Comments on: Investing Small Amounts Can Be Expensive http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: Jeff http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-45062 Jeff Mon, 13 Nov 2006 02:19:33 +0000 http://allthingsfinancialblog.com/?p=1311#comment-45062 Vanguard Target Retirement 2035 is the sh-- for my Roth....no hassle, set it on auto pilot to take $333.00 out of checking and into the fund same time every month...automatic diversification, automatic allocation of funds as I get older..... I can't imagine why anyone would buy individual stocks for a Roth?....anyone? Vanguard Target Retirement 2035 is the sh– for my Roth….no hassle, set it on auto pilot to take $333.00 out of checking and into the fund same time every month…automatic diversification, automatic allocation of funds as I get older…..

I can’t imagine why anyone would buy individual stocks for a Roth?….anyone?

]]> By: Mighty Bargain Hunter » Roundup for week of 29 October 2006 http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-40483 Mighty Bargain Hunter » Roundup for week of 29 October 2006 Mon, 06 Nov 2006 04:09:38 +0000 http://allthingsfinancialblog.com/?p=1311#comment-40483 [...] All Financial Matters says that investing small amounts can be expensive. [...] [...] All Financial Matters says that investing small amounts can be expensive. [...]

]]> By: yabadaba http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-39212 yabadaba Fri, 03 Nov 2006 17:36:54 +0000 http://allthingsfinancialblog.com/?p=1311#comment-39212 I love the STAR fund. Its been an excellent choice for hassle free investment with above (8%) average gains. I m sure one could make more money playing the market, but for those in for the long haul without too much time and energy to work on a second job (read investing in stocks), this is an excellent choice. I love the STAR fund. Its been an excellent choice for hassle free investment with above (8%) average gains. I m sure one could make more money playing the market, but for those in for the long haul without too much time and energy to work on a second job (read investing in stocks), this is an excellent choice.

]]> By: fivecentnickel.com http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-39048 fivecentnickel.com Fri, 03 Nov 2006 11:51:40 +0000 http://allthingsfinancialblog.com/?p=1311#comment-39048 <strong>Weekly Roundup - 11/03/06</strong> Here’s a quick look at some of the posts that caught my eye over the past week: Jim has a controversial tip for helping maximize your restaurant server’s income… Always tip with cash so they can avoid paying taxes. Not surprisingly, a... Weekly Roundup – 11/03/06

Here’s a quick look at some of the posts that caught my eye over the past week:
Jim has a controversial tip for helping maximize your restaurant server’s income… Always tip with cash so they can avoid paying taxes. Not surprisingly, a…

]]> By: Jonathan http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-38744 Jonathan Thu, 02 Nov 2006 15:32:24 +0000 http://allthingsfinancialblog.com/?p=1311#comment-38744 Just to confirm what Jason said, yes, you can start with Vanguard STAR fund for only $1,000. Although it's not my favorite choice, it has a growth of 11.07% since 1985. That's not too shabby. :) Just to confirm what Jason said, yes, you can start with Vanguard STAR fund for only $1,000.

Although it’s not my favorite choice, it has a growth of 11.07% since 1985. That’s not too shabby. :)

]]> By: savvysaver http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-38730 savvysaver Thu, 02 Nov 2006 14:16:30 +0000 http://allthingsfinancialblog.com/?p=1311#comment-38730 I'm a big fan of Fidelity. We've never been charged a fee on any of our accounts (two Roth IRAs, one Rollover IRA, one brokerage account). We typcially invest in either Fidelity funds or the Spartan funds. The Spartan funds have extremely low expense ratios. I’m a big fan of Fidelity. We’ve never been charged a fee on any of our accounts (two Roth IRAs, one Rollover IRA, one brokerage account). We typcially invest in either Fidelity funds or the Spartan funds. The Spartan funds have extremely low expense ratios.

]]> By: Jason http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-38719 Jason Thu, 02 Nov 2006 13:40:46 +0000 http://allthingsfinancialblog.com/?p=1311#comment-38719 Actually, you can start an IRA at Vanguard with just $1000, as long as you use their STAR Fund (VGSTX). Actually, you can start an IRA at Vanguard with just $1000, as long as you use their STAR Fund (VGSTX).

]]> By: samerwriter http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-38632 samerwriter Thu, 02 Nov 2006 08:00:20 +0000 http://allthingsfinancialblog.com/?p=1311#comment-38632 The $3000 hurdle to open an account at Vanguard is unfortunate; I really wish they would offer a "bare-bones" account, maybe with online statements only, or with a required monthly deposit, to help people get started. If you do stick with just one fund (like one of the target retirement funds), then the $10 annual fee isn't too draconian; if you have a couple thousand dollars, that's only 0.5% (which is 0.5% higher than one would like, but...). Just look at it as incentive to beef up your account balance! Look at it this way; Vanguard funds frequently have an expense ratio that's more than 0.5% less than other competitive funds. So you may still be better off in a Vanguard fund paying the $10 than you would be at Fidelity or elsewhere. (Sorry, I'm a big Vanguard fan...) The $3000 hurdle to open an account at Vanguard is unfortunate; I really wish they would offer a “bare-bones” account, maybe with online statements only, or with a required monthly deposit, to help people get started.

If you do stick with just one fund (like one of the target retirement funds), then the $10 annual fee isn’t too draconian; if you have a couple thousand dollars, that’s only 0.5% (which is 0.5% higher than one would like, but…). Just look at it as incentive to beef up your account balance!

Look at it this way; Vanguard funds frequently have an expense ratio that’s more than 0.5% less than other competitive funds. So you may still be better off in a Vanguard fund paying the $10 than you would be at Fidelity or elsewhere.

(Sorry, I’m a big Vanguard fan…)

]]> By: dforester http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-38569 dforester Thu, 02 Nov 2006 03:35:01 +0000 http://allthingsfinancialblog.com/?p=1311#comment-38569 I'll plug my low-cost broker, thinkorswim (http://www.thinkorswim.com/ ). Yes, they have a definite bent to trading options, which I do dabble in with some fun money - but their regular equity and fund trades aren't bad, either. Equities from $0.015/share ($5 min), and mutual fund trades are FREE for up to 3 per month! If you're consistently investing in mutual funds, but also want the flexibility of a brokerage - not a bad way to go. Oh, and their regular & Roth IRA's are no-fee, too. And they cap it all off with OUTSTANDING customer service. Sincerely, A Satisfied Customer. :-) I’ll plug my low-cost broker, thinkorswim (http://www.thinkorswim.com/ ). Yes, they have a definite bent to trading options, which I do dabble in with some fun money – but their regular equity and fund trades aren’t bad, either.

Equities from $0.015/share ($5 min), and mutual fund trades are FREE for up to 3 per month! If you’re consistently investing in mutual funds, but also want the flexibility of a brokerage – not a bad way to go. Oh, and their regular & Roth IRA’s are no-fee, too.

And they cap it all off with OUTSTANDING customer service.

Sincerely,

A Satisfied Customer.

:-)

]]> By: Dimes http://allfinancialmatters.com/2006/11/01/investing-small-amounts-can-be-expensive/comment-page-1/#comment-38566 Dimes Thu, 02 Nov 2006 03:02:20 +0000 http://allthingsfinancialblog.com/?p=1311#comment-38566 Two years ago Vanguard only required $2000 to open a Roth IRA, but last year, when Roth contribution limits were raised to $4000, they raised it to $3000. Gotta love progress. Of course, once you've opened the account, you can regularly contribute smaller amounts. The problem is that a lot of people aren't disciplined enough to scrape together the $3000 in the first place. How are those people, especially if they have a job where no 401(k) or 403(b) is offered, supposed to save for retirement? Two years ago Vanguard only required $2000 to open a Roth IRA, but last year, when Roth contribution limits were raised to $4000, they raised it to $3000. Gotta love progress. Of course, once you’ve opened the account, you can regularly contribute smaller amounts. The problem is that a lot of people aren’t disciplined enough to scrape together the $3000 in the first place. How are those people, especially if they have a job where no 401(k) or 403(b) is offered, supposed to save for retirement?

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