Want to get an IRA, need a bit of advice

[Gero1369]

I know that I'm going to go with Vanguard for an IRA.  I would like to start with the Total Index or something along those lines, but I'm slightly limited by the initial $3k threshold vs. my monthly contribution.  To spell it out, I don't have the $3k ready to go to put into jumping into an IRA, but I can do $100-200 a month at a minimum for now.  I could possibly swing the $1k to get into one of the other funds that have that lower threshold, but I'd like to get something going ASAP.  I do have a decently sizable amount in my Vanguard 401(k), but that doesn't help me here at all with setting up a personal account.

Advice for someone that is 'clean shaven' in this area would be greatly appreciated.

[matchewed]

Couple of choices.

Wait.

Or find a company with a comparable fund that has lower minimums.

[GGNoob]

You could start with an investment in a Vanguard Target Retirement Fund (for the $1,000 minimum) and then move it over to the fund of your choice once you hit the $3k minimum.

Otherwise you could invest somewhere like Betterment.com (they have referral links available for $25 after you deposit $500 in 90 days or 1 year free service with any deposit in the first 90 days...let me know and I can get you either) and then roll it over once you reach the minimum amount needed. Betterment makes rollovers extremely easy as you can do an indirect rollover where they will transfer the money to your bank and then you just need to transfer that money into Vanguard within 60 days. You may even like Betterment and decide to stick with them as you get a fully diversified portfolio with as little as a $10 deposit! My wife and I have our Roth IRA's and taxable investments at Betterment.

[matchewed]

The caveat being that Betterment will charge more after all those "freebies" are up.

[GGNoob]

The caveat being that Betterment will charge more after all those "freebies" are up.

Which is why the OP could do a rollover after the free 1 year and 30 days is up. Hopefully the account would be at least $3k by then.

[nordlead]

Just buy an ETF? While I prefer the simplicity of mutual funds over ETFs, that would meet your need to start investing now. Sure, you have to buy whole shares, but VTI (Vanguard Total Stock Market ETF) is ~100, so 1-2 share per month.

Honestly, starting ASAP isn't really that big of a deal. $200/month in a savings account vs $200/month in the market isn't that big of a difference. You'll have more than $1k to start a 2014 IRA before the April 15th 2015 deadline.