Which financial institution is currently the best for retirement accounts?
November 18th, 2008 | by admin |ireallyhatetoregister asked:
I want to identify the best financial institution for opening a Roth IRA. It must have quality mutual funds with no load or transactions fees. I want to make monthly payments (~$200) and have that money immediately converted to shares of the mutual fund that I choose. So far, Fidelity and Charles Schwab will allow automatic monthly payments. Unfortunately, Chuck requires that the minimum for the mutual funds (usually $1000) is met before automatic purchases of a fund can be completed monthly. Fidelity will lower $2500 minimums to $300. Does anyone have experience with these financial institutions or another with a better policy?
Vanguard can setup an automatic investment of $50 but you have to meet the $3000 minimum first to even open an account. While T. Rowe Price will also setup a $50 automatic investment with no minimum meaning the $50 can be immediately invested. The problems is that you are limited to T. Rowe Price Funds only (no stocks, no ETFs, etc.). So far Fidelity seems the best overall option with no clear cut winner.
I want to identify the best financial institution for opening a Roth IRA. It must have quality mutual funds with no load or transactions fees. I want to make monthly payments (~$200) and have that money immediately converted to shares of the mutual fund that I choose. So far, Fidelity and Charles Schwab will allow automatic monthly payments. Unfortunately, Chuck requires that the minimum for the mutual funds (usually $1000) is met before automatic purchases of a fund can be completed monthly. Fidelity will lower $2500 minimums to $300. Does anyone have experience with these financial institutions or another with a better policy?
Vanguard can setup an automatic investment of $50 but you have to meet the $3000 minimum first to even open an account. While T. Rowe Price will also setup a $50 automatic investment with no minimum meaning the $50 can be immediately invested. The problems is that you are limited to T. Rowe Price Funds only (no stocks, no ETFs, etc.). So far Fidelity seems the best overall option with no clear cut winner.
3 Responses to “Which financial institution is currently the best for retirement accounts?”
By Yardbird on Nov 18, 2008 | Reply
For mutual funds, I recommend Vanguard, hands down. They will automatically withdraw money from your checking or saving account on a monthly basis and deposit into mutual fund. Their funds have no transaction fees and the lowest operating fees.
By enoriverbend on Nov 21, 2008 | Reply
Fidelity is one of the best fund shops around, have a very good reputation, and they have an incredibly wide variety of funds.
I will also second the recommendation for Vanguard, which have a slight edge over Fidelity in keeping their customers needs first, and keeping overall fees low — in fact, it was largely Vanguard’s competition that forced Fidelity to lower many of their fees over the last few years.
As a mutual fund shop, you wouldn’t go wrong with either Vanguard or Fidelity, and I might also add T. Rowe Price in there as a close third. Note that I am not recommending each and every one of their long list of funds — if you have as many as Fidelity does, there will be a few turkeys in the flock. But overall as a fund company they are recommended.
By gosh137 on Nov 24, 2008 | Reply
T. Rowe Price has many great mutual funds and will allow you to start with only $50 if you agree to have at least $50 (The lowest minimum I have found) electronically taken out of your bank account each and every month until you reach their usual minimum of $2500 ($1000 for IRAs), so T. Rowe will gladly accept your $200 per month.