What company is the best for opening up a Roth IRA account?

Question

I am 19 and looking into opening an account. Which company is the most reliable?

Answer 1

For someone just beginning an IRA, a mutual fund company is a very good option. There are 3 or 4 that have a wide variety of mutual funds, low expense ratios, and generally very good funds. I do not have any trouble at all recommending any of these.

T Rowe Price
Fidelity
Vanguard
American Funds (this company has a 5.75% front end load but also has excellent funds, low expense ratios, and a very low minimum investment amount)

They are all on the internet so you can go to their sites and check out their offerings and track records.

Answer 2

I experienced the same situation first year out of college. I checked around and chose Vanguard. They have several no-load funds with some of the lowest expense ratios. For example, their S&P 500 Index Fund has an expense ratio of only 0.18%. For a Roth IRA, they charge $20 per year if your balance is under $5,000, $10 if your balance is under $10,000, and no fee when you balance is above $10,000. Vanguard does require a minimum of $3,000 to open an account, so you might have to wait until you save up that much. You can do everything you need to on Vanguard's website. I have been very pleased. I would recommend staying away from brokerage firms for opening your account. They usually will provide you more services, but they charge extra fees for everything they do. Your lowest costs will be with a no-load mutual fund. Besides Vanguard, you could look at Fidelity, T Rowe Price, and there are many more. The mutual fund company websites are so easy and helpful that you don't really need brokerage firm services. Choosing the right investment company might make some differences, but you have already made the right choice by starting to save early.

Answer 3

While I'm sure there are certainly more friendly companies to invest with than others, the most important thing to look for is someone with the heart of a teacher, not the heart of a salesman.

Call local branches of companies to schedule interviews and get a feel for your options.

My ROTH is with Edward Jones and I've had a generally good experience with them.

One company isn't going to earn you more than another company, but some will have heavier fees than others.

I think it's great that someone your age is taking initiative in investing for retirement! Keep it up!

Hope this helps!

Answer 4

I would open an IRA with Vanguard, Fidelity or TRowe Price. It would be hard to go wrong with any of the above 3 mutual fund companies.

Answer 5

T. Rowe Price, Vanguard, and Fidelity. They have the lowest fees around.

Answer 6

I have answered this question on my blog. See the 'Funding Your Retirement' articles.

Answer 7

Have you checked with your bank? They usually treat their customers with respect and not take advantage of you.