So Im planning on opening an Roth account, So do I have to put 4G's down to start the account?....?

Question

I have the information in front of me but unclear of what i have to put down to start the account....Hope yall can help out...

Answer 1

The initial deposit on IRAs (Traditional or Roth) is not set by the government. Each brokerage firm or bank sets their own requirements. $4000 sounds a bit on the high end to me. Many IRA service providers allow initial deposits as low as $100, but then require automatic monthly deposits.

Fidelity Investments (the brokerage firm I use and the only one I really know well), for example, has two ways to make deposits. On regular accounts, you have to deposit $2500 for both Roth and Traditional IRAs. But they also have something called Simple Start IRAs which has NO initial deposit requirement (which I assume means $1), but then monthly deposits must be at least $200. I assume that other companies have similar plans.

I would like to recommend opening your IRA at a brokerage company, rather than a bank or insurance company. The most important thing about investing is being properly diversified and covering all the major asset allocations. Setting up mutual funds allows you to do this. With brokerages you can easily move your money around from stocks, to mutual funds, to bonds, to brokerage CDs, to money market funds, etc. There is a lot more flexibility.

Answer 2

The minimum investment depends upon where you're putting the money. Most Mutual Funds and brokers have reduced minimums for IRA's.

Don't put your ROTH IRA with a Bank or an Insurance Company.

This will be one of the best financial moves you've ever made. Good luck!

Answer 3

Every company has a different minimum opening balance. Check with the company you are thinking of. There are plenty that let you start with very little money and many will waive the requirement if you set up automatic deposits from your bank account.