Skip to main content
No. of Recommendations: 0
"But $10/year is fairly typically for IRA account fees. At least, I pay that on the others I have."

The idea is not that $10 is a high fee but in relationship to $1,000 investment it's 1%.

The point is that it may be better to select very few Mutual Funds for an IRA because each fund may charge $10 or so in fees. Thus 5 funds with $1,000 each will generate $50 in IRA fees or 1% whereas one fund with $5,000 may charge a $10 IRA fee or 0.2% in IRA fees.

While diversity is suppose to help reduce risk - too much diversity can reduce returns by increased individual IRA fees.

BGP

Print the post  

Announcements

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.