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Author: stevewestrick Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: SEP IRA Date: 10/10/1999 1:26 PM
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My wife and I are 1/2 owners of small corporation that is allowed to sponsor a SEP plan for its' employees. The main employee is my wife and the maximum 15% contribution will amount to about $3,000. As the employee, she can pick the IRA vehicle to which the employer will make the contribution. We are interested in 2 or 3 Fidelity select funds; namely select Developing Communication and select Technology, in which she would make direct deposits to the Fund family in these funds. (please excuse my longwinded explanation/question) I am also not a stranger to the discount brokerage world, at present I use 2 discount services for my non-retirement accounts in which I buy stocks that I anticipate to hold for 3 to 5 years or more. The foolish approach of buy and hold definately appeals to me although tough at times. Now for the zillion dollar guestion: Should I be leaning to open a discount brokerage in which to buy some popular but stable hitechs (msft csco lu aol etc)(in my mind, stable for the long ride) knowing it will still cost us about 10 or 15 bucks every time we make a purchase or sale?

or:

Go directly to fund family (Fidelity) and purchase those funds thinking we may be just a bit more diversified (also no capitol gains problems cause it's in an IRA account)? And, unfortunately the commission is at 3% for all new $$ added. For my wife (and myself really) there is a little more of a security feeling knowing we'd be buying a "brand name" of the mutual fund universe and plus I really expect these funds to beat the index 500 over the next few years. Any thoughts out there?

Steve
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14391 of 76384
Subject: Re: SEP IRA Date: 10/11/1999 9:50 AM
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Greetings, Steve, and welcome. You wrote:

<<My wife and I are 1/2 owners of small corporation that is allowed to sponsor a SEP plan for its' employees. The main employee is my wife and the maximum 15% contribution will amount to about $3,000. As the employee, she can pick the IRA vehicle to which the employer will make the contribution. We are interested in 2 or 3 Fidelity select funds; namely select Developing Communication and select Technology, in which she would make direct deposits to the Fund family in these funds. (please excuse my longwinded explanation/question) I am also not a stranger to the discount brokerage world, at present I use 2 discount services for my non-retirement accounts in which I buy stocks that I anticipate to hold for 3 to 5 years or more. The foolish approach of buy and hold definately appeals to me although tough at times. Now for the zillion dollar guestion: Should I be leaning to open a discount brokerage in which to buy some popular but stable hitechs (msft csco lu aol etc)(in my mind, stable for the long ride) knowing it will still cost us about 10 or 15 bucks every time we make a purchase or sale?

or:

Go directly to fund family (Fidelity) and purchase those funds thinking we may be just a bit more diversified (also no capitol gains problems cause it's in an IRA account)? And, unfortunately the commission is at 3% for all new $$ added. For my wife (and myself really) there is a little more of a security feeling knowing we'd be buying a "brand name" of the mutual fund universe and plus I really expect these funds to beat the index 500 over the next few years. Any thoughts out there?>>


When all is said and done, it all boils down to a personal investment choice that you must make for yourselves based on your desires and analysis. To be honest, I'm really not sure what you're asking here. Is it okay to buy stocks with a discounter? Sure, it that's what you want to do. Is it okay to invest in a load mutual fund instead? Sure, it that's what you want to do. Is it okay to both? Sure, it that's what you want to do. See my point?

Like I always say, "Ya makes your choices and ya lives with the results."

Regards..Pixy

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