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.
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.
Hi f250You 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. HTHBest Regards,Rich
Thanks for the advice. Will look at investing a couple times a year to keep costs down.
Thanks Rich. Appreciate the info.
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