Hi all, this is my first post (ever, not just here) but have been reading around this subreddit a bit gathering info. As the title states I am wondering about how often I should purchase more VFIFX in my IRA with Charles Schwab.
My Back Story: I am 33 and for the past 6 years I have been working at an employer with zero retirement plan options and before that I was self employed but didn't bother setting up the self employed 401k. A couple years ago I realized that I needed to take my retirement into my own hands and hastily set up a traditional IRA with Edward Jones with max monthly contributions. 2 years later and my IRA is growing steadily but I realize I don't want to pay EJ $40/yr to just drop every dime in CCITX and I want to take a more hands on approach with my retirement as well as start investing in an individual account. At this time I move everything to a new Charles Schwab account. I start doing my research and find that Vanguard funds are highly regarded and decide to go with VFIFX for 70% of my IRA and then smaller funds and stocks making up the rest. I currently contribute the max of $5500/yr paid in monthly installments to my IRA and an additional $300/mo going into my individual account for general investing.
My Plan: VFIFX has a $75 transaction fee ($76 on Schwab), so I obviously don't want to be buying into this every month since this would become $900/yr in fees. Since my account is with Schwab I figure I could dump my monthly payments into a Schwab fund like the Schwab SWNRX target 2050 or the Schwab S&P 500 SWPPX since I have no fees on Schwab funds. Then at the end of the year sell off 70% from these funds and put it into the VFIFX this way I would only be paying the $76 fee once plus whatever the cost to sell was, putting me around $80-$85 in fees per year for VFIFX.
My Question: Does this sound like a good plan to you more seasoned investors? I am relatively new to investing and trying to do as much research as I can, but I have been hard pressed to find what other people do for their VFIFX contributions to minimize fees while not letting cash sit idle. I am not too fond of the contribution fee but I guess it will become more of a "drop in the bucket" as the account grows and starts generating more profit year after year.
Thanks for any insight.
Submitted September 12, 2017 at 07:12AM by jmoney151 http://ift.tt/2wXEiVd
