Author Topic: SEP IRA - how to invest initially  (Read 1194 times)

katsiki

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SEP IRA - how to invest initially
« on: April 05, 2018, 06:05:02 PM »
I opened a SEP IRA to reduce taxes a bit for 2017.  I was only able to contribute $300 (very small side income).  The SEP IRA was easy to open at Fidelity, but I am unsure how to invest it.  It seems most options are unavailable due to limits...  Do I need to wait a few years for it to grow, or am I missing an obvious choice?

Thanks in advance for any pointers!

Laserjet3051

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Re: SEP IRA - how to invest initially
« Reply #1 on: April 06, 2018, 10:52:34 AM »
Minimum investment value for ETFs is typically 1 share. So if you were inclined to buy Fidelitys Real Estate ETF, FREL, it is currently $22.96/share which would be your minimum buy in. Not recommending RE per se, but you get the idea. You have to buy ETFs in whole share units so calculate accordingly before you buy.

katsiki

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Re: SEP IRA - how to invest initially
« Reply #2 on: April 06, 2018, 11:58:58 AM »
Minimum investment value for ETFs is typically 1 share. So if you were inclined to buy Fidelitys Real Estate ETF, FREL, it is currently $22.96/share which would be your minimum buy in. Not recommending RE per se, but you get the idea. You have to buy ETFs in whole share units so calculate accordingly before you buy.

Thank you.  I was finding my way to this direction.  I need to find a suitable ETF now.

Thanks for your help!

Rob_bob

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Re: SEP IRA - how to invest initially
« Reply #3 on: April 06, 2018, 03:09:52 PM »
You could go with ITOT the ISHARES CORE S&P TOTAL US STOCK MARKET, commission free.

frozen

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Re: SEP IRA - how to invest initially
« Reply #4 on: April 06, 2018, 05:29:26 PM »
Hi, I hate to hijack the thread but I have a similar issue. I need to put ~$1,500 into a SEP and Id like to open it with Fidelity since my other retirement accounts are there. Any suggestions on investments?

katsiki

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Re: SEP IRA - how to invest initially
« Reply #5 on: April 06, 2018, 08:12:31 PM »
Hi, I hate to hijack the thread but I have a similar issue. I need to put ~$1,500 into a SEP and Id like to open it with Fidelity since my other retirement accounts are there. Any suggestions on investments?

I went with ITOT.  (Found it after looking for a fidelity ETF like VTSMX - bogleheads has a good table of info by the way).

You can also open the SEP IRA and leave it in cash initially.  (That is what I did).

katsiki

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Re: SEP IRA - how to invest initially
« Reply #6 on: April 06, 2018, 08:13:30 PM »
You could go with ITOT the ISHARES CORE S&P TOTAL US STOCK MARKET, commission free.

Thanks, @Rob_bob - that is where I landed.  I was confused at first by not finding a Fidelity ETF (used to Vanguard).