Skip to main content
No. of Recommendations: 0
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.
P.S. I believe with the broker I would have to include broker fee as part of IRA contribution, so slightly less than $800 once per year.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.