I recently opened a Roth IRA. Most of the funds at the fund company (Vanguard) have a minimum initial investment of $3000. The IRA contribution limit is $5500. This means I can only buy into one fund per year.
It seems like this has to be awkward for anybody who has an IRA with any institution that has minimum buy-ins that high. I'm not planning on buying into a ton of funds, but even if you just want, say, a US stock fund, international stock, bond, and maybe REIT, you're already looking at four years just to get your portfolio set up.
Is there any way around this or do you just have to accept that diversifying your IRA is going to take years? Does the fund minimum apply across accounts, so that I could somehow buy $3000 worth of a certain fund, but only put $1500 of it into the IRA and the rest into a taxable account?