Minimum for Index would exceed Roth contribution

Investing
#1

Hi! Loving this community! I’m trying to purchase another Index fund but the $3,000 minimum (Vanguard) would exceed my 2021 Roth contribution - so it’s not letting me purchase. How can I contribute to investments through index funds if the yearly minimum has already been met?

Thank you!

#2

Hi @Susan_Stalte!

A few options:

  • Sell some of another fund you own in your IRA to make the necessary $3K available
  • Invest in a fund with a lower minimum (like Vanguard’s target date index funds)
  • Invest in the ETF version of the mutual fund. (e.g. VTI instead of VTSAX or VT instead of VTWAX)

Do any of those make sense for you?!

#3

Yes! Thank you so much for taking the time to answer.

1 Like
#4

Oh, I forgot an important option. You can always put more money into an index fund you already own. In my Vanguard account I own exactly one index fund. Every time I contribute more money I just add it to that index fund! :slight_smile: