A conversation with a Charles Schwab associate about funding a ROTH IRA and their options for it. (Part 3)

And the final piece (Parts 1 and 2) to this investing saga, which I 100% am comfortable with comes now.  I am completely on board with Charles Schwab.  I like their fundamentals, and the way they “pull back the curtain”.  They tell me how they make money off me and don’t try to put me into funds I don’t want to be in. Hopefully it’ll be a change from the bad decisions I’ve made so far…

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From: [Charles Schwab guy]
Sent: Monday, November 26, 2007 2:59 PM
To: [Hank]
Subject: RE: Charles Schwab

No Sir

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From: [Hank]
Sent: Monday, November 26, 2007 4:13 PM
To: [Charles Schwab guy]
Subject: RE: Charles SchwabWelp that sounds about right to me – Where do I sign? 🙂
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From: [Charles Schwab guy]
Sent: Monday, November 26, 2007 3:29 PM
To: [Hank]
Subject: RE: Charles Schwab

complete this and send me a check and it’s done.

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From: [Hank]
Sent: Monday, November 26, 2007 5:44 PM
To: [Charles Schwab guy]
Subject: RE: Charles SchwabWhich brings up another question – SEP IRA I have no idea about, but from the document, it looks like business owner is a piece to it – I own http://[home business].com <http://[home business].com/> as a sole-proprietor, what are the requirements to open a SEP IRA? Minimum business revenue? [home business].com certainly isn’t my cash cow… 😉
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From: [Charles Schwab guy] <>
To: [Hank]
Sent: Tue Nov 27 06:44:24 2007
Subject: RE: Charles Schwab

No minimum revenue requirements, your contributions are based on your income and what you report on your income tax.

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From: [Hank]
Sent: Tuesday, November 27, 2007 8:20 AM
To: [Charles Schwab guy]
Subject: Re: Charles SchwabIs it based on my income from the business or my overall income from my [day job] AND [home business]?
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From: [Charles Schwab guy]
Sent: Tuesday, November 27, 2007 7:23 AM
To: [Hank]
Subject: RE: Charles Schwab

Income from the business it is set up under. For example, if the business referenced is the [home business], then that is the income reported for funding the SEP.

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From: [Hank]
Sent: Tuesday, November 27, 2007 12:49 PM
To: [Charles Schwab guy]
Subject: RE: Charles SchwabAh – ok, so if I make $500 for the year, I can only put that amount towards a SEP IRA?
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From: [Charles Schwab guy]
Sent: Tuesday, November 27, 2007 11:51 AM
To: [Hank]
Subject: RE: Charles Schwab

A percentage of. Sep accounts can only fund based on 20-25 percent of income from the company. So if you make $500, you could put approx $125 in a SEP.

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From: [Hank]
Sent: Tuesday, November 27, 2007 3:34 PM
To: [Charles Schwab guy]
Subject: RE: Charles SchwabFair enough, I’m out of the market for a SEP IRA at this point then. What do you know about Self-Directed IRAs? I’ve heard of them – do you guys offer the use of them? So it looks like I need $2000 to open a ROTH with Schwab then, correct?
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From: [Charles Schwab guy]
Sent: Tuesday, November 27, 2007 2:39 PM
To: [Hank]
Subject: RE: Charles Schwab

Minimum to open an account with Schwab is $100. All of our IRA accounts are self directed, meaning you make your own investment choices. Use the form I emailed you yesterday to open one.

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From: [Hank]
Sent: Tuesday, November 27, 2007 3:41 PM
To: [Charles Schwab guy]
Subject: RE: Charles SchwabHm – maybe I’m reading it wrong but at the top [attached] it says “$2,000 minimum deposit required to open an account (excluding SEP-IRA and SIMPLE IRA).” Not true?
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From: [Charles Schwab guy]
Sent: Tuesday, November 27, 2007 2:43 PM
To: [Hank]
Subject: RE: Charles Schwab

Recently changed. No longer correct.

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From: [Hank]
Sent: Tuesday, November 27, 2007 5:28 PM
To: [Charles Schwab guy]
Subject: RE: Charles SchwabSuper – what are my payment options? Only check? Can I fund it with credit card? Is there an online version of that PDF doc you sent that I can sign up through?
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From: [Charles Schwab guy]
Sent: Wednesday, November 28, 2007 6:40 AM
To: [Hank]
Subject: RE: Charles Schwab Only payment option is check or money order, no credit cards. Yes you can go online at www.Schwab.com click on open account, and pick the IRA account you want and do the whole thing online. If you want, you can set up an electronic bank transfer while you are there to fund the account. Once you have it completed, give me a call so I can get the account number for my records.
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