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Well, your "5k" figure is still probably accurate. They had much larger minimums at launch.
by taeric 1y ago
Well, your "5k" figure is still probably accurate. They had much larger minimums at launch.
- sokoloff 1y agoI graduated in 1993 and going back through my old Quickbooks file, my 1993 IRA contribution went to a broad-based fund at Twentieth Century (now American Century). It was a half-year of working and all I could scrape together was $2000 and they accepted it to invest. I suspect making a mutual fund investment for $5000 (over $10,000 today) would have been possible three years prior.
- taeric 1y agoAmusingly, for 1993, looks like you maxed out what you could even do in an IRA? Searching for "Vanguard S&P mutual fund minimum 1993" shows that many had a minimum of 3000? I'm guessing that is the same general search you were doing? I'm torn, as I want to think this isn't wrong. However, I also remember you could buy a car for 10k EASY in the early nineties. Was a pretty decent sum to make in a year. Especially if it was on top of all other expenses. I'd also hazard that for many, getting a car to commute to a job would have probably been a better investment. (Of course... this is only true if you use the car for the added productivity.)
- sokoloff 1y agoInteresting that the limit was that low. I remember having to borrow money to make the $2K investment before the deadline, but didn’t realize that was maxing it out. (My dad was the one telling me to do it; I’d have been entirely clueless at that point otherwise.)
- taeric 1y agoYeah, 2000 to invest was not a tiny amount back then. I know I felt rich to have an extra hundred or so a paycheck. Massive kudos to your dad for getting you to do this!