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Subject:  Re: Roth IRA Splits Date:  11/24/2013  9:43 AM
Author:  JLC Number:  73810 of 90110

Used to be a rule of thumb at TMF to keep commissions less than 2% (buying and selling, i.e. round trip or 1% each way). So if you spread $550 over 10 stocks, your commission would have to be $5.50 or less. So you are right on the cusp depending on who your broker is.

If you're not trying to day trade or turn over your portfolio each month or even quarter, I'd go ahead with $550 on each position assuming you'll add to those same positions next year.

Outside of that, there are several ETFs that give you a broad exposure. For example, $1375 in IVV, EFA, IYR and IEF gives you US equities, foreign equities, US REIT and US bonds.

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