Best Roth IRA

Best Roth IRA

It is very important that you save for your retirement. If you are considering this option, the best investment option to go in for is the Roth Investment Retirement Account (IRA). This option has long-term tax benefits for investors. With Roth IRA, you will not pay tax on the money when you need to withdraw it.

Although Roth IRA is a good retirement investment option, some accounts have better features in comparison to others. You will need to compare these features before signing up for a Roth IRA. We have compiled a list of the best Roth IRAs on the market. We looked at their features and reviews from people who already have accounts with these institutions.

Below are the best Roth IRAs. Check them out.

  1.    TD Ameritrade

If you want to have total control over your Roth IRA, TD Ameritrade is a good option for you. Experienced investors will have the option of choosing between mutual funds, ETFs, bonds, CDs, and stocks.

You can also get annuities from a third-party through your Roth IRA. The good thing with Ameritrade is that you are not limited to IRAs and stock trading. You will have access to several other types of accounts including 401 (k) rollovers, online banking, and day trading accounts.

If you need more information on investment products, TD Ameritrade will provide all the education you need. They have on-demand videos, calculators, investment research and several other educational tools. Even if you want to talk to an expert about an investment package, you can visit your local branch and an investment expert will take you through. If you are looking for a low-cost structure, TD Ameritrade is a good option.

There is no Roth IRA opening fee and you will not pay maintenance fees as well. There are also several commission-free mutual funds. So if you want to diversify your investments you can access these low-cost investments.

The commissions on online trades are only $6.95 for EFTs and stocks. TD Ameritrade will allow you to automatically reinvest your dividends. With Ameritrade, you can use the Income Estimator Tool to check dividends and interests for the next 12 months.

  1.    Merrill Edge

This institution provides a good tool when you are investing toward a goal or when you are investing in your retirement. They provide a personalized investment portfolio for all customers. This helps them to meet their goal faster.

Customers will also get access to their asset allocations and they can also see the progress made towards the achievement of their goals. You can also get more information about a particular Merrill Edge holding using their Stock Story Feature. This will also give you a detailed report on the firm’s Environmental, Social and Governmental (ESG) ratings. You can access your investment through their mobile app and this has made it more convenient to check your investments.

Merrill Edge gives you two options for investment. You can opt to do it yourself with very little help from the firm or you can opt for the guided investing. Here, you will get access to Merrill Edge’s robo-advisor. Irrespective of the option you choose, several types of investments will be available to you.

You can also choose to do your investments with an advisor you trust. If you are a beginner and you need advice from the experts, you can opt for this. This is a good option if you want to learn about your investments.

The payment structure is also transparent. You will know exactly how much you will be paying for the services you opt for. Merrill Edge’s account minimum is $0 and you can earn up to $600 in qualifying bonuses on your deposits. The commission per trade is $6.95. Another reason why you should consider Merrill Edge is their excellent customer service.

  1.    Vanguard

This institution has been around long enough to prove that it is one of the best options. The online account is also easy to navigate. They also have competitive expense ratios on some of their index mutual funds.

Their fee structure is also clear and you will have no problem understanding it. With Vanguard, there is less risk since the diversification is broader. The asset mix is well managed by professionals who know exactly what they are doing.

The fees for Roth IRA is $0 if you use the electronic statements and confirmations. If you do not use the electronic statements and confirmations, the charge is $20. The minimum investment required for Starter mutual funds is $1,000.

It is, however, $3,000 for other funds. You will need to make a minimum subsequent investment that ranges from $100 to $1,000. If you make an investment via an electronic medium, the minimum investment is $1.

If you are a newbie investor, Vanguard is a good option because the company can make decisions on your investment for you. That means that if you have no idea about the portfolios, their experts will explain them to you but if you want them to help you choose an investment package, they will gladly help you.

They will carefully present all the options to experienced investors so that they can make informed decisions. If you want to make an investment and forget all about until you actually need it, this is one of the best options since the firm has put proper investment management systems in place.

  1.    Charles Schwab

Almost all customers who have accounts with the firm strongly recommend them simply because their services are great. If you are looking for a good Roth IRA, it is always encouraging to see people recommending the ones they are using since it is very difficult finding a good Roth IRA.

You will need a minimum of $1,000 to open an account. Fortunately, there is no maintenance fee or account opening fee. It is also very easy to open a Charles Schwab account. You will only need your license, social security information, beneficiary information, employer information, and recent bank statement to open the account.

You will only need to make the initial deposit and then leave the rest the Charles Schwab.

Charles Schwab is great for beginners especially those who want to set up an automatic transfer. If you make a minimum automatic transfer of $100, The $1,000 initial minimum deposit will be waived. There are also lots of educational tools for people who do not know how to go about their investments.

Charles Schwab also offers excellent customer service. If you are a beginner and you have doubts about the product, you can always contact them. They offer 24/7 customer service; you can contact them at any time and they will be there to help you out.

You can reach out to them through their online chat platform and all your inquiries will be professionally handled. This firm also has several branches and you can walk into any of them to sort out any issue. They also organize workshops at branches.

This is to help customers understand their product more. There are lots of incentives for experienced investors as well.

Charles Schwab offers a wide range of investment options. Another thing that is worth checking out when you check out Charles Schwab is the Retirement Income Quiz.

This quiz will help you to know the areas you should study further. With Charles Schwab, more than 200 ETFs can be traded and the trader will not incur transaction fees. The commission per trade is $4.95 and you can earn $100 as a new client.

  1.    Wealthfront

This is one of the top robo-advisors in the market. This firm boasts of $10 billion in assets alone. Wealthfront presents attractive investment packages with smart and easy-to-use features. They have an app that helps you to easily keep track of your account.

They will use your financial information to draw a plan that meets your goals. The good thing is that you can adjust the plan if you need to. Wealthfront does not limit you to Roth IRA. You will have other options including traditional investing and 401 (k) rollover.

You can choose to have a combination of these. If you were referred to Wealthfront and you have a low balance (less than $5,000) you will enjoy free trades. This does not end there. If you refer any family or friend, that person’s account will also be managed for free.

If you need a completely hands-off account, Wealthfront has a good offer for you. They will use your goals to set up a fixed group of investments for you. They will then automate their services and your account will be well managed without little or no interference from your end.

The good thing is that they do not charge commissions so even if you leave your account for a long time, you will not need to worry about commission deductions. Are you worried about the amount to invest? You do not need to worry when you are dealing with Wealthfront; this firm will help you to decide on the amount to invest to reach your goals.

The minimum for opening an account is $500 and there is a fixed 0.25% per trade on balances that are more than $5,000.

  1.    Betterment

Betterment has brought all the right innovations to the industry. They have systems that take care of diversification and rebalancing. With Betterment, most of the hard work is automatically handled. The system catches these things fast and no time will be wasted when it comes to helping you make more money.

They will automatically reinvest your dividend to make more money for you. If you are not willing to purchase full shares, you can make transactions based on the exact dollar amount. The minimum for opening an account is $0. The fees for average expense ETFs ratio is 0.20%. You will also pay a management fee that ranges from 0.30% to 0.90% depending on your balance.

This pricing model beats what is offered by several other firms. If you want to do a lot of investing yourself and have full control over your investments, this is a good option for you. Betterment is able to offer you top-notch services while managing to charge low fees.

Their platform is very easy to use even for newbie investors. There are a variety of tools to enhance your trading.

  1.    Ally

Ally Invest was formerly known as TradeKing. Ally is one of the top-rated online banks in the industry. If you are comfortable investing in a bank that does not operate from a physical location, you should definitely consider Ally Invest.

One advantage of investing in a reputable online investment firm is that you can earn more since the company does not need to bear the costs associated with brick and mortar operations. Ally’s commissions cost $4.95 per trade.

There is no minimum balance requirement when you hold a Roth IRA account. There are also no transaction fees. You do not need to worry about annual fees too. You will, however, pay a fee of $50 if you want to convert your account from a regular IRA to a Roth.

You will also be charged a $50 fee if you want to make transfers or if you want to terminate for distributions.

With All Invest, you will get access to several trading tools and they are for free. You can also get access to Maxit Tax Manager and a learning center. You will also have access to a community where investors will share useful tips with you.

Ally maintains a fixed rate so that you can predict your future earnings. Another thing that is worth mentioning is Ally’s reliable customer service. The firm operates a 24-hour customer service which makes it possible for you to reach out to them irrespective of the time or day.

  1.    E*Trade

This account is great for mobile traders. The minimum to open an IRA account is $0. E*Trade has several options for you to diversify your investment. There are ETFs, bonds, stocks, mutual funds, and several others.

Although, they offer a lot of services and it can be overwhelming sometimes, especially if you are a newbie. However, that is not a problem since E*Trade is a full-service brokerage. If you encounter any problem, you can always call them and someone will assist you.

The commission per stock trade is $6.95. You will access a wealth of information when you invest in E*Trade; there are several short videos in the planning section.

You can watch these videos to know exactly what you should be doing with your investments. If you want to track your account, E*Trade offers you an easy way to do that.

They have an app that includes all the retirement planning tools. You can trade 200 ETFs without incurring any commission. Unfortunately, their mutual fund does not have load charges. Opening an account often means, you may qualify for a promotion.

If you make a qualifying deposit, you can earn up to $600 in cash bonuses. You can also get 500 free trades for making a qualifying deposit. E*Trade is a good option for investors who are looking for retirement planning guidance.

  1.    Fidelity

Fidelity is a huge firm in the US with a total asset of $2 trillion. Since Fidelity is big, they prefer to deal with huge investments. If you want to make small investments, Fidelity is not for you. Of course, that does not mean that people wanting to make small investment are completely restricted from investing with them.

If you know your way around the investment market and you have enough knowledge on the investment plans you are considering, you can go ahead and invest with them.

If you have a huge account balance and you are a sophisticated investor, this is just right for you. Fidelity provides some top-notch features that other Roth IRAs cannot provide. One of these features is your ability to link accounts of your immediate family.

This makes it easier for you to monitor your family finances. You can also link your day-to-day budgeting with your retirement. With fidelity, you can have access to several commission-free mutual funds. These are not in-house options only, there are also options from other firms. These are made available through Fidelity’s unlimited external relations.

Fidelity has several tools to help you to make the right decision. They have a mutual screening tool that helps you to identify the best investment for your portfolio. This considers your balance and your goals in helping you make a decision.

The Fidelity Research Center also offers lots of insights into IPOs. Through their educational resources, you can learn about lots of topics including retirement, building savings, managing and growing wealth, investing with an IRA, and financial basics.

Their apps are effective on both Apple and Android devices. The app is simple and easy to use. You can access accounts, cards for notification, watch lists, news feeds, and transaction options.

There is no minimum initial deposit for most accounts, however, some mutual fund accounts have a minimum initial deposit of $2,500. The good thing is that Fidelity’s Roth IRA is free. They charge a $4.95 commission on American based equity trades.

  1.    T. Rowe Price

This firm is one of the best mutual funds firms for IRAs. One of the reasons why this firm is appearing on this list is because they have a lower expense ratio. If you maintain a minimum balance of $10,000 you will not pay annual fees.

You will need a minimum of $1,000 to open an IRA account. If you need to make additional contributions, it should be at least $100. You will pay a $20 account fee for IRA if your balance is less than $10,000.

If you have a huge investment, you can definitely go with T. Rowe because you will not need to worry about annual fees.


Reasons Why You Should Get a Roth IRA

Roth IRA comes with many benefits and these ones are common to everyone who holds a Roth IRA account.

1.    You can withdraw your Roth IRA contributions at any time and you will not pay a penalty. Although you cannot withdraw your earnings before your retirement date, you can actually withdraw part of your contributions if you really need it.

You will not be penalized for it. However, that part of the contribution will not reap any earnings for you. The most important thing is that the cash is available to you whenever you need. If you need cash for a medical emergency or an unexpected debt, you are assured of this money.

2.    You can continue your contributions even when you are beyond your retirement age

Some retirement accounts require that you stop contributing when you are 70 and a half years old. There is nothing like that with Roth IRA. If you are earning an income and you want to keep contributing to your account, there are no restrictions on that.

3.    It can become a tax-free inheritance for your heirs

If your heirs inherit your account, they will not pay taxes on it. This means that Roth IRA is a good alternative for people who are worried about the tax that their heirs will pay on inheritances they leave to them.

4.    You will not need to take required minimum distributions.

Most retirement accounts have this requirement; you will need to take a required minimum distribution when you are 70 and a half years old. With Roth IRA, you do not need to worry about that.

5.    You will not pay tax on your withdrawals

This is one of the most important reasons why you should get a Roth IRA. Your cash will be intact and you will not be paying tax on your retirement funds.


In conclusion, there are is no Roth IRA that meets the needs of every individual. The most important thing is that you get an account that meets your demands.

The best Roth IRA is the one that works for you. If you are choosing one, you should consider the weight of your investment, the fees charged by firms, the cost of commission per trade, and the investment tools.


Copyright © 2019 | All Rights Reserved