Should I transfer my IRA to a higher yielding account?

Question

I currently have 2 traditional IRA accounts which only yield 1.84% through Bank of America, which is barely enough to cover the management fee for the accounts. I would like to transfer the money eventually to a higher yielding IRA or mutual fund account but would like advice on the best place to put it.

Answer 1

Its not your IRA that's earning a low rate of return, its what you put into it and how you invest that affects the rate of return.

Depending on your income, it may be best to roll them over into a Roth IRA account. You will owe income taxes on the gains when you do the rollover, but that's a trade-off for tax free withdrawals when you reach age 59 1/2. If your income is too high, then it would be a good idea to combine them into one Traditional IRAs. There are many benefits of keeping one IRA instead of two or more. One benefit is lower costs. Second benefit is keeping track of your investments. Third benefit is you accumulate more shares when a mutual fund pays out dividends or capital gains.

Instead of funding your IRA account with CDs or whatever investments that your bank offers, put mutual funds into it. I don't think Bank of America sell mutual funds, so you might want to change the company to a financial company that does sell a mixture of investments such as money markets, bonds, and mutual funds.

You never want to put individual stocks into your IRA account since they are highly volatile and most people who invest into stocks never get a great return on them. Unless you are an investment expert who has over 10 years of experience, you are probably an average person who has no clue on how to invest in stocks.

Answer 2

First of all move it somewhere where there is no management fee. Any discount brokerage should do.
Second, depending on your age you should decide how aggressive you want to be. If you think you will be withdrawing money soon, then a money market is the only option, they should yield around 4-5%. If you are young and have years to go, I would put the money into an non-managed portfolio, that means a mutual fund or ETF (exchange traded fund) that mirrors some sort of Index. The easiest is SPY -- this is an ETF that mirrors S&P 500. This ETF has minimal expenses and does well in the long run, however fluctuates day to day. Many fund managers are trying to beat the performance of S&P 500 and fail, so why pay someone to try. If you have a large amount of money, you may want to split it among several indexes to diversify.
This is all I could suggest, considering lack of specifics in your question.

Good luck.

Answer 3

there is not any such element as intense yield IRA. IRA is a type of account. you could fund it with some thing... nicely virtually some thing you pick. I also will be very careful about "leaving some thing for two decades" each portfolio should be rebalanced. for instance our loved Dow Jones Index has no longer received a penny if invested in January 1965 and cashed out in October 1982. i'd take all the memories about marketplace continually going up with a grain of salt. Mid cap cost, EAFE index, commodity index, ought to continually be on your portfolio. Use ETF's to get publicity. cost administration is the most important. reliable success

Answer 4

Banks are not traditionally a good place to have IRA accounts. They charge a lot, plus they generally have poor investment options to choose from (if any).

Move it to Vanguard or Fidelity. Both offer great, low cost index and mutual funds that have consistently been top rated.

Answer 5

I would definitly more it. You have unlimited options for IRAs through a number of brokers. You can easily get 10 times what you are making now.
Also I would pull my money form Bank of America for their support of illegal immigration. Their handing out credit cards to people without legal documanetation is going to backfire and affect their legal customer base with higher fees to make up for the defaulted funds.
I would find a good broker that will spend time to teach you about your investing.

Answer 6

you can invest in stocks, mutual funds & cds inside your IRA.

You're not utilizing your IRA to it's full capabilities. Atleast buy a 5-6% CD inside your IRA instead of leaving it in 1.84% money market account.

Answer 7

Look at Fidelity or Vanguard.

1.84% won't cover inflation.