UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: SuaSponteMark Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: On the road to retirement riches :-) Date: 3/6/2004 6:03 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
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.

Mark
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement