Where To Open A Roth IRA (3 Best Places For New Investors)
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- Опубліковано 4 жов 2024
- ✅ Not sure how to invest? Find advisors here: penniesnotperf...
✅ Roth IRA rules found here: www.irs.gov/re...
✅ Roth Savings Challenge plans: shop.penniesno...
Opening a Roth IRA will make you a tax-free millionaire for just a couple hundred dollars a month.
Roth IRAs are incredible easy to open and offer powerful benefits to investors. But I get asked often where is the best place to open one? I'm covering three of my favorite options for option a Roth IRA in this video.
🏦 Vanguard: investor.vangu...
🏦 Vanguard Roth IRA Pros:
----- Very reputable financial company
----- Amazing low fee funds
----- High performing investment options
----- Lots of educational resources
----- Owned by the investors
🏦 Vanguard Roth IRA Cons:
----- Funds do have fees even though they are very low
----- Some funds have higher minimums to purchase ($1,000-$3,000+)
----- UX (user experience) is dated and can be hard to figure out
----- Can't buy fractional shares of stocks or ETFs in Roth IRAs
🏦 Fidelity: www.fidelity.com/
🏦 Fidelity Roth IRA Pros:
----- Reputable company with good history
----- Platform is easier to use and better designed than Vanguard
----- Cheaper fees and lower minimums on many funds
----- Offers zero fee mutual fund options
----- Lots of educational resources to learn
----- Allows you to purchase fractional shares
----- Options for self-directed/DIY or advisor helps
🏦 Fidelity Roth IRA Cons:
----- Fees for advisor help are higher
🏦 M1 Finance: penniesnotperf... (affiliate link)
🏦 M1 Finance Roth IRA Pros:
----- Amazing robo-advisor technology
----- Easy to use and beautiful platform on web and app
----- No fees for investing
----- Easy rollovers (with bonuses for switching too)
----- Ability to purchase fractional shares
🏦 M1 Finance Roth IRA Cons:
----- Company is newer and was just founded in 2016
----- There is a $500 minimum to start
----- Now charges $3 per month under $10K balance
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**The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. Investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time. I am not a professional and this channel is for entertainment purposes only. Do your own research!!
*Affiliate links. I get commissions for purchases you make through links shown here. It doesn't affect your purchase in any way and the commissions help support this channel. I only recommend items I personally use and appreciate the opportunity to share.
✅ Not sure how to invest? Find advisors here: penniesnotperfection.com/nectarine
✅ Roth IRA rules found here: www.irs.gov/retirement-plans/roth-iras
✅ Roth Savings Challenge plans: shop.penniesnotperfection.com/products/roth-ira-challenges-printable
When I was in my early 20's, my grandmother had me open a Vanguard account, and I've been a client ever since! Their low expense ratios can't be beat!
Love this!
Can you buy VTI with fidelity?
Just got my first full time job. I started contributing to my 401k and max my ira this year. SO worth it
So excited for you!
Roth IRAs are AMAZING! Just buy & hold passively managed index funds and ETFs within one and you are golden 💪🏻
Yessssss!!
My Fidelity Roth is invested completely in the 500 index fund. Invest invest invest and leave it alone. 👍🏻✌🏻
You are the reason I started a M1 and Roth account 2-3 years ago. I haven't put as much as I should into it but every little bit helps.
The best reason to invest money in Vanguard & Fidelity ira is they have the highest interest 4.75-5 percent.why everyone go around the bush.
We love Fidelity! ❤️
Fidelity really is amazing!
I have my Roth in M1, but I love fidelity too!🙌🏻🔥
You are always my example of someone happy with the M1 Finance Roth IRA experience!
What is M1
What about the dividends from the Roth IRA, are they also tax free? How do you reinvest the dividends from a Roth IRA?
I love Vanguard. Great video, thank you!
Me too! Thank you!
I hope this grows into an evergreen video for you 🌱🌲
Thanks! It is definitely where I will point people because I get ask this often!
100% Fidelity all the time
They are amazing!
Great video … you’re a great teacher!
Thank you!
2022 - I really do need to make opening a backdoor ira a for real for real goal
Im a college student just learning about ROTH IRA. Its seems like the idea is not how much you invest into the fund but to start doing it as soon as possible because it takes time for the money to compound? I cant decide between Vanguard and fidelity haha
Yess! Exactly! If you start at your age you’ll do well.
Hi! Did you choose between the two??
@@christianaburkhalter either one is fine. I ended up using Sofi because it has the stock market feature and their bank accounts dont have monthly fees.
My biggest question is can I open multiple Roth IRA accounts under different companies (1 with Fidelity, 1 with M1Finance) ect? I want to be diverse with my investments to make sure I am taken care of in the future.
Yes you can but your limit is still whatever the limit is for the year. So for 2023 you could do $3,000 at fidelity and $3,500 at m1.
Also having accounts at different places isn’t diversifying investments… that’s more about the investments you choose like particular index funds or stocks or bonds etc.
@@PenniesNotPerfectionthat for explaining that.
@@PenniesNotPerfectionso I can use vanguard for ETF Funds and say m1 fiancé for selecting single stocks?
Can you ope more than one Roth IRA through different investors or different banks or companies?
One thing that should be mentioned is the closing fees. Unlike a normal brokerage account where closing an account is usually free, IRA's are usually $75 -100 to close. Even the ones you mention have closing fees, so it sort of important who you go with as its expensive to switch.
True. Definitely didn’t go into every possible detail as I wanted to keep the video on the shorter side but I will do a full comparison on my blog soon. I did show the screen that shows the fee for transferring away from M1 Finance ($100). Vanguard does not charge a fee to close a Roth IRA and Fidelity is $50.
Thank you thank you thank you!! For this video!(:
I get this question soooo often! I’m happy to finally answer it!
I’m catching up on all of your videos tonight 🙃 any tips on savings/investment accounts for children?
Awesome! I use a 529 Plan for college savings but otherwise I'm just trying to build our wealth so we can help them in the future.
Do you recommend going through a financial advisor if I'm not very knowledgeable about stocks, bond or mutual funds? I'm not sure I would know which areas to contribute.
Totally understand that... there is a lot to learn to feel confident. There are several options.
#1 you can research stocks and funds through websites that are reputable and have good info. I like investorpedia, nerd wallet, or even investor.gov where they explain different types of things you can buy as an investment.
#2 Whereever you open an account they likely have robo-advisors that are basically just systems that purchase investments based on the input you give them like age and risk tolerance. You can always start with one of these and adjust as you learn more.
#3 A similar thing to the above where the work is done for you but for free is buying a target date fund where the fund itself is made up of investments tailored to you based on what year you want to retire. This is actually how I started - my first investment was a Vanguard Target Date fund!
#4 Go to a financial advisor but make sure you research these as well. Some people call themselves advisors but mainly just sell things you might not need or want. Find a financial advisor who is a fiduciary - this means they have a legal duty to act in your best financial interests. They are paid a fee by you and are not paid by commission by selling you products.
Hope that helps! :)
After doing some research I’ve decided to recommend this course on investing in index funds (how I invest): courses.personalfinanceclub.com/courses/build-wealth-by-investing-in-index-funds?ref=2614bd
It’s the most affordable but thorough option I’ve found with good information.
How about Merrill at Bank of America ?
timing is crazy, I never knew what a roth ira was until today... ah... barely considering saving money now
Well then this is excellent timing! It’s a great tool to build financial security for your future. I hope you can use it in your life!
Whats the max amount of money you can put in to start a roth ira
For people who don’t have money but to open an account how much can they start with?
You can start with just a few dollars to open an account. There is no minimum. Some investments like certain mutual funds/index funds might have a minimum to purchase them but just opening an account you can start with whatever you have. Starting small is ok!
What’s a Roth ra?
Does the Roth Ria only works for retirement, or can you open an account for your kids college ?
Roth is a retirement account. There are other account types you can open for saving for kids college!
I tried fidelity but they already have an account for me through my old job. They say cant open another account without closing that.
You should be able to open a Roth IRA even if you had a 401k or similar at an old job. You can have multiple types of accounts at one brokerage. But if you have issues the others are good too!
Thank you. I will check again because I really like fidelity.
im trying to open an Roth IRA for my daughter she’s 15. is it a good idea? My teacher told me I should of done this a long time ago so she can be a millionaire before she is 40. or something. I haven’t been in school for over 20 years. so its foggy.
She has to have earned income to do one. Did she have a job this year? Once she starts earning money and files a tax return it’s a great idea to start! The teacher was probably referring to a different account type since you have to earn income to use a Roth IRA.
May I ask the rule for 50+ is 7500/ year per financial brokerage?? Or the total every financial??
$7,500 per *year*
Per year total no matter how many places you split it up at.
@@PenniesNotPerfection thank you so much.
Can I open both vanguard and fidelity
Yes! You just can’t exceed the max in a year between all accounts.
I have roth ira an quit my job. Can i open a roth with vangaurd an roll over my roth into it
Did you mean Roth 401k? And yes you can always rollover to an account at Vanguard. They make it pretty simple and have good customer service if you have an issue.
@@PenniesNotPerfection thanks!
Can you talk about Backdoor IRAs for those who may not qualify for a Roth?
I can definitely do that soon!
Yes please share this video
Do they charge any fees?
I'll link info on fees below, but none charge to open an account. Some have account management fees depending on what type you select. And based on what investments you pick those could have fees, so it's hard to answer the broad question!
Vanguard: investor.vanguard.com/client-benefits/account-fees
M1 Finance: m1.com/legal/disclosures/miscellaneous-fees/
Fidelity: www.fidelity.com/retirement-ira/roth-ira
I’m looking between Fidelity and M1. My 401k from my old job was already with Fidelity. Would you say Fidelity’s website and interface is way far behind M1?
Not at all. They don’t have some of the M1 functionality like pies but I think if you’re already happy and have used Fidelity before it’s a great choice. They also have some features and planning tools as well.