Which company is the best to start an IRA with?

Question

More specifically, a Roth IRA.

I need to find out if there's a difference in the various companies that offer IRA's. I assume it depends on where the money will be invested once in the IRA account. Are mutual funds the place to look for my IRA money then???

Answer 1

When you are just starting out with an IRA account, in my oppinion a mutual fund would be best. The trouble is there are thousands to choose from. So have very high minimum investment amounts so those can be eliminated. The kind of mutual fund that you choose to invest in would also be an important consideration. There are probably a hundred different flavors. Many investors have actually given up on mutual funds per se and are investing in index funds, a sub category of mutual funds that have become very popular in the last 5 years. The advantages of index funds are that they have very low expense ratios and in general outperform 70% of the broad category of mutual funds.

It is very easy to buy index funds also. ETF index funds do not have any minimum, so you can buy a few of this and a few of that. A IRA brokerage account with Scottrade, Etrade, TDAmeritrade is what you need to buy ETF index funds. Those brokerage accounts will also allow you to purchase many mutual funds.

Answer 2

I am assuming that you do not have significant holdings.

I would find a low cost broker, Etrade, TD Ameritrade, or something like that. They have very low minimum balances and offer a wide selection of investments.

As far as your question about mutual funds. Mutual funds are most likely amoung the best investment choices you can make. Find a Mutual fund with low costs and investments you like. Invest over time and you will likely have good returns.

Personally, I have an IRA with Trowprice, that has automatic deposits made monthly, You are limited to Trowprice mutual funds but it is hassel free and they have very low fees. I have had good luck with them and can reccomend the company.

Answer 3

If having a wide variety of investment choices is important, then opening an IRA with a brokerage firm like Schwab, Fidelity, ETrade, Ameritrade, etc is your best choice. By going with a brokerage firm (as opposed to a single mutual fund family) you can invest in mutual funds, individual stocks or bonds.

If you are not interested in individual stocks and you want to invest in mutual funds, then opening an IRA with Vanguard is great way to go. They have some of the lowest fees around and a great selection of index funds and bond funds. Index funds are a great choice for most people who just starting to invest in equities.

Answer 4

Try going to a World Savings Bank. Tell them what your interested on, and they will give you information about their accounts. They also have a sister company called Atlas, and there is always a rep in the branch that can answer all your questions about IRAs and Mutual Funds.

Answer 5

You can set up an IRA with Fidelity through their website... then you can slect on-line where exactly you want your money to be placed....they have an extensive line of funds (theirs and other companies) that have " no fee" to purchase or trade....
You can also use the same account to begin trading stocks or ETF's if you want to " get into" investing.
Mutual funds would be your best starting point...and they have excellent research tools in that dept.
Another place to look would be:
http://moneycentral.msn.com/beginnerguide.asp?page=introduction
Explains many of the "ins and outs" of mutual funds.
Easy to read and understand

Answer 6

Take a look at this from the Securities and Exchange Commission. The North American Securities Administrator's Association PDF "Cutting through the Confusion" has some good information and links as well.

As for companies, try these links:
http://www.dodgeandcox.com/funds/how_to_invest.html
https://www.putnam.com/individual/

Answer 7

who you have the account with will not matter so much as what you put in it. What will matter as far as who you go with will be things like:
minimum balances
annual or monthly fees
trading cost
help with investing

Remember, as far as the type of account that you want, it wont matter unless you have other factors. Just like opening a checking account. All banks have them, but which is most convenient for you & does what you want it to do? Some things to consider are, do you need online access, are you going to trade actively or hold? Do you want to invest or do an annuity.

Answer 8

I've always heard good things about Vanguard Roth IRA's. Their fees are really low.