Skip to main content
No. of Recommendations: 0
$10 annual custodial fee on each fund in your Roth IRA with a balance of less than $5,000.

The low-balance index fund fee is in addition to the custodial fee on each fund. So, if you're only invested in 1 index fund, and your Roth IRA balance is less than $5,000, you pay $20/year just to be in that one index fund.

This is what I don't like about Vanguard, they nickel and dime small investors to death with their myriad fees!

I would check out Fidelity's fees, as I think they might actually be cheaper in the OPs case. They advertise their IRAs as "No Fee IRA", so I don't believe there is a 'custodial' fee. In addition, I know their Spartan S&P 500 index fund has an ER of .10, lower than Vanguards. I don't know if they have index funds that will match the OPs other choices though.

As to some other funds, I grabbed this from their website:

Fidelity may deduct a small balance maintenance fee of $12.00 from a fund balance with a value less than $2,000. Fund positions opened after September 30 will not be subject to the fee. This fee will not be deducted from fund positions opened after January 1 of the calendar year if those positions use regular investment plans. Refer to the fund prospectus for details.

Once the OP has over $10K in the IRA, he could then consider transferring it to Vanguard.

2old
Print the post  

Announcements

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!
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.
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.