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New Fidelity Roth IRA

Hello everyone,

I just opened up my first Roth IRA account through Fidelity. I'm fresh out of school so I don't have a ton of money to put into it right now, but I want to miss out on my 2006 contribution so I want to invest the maximum 4000 for the current tax year. Since I'm only going to be putting in a few hundred dollars every pay period, I'm wondering what funds I should be looking at. I'm really interested in Fidelity's index funds (FSIIX and the Spartan 500 Index fund), but I realize that these have account minimums. Any thoughts or suggestions?

Thanks!

Reply to
teaks
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Depending on trading charges and the amount of your monthly contribution, it is often wise to make purchases every couple of months. The rule of thumb is to minimize trade costs to no more than

2% of your investment. If it costs $10 to buy a position, wait until you have $500 in money market saved up in your account. Ex: $100 money market - $10 trade ticket = $90 investment. It would take %11.11 return JUST TO GET BACK TO EVEN!

As for investments, there are a multitude of choices. I personally prefer exchange traded funds. Keep expenses low and stick with market/ sector tracking indexes (indices???) to easily diversify.

good luck

Reply to
kastnna

I beleive they have lower minimums if you agree to automated deposits.

Reply to
rick++

T Rowe Price has equity index funds with a $50 contribution minimum (if you use asset builder). There is a $10 fee for any IRA balance below $5000. This fee is also waived if current balance of accounts is greater than $10,000.

Reply to
jIM

Reply to
Siddharth - ibookdb.net

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