Taxes, Roth, etc

[mtgordon]

I currently have money in Vanguard funds for my Roth IRA, Traditional IRA, and SEP IRA. The rest of my money is in Vanguard ETFs through Zecco.

My question is about what I should be doing with the money I build up throughout the year. I want to deposit another 4k into my Roth at the beginning of next year for 2008 and the rest I plan on putting into more ETFs. However for the IRA money I see 2 options:

Option 1: Buy ETFs in the meantime. However I will have to pay the buy/ask spread as well as taxes on any gains between now and Jan. 1st. (I don't think the taxes will be a major factor as I have very little income (graduate student) and I have mortgage interest, etc that I can write off.)

Option 2: Keep the money (up to 4k) in an online savings account. However I won't average as high of a return as I would investing they money.

Any suggestions or things that I'm not thinking about correctly?