New to the board.

Finally getting around to setting up a ROTH. Here's the plan.

Already an existing customer of Scottrade, so I started a ROTH account there. Will send them a check / pick some mutual funds or a mutual fund to start. Afterward, I will automatically deduct xx amount from my checking account every month to go to Scottrade and periodically buy more of the same fund(s). Essentially, I am dollar cost averaging to the cash account in scottrade, and am relying upon my discipline to invest.

Any opinions are welcome.

You have just outlined one of the common approaches to funding a Roth. Yes, this is a monthly version of dollar cost averaging. Yes, you initially need only one broadly based mutual fund (avoid sector specific, single country or any narrowly cast fund that has limited diversification). This commits you to a plan for the future. You should review your progress perhaps twice a year. After a few years, you may want to consider a second mutual fund. I would suggest NO LOAD versions that have below average annual expenses and some reasonable track record. You do not want to chase last years hot fund - something that rarely works.

You may improve your results by funding your Roth at the begining of the year. This means that more money is tax sheltered for a longer period. Some folks fully fund in early January of each year. This is still a version of dollar cost averaging - but on an annual basis.

Both approaches work just fine over the long haul.

Note: you did not indicate your career stage, investment knowledge, current retirement assets, employee based plans, spousal plans, years to retirement, retirement goals, income tax rate, etc. So, please treat the above as very general advice. If you feel that your circumstances are very unusual, you should post again.

Thanks for the reply, John G.