No. of Recommendations: 0
It looks like your investment strategy costs about $91 a year in fees.

Just offhand, I would tend to go with something like saving up $400 and investing it 3 times a year. You wouldn't be doing as much "averaging", so it would be a bit more risky, but not overly so. Using Waterhouse as an example (just because I'm a customer and I'm familiar with them - other places may be even less):

-No annual fee for IRAs
-No fee for dividend reinvestment (on over 4,000 securities)
-$12 per online trade (which would be $36 a year)

This method would cost $36 a year with minimal additional risk. You could do it 4 times a year for $48, or 6 times a year for $72. I would think dollar cost averaging by the bi-month would not increase your risk measurably.

On the other hand, you might just find that moving your account for $20-$55 in savings isn't worth the hassle. My only qualm with your current situation is that they charge the $30 annual fee for holding your IRA for you.
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