Best low cost investment platform and vehicle for brand new investor

[vg55]

My wife and I sponsor a displaced Ukrainian family (single mother and two children (ages 14 & 9)). In the past 18 months we've gotten through the highest priority issues (e.g. language skills, housing, food, schooling for the kids, healthcare, transportation, employment, basic banking, etc.).

The mother has a checking account, a small savings account (emergency fund) and is now thinking about the longer term. She has $500 to start on her investment journey, and plans to invest an additional $100 per month. Money she fully understands that she can lose. We already had this discussion. Her risk appetite for this $500 is mildly aggressive, with no short term intent to use the funds.

She is self employed. Federal AGI for 2022 was less than 10,000. She is doing better financially this year -- probably an AGI @ 15,000
I'm thinking ROTH IRA since she doesn't need the deduction from a traditional IRA.

My two questions to the boglehead brain trust:

1. which low-cost investment platform to use (e.g. account setup);
2. which investment vehicle to purchase?

Many thanks in advance for your wise counsel.

[steadyosmosis]

Why not tell them the brokerage you use?
I assume you are like the rest of us, and pay nothing (aside from ERs) to invest in ETFs and mutual funds.
I use Schwab myself (after leaving Vanguard ~15 years ago), and have never paid them a penny in fees.

[backpacker61]

I believe Fidelity mutual funds have no minimum. Perhaps a Roth IRA with Fidelity Total Market Index Fund (FSKAX)?

[vg55]

I believe Fidelity mutual funds have no minimum. Perhaps a Roth IRA with Fidelity Total Market Index Fund (FSKAX)?

Thank you. i don't know why I was thinking that Fidelity would have a much higher minimum requirement. now looking at their account costs for low value accounts.

[Elric]

Vanguard has minimums, Fidelity and Schwab don't. Hence, Schwab or Fidelity. If it's a Roth or traditional IRA, then one of Fidelity's INDEX target funds or a Schwab target fund are additional possibilities. Otherwise some mix of (S&P 500 or Total Stock Market) and (total bond or mid term Treasury fund), depending on comfort level setting asset allocation.

Note, though, if there are near or midterm non-emergency needs, such as apartment down payments, car,.etc. then save for that outside of a Roth or traditional IRA.

[nonnie]

I believe Fidelity mutual funds have no minimum. Perhaps a Roth IRA with Fidelity Total Market Index Fund (FSKAX)?

Thank you. i don't know why I was thinking that Fidelity would have a much higher minimum requirement. now looking at their account costs for low value accounts.

Make sure to take advantage of the Fidelity $100 bonus
https://www.fidelity.com/go/terms-conditions

[vg55]

[/quote]
Make sure to take advantage of the Fidelity $100 bonus
https://www.fidelity.com/go/terms-conditions
[/quote]

Thanks -- looked into this bonus. Would have been a nice introduction to investing, but the fine print says "not available to non US residents".

BTW -- we did set up a Fidelity ROTH IRA for her.