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I currently have an IRA that is invested in IRA mutual funds. What I would like to know is, can I take the money out of the mutual fund(s) and invest that money into individul stocks of my chosing while maintaing my IRA status?
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Yes you can!!!
All you need to do is open an IRA Brokerage account with a broker. Preferably a discount broker. Try Fidelity, Vanguard, Schwab, e*trade, etc.
You can buy mutual funds, stocks, bonds, money market funds, CDs, basically anything you want.
Good Luck.
Bill
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Thank you for the info. You just made my day!
Brad
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Thank you for the info. You just made my day!
Brad

One thing though, The safest way to do it is a transfer from the current IRA to the new IRA. If you close the account and take a check the old brokerage may take 20 % out for Tax withholding and That 20% will have to be made up by you or be counted as a withdrawl.
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I have a couple questions related to this same thread.

1)Currently, my Roth IRA is with Vanguard Index Fund. I want to put part of it into individual stocks. They can open a brokerage account and do this. I understand their trade fee, $20.00/trade is higher than E-trade, just for example.

If I were to switch it to another brokerage company just to get cheaper trade fees, would they just roll it over, without charging sell/buy fees if it stayed in same VFINX?

2)How can I find out which individual stocks reinvest dividends automatically?

3)In contributing every year toward a Roth IRA, I'm thinking that maybe it's better to contribute my full annual contribution to one stock per year, diversifying by adding different stocks in different years, so as not to have so many trade fees per year as I would dividing it up between different stocks. Maybe this is related to:

4)DRIPS? If I contribute to my Roth IRA thru DRIPS does that remove trade buy fees?(I will read about DRIPS here on TMF too)

5)If YES, how do I find which stocks have DRIPS for retirement accts.

Maybe this is all confused. At least I've learned to number my questions! ;-) This will be my first experience of selecting and investing in any individual stocks.
Thanks in advance! Meowiz
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Meowiz asks:

<<1)Currently, my Roth IRA is with Vanguard Index Fund. I want to put part of it into individual stocks. They can open a brokerage account and do this. I understand their trade fee, $20.00/trade is higher than E-trade, just for example.

If I were to switch it to another brokerage company just to get cheaper trade fees, would they just roll it over, without charging sell/buy fees if it stayed in same VFINX?>>


No. While VFINX may be sold by the broker, their agreement with Vanguard requires them to charge a fee for selling the fund. Also, you will be moving part of your VFINX IRA from Vanguard to the broker. Vanguard will force you to sell and move cash instead of shares, thus forcing you into a repurchase or new purchase at the brokerage, thus giving rise to trading fees.

<<2)How can I find out which individual stocks reinvest dividends automatically?>>

?? Are you talking about DRIP investing here? Some brokers will reinvest dividends at no or low cost, but most won't. If you want a DRIP stock, then you will have to find a DRIP company that will hold your IRA. Not many do. The best source for a listing of DRIP companies that accept IRAs is on the DRIP board at http://www.fool.com/DRIPPort/DRIPPortInfoLinks.htm .

<<3)In contributing every year toward a Roth IRA, I'm thinking that maybe it's better to contribute my full annual contribution to one stock per year, diversifying by adding different stocks in different years, so as not to have so many trade fees per year as I would dividing it up between different stocks. Maybe this is related to:

4)DRIPS? If I contribute to my Roth IRA thru DRIPS does that remove trade buy fees?(I will read about DRIPS here on TMF too)

5)If YES, how do I find which stocks have DRIPS for retirement accts.>>


The best source for those answers is in the DRIP area. As to investing in one stock per year, another option is to use something like VFINX until you get at least $4K or more in the account to keep fees below 2%. Obviously, the more cash in the account, the better plus the greater amount of purchases possible. One stock per year provides little diversification. You could see some heart-stopping drops (or gains) going that route. For someone just starting out in individual stock purchases, that could be rather intimidating either way. But the drops could really be discouraging, so you might want to ask yourself whether you can handle that distinct possibility.


Regards..Pixy
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Thanks Pixy! You said,
1.Vanguard will force you to sell and
move cash instead of shares, thus forcing you into a repurchase or new purchase at
the brokerage, thus giving rise to trading fees.


Oh.:-(

2.?? Are you talking about DRIP investing here? Some brokers will reinvest dividends at no or low cost, but most won't. If you want a DRIP stock, then you will have to find a DRIP company that will hold your IRA. Not many do.

It doesn't have to be DRIP investing. I am just trying to see what my choices are to diversify my Roth (and Keogh and R/O IRA too. I thought having the dividends reinvested (like the VFINX does in my retirement accts) was the best way. I don't know where the money from dividends will go in an individual stock investment in the retirement acct. if it's not reinvested?

Also, when using an on-line compounding calculator, I saw that contributing monthly vs. annually, for same annual sum, led to greater returns in long term.

3.As to investing in one stock per year, another option is to use something like VFINX until you get at least $4K or more in the account to keep fees below 2%.

After I make my l999 contrib. of $2K I will have $4K in the Roth VFINX acct. I have more than that in Keough.

4.Do I sound lost?! I am confused. I am just trying to figure out what is the best and cheapest way to start investing in individual stocks in these accts. Maybe I should leave the accts. with Vanguard , open a brokerage acct w/them and pay their higher trade fee. I read some of the DRIP info and there are still fees there,too, of course.

I assume it's best to keep the ongoing Roth all in one brokerage acct.

No advice is too basic here!
many thanks for accompanying me into this labyrinth that is my left brain! There has to be a light at the end of the tunnel, with choice of smelling salts, Jack Daniels, or Eggnog/with Rum for Pixy and Elves.
Meowiz


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Pixy and elves, Regarding my post 15936, I found the answers to my questions. I hope you read this msg before you reply to it. thanks! Meowiz
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