Rethink Your Rollover

roth ira providers

Question:  Which are the Best Roth IRA providers?

Hi. Who is a good provider for opening a roth ira with? Should I be looking at a bank or broker style place? Also, is it better to go with one that has certain funds to choose from, or one that you can buy any type of fund?

Thanks in advance for your help.

Answer: An online broker will give you the most flexibility.

Most will also buy mutual funds for you. There are 3 mutual fund companies that have a very wide selection of mutual funds and lower than most expense ratios: Fidelity, T Rowe Price, and Vanguard.

Fidelity and Vanguard also provide brokerage services. As the previous responder mentioned, the mutual fund companies do have a minimum, about $2500. Vanguard is $3000. I believe Vanguard also has an annual maintenace fee on low balances. Fidelity might also.

If I were just starting out with a Roth IRA, I would choose one of those mutual fund companies or Royce Funds, which is only small cap funds, not exactly appropriate for a first time investor. I would then choose one of the world allocation funds to begin with. Doesn’t hurt to be diversified.

Part 4 of Solo 401k vs. Self Directed IRA – UBIT exempt, Participant Loan, and Roth account

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