Where can I start a ROTH IRA?

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ballmode

Lifer
Aug 17, 2005
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I know the differences between a traditional and Roth IRA and like the fact Roth is tax free on withdrawals. Traditional IRA's are tax deductible but you get taxed when you withdraw...


anyways do I just go to my local bank to get this set up? I've gone on their website and see only rates for Traditional Ira's...

so confused as I have never done this before.

EDIT:

36 Month Flex Rate 36 $5000.00 3.93% 4.00%
12 Month Certificate 12 $500.00 3.74% 3.80%
18 Month Certficate 18 $500.00 3.35% 3.40%
2 Year Certificate 24 $500.00 3.40% 3.45%
3 Year Certificate 36 $500.00 3.54% 3.60%
4 Year Certificate 48 $500.00 3.59% 3.65%
5 Year Certificate 60 $500.00 3.74% 3.80%
18 Month Money Market Cert 18 $0.00 2.96% 3.00%
IRA Subshare N/A $0.00 2.72% 2.75%


EDIT #2:

Fidelity has a minimum of $2500
Vanguard will charge 0.021% a year + $20 dollar fees + if I transfer money I get charged too.

I think the bank with the rates in EDIT#1 is the best choice for me since they will start at $500 and don't charge me.
 
Fingolfin269

Fingolfin269

Lifer
Feb 28, 2003
17,948
34
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I believe you can start one with your local Edward Jones for less than that. Could be wrong.

Just to piggyback on your thread a little (if you don't mind!) is it still considered best to fund your traditional IRA up to the point where your employer matches, then fund the roth until you hit your max, then go back to the traditional?
 
O

Orsorum

Lifer
Dec 26, 2001
27,631
5
81
Originally posted by: Fingolfin269
I believe you can start one with your local Edward Jones for less than that. Could be wrong.

Just to piggyback on your thread a little (if you don't mind!) is it still considered best to fund your traditional IRA up to the point where your employer matches, then fund the roth until you hit your max, then go back to the traditional?
Click to expand...


You're thinking of a 401(k). Yes, conventional wisdom is fund your 401(k) up to the limit of your employer match, then fund your IRA/Roth IRA to its limit, then back to the 401(k) up to its limit.

Tax-advantaged accounts for the win!
 
B

ballmode

Lifer
Aug 17, 2005
10,246
2
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My local credit union says you can start a traditional IRA for 500 bucks. I'm starting a Roth IRA to see if that minimum is the same as well.
 
Fingolfin269

Fingolfin269

Lifer
Feb 28, 2003
17,948
34
91
Originally posted by: Orsorum
Originally posted by: Fingolfin269
I believe you can start one with your local Edward Jones for less than that. Could be wrong.

Just to piggyback on your thread a little (if you don't mind!) is it still considered best to fund your traditional IRA up to the point where your employer matches, then fund the roth until you hit your max, then go back to the traditional?
Click to expand...


You're thinking of a 401(k). Yes, conventional wisdom is fund your 401(k) up to the limit of your employer match, then fund your IRA/Roth IRA to its limit, then back to the 401(k) up to its limit.

Tax-advantaged accounts for the win!
Click to expand...

You're right. I got the term IRA in my head when responding. :) I've been funding my 401K up to match for about a year now and plan to move half of a recent raise into a Roth. Just checking to be sure this is still considered the sound way to go.
 
Capt Caveman

Capt Caveman

Lifer
Jan 30, 2005
34,543
651
126
Minimum's vary from place to place but almost all waive it if you set-up automatic monthly contributions.
 
T

TheTony

Golden Member
Jun 23, 2005
1,418
1
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If you ask around, the top recommendations, at least for a Roth, tend to be either Vanguard or Fidelity. It's hard to go wrong with either, but they do have their respective advantages.
 
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coaster831

Member
Feb 9, 2006
152
0
71
Put it in a high yield savings account and save a little more until you hit $1k, then you can invest in the Vanguard Star Fund with a $1k minimum. It's a good diversified starter fund (actually a fund of funds) if you can't hit the $3k minimum required for other funds.

Fidelity may have some options as well. Both of these companies offer excellent low expense ratio index funds that you can move into as your account grows.
 
B

ballmode

Lifer
Aug 17, 2005
10,246
2
0
Vanguard has fees for accounts less than 10,000. Maybe I'm better to save it up at my bank till I get over the amounts where they don't charge fees on.
 
B

ballmode

Lifer
Aug 17, 2005
10,246
2
0
OK... just checked Fidelity... $2500 minimum to start. My local bank is looking like the winner right now for the fresh out of college grad.
 
D

Dacalo

Diamond Member
Mar 31, 2000
8,778
4
76
Go with Fidelity, only $200 per month minimum until you hit $2500. Then you can stop if you want.

It's called SimpleStart, no need for $2500 up front. I am doing it now and it's really easy.

Link
 
S

Special K

Diamond Member
Jun 18, 2000
7,098
0
76
Originally posted by: ballmode
OK... just checked Fidelity... $2500 minimum to start. My local bank is looking like the winner right now for the fresh out of college grad.
Click to expand...

I would pay close attention to your bank's fees and expense ratios for whatever funds they allow you to purchase for your Roth IRA. Vanguard is known for having some of, if not the lowest expense ratios in the mutual fund industry. It won't do you a lot of good if the bank allows you to open with a smaller initial deposit but takes a much larger chunk of your investment away in the form of fees and loads.
 
Safeway

Safeway

Lifer
Jun 22, 2004
12,075
11
81
Originally posted by: ballmode
Vanguard has fees for accounts less than 10,000. Maybe I'm better to save it up at my bank till I get over the amounts where they don't charge fees on.
Click to expand...

Oh, right. I never paid those fees. :beer:
 
C

coaster831

Member
Feb 9, 2006
152
0
71
Originally posted by: ballmode
Vanguard has fees for accounts less than 10,000. Maybe I'm better to save it up at my bank till I get over the amounts where they don't charge fees on.
Click to expand...

Vanguard waives the fee if you sign up for electronic statements (i.e. sign up for their "e-service" package):
<a target=_blank class=ftalternatingbarlinklarge href="https://personal.vanguard.com/...IRAAcctFeesContent.jsp"><a target=_blank class=ftalternatingbarlinklarge href="https://personal.vanguard.com/us/accounttypes/retirement/ATSRothIRAAcctFeesContent.jsp">https://personal.vanguar.........eesContent.jsp</a></a>

Edit: considering you're starting with $500 and can't seem to contribute more right now- do you have an emergency fund in place? Like a regular savings account? If not, I would skip the Roth and start there.
 
S

Special K

Diamond Member
Jun 18, 2000
7,098
0
76
Originally posted by: ballmode
Vanguard has fees for accounts less than 10,000. Maybe I'm better to save it up at my bank till I get over the amounts where they don't charge fees on.
Click to expand...

I'm pretty sure those fees are waived if you agree to receive electronic statements instead of snail-mail statements.
 
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