roth ira

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I currently have a roth IRA in an expensive fund that charges high fees. I would like to do a roth IRA in a new fund that is index or no-load without taking out the money that has accrued in the expensive Roth IRA. How do I do this? Do I just start a new fund now in a new fund and stop funding that old one?

[John G]

You can start as many Roths or IRAs as you want. The laws only set the max amount that you can contribute in total to all accounts in one year. From a practical perspective, you don't want to track too many different accounts... but go ahead and open a second Roth with a different custodian.

At some point you may want to consolidate your IRAs using a direct custodian to custodian transfer. Any custodian can assist you in doing this... you just fill out some forms and let the custodian go get your other funds. Note, some custodians will charge a fee to close out an account and some mutual funds have back end loads of fees.

Good luck with your investments.