Which company is best to invest in a Roth IRA?

Question

I know there are several banks and companies out there to start a Roth IRA. But, which one is best? Is a company better than a bank? Do they have fees and is there a minimum amount that you must invest each month?

Answer 1

You can open a Roth IRA at any bank or financial institution. The best one is the one that works for you - your local bank, a discount broker, a mutual fund company.

There are fees - some companies (banks especially) will charge you a trustee fee.

Some mutual funds have no front end loads (doesn't cost you to buy).

You should open with a lump sum (the maximum). After that, you can have your checking account drafted for monthly amounts (maximum amount divided by 12) if you wish to do it that way.

You can open the account now, you only have a month - leave the money in cash until you get a better understanding of what you want to do.

Research, ask your family and friends, talk to a financial adviser, banker, or someone involved in your company benefits department.

Answer 2

Banks and insurance companies are generally the worst place to put your ROTH IRA funds.

Some good places would include;
Vanguard
T. Rowe Price
Fidelity (brokerage)
Schwab

You may also consider some of the "full commission "brokers.... but you'll pay for the service (On a $4000 investment, your average cost would be $230). Do this if you simply don't want to take the time to learn some "basics" of investing.

Some Mutual Fund companies charge $10 - $30 to maintain a ROTH IRA account. I wouldn't pay more (myself).

Minimums are usually lower for IRA investments.

Congratulations! You're on the road to a great retirement!

BTW: I love "Scottrade".... but I'd never suggest them for someone new at investing!!!!!!!!!!!!!

Answer 3

Personally, I think your best options will be internet stock brokers such as Scottrade, TD Ameritrade, or others. The ones I named do not I believe have any fees other that broker commissions. Mine is with TD Ameritrade. Or a mutual fund company with a wide selection of mutual funds to choose from with a small minimum investment. Fidelity and T Rowe Price are both good. There are minimum amounts that you will want to invest. It does not have to be monthly. It can be whenever you make the minimum. With Fidelity most of their funds have $2,500 minimum initial investment and $250 subsequent investment. Something along those lines. I think they have something called automatic account builder at $100 a pop. Have no idea how that works.

T Rowe Price does not have such high initial investment requirements or subsequent investment requirements. For an IR A initial investment $1000. Subsequent $100.
Their capital appreciation fund has an outstanding record.

http://www.troweprice.com/common/indexHtml2/0,0,htmlid=111,00.html?scn=Insights&rfpgid=10875

Answer 4

It's easy to open a bank IRA but they charge you maintenance fee every year and have less options.

If you open a Roth IRA at a brokrage like Scottrade, they offer NO FEE IRAs.

You'll get cheaper commissions compared to a bank. $7 to buy and $7 to sell (stocks, bonds, mutual funds, ETFs). If you use a bank they have higher commisions like 45 bucks to buy and 45 bucks to sell.

Most brokerage firms have retirement portfolios already made for the certain year you're going to retire with years on it. You can choose one of those already made portfolios or manage your IRA yourself.

Roth IRAs are basically like vehicles that you use for your investments. The contributions you put in grows tax free and you can withdraw them tax free at retirement.

Answer 5

Assuming you want an investment account, you don't want a bank. There are financial people and there are bankers; and they're a whole breed apart. I know because I was a banker until I realized that bankers don't know much about money.

You can invest directly with a brokerage house or mutual fund company, or you can see a financial advisor, which I'd recommend since you're starting out. Many are available at no cost.