Which Roth IRA Account Is Best for Your Retirement?
Roth IRA accounts are wealth building tools that grow your earnings tax-free. Below is a list of best Roth IRA accounts, but let’s first discuss Roth IRA retirement account benefits.
You can read the full details of the Roth IRA Account in my previous article. In fact, the Roth IRA may be your ticket to retiring rich.
Best Roth IRA Accounts
Many financial institutions offer Roth IRA accounts to their customers. After searching Google for Roth IRA, I came across tons of banks/credit unions that offer Roth IRAs. Haven’t opened yours yet? Well, you no longer have an excuse. Everything you need is right here.
Who has the best Roth IRA?
No bank/financial institution in peticular. Opening your Roth should be convenient, not an arduous task. Just make sure you open one somewhere, although maintenance fees and account minimums are factors to consider.
Top Roth IRA Banks
Choose between the best no fee IRAs and fee requirement IRAs in the business
| Bank Name | Details | Minimum Account Balance |
| Zecco Roth IRA | $30 maintenance fee | $0 |
| TradeKing Roth IRA | $0 fees | $0 |
| TD Ameritrade Roth IRA | no maintenance fees | $500 |
| Fidelity Roth IRA | no setup fees, no maintenance fees | $2500 |
| Charles Schwab Roth IRA | $50 service charge each December | $2000 |
| T.Rowe Price Roth IRA | $10 fee/year for accounts < $5,000 | $1000 |
| ETrade Roth IRA | No fees | $0 |
| Scottrade Roth IRA | Zero fees | $0 |
| Bank of America Roth IRA | $30 fee for balances < $10000 | $0 |
| ING Direct Roth IRA | $10 custodial fee | $250 |
| Sharebuilder Roth IRA | $25 if not premier member | $0 |
| Industrial Bank Roth IRA | No fees | $100 |
| PNC Bank Roth IRA | Contact them at 800-PNC-6111 | N/A |
| Wachovia Roth IRA | $50 Annual Fee | $0 |
| Vanguard Roth IRA | $10 custodial fee on funds < $5000 | $3000 |
| USAA Roth IRA | N/A | N/A |
| WaMU Roth IRA | $0 fees? | $0 minimums? |
Delaying One Year Can Cost You Thousands of Dollars
Putting off your retirement savings for even just 1 year can costs you thousands of dollars in the future.
Do you have a Roth IRA account that isn’t listed here?
Add your financial institution in the comments, and I’ll update this list.
*Update: 2008 Contributions have been raised to $5,000
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March 30th, 2007 at 2:42 pm
[…] Freedom Funds For Your Retirement After publishing my Roth IRA Account overview, I received e-mails from readers as to where I opened my brokerage account and which fund I […]
April 1st, 2007 at 2:13 pm
[…] Open Your Roth IRA […]
April 10th, 2007 at 8:58 pm
You forgot the most important Group that has one of the best rates Vanguard group
Check them out.
April 11th, 2007 at 12:21 am
Vangard is now on the list. Thanks, Vause!
April 11th, 2007 at 4:40 am
I have a ROTH IRA through a fraternal organization called Thrivent Financial for Lutherans. What is the difference between investing through a fraternal organization like Thrivent, and a non-fraternal like Fidelity or Vanguard?
April 11th, 2007 at 8:26 am
The main difference is that full-service brokerages offer exceptional investment advice and can assist you with your investment goals, plans, and purchases. When I have a question about my Roth IRA, I call up a Fidelity Representative, and they always share insightful information with me.
Except for the investment advice, I believe all else is the same. Also, you don’t have to own a Fidelity Account to buy into Fidelity Funds or anything.
April 11th, 2007 at 8:31 pm
I disagree with you. Look at the expense ratio. I believe Vanguard or Fidelity have the best expense ratios. If you dont look at this you will lose a lot of money in the long run. Also, you have to look at the companies that have loads. I know fidelity and Vanguard do not have up front fees like loads.
April 11th, 2007 at 8:33 pm
Also, I still like your blog. Lets exchange links!!
Vause
April 11th, 2007 at 9:15 pm
Your actual investments and where you open your account are two separate entities. Banks do not charge expense ratios on your account balance, the fund manager charges you a percentage of your mutual fund holdings. The same goes for load fees. These only apply to purchases, not your actual account. If you were to open an Roth IRA at Fidelity and never purchase 1 mutual fund, you would never have to pay expense ratios, load fees, or anything else. See the difference?
April 11th, 2007 at 10:02 pm
Yes, I see. Thanks
April 12th, 2007 at 9:37 pm
Vanguard is excellent.
April 13th, 2007 at 3:09 am
Thanks for your comments. You’ve inspired me to update the list. Looks a lot better now.
And I’ll contact you about a link exchange!
April 13th, 2007 at 6:29 am
E-trade roth IRA?…
I opened my account with Fidelity because they offer no free Roth IRAs. There are enough banks that offer $0 minimums, so I wouldn’t worry about $500 or so.
You can check out a full table of Roth ……
April 13th, 2007 at 2:01 pm
Well, I would be true to my military collegues if I didnt metion USAA for mutual fund. This is a military members and family only mutual fund service.
you can find the website http://www.usaa.com
However, I do use Vanguard for Roth IRA.
April 14th, 2007 at 8:35 am
TJP, Now since you have a list of Roth IRA accounts. The big question is which one do you have?
April 14th, 2007 at 10:14 am
I have an account with Fidelity Investments, and bought in the Fidelity Freedom 2050 fund (FFFHX). Most of my funds are invested in the FFFHX lifecycle fund, along with a small cash balance on the side.
Vanguard is very, very good. If I hadn’t gone with Fidelity, Vanguard was my next choice.
April 14th, 2007 at 4:26 pm
Just to let you know. I have vanguard 2045 fund. I like that we can just let our money sit and they do all of the work. What is your funds expense? Mine is something like 0.21%
April 15th, 2007 at 12:58 pm
That’s incredibly cheap. Fidelity charges 0.83%, which is a bargain in my opinion.
I checked out Vanguard’s 2050 fund, and the expense ratio is only 0.21%. It looks like I need to reallocate my lifecycle fund!
April 16th, 2007 at 11:56 am
anyone have experience with TD Ameritrade? Is their service good? Sometimes with so many mergers and corp changes, it can change their service levels. Just wondering. thx
April 16th, 2007 at 8:02 pm
Nope, Sorry I have not. Only Vanguard. BTW TJP, I would change to vanguard yet. I am sure you are making too much money with fidelity after a increase of the dow 100 points today. Secondly, look at Vanguard 2045 fund. It is less expensive than 2050 so you can hold more shares than you can get more dividend payments!!
April 18th, 2007 at 4:43 am
[…] Now that you’ve calculated your annual retirement expenses and started investing early, you now need to take advantage of your job’s 401(k) matching policy. Let your existing job match as much of your contributions as it can, then rollover those savings into a Roth IRA if you switch jobs. Don’t make the mistake of cashing out your 401(k) contributions because those paid earnings are taxable. Not only will you lose a chunk of your investment, but you give up any compound interest that money would have earned until your retirement year. You want to keep your money where it earns the largest return and stays tax-exempt. You can achieve this with a standard Roth IRA account. […]
April 19th, 2007 at 2:36 pm
I wrote a review on TD Ameritrade a while back. I hear they are pretty good in terms of cost and customer service.
April 19th, 2007 at 2:37 pm
I was considering a Vanguard International fund instead of the target one. I can probably squeeze out a 1% or 2 more by investing in their global equity fund.
April 20th, 2007 at 4:01 am
[…] The following comment was left on the post, “Which Roth IRA is Best for Your Retirement?“ […]
April 28th, 2007 at 1:11 am
[…] I wrote a few entries in the past of how the Roth IRA works and where to open your Roth IRA. […]
May 11th, 2007 at 7:55 pm
[…] hold Fidelity Freedom Funds 2050 in this account. Check out my post which outlines the best Roth IRA […]
May 27th, 2007 at 11:24 pm
Hey you should look at vanguard again. They redid their fee structure. If you signup for e statements their is no fee if the balance is less than 5,000. One thing for sure vanguard is taking cared of their investors!!
June 1st, 2007 at 12:52 pm
[…] pace to fully max out my 2007 Roth IRA contributions before December 2007. Allocating funds to my Roth IRA account by December grants my balance 4 extra months of compound interest effects. The sooner I compete […]
June 3rd, 2007 at 9:51 pm
TJP - I’m just starting to look into a Roth IRA. I have been talking with State Farm Insurance to open an account, but am nervous of them stating a 5% fee on every deposit made to the account. The accounts are apparently managed by Barklay and have a slew of Berklay “LifePath” funds to invest in.
Any helpful suggestions will be greatly appreciate.
State Farm’s Roth IRA page
http://www.statefarm.com/learning/life_stages/retire/rothira.asp#investment_options
June 4th, 2007 at 5:25 pm
You are wasting money with them. Do not buy from them!! Look at vanguard or fidelity!!
June 5th, 2007 at 6:43 am
Vause- I’ve started to realize the same. E-Trade and Scottrade, and TD-Ameritrade are also on my list. The same general commission tables apply as I’m investing under the Roth account, correct?
June 5th, 2007 at 7:48 pm
Just look at vanguard if you are interested in mutual funds. They have the best everything
June 7th, 2007 at 5:38 pm
@ DC
You don’t have to pay 5% contribution fees! That’s plain ridiculous.
Here’s a good post on how to setup your Roth IRA for free. Most reputable investment firms allow you to invest for retirement almost for free.
But don’t fret! Welcome to the Roth IRA club. I’m 20 too, and trust me, you’re doing a very, very smart thing by planning for retirement.
June 7th, 2007 at 8:00 pm
I decided to go with T. Rowe Price, which may have been the hardest step. The next hurdle will be to figure out how I can fully fund it while in school for the next 2 years.
June 8th, 2007 at 4:11 pm
Does anyone have information for USAA? Anyone know what kind of fees they have?
June 9th, 2007 at 3:08 pm
@ DC
I faced the same problem as well. During my freshman year of college, my annual income was very little, so I resorted to credit cards for all expenses.
Huge mistake! But I eventually learned that there are ways to earn money without working a job.
I wrote a few posts on earning money online before:
Basically, start getting creative and find other ways to generate some income. For me, the internet worked. For you, you may start a small business on campus, or use your existing talents to perform consulting work for needy clients.
If you utilize your talents to help the better good of society, money will follow.
July 3rd, 2007 at 4:49 am
[…] ways to build wealth over the long term. I learned this lesson the hard way when I neglected my Roth IRA account last summer working as a […]
July 19th, 2007 at 1:06 pm
This may be en “elementary” question but i am going to ask it anyway. What do you mean when you ask “What is your funds expense?” What is the .21%?
-this blog is really helpful. I just began researcing who to open an IRA with.
July 23rd, 2007 at 7:12 pm
Maggs, what they mean by the .21% fund expense is this. If you were to hold a account with Vanguard with $4,000 with a .21 % annual fee you would be charged a $8.40 fee for that year. Compare that to a .83% fee with Fidelity you would be charged a fee of $32.20. This may not seem like much now but add the lost compounding over the life of the IRA (30+) years and that could be in excess of tens of thousands of dollars if not more. ***One thing to remember is that both Vanguard and Fidelity offer two of the BEST funds both of which have fund expenses below the average. I take an educated guess when I say that perhaps Vanguard has a slightly lower fund expense because the minimal investment requirement but I could be wrong. I hope this post was of some help.
August 1st, 2007 at 11:56 pm
I set up a Roth IRA a few years ago with State Farm before I was really fully informed about the investment benefits. It was all a bit overwhelming then, and I am grateful to a friend who kept pushing me to start a retirement fund. Although I’m not unhappy with State Farm, the more I start to understand what I have, the more I want to take an interest in how its handled, and would prefer working with an investment company. Am I stuck with State Farm, or can I work with another company like those recommended above on this account?
August 3rd, 2007 at 12:52 pm
Hello,
I opened a Roth IRA in 1999 located in a credit union in NY and I now reside in FL. I was never informed of any investment options or advised to make regular deposits to help it grow—I assumed it would grow on it’s own. I never made another contribution until I changed jobs and rolled my 401k investments into my Roth IRA.
I have learned that you can invest the money in your Roth IRA and would like to know how. Other than receiving bank statements, I’ve never received any information for how to invest my Roth IRA.
I just started consolidating my NY and FL accounts to WAMU for the 5% interest savings account. Any suggestions if I should move my IRA to WAMU, or I have read many suggestions on this sight highly recommending Vanguard.
Can you please advise?
Thanks!
MB
August 4th, 2007 at 8:01 am
@ GMB
You can transfer your funds at any time, however most financial institutions charge transfer fees or another commissions based on your account structure.
Here’s what I suggest: Pick some financial institutions on my list above, visit their websites, and give them a call. Feel them out until you find a comfortable fit.
The advantages to having your Roth IRA with a pro investment firm are countless. If you decide to make the switch, do some homework so it becomes your last.
August 4th, 2007 at 8:06 am
@ MB
You don’t have to transfer your Roth IRA to grow the balance. A roth IRA is not an investment; it’s an account that holds investments like stocks, bonds, etc. With that said, read up on investing before buying an investment in your Roth IRA.
Visit the library and pick up a few books, listen to tapes & radio shows that feature investment segments, scour the internet for information rich sites on investing.
Before moving your account, I would invest in knowledge first. Moving your Roth IRA will only incur fees; not necessarily increase your net worth.
Good luck, and thanks for the question.
September 18th, 2007 at 5:10 am
[…] the reader pointed out, I invest in Alpine’s International Real Estate Fund (EGLRX) in my Roth IRA account instead of passive ETFs like SPDR DJ Wilshire Intl Real Estate (RWX) or WISDOMTREE INTL REAL ESTATE […]
September 20th, 2007 at 4:58 pm
I’ve had a ROTH IRA at Wells Fargo Bank for years but didn’t contribute to it very much, and for that I’m kicking myself.
I was in a confused state of “huh?” when I opened the account and don’t remember anything about it. I don’t know if I’m being charged any fees or what! I can’t seem to find the information on the Wells Fargo website.
I, like MB, have recently opened up a checking and savings account at WAMU because they have fewer hoops to jump through and fewer fees than Wells Fargo. I am also wondering if I should transfer my ROTH and am not sure where to go.
I’ve been treating the ROTH like a regular savings account that I can only put 4000 into a year. If I do only that… will it still grow without me doing anything else?
September 20th, 2007 at 8:35 pm
I guess my biggest stumbling block is HOW to buy. When I access the website and view the page that displays my ROTH holdings… well, that’s as far as I get. I don’t know where to navigate to invest!
There’s no link on the page next to my funds that says, “Purchase a diversified portfolio that isn’t high risk and that will give an average return of 8% that doesn’t involve giving any money to big oil moguls and their feckless offspring.” Do You have any of that on aisle 8?
It’s just so overwhelming. I wish SOMEONE in my family was smart with money. I’ve been wrestling with this for so long because I don’t want to end up riddled with debt and a burden to my little girl in my dotage.
I’ve been researching on my own and managed to get this far, but realized something was wrong when I noticed that my money market savings account and my ROTH were averaging about the same interest every month.
I was flummoxed. So I started looking closely at my statements to figure out what my interest rates were. Turns out my Wells Fargo Money Market savings account was giving me an APY of only0.74. I was floored after seeing numbers like 4.3 and 5.0 and 5.31 at other various online savings accounts offered through mailings and websites. (As an added kick in the pants, Wells Fargo makes you keep a 5,000 balance in your joint accounts in order to not be charged a monthly fee for just having the savings account. Lame. If I need to pull out the funds in my time of need, that’s when the vultures will start picking away at the leftovers every month. Lame lame lame.)
Also, my wells checking account needs to have 1k just sitting in there untouched or I’ll be charged $8 a month just for having the account because I no longer have direct deposit. (I’m a new Stay-At-Home-Mom and missing my paycheck…) I’d much rather invest that money in a high intrest savings account or stuff it in my ROTH.
So even though I’ve been a WF customer since 1996, I just opened a free checking account at WaMu.com with an online savings account that boasts a 5.0 APY. That’s a load more than the paltry 0.75 I was getting with my old savings account. I still have to transfer the funds and close my old accounts. (I just opened the new ones yesterday.)
Then I panicked. I couldn’t find out what interest rate my Roth IRA was gaining at. I looked everywhere on the site and didn’t find ANYTHING. I assumed that when I deposited money into my ROTH IRA that Wells Fargo, an institution that knows a lot more about investing than I do, would take my money and put it into something safe that’s good for retirement accounts to grow on. I thought that was the reason I wasn’t allowed to touch it without penalty, because it was INVESTED. Otherwise it would just be a regular savings account.
Now I read that I have to actually pick my investments! I have to purchase mutual funds or other dingly dangs that I don’t know much about to actually make the ROTH work and that is very scary. I’m 29 years old and this money has just been sitting in this stupid account since I was 22 when I opened it because I read that opening a ROTH IRA in your early 20’s was the best way to become a millionaire by the time you reached age 65.
I didn’t realize that I’d have to max contributions every year, (until I started doing more research yesterday) and now I’m just sick at the thought of all those lost investment years. But, spilt milk and all…
So I suppose what I really need to do is find someone who can put up with my ineptitude (I was always slow in math) and hold my hand through this process. I wish there was more instructions online that were very A-B-C about the whole process. Most websites and financial advice taken from the web always says the same thing. “Buy what’s best for you! Invest in the best way that suits you!”
But what the hell does that mean to someone who doesn’t know what the best way is? I know that I can’t afford to take any losses, that I’m not a gambler. I like to be a safe investor and that’s why this process has been a very slow one for me. I’m terrified of getting nickel and dimed with fees and play all these bank “games” to avoid them.
Long story short, I haven’t found ANY information on the web concerning ROTH IRA’s with Wells Fargo and that’s a little worrying to me. How do I “spend” the money in that account? In the end what I’m really buying is a higher APY, right? I just shop around for the best return for the risk and plunk down my money, right?
Sorry for the novel… I’m just stressing out about all this. I don’t have anyone in my family to talk to about it. My husband overdrew his checking account so often that it was a huge monthly waste of cash so I took over all the finances. (He got through freaking calculus but can’t add and subtract his own money… just mind boggling.)
I’ve thought about going to the bank to sit and talk with someone about all this, but with a 12 month old in tow, it’s not something that would be good for my retention of information or the other customer’s sanity.
I thought I was doing the right thing just plugging money from my checking account to my ROTH account and doing nothing else but now I feel totally out of my league.
September 24th, 2007 at 11:07 am
I’m in the same boat as Nicole, in that the major (possibly only) challenge I’m having is figuring out how to do anything with my IRA contributions online.
I have a little over $8k in a Wells Fargo Roth IRA “plan”. When I originally started, wells put the money in a retirement savings account, which made a ridiculously low interest rate similar (if not equal) to my well checking account.
After a few months I realized I should at least be making a rate close to my savings account (~5%), so I called wells and asked what my options were. They didn’t really do a good job explaining anything to me, but I got them to put my IRA funds into a 5 month CD.
I’ve re-invested a few times when the CD matured by calling wells again. A few weeks ago, when it matured again, I decided to put it back into a savings account so that it would be more “liquid” (the wells person called it that). I basically want to be able to transfer it somewhere else now. I’ve been looking at Vanguard and Fidelity accounts, and don’t want to have to wait another 5 months for a one week window to open a new acount (the wells CD will automatically renew one week after it matures).
So now my wells Roth IRA plan is sitting in a wells savings account making no interest, but at least I should be able to transfer it somewhere else. I just need to figure out how, and would like to be able to do it without using a phone.
I find that when I call up Wells Fargo I get someone who must be dedicating their life to mastering the art of being unhelpful. They make simple concepts sound super complicated and continuously throw out irrelevent information, most of which I know (a perfect example would be the interest rate of a wells savings account that has no money in it and that I have never used and have no interest in using). They seem to find silence painful, so rather than listening to my questions and maybe thinking about how to answer them, they just start talking. So annoying…
Anyone know of a place that offers a ~5% savings account that I could put my Roth IRA contributions in? If I can keep the money in a wells savings account, shouldn’t I also be able to put it in a savings account at any other company? If so, how do I do it?
Thanks for any help.
September 27th, 2007 at 12:24 pm
Nicole,
You sound like a perfect candidate for a target date fund. It’s basically a mutual fund that “automatically” adjust the allocation as your retirment date nears. You can open an IRA at just about any of the institutions listed above and search for a target date fund that suites your needs. For example, if you’re 29 now and plan to retire in say 30 years, you can search for a target date fund around 2040. Do a “google” search for target date funds to learn more about them. Hope this helps you and anyone else who may be overwhelmed by the task of choosing mutliple funds to invest in.
September 28th, 2007 at 7:13 am
Have you ever looked at some of the Roth IRA’s from an insurance company? I’ve heard they have higher fees, but trying to get a bottom line fee out of a prospectus seems to be beyond my little brain’s capacity. Specifically my wife was some funds at Mutual of America.
October 3rd, 2007 at 12:37 am
Speaking of Roth IRAs and Rollovers I found this company that promotes a secondary investment plan beyond your 401k or IRA. You can read more about then at http://dometri.com. In fact, they work very much like a hedge fund in that they specialize at short term real estate investments with rent to own exit strategies. They take care of everything from start to finish so you are considered a passive investor with no active duties. Also, they do not fall under the constraint of only working with accredited investors, those with $1 M liquid assets available. If you want to learn more about their day to day activities, check out their blog at http://blog.dometri.com
October 11th, 2007 at 8:41 pm
Wow, Great blog guys…
After reading this blog. And also going through this forum
http://www.diehards.org/forum/viewforum.php?f=1
I would recommend every one this forum.. best forum ever for Investment and Personal Finance
One should go with Van Guard and Select electronic delivery of statements.
Select this Fund
Vanguard® Target Retirement 2045 Fund
and you are good to go…
TJP What do you think about this idea??
October 16th, 2007 at 11:04 pm
Hey Guys,
This is a very helpful website and I thankyou all for the information you share.
Here is my situation… I wanted to invest money and I was a novice . I moved with a new job and at the new location visited H&R Block for some advice. The financial adviser knew my pay packet and lured me in opening a traditional IRA ($4000) with them. She knew I had a 401k account with the company but again lured me in opening a 401k account ($10,000) with heavy account maintainance fees.
Tax season is close and with a little education I now realize the amount in my traditional IRA will not be deductible as I have a 401k with my employer and above the pay bracket.
Also my 401k with H&R is not tax deductible. I am so disappointed. Could anyone advice me. Could anyone refer me to the best IRA (ROTH) available. After investing in Roth should I invest completely on in my company 401k or open a separate Individual Retirement Account?
I thankyou for your time and help.
Regards,
Sid.
November 7th, 2007 at 8:39 am
Ronak,
Vanguard has an excellent section on funds, but I would recommend the index funds over target mutual funds.
Most target funds have poor asset allocation (usually an overabundance of bonds in the portfolio), plus the expense fees can add up in the long run.
I wrote a post on Vanguard Index funds that you should read. It contains more information on the arguments I listed above.
November 7th, 2007 at 8:44 am
1. Stop treating your Roth IRA like a traditional savings account. Your Roth IRA is an investment account that holds stocks, funds, and fixed income investments.
2. Funding your Roth IRA is about 50% of the battle; the other half requires that you invest in securities that appreciate over time.
I would recommend buying into a low-cost index fund at the moment, but also consider investing within your comfort zone once you buy into those index funds.
The good thing is you care about your Roth IRA, and once you begin to manage your retirement funds, your balance will grow.
I promise
November 7th, 2007 at 8:51 am
Sid,
You are eligible for the Roth IRA if you earn $99,000 as a single tax filer or $150,000 if you file your tax return jointly. So first, make sure you are eligible to open a Roth IRA.
If so, I would recommend:
After fulling maxing out your Roth IRA, go ahead and max out contributions to your 401k. I wouldn’t worry about a traditional IRA since they do not carry the same tax benefits as a Roth IRA.
To find the best Roth IRA, view the table on this page and check out some of the websites. I opened my Roth IRA with Fidelity, and highly recommend their services.
November 8th, 2007 at 10:20 am
Hello! Here is the boat I am in-I want to open an account but get too overwhelmed when I have to make choices about what to invest in. I went on the fidelity site and they asked if I wanted aggressive, growth, balanced, moderate, etc. At 30 years old what is the most logical path to take? I know it was not smart to not open a Roth earlier, but this is whee I always just get stuck and confused. Thanks!
November 8th, 2007 at 1:46 pm
Hi Anthony,
It really depends on your risk tolerance and aversion. Since you’re only 30, you should focus on either growth or aggressive growth to boost your capital appreciation over the long run.
I know all the strategies, methods, and choices can be overwhelming. So I recommend deciding your long term investment goals upfront, then chart out a plan to get there.
If you don’t mind the volatile nature of the stock market, then think about investing in some common stocks.
If the market movement upsets you, then go with a low cost index fund.
Finally, don’t worry so much! You opened the account, and that’s the most important thing.
November 8th, 2007 at 2:17 pm
I suggest you open up a Self Directed IRA. I believe this can also be a ROTH Self Directed IRA. With this you can invest in Real Estate Related Deeds of Trust and earn an 18% return on your money. It is really hard to beat 18% return in todays market.
Daniel
November 13th, 2007 at 6:59 am
I started with Dreyfus 7 years ago. I invested $2500 each in their Emerging Leaders Fund and S&P Index Fund. Ive been contributing anywhere between $50 to $100 per month to each. My current Balance makes me feel as if I’m waisting time and money. Are these Funds that bad?
November 15th, 2007 at 9:14 pm
Hi Sherwin,
I’m not very familiar with Dreyfus funds, but if you’re frustrated with the results, why not consider index funds instead?
Index funds are cheaper than mutual funds, plus you own all of the market so you benefit from the gains of the S & P as a whole.
Check out my post on Vanguard Index Funds for more examples.
November 22nd, 2007 at 4:27 pm
TJP,
Thankyou for your advice.
I am looking into both - Vanguard and Fidelity . Both look attractive. I was wondering…. does it make sense to open 2 Roth IRAs, one with each of the above? Like 2k each for 2007 and in the following years go half an half.
In addition … is it advisable to invest in brokerage accounts? Any good companies giving good returns?
Thankyou for your time and help.
Happy Thanksgiving to all ,
Sid.
December 4th, 2007 at 7:38 am
What is your opinion on Janus, I don’t see it in your list?
December 31st, 2007 at 12:04 pm
There is a great book on this topic, called “It’s Your IRA”. It is an excellent resource for those wanting to learn more about investing in Roth and Traditional IRAs. It is available through Amazon or you can go to http://www.ItsYourIRA.com for a preview or more details. It is definitely worth a look.
January 3rd, 2008 at 4:47 pm
WOW….all I can say is thank you. Just running across the site has cleared up a few years, several books and numerous articles of confusion for me. I now have direction and don’t feel like subject matter for a “Dummies” book. (Though I may still qualify).
January 9th, 2008 at 8:54 pm
Haha. Glad I could sort things out for you.
If you have any more questions, please let me know.
January 15th, 2008 at 10:13 am
@TJP:
Great site! Do you still recommend Fidelity for Roths and are there any particular funds that look good for a potentially rough 2008 market?
Thanks!
January 16th, 2008 at 1:57 pm
TJP,
This forum has been a real big help. I am 17 and have a traditional 401k plan started through my employer. I am investing 3% into this each paycheck, and have matching contributions up to 5% from my employer. As soon as i can figure out how, i am going to change my automatic contributions to 5%. I am looking at investing in a Roth IRA. I have no idea where or what to invest in, or with what company to do my investing. I see you like Vangaurd and Fidelity. I want an account that has compounded interest at the greatest rate with the least fees over the long run. I want to just invest my money and watch it grow over time. Should i invest in mutual or index? I want to start this up relatively soon, to give it the greatest amount of time to grow. I am a highschool senior working part time, which end up being a $250 bi-weekly paycheck. I plan on attending college full time to get a bachelor’s degree in mechanical engineering. My income will not be much, so to say. I have been told and read myself that a Roth IRA would be a good option for me. Any help you can provide would be a great help.
January 19th, 2008 at 4:04 pm
I only can start with $1,000. Is it ok to do Vanguard’s Star Fund for Roth 401k?
January 25th, 2008 at 11:51 am
@ Bob
For amounts less than $2k, I recommend the target date funds, which automatically adjust as you reach closer to retirement.
Depending on your age, you may try the Vanguard 2040 or Vanguard 2045.
However, it’s always smart to read up on any fund prospectus before making a final decision.
Good Luck!
January 29th, 2008 at 8:15 pm
I am in the process of starting a roth IRA as well. Has anyone heard anything about H&R Block? would that be a good place to open one? I was also thinking state farm, but changing my mind after seeing this site. Thanks for the advice
February 4th, 2008 at 12:47 am
How can Bob inest in Vanguard’s Target Retirement funds? The minimum investment is $3,000. Bob has only $1,000. Bob go with the Star Fund for your Roth.
February 13th, 2008 at 11:28 am
Thank you so much for posting this! It was very helpful for me to decide that Vangaurd is the best place to open a Roth IRA account.
February 13th, 2008 at 6:58 pm
I’m nearing 22 and I’m wondering what type of IRA I should get into. I have a grand saved up, but I make around $1.5k a month. Anyone have any ideas of what I should do to prepare myself for retirement? What kind of IRA should I get?
February 14th, 2008 at 1:35 am
I’m wanting to start some type of retirement savings plan, but I’m not sure which type or IRA to go with. I’m nearing twenty-two and I have about $340-400 worth of bills a month and I average about $1,500 monthly. I only have a little over a grand in savings but could easily add to it. Could anyone help me out as to what I should invest in?
Thanks, guys
February 14th, 2008 at 1:36 am
Oops. Double post, sorry guys. I wasn’t able to see the first post there.
February 18th, 2008 at 6:37 pm
I started investing last year in Roth IRA.My advisor recommended American Funds and I contribute about $200 every month.I don’t know much about investment and would like some advice whether this is the right fund.I hear a lot about Vanguard and am debating whether to move my money to them.HELP before i make a wrong decision.
February 19th, 2008 at 11:21 pm
@ Tinashe
Vanguard is very good for indexing, owning a share of the indices that represent the Dow, Nasdaq, etc.
If you don’t have time to research investment, index funds are the best way to do. I’m not familiar with American Funds, but I know personally that Vanguard is excellent.
Hope this helps!
February 20th, 2008 at 1:39 pm
Anyone got any helpful info for me?
February 20th, 2008 at 5:22 pm
Hi Gunnar,
You probably want a nice mix of stocks, bonds, and short term certificates like money market and CDs.
I’m only 21 myself, and I buy mostly stocks and short term money market funds in my IRA.
Since your time horizon is 40+ years, think agressively.
However, if you rather just park your money and forget it, go with Index Funds.
There are no right or wrong way to invest. It depends on your personal knowledge, tolerance, and risk averison.
Try buying some stocks in a sector you are familiar with. Maybe Tech or Retail, or whatever.
March 2nd, 2008 at 5:39 pm
Thanks for all the great info on this site.
I am now debating between the Vanguard 2045 and the Vanguard Total Int’l Stock Index after reading Tarik’s link. The long term return is 8% higher on the international fund - but is it too risky to choose just this? I am 30 years old. I also have a 401K w/ my company that I have had for 10 years so the Roth IRA won’t be my only investment. What do you guys think? Thanks! Laura
March 3rd, 2008 at 3:28 am
I think this website is great and many of you have great ideas. But I see a consistent issue of young people being confused about financial issues. I was in the same boat myself. I am in the military serving my country in Iraq and have never done any quality investing in my life because i was always too confused by the options and b.s. legal jargon. then I saw the videos from Dave Ramsey’s “Financial Peace University”. I’m not kidding, it has changed my life and gotten me out of a lifelong problem of debt and never investing. It covers EVERYTHING you ever need to know about finances and getting ahead financially in life. It is not a get-rich-quick scheme in any way. I wish I had gone to Financial Peace University 20 years ago! I am recommending it to family and anyone else I care about! Seriously, i do not work for the company in any way, but for any caring parent out there, young person or even middle-aged person who cares about their future and the future of their loved ones, it is an absolute MUST to go to Financial Peace University, if you care about your future and finances, no matter who you are or what you do for a living. It is by far the best thing I have ever done for my financial future. It’s a confusing world, especially when it comes to finances, and there are no more guarantees for big pension retirements like there used to be. Just go to http://www.daveramsey.com and check out Financial Peace University. You will never regret it. I don’t. Check out the 149.00 membership package! Tom
March 4th, 2008 at 2:12 pm
i have been putting off opening a rothIRA and finally decided upon opening with vanguard. here is what i have:
1. i can contribute the max ($5K) up front - i’m assuming it’s better to do this than contributing monthly.
2. i don’t know a lot about what to invest in (would prefer info or a plan that is low-maintenance).
3. i have a 401K plan with my job that i’m contributing already.
4. i’m 28.
thanks in advance and for all the info you’ve provided on this site!
March 4th, 2008 at 8:15 pm
I have a Roth IRA with ING Direct, but I was thinking of changing banks. Whould I go with Vanguard (seems like the most popular) or USAA (I’m a veteran)? I’m 30, but not making much money yet. Any help would be greatly appreciated. Thank you.
March 8th, 2008 at 7:22 am
@ Laura
Why not invest in both? Use Morning Star’s X Ray Tool to figure out how much you want to put in each index fund. That way, if one underperforms or you rather sell it, you can sell 1 index fund and buy more of the 2nd.
Thanks for the question, and please consider our Roth IRA Forums to get insight from other Investor Trip Community Members.
March 8th, 2008 at 11:56 am
@ Tom
Awesome link, Tom. Thanks for the inspirational story and link resource.
March 8th, 2008 at 11:58 am
@ Shelia
Hi Shelia, I can quickly make some suggestions:
1. Max it out. You’re already ahead of the ballgame there.
2. If you’re a beginner, then invest in index funds that track the market. You can create a diversified portfolio just by indexing.
3. 401(k)’s are great. Keep doing what you are doing.
4. You’re still young. Any age under 30 makes you a VERY YOUNG investor.
Shelia,
You’re better off than most people already. Just keep learning about investing, and funding those accounts. You will be successful.
I can feel it
Thanks for the awesome questions!
March 8th, 2008 at 12:00 pm
@ David
Hi David. I’m an advocate for Vanguard because I am familiar with their offerings and services.
USAA is a bit foreign to me, so I cannot properly give my recommendations.
Try calling up both Vanguard and USAA to see who competes more for your business. You should receive some additional perks since you served your country.
Good Luck to you, and thanks for the question.
March 8th, 2008 at 7:18 pm
I’m not an expert yet on USAA’s Roth IRA, but I do have everything else dealing with finances under USAA. I have used many financial institutions over the years, and none of them have come even close to the customer care and benefits I have received from USAA. I am constantly amazed by their benefits and helpfulness to military members and vetarans. My two uncles, who are the only millionaires in my family, also choose USAA over any other financial institution, for everything. After the hurricanes that destroyed a lot in the South of our country, while other insurance companies were doing everything they could to screw their customers who just lost everything, USAA was taking care of all their customers who were victims, with no hassle, including writing a large check to my uncle to fix two of his homes and a buy a new car for the one that was destroyed, with no hassle. Like I said, I am not an expert yet on their Roth IRA, but based on their performance of taking care of their customers and being voted #1 in customer service for the second year in a row by BusinessWeek (I can see why, every time I deal with them, with their great care for me despite how poor I am), I just cannot see any investment with USAA as being a bad thing. I am going to look in to starting a Roth IRA with them myself, as soon as I have the time to look into it.
March 8th, 2008 at 9:54 pm
Just wanted to mention a few corrections/updates to the chart at the top of the page, as I am looking into starting my first Roth IRA:
1. TD Ameritrade requires a starting minimum balance of 2,000.00, not 500.00.
2. The 2,500.00 minimum balance listed for Fidelity can be waived for anyone who wants to do their program of 200.00 automatic payments every month.
3. T. Rowe Price has a great deal/program where those of us who are poor can waive the minimum balance by paying only 50.00 a month automatic payments.
4. I have always paid my bills, but for some reason Scottrade is a real hassle and wants me to bring in all kinds of documents to one of their branches in order to open an account, which is impossible since I am stationed in Iraq.
5. TradeKing’s website is so slow that I have tried to open an account 3 times on different days and it will only go so far before the pages stop loading (I know I have a slow connection, but this is still pretty sad, and I have no problem with any other site loading).
6. Vanguard also has a great deal where the minimum is waived if you do a guaranteed monthly payment of 200.00.
7. I have not yet looked into USAA, but based on the outstanding performance of their company in every corner of personal finance, I am sure I will not be disappointed.
March 8th, 2008 at 10:54 pm
I am in the military as well. I have gone with Vanguard with my investing needs. They are way better than USAA with the investments. However, I use USAA for car insurance etc.
March 9th, 2008 at 1:40 am
Just in case anyone has not already gone to this site, I have been heavily researching IRAs/Roth IRAs for the past couple weeks, and it looks to me like this is the best all-around site for anyone just starting to invest in a Roth IRA:
http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/
March 9th, 2008 at 11:27 pm
Can you please add Navy Federal Credit Union?
March 16th, 2008 at 12:28 pm
I have a 401(k) with a former employer. I would like to get it out of there, as I am not sure of the company’s long-term stability, and roll it into a Roth IRA. If I go with Fidelity, or another similar company, will I have to pay fees to them for managing it? I am clueless about how to do all of this. Any advice for a novice is greatly appreciated.
March 20th, 2008 at 2:42 am
Does anyone know what instuition has the top performing Roth IRA option. I’m looking to open one for the first time and am looking for maybe the top three historical peformers. I am 26, in it for the long haul and plan to make the maximum contribution every year.
Also, does anyone know about Wells Fargo’s performance? I do my banking through them and like the idea of keeping everything in one house but not at the expence of historical performance?
Any insight would be greatly appreciated.
Thanks,
Trey
May 8th, 2008 at 9:54 am
For a long-term investment like an IRA, the best approach is to stick with a low cost mutual fund company such as Vanguard.