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Discount brokers typically have "favorite" mutual funds. They're favorites because the fund pays the broker a cut of all money invested--you don't see the commission being taken out, but your investment returns end up being slightly lower. The broker can probably get other mutual funds, but will charge you a commission (in the $15-$25 range) to get it for you, since he wants to be paid.

I think those "favorite funds" are called no-transaction fee funds. I was looking at Waterhouse and Vangaurd is not one of them. But, back to my original question about Dollar Cost Averaging with a discount broker.....From the 2 replies... I now assume it really depends on the discount broker whether or not they will charge you a fee to take money from OUTSIDE the IRA account to DCA into a mutual fund.

If you want to put the Vanguard fund in the IRA, establish the IRA with Vanguard. Then later you can transfer it to a broker (Vanguard doesn't charge a fee) when you want to buy individual stocks.

I kinda did not want to have to hassle with a transfer...but I guess if I want to DCA and avoid the $12-20 transaction fee, I may have to open up my IRA w/Vanguard. Though I guess I could have 2 Roth IRA's. And I also have to consider the 10 bucks a yr. Vanguard charges on their IRA's with $5,000 and under.

Thanks all!

Lisa "How come I know what an unassisted triple-play is, but dont know what capital gains are?" S.
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