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Can I buy mutual funds from more than one company with multiple Roth IRA accounts?

up vote 14 down vote favorite

I am a college student who is relatively new to investing. This summer, I opened a Roth IRA through T. Rowe Price and I have contributed $2,500. Can I open another Roth IRA with another company such as Vanguard, and buy mutuals funds there as well, provided I don't go above the $5,500 limit?

2 Answers

up vote 4 down vote accept

Since you are talking about small amounts of money, you are probably best keeping it all in one place. When you move above 50K or so, there may be a desire to move things round a bit. Keep your life simple as you are starting out.

up vote 3 down vote

Yes, but. There are brokers that offer mutual funds with no added fee. My own preference is to keep things as simple as possible, the fewer accounts, the better. Great start, and the Roth is a great choice to kickstart your retirement account.


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Can I buy mutual funds from more than one company with multiple Roth IRA accounts?

up vote 14 down vote

I am a college student who is relatively new to investing. This summer, I opened a Roth IRA through T. Rowe Price and I have contributed $2,500. Can I open another Roth IRA with another company such as Vanguard, and buy mutuals funds there as well, provided I don't go above the $5,500 limit?


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up vote 9 down vote

Since you are talking about small amounts of money, you are probably best keeping it all in one place. When you move above 50K or so, there may be a desire to move things round a bit. Keep your life simple as you are starting out.

edit

you're not suggesting that at $1M, an investor have 20 accounts,right? Only to go to two at that level? Maybe 3 at $1M? Curious where this was going. +1 as a welcome, and I like the thought you put into the response. - JoeTaxpayer Oct 24 '13 at 19:39

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