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What would be the advantage to investing into a discount brokerage IRA vs. a good growth or index mutual fund. After carefully analyzing the two different scenarios a I am a little confused. I realize that one can choose his/her own stocks in a DB IRA, but every month when you invest money you have to pay a trade fee for each purchase of shares as opposed to the mutual fund where the money is just sent in. If I can maintain a yearly 1% to 1.25 % on a growth fund, or a .40% on an index fund wouldn't this be less expensive than paying a trade fee for each stock purchase every month? If I am missing something I would appreciate some input. It just seems as though a self-directed IRA would be more expensive to maintain than an index, growth, or the DRiP philosophy.
Thank You.............Alan.
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