Roth IRAs have become extremely popular in the last decade, and it’s easy to see why! But the question is which one to choose? Here are the best options if you’re looking for a Roth IRA.
TD Ameritrade Roth IRA
TD Ameritrade is a Roth IRA for beginner investors. It has no minimum investment required and allows you to open an account with only $100, which makes it easy for people with small savings to get started. Even though its website isn’t as flashy as other options, it’s easy to use and doesn’t require any additional software downloads or downloads from third-party vendors.
How to set up a Roth IRA? Setting up a Roth IRA with TD Ameritrade is also a straightforward process. Just go through the steps of opening an account and verifying your identity, then choose how much money you want to invest in your Roth IRA each month (or year). The site will help you calculate what percentage of your income should be invested in order to avoid penalties from the IRS when withdrawing funds later on down the road. However, if you’re still unsure about this aspect, plenty of resources online explain why choosing a percentage is important when setting up retirement accounts like these!
Vanguard Roth IRA
If you’re looking for low-cost investments, Vanguard is a great option. The platform offers a variety of investment options and is available to investors in all 50 states.
Free trading means no commissions are charged when buying or selling stocks, ETFs, mutual funds or other securities on the platform. The only charge that applies is an annual account fee ($20) for accounts with less than $5,000 invested but more than $0 invested.
Vanguard has an extensive customer service team available by phone (1-877-662-7447), email ([email protected]), or live chat ([email protected]).
Financial planners like SoFi state, “You can open multiple IRA accounts.”
Betterment Roth IRA
Betterment is a Robo-advisor that offers a no-fee, low-cost and tax-free Roth IRA. Betterment’s advice is directed at those who don’t want to manage their investments on their own or have time for it. The robo-advice service uses algorithms to make investment decisions based on your goals and risk tolerance.
Betterment has an extensive list of investment options, including ETFs from Vanguard, iShares and others as well as individual stocks like Apple Inc., Tesla Inc., Starbucks Corp., Facebook Inc. and Alphabet Inc.. There are also portfolio allocation options if you need help deciding how to divide your money among asset classes such as U.S stocks, foreign stocks, bonds and real estate investment trusts (REITs).
M1 Finance Roth IRA
If you’re an experienced investor and would like to invest in individual stocks, M1 Finance Roth IRA is a good option. The company doesn’t have any minimum balance or account minimum requirements, so even if you only have a few hundred dollars to invest, it will allow you to open an account. However, unlike other options on this list, M1 Finance Roth IRA isn’t available in all states (it’s currently only available in Delaware).
Rightfully, the information you have presented here might have helped you decide on which of these Roth IRAs is right for you. If you still have questions (and who doesn’t?), don’t hesitate to do more research online!