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Author: culcha Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 264957  
Subject: Re: Buying Stock - Brokerage or Roth? Date: 11/26/2013 9:27 PM
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The main disadvantage of a Roth is the relatively low contribution limit.

That may be true for a relatively experienced investor. But probably not for anyone with only about one week's worth of investing experience.

I remember when I was new to investing I wanted to buy some Ballard Power. I think it was about $100 or $120 a share in those days. Now it's $1.27. And I wanted to buy it in a Roth, because it represented a revolutionary way of powering cars, and I was sure to make a fortune. Then I found out that I had to set up the Roth first, and contribute money into it, and only then could I buy the stock. This slowed me down and gave me a little more time, and (for some reason (that I don't even remember now) I never bought the BLDP.

I would say the main disadvantage of a Roth is that, generally, it is not possible to claim losses on stock bought in a Roth. As a beginner investor, I had no idea that most (or all?) investors lose money on some of their investments.

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