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Subject:  Am I doing this right? Date:  4/26/2004  6:26 PM
Author:  JonZal Number:  40699 of 90110

I have opened with Scottrade two Roth IRAs: one for my wife, one for me.

I initially funded each account w/ $500, and invested that in RYPRX.

Now I want to make monthly contributions to the accounts. As far as I can tell, the best way to do this is to set up the "Deposit Fund eCheck" thing for each account, then manually transfer funds from our bank account into the Roth IRA accounts via eCheck each month, then invest those transferred funds into a mutual fund. As I understand it, Scottrade does not charge a transaction fee for mutual-fund investments. Am I on course?

More info: I have a Rollover IRA w/ about $4,000 in it, all of which is invested in VFINX. It is because of this that someone recommended I invest the initial $500 in my and my wife's new Roth IRAs into RYPRX. I'm thinking over the long term, however, I might want to direct the aforementioned monthly deposits into our Scottrade Roth IRA's to VFINX instead. So, say I deposit $100 this month into the Scottrade account; can I immediately buy $100 of VFINX? I recall hearing that there has to be a minimum initial investment ... but, be that as it may, Scottrade's research area shows a required $2,000 minimum initial investment of $2,000 for RYPRX, yet I bought in for $500, so I'm left to believe that there are exceptions, perhaps for Scottrade members or something?

Bigger picture: Wife works in the school system, and pays 11% annually into a retirement fund; that's her only option at work. I'm self-employed, and haven't been saving for retirement beyond the aforemented Rollover IRA and newly opened Roths. Instead, we've been focusing on saving for our first house, which we plan to buy sometime this calendar year, and have also just opened a 529 for our 10-month old (which we're still debating on how to fund, in terms of regular deposits). Our income is modest; about $80,000 annually--though that may shrink, as wife is likely to cut back on work in order to spend more time at home. It is my hope to max out our Roths this year and every year (something we've never done, to date). Despite the fact that doing so is a lofty goal for us, what with our focus on saving for a home, is there more I should be doing for retirement?

Any guidance would be greatly appreciated. It'd be great to hear that I'm on the right track, but if there's a better way, I'm all ears.
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