Comments on: Reader Question: Roth IRA Minimums?

By: Doris

Doris — Wed, 01 Oct 2008 17:13:05 +0000

Can you roll over a portion of your Ira in one institution to another ? Can you break it up if you’re not 59 1/2…And if you are withdrawing under 72t rules??(Annual SEPP) I have the entire IRA at Fidelity conservative money market,wanted it divided mostly into cd’s. The rep I delt with has done nothing with my account…so, It is earning less than 2%. I saw an ad for Millennium for 6% on a one year cd. FIdelity truly has no fees just like they advertise,but right now I’m not earning enough. Also, how safe is your money in a brokerage fund??

By: Morgan

Morgan — Mon, 23 Jun 2008 02:47:35 +0000

I’m currently saving for a Vanguard fund at ING, but instead of using a regular savings account I’m using their IRA Savings. They have no minimum and because it’s an IRA you will get those nice tax advantages. Even if you only end up saving $1,000 your first year. Of course it only pays %3 right now, but it’s better than not doing anything.

By: Tim

Tim — Sun, 27 Apr 2008 04:10:37 +0000

I have my Roth through Ameritrade. I started with a $1,000 investment in a dodge and cox mutual fund, and then invest the minimum $50 per month thereafter.

By: HerMoney

HerMoney — Sun, 27 Apr 2008 00:17:40 +0000

I got started years ago with Ameriprise (when it was still American Express Financial Advisors) and did $50 a month. While that only gives you $600 a year it’s better than nothing. Over the years I have bumped it up a little at a time and now max it out each year.

By: Foxie

Foxie — Sat, 26 Apr 2008 14:27:59 +0000

I’ve got a question! First, I was pretty sure Vanguard will waive the minimum if you sign up for their automatic deduction plan, I believe it was $80/month minimum for that. I may not be right, since I looked at their site a while ago…

Onto my question. Since I can’t swing the $3k to open a Roth IRA with Vanguard, I was planning to open one with Sharebuilder. Is it possible to simply roll the IRA over from Sharebuilder to Vanguard? I wanted to get my first retirement account started this year (I turn 20) but won’t be able to save up enough for Vanguard’s. (Or afford the monthly minimum once classes start in the fall again.)

By: Stephanie @ PoorerThanYou

Stephanie @ PoorerThanYou — Fri, 25 Apr 2008 22:11:04 +0000

Great advice! I completely agree with the idea of saving up money at ING (or any savings account) until you have enough to invest. Most people put it off because they can’t afford the minimum or it’s too complicated to deal with now – the best thing to do while you’re putting it off for those reasons is to save in the meantime!

By: chris.pund

chris.pund — Fri, 25 Apr 2008 21:20:11 +0000

Thanks for the response Kevin! I graduate next week and will be looking more into then when I get home and am ready to start saving up!

By: Mom @ Wide Open Wallet

Mom @ Wide Open Wallet — Fri, 25 Apr 2008 15:19:49 +0000

I’m going from memory here but I believe T. Rowe Price will waive their initial minimum investment if you sign up for the automatic investment, which I recommend anyways. And their minimum monthly contribution is $50. It’s a great place to invest when your just getting started.

By: Ben @ Trees Full of Money

Ben @ Trees Full of Money — Fri, 25 Apr 2008 14:16:53 +0000

Good advice, the sooner you start out the better. I made a lot of dumb moves when I was younger, but the one thing I did that I was most proud of (financially) was always max out my 401k (just started my Roth).

morningstar.com has an excellent tool under “tools” that allow you to screen funds by there “minimum initial purchase” amounts. some of them are as low as $500 if I remember correctly.

By: Kevin

Kevin — Fri, 25 Apr 2008 13:52:19 +0000

@Philip: The $3,000 minimum is to invest in the fund initially. Other contributions after that can be as small as $100.

If you wanted to invest in a second fund, you would need to save up $3,000 to start investing in it, then you could contribute $100 at a time.