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Author: MichaelSB Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: Roth IRAs & Discount Brokers Date: 7/19/1999 6:29 PM
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Thanks to those who helped with my previous Roth IRA questions. Here are a couple more: with which reliable discount broker can one set up a Roth IRA Foolish Four account? Any suggestions? My current Roth IRA is with a mutual fund company with brokerage services but I don't want to pay their full service commissions.

Secondly, with my current Roth IRA I am purchasing shares automatically (via direct deposit) on a bi-weekly basis in one of the company's funds. I am assuming that with a Roth IRA set up through a discount broker, I could have funds direct deposited into my brokerage account. True or false? I am also assuming that dollar cost averaging does not come into play here (as with my current mutual fund Roth IRA)unless I am willing to pay for the commission on each stock purchase every two weeks. True or false? If true would it make the most sense to keep adding, on a bi-weekly basis, to the brokerage account (up to $2,000) and buy and/or sell according to the Foolish Four at the end of the calendar year?
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Author: SnootFool Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12356 of 75377
Subject: Re: Roth IRAs & Discount Brokers Date: 7/19/1999 10:11 PM
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MichaelSB:
Here are a couple more: with which reliable discount broker can one set up a Roth IRA Foolish Four account? Any suggestions?

Try the Discount broker board or http://www.sonic.net/donaldj/brokers1.html

Secondly, with my current Roth IRA I am purchasing shares automatically (via direct deposit) on a
bi-weekly basis in one of the company's funds. I am assuming that with a Roth IRA set up through
a discount broker, I could have funds direct deposited into my brokerage account. True or false?


True.

I am also assuming that dollar cost averaging does not come into play here (as with my current
mutual fund Roth IRA)unless I am willing to pay for the commission on each stock purchase every
two weeks. True or false?


True.

If true would it make the most sense to keep adding, on a bi-weekly basis, to the brokerage account (up to $2,000) and buy and/or sell according to the Foolish Four at the end of the calendar year?

If that's what you can afford to do, sure. If you
can swing it though, the very best plan is to bite the bullet & deposit the full $2K in January of the tax year in question (i.e, make 1999 deposit in JAN '99, not JAN '00). Over your investing lifetime, making your money work for you for an additional 12 months for each contribution will make a significant difference. Is your IRA your only investment vehicle? If not, skip putting any money into your taxable account early in the year & fill up your IRA. Or steal a bit from your "rainy day" money funds & build them back up over the next few months.

Chris

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