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OK, I'm finally about to open brokerage accounts for our IRAs. I'm planning on using a Foolish Four approach, at least to start.

I'm used to making regular investments in mutual funds (dollar-cost averaging), mostly because the discipline is the best way to guarantee that it happens at all. I clearly don't want to be making monthly stock transactions with the money that I will be adding each month, as this would result in paying too many commissions.

My planned approach is to try to find a broker that has a no-transaction-fee S&P500 index fund available and make regular purchases of this fund; then, when I do my periodic shuffling of the stock portfolio, move money from the index fund to be used for the new stock purchases.

Comments, anyone? Alternatives? Thanks...
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Greetings, Alr, and welcome. You wrote:

<<OK, I'm finally about to open brokerage accounts for our IRAs. I'm planning on using a Foolish Four approach, at least to start.

I'm used to making regular investments in mutual funds (dollar-cost averaging), mostly because the discipline is the best way to guarantee that it happens at all. I clearly don't want to be making monthly stock transactions with the money that I will be adding each month, as this would result in paying too many commissions.

My planned approach is to try to find a broker that has a no-transaction-fee S&P500 index fund available and make regular purchases of this fund; then, when I do my periodic shuffling of the stock portfolio, move money from the index fund to be used for the new stock purchases.

Comments, anyone? Alternatives? Thanks...>>


Sounds like a reasonable approach to me. Many Fools use it, so you will be in fine company should you do so as well.

Regards…..Pixy

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Looking for a low cost Index fund investment?

Vanguard 500 Mutual Fund has about the lowest fees.

You might also take a look at some Amex products, including their Spider, which is a trust that tracks the S&P 500, or the MDY which track the mid caps.

There are some new spider products as well that track nine different industry segments of the S&P.

I was able to get some good literature on these from the AMEX site.
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