Jan-28th-2012
Where to open my Roth IRA?
I am 26 years old, debt free, with good emergency fund. I would like to star my ROTH IRA for retirement however i am not very familiar with investing and strategies so i will need someone to manage it for me. Where should i do that? What is the best company to that at? I am located in Sacramento CA. Thanks For your help
If i was to open Roth IRA for me and max it up K at Charles Schwab, Fidelity Investments, Ameritrade, T Rowe Price etc. How much on avarage they will charge me a year for their services?
First rules of a ROTH IRA;
Never use a bank or Insurance company for long term investment products. Never!
If you want to pay the ridiculous fees for something you can easily learn yourself than my choice would be Edward Jones. They tend to be more conservative than most brokers and they aren’t geared to sell you the most expensive products. Where ever you go (including Jones)…. if they suggest a Variable Annuity…. run away as fast as you can!
For every $10,000 you put in a Mutual Fund ROTH IRA, the typical broker will charge you $575.00.
Spend $30 for the book: Mutual Funds For Dummies & read it.
Then go or call;
Charles Schwab
Fidelity Investments
Ameritrade
T Rowe Price
Everyone of the companies above offer no transaction fee / no load (commission) Mutual Funds. None of them charge any services fees except for T Rowe Price. T Rowe Price will charge you $20 a year if you request paper statements. If you get your statements electronically… there’s no fee.
Read a book or two on Mutual Funds. You’ll learn how they make their money & why no-load funds save you the cost of the salesperson.
I would have to say a local bank possibly. I know JP Morgan does a lot with retirement funds as well. If you don’t find anything in these areas, try a local Investment Banker they will definitely help you out.
Vanguard and Fidelity are both excellent choices. Low costs. Wide choice of investments. Excellent customer service that can walk you through the process.
Do not use a bank. They’ll just try to sell you CDs or in-house mutual funds, both poor choices for a long term investment.