I have some Mutual funds in my 401K, I would like to buy the same funds outside of the 401K. Would the additional money be considered as “Min Initial Investment” or would it be considered as “Min Subsequent Investment”
Also, what is “Min Subsequent Investment, AIP”
2007-03-01 11:56:04 · 4 answers · asked by J 3 in Business & Finance ➔ Investing
If you are talking about purchasing the same funds in an individual brokerage account - a non-retirement account - it would not be related to your 401k at all.
Initial investment minimums will need to be met for each account. These are common among mutual funds.
A minimum subsequent investment - is the smallest amount you can invest AFTER the initial investment.
AIP - Automatic Investment Plan (like through your company 401k) will often take amounts that are unrelated to the subsequent investment constraints - as do dividend reinvestment plans (DRIP).
2007-03-01 12:17:07 · answer #1 · answered by pepper 7 · 0⤊ 1⤋
The Min Subsequent Investment is the minimum amount you can invest once you have already joined the fund with your Minimum Initial Investment. I guess this is there way of not having to process every nickel and dime you throw into your account, and to make sure your a serious investor. They want you to save up to the Min Subsequent Investment before you can buy more shares. For example, if the Min Subsequent Investment is $500, they would want one purchase of $500 when you save it up in your account, vs. 10 purchases at $50.
2007-03-01 12:07:38 · answer #2 · answered by antman_xp 2 · 0⤊ 0⤋
The first account is under the name of your company/401k/you. The additional money you are talking about is a completely different account under only your name so it is considered a min initial investment. A min subsequent investment would be money added to the fund after you first establish it. Minimums are usually around $50 vs the initial investment of $2500 or $3,000 of many funds.
2007-03-01 12:06:05 · answer #3 · answered by gosh137 6 · 0⤊ 0⤋
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2016-10-02 05:37:50 · answer #4 · answered by ? 4 · 0⤊ 0⤋