Again, a fund is different from an IRA. An IRA is just an account and a fund is whatever you invest the account money in.
I trade through my broker, Brownco/JPMorgan. Their minimum for regular accounts is 50 but you get a great deal on IRAs because it drops to 3. The reason why I like Brown is because of the fees charged for each trade. I think a plain vanilla trade is $5 but I do limits.
-Rudey
Quote:
Originally posted by kateshort
It is my understanding that there are minimum requirements to open IRA accounts at most investment institutions, just as most banks have minimum opening balances or monthly average balances for their interest-bearing accounts (CDs, savings, checking with interest, etc.).
The more important point is that many investment organizations do have plans where someone with an income but not a lot of savings can start investing in an IRA, even if their workplace doesn't offer a 401K plan or other asset-deduction plan.
For example, T. Rowe Price has a fund called Mid-Cap Value. When we invested, we had the option to invest $50 monthly into MCV as an IRA via automatic asset builder-- where they automatically deduct $50 per month from your checking account. Otherwise, you'd need to deposit $1000 to open MCV as an IRA. (If we wanted a non-IRA version of MCV, the minimum initial investment was $2500). So $50/month is probably affordable to most people who are working and are just starting to invest their money in outside accounts.
The above poster may not have been told about minimums by AG Edwards, because it's likely that the leftover college mutual funds that were rolled over into the AG Edwards IRA were *already* more than the minimum requirements to open an IRA account.
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