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Author: flowers250 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: Roth Date: 1/8/2011 3:47 PM
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Dear Fools,

What is the best/cheapest way to invest in stocks for a Roth IRA? I'm thinking of investing in companies such as Amazon, Intel, Microsoft, Cisco and Costco to start. I'm also intrigued by Rosetta Stone. I'm looking to add to two accounts on a monthly basis for my wife and I rather than one lump sum. Is this something I should do with a discount broker? Any info. is appreciated.
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68157 of 76395
Subject: Re: Roth Date: 1/8/2011 4:52 PM
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Making repeated monthly investments in mutual funds is quite easy, but for stocks it tends to be an expensive strategy. Each purchase usually will cost at least $8 at a discount broker. You probably want to keep costs below 2% or so. The minimum you will want to invest is $400 per month.

It can be better to accumulate funds and then invest once a quarter or at some other interval to keep costs lower.

You may also want to look at dividend reinvestment services. Many companies have them and most allow you to add additional cash for purchases made at least once per month. Then you are charged only a share of the commissions.

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Author: stockmover Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68162 of 76395
Subject: Re: Roth Date: 1/8/2011 7:35 PM
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Hi f250

You may want to consider opening a Roth account at Schwab. They have an excellent selection of commission Free Mutual Funds and now have commission Free ETF's. This will provide you with diversification as well as no commission fees ~ which should benefit you if making monthly or quarterly purchases. However, some mutual funds do have minimum purchase $ limits.
HTH

Best Regards,

Rich

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Author: flowers250 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68172 of 76395
Subject: Re: Roth Date: 1/9/2011 9:08 AM
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Thanks for the advice. Will look at investing a couple times a year to keep costs down.

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Author: flowers250 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 68173 of 76395
Subject: Re: Roth Date: 1/9/2011 9:09 AM
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Thanks Rich. Appreciate the info.

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