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Author: GPwalker One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75772  
Subject: What expenes to expect on a Roth IRA Date: 7/23/1999 3:38 AM
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I will be starting a Self-Directed Roth IRA very soon and I'm wondering what expenes might I occur. I would like to make monthly deductions from my checking account, but I'm questioning the expenes/fees from doing it contributing monthly or annually. Which is better?
Thanks for your help!

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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: 12495 of 75772
Subject: Re: What expenes to expect on a Roth IRA Date: 7/23/1999 7:53 AM
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Greetings, GPwalker, and welcome. You asked:

<<I will be starting a Self-Directed Roth IRA very soon and I'm wondering what expenes might I occur. I would like to make monthly deductions from my checking account, but I'm questioning the expenes/fees from doing it contributing monthly or annually. Which is better?>>

As far as expenses connected with a monthly deposit, the vast majority of custodians/brokers don't charge anything for that service. Some, though, will allow only minimum deposits such as $50 to $100. For that, you'll have to check with your broker. You don't talk about how much and what you will do with those deposits. If the amount is small, then certainly you won't use them for trading immediately because transaction costs would eat you alive. In that case, the money would stay in the account as part of the broker's sweep account earning money market fund returns. If those returns are less than you could get elsewhere, then perhaps an annual deposit versus a monthly one would be better for your purposes.

Regards..Pixy

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Author: rhecker One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12496 of 75772
Subject: Re: What expenes to expect on a Roth IRA Date: 7/23/1999 8:04 AM
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I will be starting a Self-Directed Roth IRA very soon and I'm wondering what expenes might I occur. I would like to make monthly deductions from my checking account, but I'm questioning the expenes/fees from doing it contributing monthly or annually. Which is better?

There should not be any expenses which you will incur to simply contribute to an IRA. Most brokerages these days should be happy to take your monthly or annual check (or direct deposit) without a problem. What you do need to be concerned about is how often you will be buying or selling stocks, etc. Brokers charge a certain fee for each trade you make.

I know Waterhouse has something they call "Periodic Investing" where they let you add as little as $100 a month or a quarter and it is automatically adding to an existing mutual fund position (a mutual fund in which you already own some shares). They probably have a small fee associated with this plan. Other brokers may have similar deals. Call up some discount brokerage firms and find out what they can do!

Hope this helps!

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Author: awwebb Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12498 of 75772
Subject: Re: What expenes to expect on a Roth IRA Date: 7/23/1999 9:50 AM
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rhecker wrote: (I know Waterhouse has something they call "Periodic Investing" where they let you add as little as $100 a month or a quarter and it is automatically adding to an existing mutual fund position (a mutual fund in which you already own some shares). They probably have a small fee associated with this plan.)

This is what Waterhouse had to say when I questioned them about fees for monthly money transfers to my Roth IRA in which I would be purchasing shares in a mutual fund:

"You will incur our $24 transaction fee every time funds from your money
transfer initiates a new position in the mutual fund, however, if you decide
to invest in a mutual fund that belongs to our No-Transaction-Fee program
(NTF), you will incur no transaction fees. You can invest in over 1,100
funds with no-transaction-fees from popular fund families such as: Invesco
Funds, Stein Roe Mutual Funds, American Century, Scudder, Cohen & Steers,
and Strong Funds.

To see if the mutual fund you are interested in belongs in our NTF program,
please E-mail us again with the complete name of the fund or contact our
Fund Search Department at (800) 934-1292.

If you have any additional questions or comments, please E-mail us again or
call our Electronic Brokerage Customer Service Department at (800) 555-3875.

Thank you for choosing Waterhouse Securities."

Can Anyone Clarify what they mean by "new position"?

Also can someone tell me how to italicize text on this board?

Thanks

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Author: WilliamLipp Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12499 of 75772
Subject: Re: What expenes to expect on a Roth IRA Date: 7/23/1999 10:06 AM
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awwebb Date: 7/23/99 9:50 AM Number: 12498
"You will incur our $24 transaction fee every time funds from your money transfer initiates a new position in the mutual fund, however,...

Can Anyone Clarify what they mean by "new position"?


I think it means that you buy a mutual fund that you do not already own.

Also can someone tell me how to italicize text on this board?

If you hit the "help" button on the right of the blue bar above this message, you will find the information about using < i >italic < /i > and < b >bold< /b >. There is also a "preformat" command to make tables, but the only place I've ever seen that information is the great FAQ on the Foolish Four board. It works like this
< pre >

123 45% xxz
45 78% qs
add pp% NDF
< /pre >

Without the < pre > tags, that would come out

123 45% xxz
45 78% qs
add pp% NDF

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Author: tonyw44 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12502 of 75772
Subject: Re: What expenes to expect on a Roth IRA Date: 7/23/1999 12:08 PM
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When they say that they will charge you $24 if you transfer money and create a new position in a mutual fund, what they mean is that if you buy more shares in the mutual fund then you'll have to pay the fee.

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