My wife and I can't afford ROTH IRA's by April 15, 2000. I am considering rolling $4,000 from an existing IRA into the ROTH. Smart?If yes, our broker, Morgan Stanley Dean Witter, stated the account fees are:Year 1: Myself $30 per year My wife $zeroYear 2 and every year: Myself $30 My wife $20In addition, MSDWs trades cost us $100. If i stay with MSDW, i'll most likely go into one of their mutual funds... but ... last week The USA Today had an article showing that the Janus family of mutual funds has almost doubled its nearest competitor (AIM). Would it just be smarter for my wife and I to go directly to Janus to start the ROTHs?thanks,Mike & Mel in Va BeachAre MSDW's fees comparable to others? In particular, I'm considering moving to Schwaab ... less fees
I think I would go shopping. Most brokers will charge no fees if the account is large enough (ei. $10,000) and you can get the services cheaper if the acc't is small. Also, the $100 broker fee is very high. If you stay with MSDW and invest in AIM or JANUS or other fund families you will probably have additional fees.Either have your acc't with the Fund Family you will be investing in or with a discount broker.
I had a brokerage account with Discover Brokerage, a subsidary of MSDW. Last Fall I received an email that MSDW was going to abandon Discover Brokerage and my account would be with MSDW effective immediately.Further, the email expained that my trade costs were going to increase from $14.95/trade to $29.95 per trade in February 2000. I immediately went shopping for a new online discount broker.I considered Suretrade, but finally decided on American Express Brokerage due to low trading cost based on an alert from The Motley Fool. Accounts over $100,00.00, no cost per trade, on accounts above $25,000.00 to $100,000.00 no cost to buy a stock, $14.95 to sell a stock. Under $25,000.00, cost per trade $14.95. You may want to check their website.Prior to investing for myself (1997 to mid 1999)in the stock market, I was the proud owner of (6) different Mutual Fund Portfolios (one with Janus Fund). I have since liqidated all but (1) Mutual Fund (Vanguard 500 Index)and invest on my own in individual stocks using mainly "mechanical strategies" found at The Motley Fool website.My mutual funds did not increase my total porfolio balance for almost 20-months. With the help of The Motley Fool and my investing in individual stocks, I have increased my portfolio overall by over 30% since August 9, 1999.I would suggest that you shop for a new discount broker and give careful consideration before purchasing any mutual funds (except maybe for Vanguard 500 Index). I feel like nobody cares more about MY money than I do.Good luck and good investing.Dave B
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