Roth IRA and no fees

[bigsaver]

I already have a roth ira setup for 2005 and 2006 for which I put 4k each. The only thing is I don't like the fact that I pay $35 yearly for the account.

Does anyone know whether I could avoid fees with either opening with vanguard or fidelity if I did the 4k for 2007? Also, anyone recommend a mutual fund that I could average 8-12% with the least amount of volitility as possible?

[kv968]

Vanguard charges a $10 fee per IRA fund account that is below $5000 and $10 for an index fund that has less than $10,000. If you were to roll over your other Roth IRA into Vanguard with your 2007 contribution and invested accordingly, you wouldn't pay either fee.

A couple of good Vanguard funds that may offer decent returns with less volatility are the STAR Fund (VGSTX), Wellington (VWELX), Balanced Index (VBINX) or Wellesley Income Fund (VWINX). The Wellington Fund has a minimum investment of $10,000, the STAR Fund $1000 and the rest are $3000 minimums. There's no guarantee that you'll make the percentages you want, but with the bond allocation within each fund, the volatility will be lessened.