I discuss six of the best places to open a Roth IRA based on high level criteria such as zero commission fees, zero minimums to open an account or buy securities, and low expense ratio fees, IMHO.
If you’re interested in learning about how to win at retirement investment accounts, check out my free detailed PDF guide!
These days it’s table stakes for many brokers to offer zero commission fees on security orders of stocks, index funds, ETFs, and more. If I were to open a new Roth IRA account, I would consider if this brokerage firm has good customer service, how easy is it to open and use the account on the website, how easy it is to transfer funds or roll over prior accounts, and if there are any account opening bonus offers.
There’s no one size fits all, there are pros and cons with every brokerage provider. I am a strong advocate of self-directed or hands-on accounts because I like having the freedom and choice to invest in any security just like Warren Buffett or Charlie Munger would do. Therefore, I am not as interested in roboadvisors but there is one I would recommend to some people if it makes sense for their goals.
None of this content is sponsored as I’m not endorsing any particular firm because I want you to feel empowered to choose what you think is right for you. Using different brokerages can also be trial and error, you may feel some account offerings are working out or you may decide to try out a different brokerage account to meet your needs.
As long as you are within the income limits, the most important thing is that you open a Roth IRA and are actively contributing as much as you can every year to your Roth IRA. Contribution limits if you’re under 50 are $6K/year and if you’re over 50 are $7K a year.
The earlier you are able to contribute to this tax-advantaged retirement account, the sooner you may be able to invest and take advantage of the power of compounding your retirement savings. Check out this video to learn more about compounding.
It’s important to only pay the fees for the appropriate amount of value you are getting. If you’re interested in investing in index funds, I suggest looking for funds that have the lowest expense ratio fees. Watch this video about how to minimize expense ratio fees.
The six brokerage accounts I cover include:
I summarize this eclectic group of Roth IRA brokerage accounts with my #1 Pro and #1 Con for each of these account types based on what I have either experienced or observed.
If you’re interested in taking the next step and learning how to invest, I encourage you to watch my How To Invest: Getting Started for Beginners video where I show you how to buy a stock using the Fidelity example and how you can set up a good foundation for becoming an investor. Check out the video here.
I look forward to making more investor friends! Add me on Instagram: michellemarki!