Should I open a Roth IRA with a stock broker or my bank?

Question

I have an account with TD Banknorth and with Scottrade. I would like to open a Roth IRA before the end of the month. Who should I open with? Also, who charges more? What kind of fees am I looking at? I dont want to give my hard earned money away!

Answer 1

If you have an account w/ Scottrade, go ahead and just open your IRA with them...if you are the least bit familiar with trading, mutual funds or stocks you stand a much better chance of increasing the value of your IRA by occasionally moving it.Your bank would let it sit at 5.5% forever. Even cautious funds should almost double that...and if you're youngish (30/35) ... you could probably look into funds that may be getting 15 or 17% ....doubling your money quickly (in IRA terms) and then as you get older, get a little " stodgier" and go to the super-cautious funds at the 6 or 7% your bank offered way back when!!

Answer 2

Scottrade only charges $7-10 per trade, and you could set up a
Roth with only one trade.
I am guessing your bank would be much more expensive.

Answer 3

first of all, you're making contributions money to a Roth IRA, after which you employ those money to purchase investments mutually with CDs, mutual money, shares, etc. So it’s greater precise to assert you may purchase a mutual fund interior your Roth IRA extremely than any other way around. in case you’re utilizing new money to fund your Roth IRA, in basic terms bypass to any low cost broking provider and open an account. Then, designate that account as a “Roth IRA.” Fill out the needed counsel they ask for, and you’re waiting to purchase. maximum on line low cost brokers will enable you to purchase shares of inventory, mutual money, or ETFs for between $6-$8 consistent with commerce, so in basic terms discover one you’re delicate with. in case you’re attempting to take a place interior the inventory marketplace with out having to stress approximately mismanagement of your money, an substitute Traded Fund (ETF) that mimics a substantial index is probably your maximum suitable wager. you could commerce ETFs like shares, on an identical time as mutual money are in basic terms offered and purchased two times an afternoon. besides, ETFs oftentimes furnish decrease administration expenses. some good ETFs comprise: forefront entire marketplace Index (VTI) fee Ratio: 0.07% iShares: S&P 500 Index (IVV) fee Ratio: 0.09% the former tracks the great inventory marketplace, on an identical time as the latter tracks the S&P 500. the two have very low fee ratios. on an identical time as you gained’t outperform the inventory marketplace with those money, you besides mght don’t could subject approximately underperforming the marketplace the two. wish this enables, and good luck along with your investment plan!

Answer 4

Per the advice of my financial advisor, I opened mine with my bank.

Answer 5

Better open it with your Bank : more reliable.