No. of Recommendations: 0
Unless I'm mistaken I don't have to pay any fees in order to purchase my IRA funds. Correct me if I'm mistaken.

You don't directly pay a fee to open an IRA, but any time you make any sort of trade through Scottrade, they're going to charge you. Your $1k will really buy you $993 of whatever you choose (assuming a market order, which are $7 at Scottrade - a pretty low fee). This is why active trading attrits your retirement accounts, or a taxable account for that matter.

The management fees of about 0.2% for most index funds are not quite negligible, but are about as low as they come for a fund.

Basically, you send Scottrade a check to deposit in your IRA account for $1000. You put in a market order or what not to buy VTSMX, and they will buy you ($1000-7)/(price of VTSMX at the time). Your account value will be $993 right at the time of the trade.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.