Comments on: Where to Open a Roth IRA Account http://cashmoneylife.com/where-to-open-a-roth-ira-account/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Ryan Guina http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-46116 Ryan Guina Mon, 14 May 2012 12:25:20 +0000 http://cashmoneylife.com/?p=1826#comment-46116 David, thanks for pointing out the changes at T. Rowe Price. Most major mutual fund houses require a larger minimum investment to open an account. If you don't have much to start with, then I recommend opening an IRA at a discount broker, then making contributions until you reach the minimum to open an account at one of the larger firms, if you desire to change at that point. Many discount brokers offer low cost mutual funds or ETFs, and some of them even have a small selection of funds or ETFs which don't have a commission for purchases. So you may be able to save a lot of money this way. Some of the best IRA brokers are listed in this article. As always, do the research to determine which is best for your situation. David, thanks for pointing out the changes at T. Rowe Price. Most major mutual fund houses require a larger minimum investment to open an account. If you don’t have much to start with, then I recommend opening an IRA at a discount broker, then making contributions until you reach the minimum to open an account at one of the larger firms, if you desire to change at that point. Many discount brokers offer low cost mutual funds or ETFs, and some of them even have a small selection of funds or ETFs which don’t have a commission for purchases. So you may be able to save a lot of money this way. Some of the best IRA brokers are listed in this article. As always, do the research to determine which is best for your situation.

]]> By: Ryan Guina http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-46115 Ryan Guina Mon, 14 May 2012 12:19:16 +0000 http://cashmoneylife.com/?p=1826#comment-46115 Hi Sunny, Fidelity requires a minimum investment of $2,500 to open an IRA for most funds, but requires $10,000 for most of their index funds (this is stated in the article). You can always open an IRA with a different investment, such as another mutual fund or an ETF, then transfer it into an index fund, such as the Fidelity 500, once you have the minimum $10,000 requirement. Alternatively, you can look into one of the other options available. I currently have a Vanguard account, which I have nothing but good things to say about. Hi Sunny, Fidelity requires a minimum investment of $2,500 to open an IRA for most funds, but requires $10,000 for most of their index funds (this is stated in the article). You can always open an IRA with a different investment, such as another mutual fund or an ETF, then transfer it into an index fund, such as the Fidelity 500, once you have the minimum $10,000 requirement. Alternatively, you can look into one of the other options available. I currently have a Vanguard account, which I have nothing but good things to say about.

]]> By: Sunny http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-46106 Sunny Sat, 12 May 2012 23:31:44 +0000 http://cashmoneylife.com/?p=1826#comment-46106 Hi Ryan, Thank you so much for all the information you posted! It's so great, educated me a lot and helped me of what to do next. I have been interested in Fidelity 500 Fund for an IRA because that they have a lower expense ratio even than Vanguard. I thought I'm ready to open one with the minimum $2.5K according to the information you posted. Today, I checked the Fidelity website to get the most recent information and found $10K minimum requirement to open an IRA. It disappointed me a lot. I might have to look into Vanguard instead of Fidelity since they ask a minimum $3K to open an IRA. Is it right? Hi Ryan,

Thank you so much for all the information you posted! It’s so great, educated me a lot and helped me of what to do next.
I have been interested in Fidelity 500 Fund for an IRA because that they have a lower expense ratio even than Vanguard. I thought I’m ready to open one with the minimum $2.5K according to the information you posted. Today, I checked the Fidelity website to get the most recent information and found $10K minimum requirement to open an IRA. It disappointed me a lot. I might have to look into Vanguard instead of Fidelity since they ask a minimum $3K to open an IRA. Is it right?

]]> By: Ryan Guina http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-45958 Ryan Guina Fri, 13 Apr 2012 13:30:53 +0000 http://cashmoneylife.com/?p=1826#comment-45958 Bala, you can contribute to IRAs for the previous tax year up until the tax filing deadline, so yes, you can still contribute to a 2011 IRA. Your income will determine which type of IRA you can contribute to. I am unsure about the ability for your spouse to contribute to an IRA, or for you to contribute to a spousal IRA on her behalf. I recommend speaking with a tax professional in this issue. Here is a <a href="http://cashmoneylife.com/roth-ira/" title="Roth IRA FAQ’s – Rules, Contributions, Limits and More" rel="nofollow">Roth IRA guide</a> to help you better understand Roth IRAs and some of the limitations, contribution limits, and other facts you need to know. Bala, you can contribute to IRAs for the previous tax year up until the tax filing deadline, so yes, you can still contribute to a 2011 IRA. Your income will determine which type of IRA you can contribute to. I am unsure about the ability for your spouse to contribute to an IRA, or for you to contribute to a spousal IRA on her behalf. I recommend speaking with a tax professional in this issue.

Here is a Roth IRA guide to help you better understand Roth IRAs and some of the limitations, contribution limits, and other facts you need to know.

]]> By: Ryan Guina http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-45953 Ryan Guina Fri, 13 Apr 2012 03:41:11 +0000 http://cashmoneylife.com/?p=1826#comment-45953 I am not familiar with Transamerica. I've been a Vanguard customer for over 10 years now, and I've never had any problems with them. Their funds are among the most cost effective in the industry, and their customer service is top notch. Then again, Transamerica could be solid as well. I recommend looking into them more if you are interested in working with them. I am not familiar with Transamerica. I’ve been a Vanguard customer for over 10 years now, and I’ve never had any problems with them. Their funds are among the most cost effective in the industry, and their customer service is top notch. Then again, Transamerica could be solid as well. I recommend looking into them more if you are interested in working with them.

]]> By: Alex http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-45952 Alex Fri, 13 Apr 2012 00:18:35 +0000 http://cashmoneylife.com/?p=1826#comment-45952 Great stuff, Ryan. I would like to know your thoughts on Transamerica, if you are familiar? I'm considering trying to move to Vanguard. I find it hard to find meaningful comparisons. Great stuff, Ryan. I would like to know your thoughts on Transamerica, if you are familiar?

I’m considering trying to move to Vanguard. I find it hard to find meaningful comparisons.

]]> By: Lynne http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-45921 Lynne Tue, 10 Apr 2012 02:20:24 +0000 http://cashmoneylife.com/?p=1826#comment-45921 I'm so glad I found this informative site - thank you! I have an employer 401k that I actively contribute the max to. I also have an IRA that is a compilation of various 401ks that I've rolled over during the years. The IRA is currently managed by someone at a brokerage firm. Basically, he hasn't touched it since I transferred it to him in 2007. Some of the money is invested in two mutual funds that I detest, and has managed to lose $12k so far. The advisor doesn't return my inquiries or e-mails, and has yet to move my money to better performing mutual funds. I realize that since the IRA is small, less than $100k, and since I'm not actively investing new money in it, that he's not particularly interested. However, I am very interested in the fact that I've lost $12k. I think I could do better than that myself. So, based on what I've read online, I'm seriously thinking of transferring the IRA to Scottrade, selecting my own mutual funds, and seeing how things go. At least I could make changes in a timely manner if needed. I'm unsure what type of fees or penalties I might incur by having an IRA that is not being actively contributed to. Your advice would be MOST APPRECIATED! I’m so glad I found this informative site – thank you!

I have an employer 401k that I actively contribute the max to. I also have an IRA that is a compilation of various 401ks that I’ve rolled over during the years. The IRA is currently managed by someone at a brokerage firm. Basically, he hasn’t touched it since I transferred it to him in 2007. Some of the money is invested in two mutual funds that I detest, and has managed to lose $12k so far. The advisor doesn’t return my inquiries or e-mails, and has yet to move my money to better performing mutual funds. I realize that since the IRA is small, less than $100k, and since I’m not actively investing new money in it, that he’s not particularly interested. However, I am very interested in the fact that I’ve lost $12k. I think I could do better than that myself. So, based on what I’ve read online, I’m seriously thinking of transferring the IRA to Scottrade, selecting my own mutual funds, and seeing how things go. At least I could make changes in a timely manner if needed. I’m unsure what type of fees or penalties I might incur by having an IRA that is not being actively contributed to. Your advice would be MOST APPRECIATED!

]]> By: Christine Sakariasen http://cashmoneylife.com/where-to-open-a-roth-ira-account/#comment-45718 Christine Sakariasen Mon, 12 Mar 2012 04:55:51 +0000 http://cashmoneylife.com/?p=1826#comment-45718 Thank you for all of the information and for responding to the questions asked. Thank you for all of the information and for responding to the questions asked.

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