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Subject:  Why buy and Index Funds for IRA through a discou Date:  3/15/2002  3:44 AM
Author:  slherzberg Number:  33992 of 96149

In the Fool's advice for setting up an IRA, it is stated that one of the 1st things to be done is to set up an account with a discount broker. Then, it is recommended that a significant portion of the investment be with the Vanguard 500 Index Fund. Why isn't it more practical to buy into the Fund directly from Vanguard? This way, the transaction fee charged by the broker can be avoided. Furthermore, if the account is opened with $5,000 of more, Vanguard waives $10 a year custodial fee.
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