Thursday, February 28, 2008

Me and My IRA: A Mini Update

No, I don't yet have a new IRA. I still have last year's money in the Ing IRA, and it is still at a balance less than what I contributed (it has been since the end of last year).

In the mean time, I've been putting all my IRA contribution money into its own savings account, and I will be using that to fund the new IRA. I'm kinda holding out for a Vanguard Roth IRA, but the $3k minimum buy-in is a bit stiff, and it's also limiting when you can only contribute $5k this year -- it means that I wouldn't be able to fully fund the IRA (on the assumption I would make my first contribution when I had $3k, not $5k -- especially with the rollercoaster that is the stock market these days, I want dollar cost averaging, not a lump sum investment). And while I know ETFs are solid investments, I still cringe at putting all my money into one fund per year. Also, some of their funds are closed to new investors, and that's a bit frustrating.

I've also done a bit of research with a couple other firms, but my heart is still with Vanguard.

Though, and I haven't researched this at all, if I could open an SEP with Vanguard, then I will do that, as it would allow me to fund it with more than $5k per year. Not that I'm sure I would financially be able to exceed $5k this year, but you know...just in case. I got me some ambitions.

Really, my research on this has been a bit lazy because I've been waiting until I reach a minimum of $1k in my IRA savings account. If I rollover into a Vanguard Roth, I will need at least $1k to meet the $3k minimum and to cover fees associated with the switch.

So, the whole IRA thing is not forgotten...it's just on hold until I get a little more cash on hand. As always, if you have recommendations about an investment firm that's done right by you and your IRA, please let me know.

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