Can I open a Roth IRA without involving any institution?

Question

I am feeling pretty confident and educated about Mutual Funds. I dont want to go through a bank or any brokerage service or insurance agency to make my purchases. Can I do this by dealing directly with the Fund Family? If so how can I learn more abt the process? If not, are there certain laws preventing me from doing this?

Answer 1

You have to involve an institution for you to open a Roth IRA; mainly because of tax implications for capital gains or losses. There are many brokerage firms that allow you to buy and sell funds of your own choice. You can pick and choose the funds that meet your goals, whether you're retiring in ten years or twenty. If you want to make your "fund", you can open a simple brokerage account and purchase the stocks or mutual funds of your choice. You will not receive the same benefits if you did so in a Roth IRA account which gives you a great tax shelter and you will end up paying per trade. I recommend you leave your Roth IRA to the managers in charge and just make sure you buy a fund that is properly balanced to your needs.

Answer 2

A Roth IRA is one in all those investment account. it could have actually no possibility, if invested in economic employer certificates of deposit, or a ton of possibility, if invested in risky sources. the best thing approximately getting a Roth IRA is interior the tax medical care. you place aftertax money (i.e., no deduction on your tax returns) into it ($5,500 max, or, while you're 50 or older, $6,500 max according to twelve months). in case you shelter the account a minimum of 5 years, then, beginning up at age fifty 9 and a million/2, you may start taking flight money from it tax-loose. The tax-loose medical care of withdrawals could be a large benefit in case you shelter the account for a protracted time. in case you in basic terms purchase shares in an common brokerage account, you will no longer get this tax benefit. You administration the quantity of possibility interior the account by way of the forms of investments you're making. the opportunity of greater returns comes with greater possibility, and extreme disadvantages are not theoretical (see 2008 economic disaster for information). Diversify your investments to administration possibility.

Answer 3

If you want to invest in many load funds, you must go through a broker or financial planner of some type (I don't know of any but there may be some that deal directly with the investor). With no load funds, you can deal directly with the fund family.

Answer 4

You can deal directly with the fund company. Most major mutual fund companies (American Century, Vanguard, Fidelity, T. Rowe Price. etc.) handle Roth IRAs. Check their websites for more information.