I dont have much money saved up but would like to open a Roth IRA. I would like to make monthly contributions to an account. Is this possible and what is the best way to do this?
Pearl
What is a good cheap IRA?
I dont have much money saved up but would like to open a Roth IRA. I would like to make monthly contributions to an account. Is this possible and what is the best way to do this?
Pearl
{ 2 comments… read them below or add one }
Micheal
If you are just looking to save money this way I would probably go to your bank. They can help you set this up. If you are looking for a potentially better return then a bank savings or money market, there are several online companies that have good low cost IRA options with a wide selection of mutual funds. Scottrade, TD Ameritrade, E-Trade are all good choices.
Bruce
I am not certain what your definition of not much money is. If you have less than about $2000, I recommend American Funds. They have an excellent selection of mutual funds to choose from. You can open an account with $250 and add $25 at a time. Now there is a slight catch. The compay’s funds have a front end load of about 5.75%–a sales charge. But as a offset, they also have very low expenses for a mutual fund. Besides the funds with the 5.75% sales charge, there are other plans available without the sales charge, but they have higher expenses as an offset. For long term investors, the 5.75% sales charge is the least expensive.
If you have more than $2000 to invest, there are many no load mutual funds available to you. Fidelity is an excellent company, but I do believe their minimum is $2500 with $250 minimum additions. If these minimums are greater than you can live with American Funds is an excellent source for your IRA.
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