UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: mikeg1382 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75598  
Subject: Re: Help with my Roth IRA investments! Date: 4/25/2002 9:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<<The index fund fee(usually collected from dividnds at $2.50 per quarter) is assessed on Index funds with balances below $10,000.>>>

That sounded wrong to me, so I looked it up. The $2.50 is the regular fund fee, which is taken right out of the account, while the $10 custodial fee is pre-payable and is per fund held in the account until a balance of $5000 is reached for each fund. The following is right off of Vanguard's website, www.vanguard.com. :

To cover the cost of tax reporting, Vanguard charges a custodial fee of $10 a year for each fund account having a balance of less than $5,000 in traditional, Roth, SEP–, and SIMPLE IRAs. (The same fee applies to individual 403(b)(7) fund accounts, regardless of balance.) For example, if you have an IRA invested in two funds that both have balances of less than $5,000, you will owe two fees, or $20 for the year.


Also, the question was asked about how often to fund the IRA. Everyone is different, but I like to try to take advantage of dollar cost averaging by sending in a check every week. It makes for a lot of checks, but I don't mind. I think of it as paying myself evey week right after my paycheck comes in!

Mike in NJ
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Ubiquiti Analysis
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement