What's" better" is in the eyes of the beholder. All that matters is what you think is better from a standpoint of cost, comfort and understanding of the investment involved. If you're just investing $2K in each account, you very well may be far better off using an index fund until the accounts are of sufficient size to keep trading costs well below 2% of your total portfolio.Mr. Pixy, if you dont mind, a follow up please.I agree that I should start with an Index fund. But since I am leaning towards trying FF at a later point in time, say 2 or 3 yrs.1. Should I start this with a broker whose IRA fees is low. Or should I start the index fund with Vanguard and later on transfer it to the broker.2. Can I put it in VFINX from any brokerage IRA account or just with Vanguard?Naaree
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