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I want to open a Roth IRA with $1,000 in VFINX and $1,000 in XLK index (to see what can happen with techs).
My idea is to contribute $100 per month to VFINX ($1200 p/yr starting in 2000), and if things look good at end of year, $800 more in XLK (or move into QQQ or DIA).
According to message #13488 and 13489 the way to do this (if I understand correctly) is to open up one IRA with Vanguard and contribute per month, and open up another IRA with discount broker for my spider.
The logic is to dollar cost average at no fee with Vanguard, and try other things with broker. I'm hoping that this will be a good way to get started and in the future when it has (hopefully) grown, I can think about moving some into individual stocks.
Is this a wise decision?
Thanks for any responses.

Sounds like a pretty good plan but I don't like 2 different accounts to achieve the plan. Why not just get a discount broker that has no transaction fee mutual funds available and that way all monies are inside one account and can be sliced or diced anyway that suits you? Vanguard does have brokerage services but their commission are on the high side. Waterhouse has a lot of no transaction fee mutual funds available. I use Waterhouse but don't buy mutuals anymore. Good luck.
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