Question RE: ROTH IRA 07

[Scanner]

Oh, this is silly - poo-pooing ETF's - ETF's can be held long term or short term.

In fact, if you are going to throw $4000 once/year at your Roth (like many people do), you'd only pay one commission charge for an ETF and get a lower expense ratio to boot compared to even the Holy Vanguard Index funds.

Don't throw the baby out with the bath water people.

[disneysteve]

In fact, if you are going to throw $4000 once/year at your Roth (like many people do), you'd only pay one commission charge for an ETF and get a lower expense ratio to boot

I agree. In fact, that's exactly what I said in my previous post.

Most people, I think, don't fund their IRA as a lump sum. They do it with a monthly contribution throughout the year. In that case, you'd pay 12 commissions each year which would probably negate the lower expense ratio. If you are able to fund as a lump sum, though, an ETF makes sense.

[Slug]

Lump sum funding?

Most people, I think, don't fund their IRA as a lump sum. They do it with a monthly contribution throughout the year.

Is this really true? That the majority of people don't fund in a lump sum?

Could we take a vote somewhere? I'm really curious. I don't know the right answer nor do I want to prove anyone right/wrong. I just would be interested in knowing.

I know I fund our Roths in a lump sum. What do ya'll do?

[disneysteve]

Is this really true? That the majority of people don't fund in a lump sum?

Could we take a vote somewhere? I'm really curious. I don't know the right answer nor do I want to prove anyone right/wrong. I just would be interested in knowing.

I know I fund our Roths in a lump sum. What do ya'll do?

Good question. I'll start a new thread.

[Slug]

Hey just found a new article that contributes to this discussion.

How about no-commission ETF's?

[Broken Arrow]

How about no-commission ETF's?

Woah. Woah! Hold the Fun Bus back up!

No commissions on ETFs? Well that solves my primary gripe.

Actually, I knew about the Wells Fargo/Bank of America free trade offers, but I only knew about it for individual stocks, not ETFs. And yes, I even have a (test) account with Zecco, but again, thought it was only free with individual stocks....

Hmm....

I don't despise ETFs per se, but am still of the current opinion that they don't suit my investment strategy. Of course, that opinion can also change down the road, so I really like this no-commission idea.... Now I guess it's just a question of expense ratios....

[jIM_Ohio]

aggressive is relative. Conservative is relative.

I am close to 100% stocks. Most would tell you that is aggressive. If you look at the funds I own, most would tell you they are among the most conservative equity funds around.

Go at least 75% equity if you are 40+ years to needing the money. T Rowe Price recomends 100% equities until you need money within 15 years (so 15 years before retirement add bonds).

[jIM_Ohio]

Is this really true? That the majority of people don't fund in a lump sum?

Could we take a vote somewhere? I'm really curious. I don't know the right answer nor do I want to prove anyone right/wrong. I just would be interested in knowing.

I know I fund our Roths in a lump sum. What do ya'll do?

8 contributions of $625/month for me
wife is 12 contributions of $250/month