No. of Recommendations: 0
Why is god's name would anyone want to pay 2.5% in fees? Why would anyone suggest that paying up to 2.5% in fees makes sense. If you have any desire to retire at any point in your life, you should keep your total fees (of any kind) well below 1%.

You are apparently not aware of fees in the initial years and/or have not experienced a downturn during initial investment years!
2.5% on a $4000 max contribution IRA = $100

If the OP does two round-trip transactions in the first year (Buy $4, Sell $15.95) + $25 Maintenance Fee = $64.90
IRA Contributions $1000 + (250*8) = $3000 (Using OP's numbers from initial post)
64.90/3000 = 2.16%

Why would he sell so early? If the OP was invested in individual stocks in the last month, one or more might be down 5, 10, or 15%. Even something as broad as SPY in the last month, that holding would be down 6-7%. It is easy to say, "You need to be a Long Term Buy and Hold investor". Markets misbehaving cause irrational behavior, and it is not unusual for a new investor to panic and sell.

With a $3000 account, and including the $25 maintenance fee
Two round-trip transactions in the current market: 2.16%
Three round-trip transactions in the current market: 2.828%

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