Does it make a difference where you open an IRA account?

Question

If so, which bank/institution do you suggest?

Answer 1

Nope. You can set up an IRA or Roth IRA at almost any financial institution. In that sense, it makes no difference. The difference comes into play when considering where you want your contributions to be invested, if you are going to use your tax deferred money for investment purposes beyond treating your IRA like a fancy savings account. I have mine at Janus Investments, which has a large family of mutual funds that an investor can choose from. There are fees associated with having an IRA at a mutual fund company, but there are going to be fees associated with any type of financial institution. There are many places like Janus that would be good. You can also have your IRA set up at a bank.

You might consider consulting Maverick Investing: Building Extraordinary Wealth Through Unconventional Principles (Hardcover). This is a book published by Doug Fabian of Fabian Financial Services. I found his book and ideas very helpful.

Answer 2

HUGE Difference btwn institutions.
For instance you can own a no-fee IRA thru a brokerage house like Scottrade, in which you can include a no-load, no fee mutual fund. The choice is so broad, you can find a fund group you like. ( I like fund groups, for they usually have a bond or money market fund you can shift into during bad times, for little or no fee).
The basic issue is FEEs First, then Rate of Return.
Mutual funds and stocks are NOT guaranteed, such as some at a bank, but money market funds always try to maintain a constant $1.00 redemption value, so you can almost get it that way.
Lots of research is your cost, and none of it will be wasted.
Good Luck

Answer 3

YES. Fees are a HUGE part of IRAs and can greatly affect your savings.

Personally, I like Ameriprise. However, if you would like a low-fee, low-service type of account, go with TD Waterhouse.

DO NOT just open an IRA at a bank. You will get limited service and even fewer options. Go with an established financial company.

Answer 4

It makes all the difference in the world. You can open an IRA at almost any monetary institution.

First, you need to decide if you want to invest conservatively or if you want to put your money at risk.

If you conservative, a bank or credit union is your best bet.

If you like risk, talk to a broker.

If you want to diversify with some risky investments and some conservative ones, go with a broker.

Answer 5

Yes, it makes a huge difference. Some institutions limit you to just their own funds while others let you choose funds from other institutions. You want to have the greatest freedom to choose how to allocate your money, balanced against the lowest costs/fees. You also want to have reasonable freedom to trade frequently and in small lots (but don't run afoul of IRS in doing so).

Answer 6

The only difference would be institutional fees, may want to check around - AmSouth Investments charges $35 a year, but it's the only one I know of.

Answer 7

%'s differ,Yes