Roth IRA-Who is the best?

dangerranger

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I'm looking into opening a ROTH IRA account, but I don't know who to pick. Any of you familiar with eTrade, Vanguard, Stock Trade or T-Rowe Price. I've been told T-Rowe price is pretty good.

Also, how does this accounts work with the money you put in, in terms of investments and bonds? Any help would be appreciated
 

wheywhey

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Your choices make it appear that you plan to trade stocks. I would not do that because the questions you are asking about a Roth IRA would suggest that you aren't qualified to pick and trade stocks. ETFs have annual fees and trading costs, so a mutual fund would be your best bet.

When I did my research years ago, Vanguard was the least expensive for mutual funds. I don't trade stocks so I don't know about trading fees. You can make virtually any type of investment in an IRA. A Roth IRA simply shields you from paying any taxes on gains. (It also prevents you from declaring a loss.)

I recommend people have just one mutual fund in their Roth IRA. That's plenty diversity. I think the max investment for someone under 50 is $5,500. If you have more to invest, get a taxable mutual fund. The Total Stock Market and the S&P 500 funds are low turnover and incur minimal taxes. A tax-managed fund is also an option. One mutual fund in a Roth and one taxable fund plus an emergency fund should do it.

Check out books at the library on personal finance. The one mutual fund in the IRA is advice I got from John Bogle, the founder of Vanguard. I need to warn you his books are boring. Eric Tyson, Personal Finance for Dummies, is good. Just read a wide range of authors. Peter Lynch writes about picking stocks.
 

dangerranger

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I'm looking into investing. I've read that index funds is the best way to go if you are in it for long haul opposed to looking for individual stocks to invest and try
to make it big.
 
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