Your Best Options For Opening An IRA Online
It is never too early to begin saving for retirement. However, with an almost overwhelming number of options and investment firms all boasting the “best” rates and prices, how does one determine which places are really the best to open an IRA account with?
This article seeks to break down some of the cheapest, most top-rated financial institutions with which to open an IRA account, as well as describing some of their benefits and drawbacks.
E*Trade Financial Corporation
E*Trade Financial Corporation is one of the top-rated investment companies for opening an IRA. It is advantageous if you want to open a traditional IRA. To start, they take zero commissions and require no account minimum, so you can get started right away, even if you have limited funds.
All contributions are tax-deferred, meaning you won’t need to pay taxes on the money until you begin to withdraw it. They are also all tax-deductible, of course, depending on your income. They offer $6,000 in annual contributions up to the age of 60.
One of the other things that make E*Trade so attractive is that you can withdraw assets penalty-free at any time under the age of 60 for qualifying purchases. These purchases may include purchasing a first home, paying for college, or use with qualifying medical bills.
One of Fidelity’s nicest benefits is that they offer zero-fee index funds for investments – and they are the first in the market to do so. This means that you’re offered a zero minimum investment, no account minimums, and no account fees.
They also offer some of the lowest costs anywhere in the market, although they only offer four fund options. Fidelity Investments is one of the most attractive IRA options, boasting no annual fees, incredibly competitive prices, and 24/7 access to advice and financial planning.
SoFi Automated Investments
SoFi Automated Investing nears the top of this list because it has an incredibly streamlined, user-friendly interface. It is perfect for those who do not want to go through a physical broker and instead prefer hands-off investing.
Through the app, you can create and manage your investment portfolio as well as your IRA account. In fact, the app will actually create and manage your accounts for you if you so prefer. This is an attractive option for those with little financial experience and a tighter budget, as they also offer a 0% management fee, free career counseling, and loan discounts.
Vanguard has, for a long time, been one of the leaders in low-cost investing. However, their IRA requires a $1,000 minimum investment, which is why this one is lower down on the list than the others.
They have a long history of lowering investment costs while also allowing investors to have partial ownership in their investing. They boast 82% lower expense ratios than the average.
They have a $6,000 annual investment limit, but that increases to $7,000 after you reach 50. They also offer other investment opportunities in addition to their IRA accounts.
Although Ellevest takes a $1-$9 monthly commission, it still makes this list of top-rated firms. It is geared primarily towards women and seeks to improve women’s financial lives as they near retirement age.
Like the above-listed firms, Ellevest does not require any minimum deposit, meaning you can get started with them whenever you’d like. Ellevest makes it easy to consolidate your various retirement accounts, including rollover IRAs from retirement plans created by employers.
They make projections and recommendations based on your position, creating goals for you to meet each month to meet the recommended retirement amount.
Betterment is also “better” known for its hands-off investing, as it is well-known for being the first robot advising system and currently being the largest. You can get personalized advice based on your lifestyle; you enter a bunch of personal information, and they will create an investment portfolio for you.
They can also help you set retirement goals and walk you through the steps you’ll need to take each month to meet those goals. They also offer the opportunity to set up automated deposits into your retirement account, so you’ll be more likely to meet those goals without having to plan for them or think too much about them.
They are one of the best companies to offer hands-off investing while also utilizing research-based investing strategies to give you the biggest bang for your buck, so to speak.
In summary, various financial institutions offer many resources, benefits, and rates for you to make it easy to save for your retirement and invest in your future.
This is not an exhaustive list but is instead meant to introduce you to various opportunities and top-rated firms out there that are geared towards setting you up with your first IRA. No matter how young or old you are, it is never too early or too late to start investing.