Bank or where for an IRA retirement acount?

Question

What is the difference between putting an IRA with a bank or with a company such as Edward Jones? What are the differences in fees and in what each invests in for you?

Answer 1

Edward Jones IRAs are self directed meaning you can invest in whatever security you choose. You are not locked in to make only 2-4% on your IRA as with the bank. You can invest in mutual funds, bonds, stocks, CDs, etc with EJ, not at bank. Contact your local Investment Representative for the fees associated with the security(s) you are looking at. They do charge a $30 annual fee, which every financial institution does. For a bank, they will give you a CD with a stated interest rate. You will earn interest only, no principal appreciation. If you invest in say, a mutual fund, at EJ, there is a good possiblity of the principal growing AND you get dividends/capital gains. I strongly suggest you contact your local office to discuss your options before tieing it up at the bank for ___ years!!

Answer 2

In my opinion the best place for an IRA account is with an on line stock broker such as Fidelity, TDAmeritrade, Etrade, or Scottrade because they have lower investment fees than Edward Jones or banks--a lot lower--so you get to keep more of your investment dollars. Edward Jones even charges an annual maintenance fee on your IRA account besides transaction fees. Most on line brokers do not, but check their fee schedules.

Transaction fees to buy 100 shares of say MSFT would be about $100 at a back or Edward Jones, although they are negotiable. At Scottrade $7.00. At Fidelity about $25.00.

Get the picture?

Answer 3

I like Scottrade, no fees for the IRA, I can buy stocks at $7 per limit trade, and many many mutual funds with no load and no transaction fee.

PS: I have a smaller IRA at my bank which gets me free checking and a free safe deposit box. You can have more than one. It is not making a lot, just money market interest on $1000, but the safe deposit box and free checks are worth over $100 a year to me.

PSS The fees can vary with what you get, no matter who you go with, you need to look at all the fees. My bank has grossly high fees for IRAs, but if I just got a money market CD in my IRA for the free checks and stuff, there are no fees.

Scottrade has FREE iras, and a great $7 price for stock limit trades, and many no-load no-transaction fees for most mutual funds, BUT, you have to make sure that you search through their list of mutual funds, and hold them for at least 6 months, and in some cases 1 year. You also have to look at the fund's management fees and choose wisely.

Remember, if a mutual fund grows by 10% per year, and they are charging only 1.5% total in management fees, they are taking 15% of your money's growth.

Answer 4

Depends what kind of person you are as to where to answer your headline question.
Do you like to do your own research or do you wish to have advice?
I prefer the do your own research route, so long as you get it right. The bird that told you to buy 100 shares of Microsoft for $7 instead of $100 for the transaction should have never told you to buy Microsoft and would stop you from buying it if you didn't understand the company Microsoft (I wouldn't buy it no matter how much it cost).
If you choose advice then you need to answer the next question.
How much money are you looking to invest?
Banks are not typically the best place to place your RETIREMENT LIVELIHOOD. Great place for checking, short-term savings(1-5 years) and can be efficient for loans, but terrible when it comes to making YOU money. They take your deposits and loan them to someone else at a higher rate. They make good money so you are going to almost always make more money buying the bank stock instead of their CDs or Deposits in the long term, short term (1-5 years) banks are good.
Edward Jones is geared for clients with $100,000-250,000 or LESS to invest for the rest of their life. That is their niche (a big niche by the way). Currently they do not have enough experience with platforms that are suitable (in my opinion) for larger accounts.
I would not pay too much attention to maintence fees, but more into the process in which my money is managed. You will need economist looking over the current economic climate, money managers picking the best companies, and someone who can lay out your goals and take emotion off the plate.
Maybe that person is you and your research, or maybe it is someone you need to interview first.

Answer 5

up the ra