The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Fund Roth IRA monthly or yearly? Date:  4/28/1998  8:24 AM
Author:  JeanDavid Number:  3081 of 97363

< I just opened my first IRA, a Roth, with a discount broker. Here's my question. Even though commissions are low, am I better off putting monthly contributions into a money market and transferring the whole $2000 at once into IRA mutual fund (index), incurring only one commission, or buying shares each month with my contribution? The latter seems like it would have the value of dollar cost averaging, but incur far more in commissions.>

I do not know about your broker, but both Schwab and Fidelity have huge lists of mutual funds that they offer with no commission at all. They get their money from the management of the mutual funds (or they are funds they run themselves). Probably comes out of the 12(b)(1) fee, or something.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us