, Chris
Okay, one last person to chime in. I too deal directly with Vanguard, and cut out the middleman and his fees.
Have your account at Vanguard and put it on automatic investment, if you want to put in small monthly contributions. While normally Vanguard wants a larger amount, they'll take small increments if it is set up as an automatic monthly contribution, which you can stop at any point. No fees for the contributions!Note however that Vanguard charges a $10 annual "account maintenance fee" for accounts under $10,000 in value. For a Roth IRA with a $2000 annual contribution limit, you're going to be paying that fee for about 5 years.. so consider the tradeoff (how many trades would you be making in those five years?). Kiri
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