Need more advice about ROTH IRA account opening?

[savingdealz]

I am 25 years old, living in California. Many people told me that I should open a ROTH IRA account. However, I dont know anything about ROTH IRA. I am sure I will open ROTH IRA (not traditional ROTH). In addition, I am a newbie for ROTH IRA. I have searched many sites, however, I still dont know what companies do I need to open. Like Vanguard and Fidelity, Charles Schwab, scottrade, t rowe price, American Funds

Because I am very new to Roth IRA, so I like account that I can practice. I dont like any fees, I dont like any requirements that need to put a lot of money in it every month. In other words, I can decide how much I want to put. Right now, I am still in college, I earn about 600$ a month with a part time job. That is the reason I dont want to put more money in roth IRA.

Anybody helps me about this information please?
Thank you so much!

[fruitbowlk]

This is infor from Suze Orman.

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Where to Open a Roth IRA Account

Alrighty, you're sold on what a great investment a Roth IRA is, but now you're stuck on how to open a Roth account.

Relax. It's a snap.

Remember, as I explain in the book ( see p. 192) a Roth is simply a type of account. You open a Roth IRA account at a discount brokerage or a no load mutual fund company. Notice I said discount brokerage and no-load fund company. Saving on the cost of investing is one of the most effective ways of making money. So I don't want you using a full-service brokerage, or paying a sales load on a mutual fund.

When you set up a Roth IRA account you must choose a specific investment for that Roth. It can be any combination of stocks, or funds. My advice is to keep it simple and simply opt for a no load index fund. With an index fund you get a broad investment in hundreds, if not thousands, of stocks. That's a great one-stop way to get stock diversification. Or you can use an Exchange Traded Fund, which works just like an index fund but offers you a bit more flexibility. Just remember that you don't want to be making too many periodic investments with an ETF because you will need to pay a brokerage commission with each purchase. (No load funds don't charge a commission.) For more info on funds and ETFs, click here.


You can call up any discount brokerage or no load mutual fund company-or head to their website)-and get the application to open a Roth IRA. Below is contact info.

The one catch here is that there are typically initial minimums you must fork over to open an account. The good news is that brokerages and fund companies lower those minimums for IRA accounts, so they can be as little as $500-$1,000, or so. But also check if you will get dinged for any annual account maintenance fees.



Now if you don't have $1,000 ready to invest, don't give up. Ask the brokerage or fund company if you can qualify for an even lower initial minimum investment if you agree to make ongoing investments, rather than one lump-sum investment. For example, at the T. Rowe Price no-load fund company, the typical Roth IRA minimum is $1,000. But if you sign up for the Systematic Purchase account, where you agree to make an investment every month your minimum drops to just $50. That's YF&B friendly if you ask me.

NO LOAD MUTUAL FUND COMPANIES



NO LOAD FUND COMPANY TELEPHONE
Fidelity 800-343-3548
T. Rowe Price 800-225-5132
Vanguard 877-662-7447
DISCOUNT BROKERAGE TELEPHONE
Ameritrade 800-343-3548
Sharebuilder 866-747-2537
Muriel Siebert 800-872-0711

[jIM_Ohio]

I would open a Roth IRA. If you do not like frequent investments ($50 once per month) your choices might be more limited.

T Rowe Price waives account minimums if you contribute $50/month (as automated withdraw). This requirement persists until account has $5000. If you do not contribute $50/month, you are required to invest a minimum of $1000 the first time you invest, with minimum additional deposits of $100.

The minimums at Vanguard will be higher, I believe.

clarification- you want to open an IRA which is a Roth IRA. There is also a deductable traditional IRA which you alluded to in post but used the wrong terminology.

[LuxLiving]

savingdealz,

ingdirect.com has a way to start a Roth IRA - this is what I used to start my boys out with while they were yet teens and IF I remember correctly there were no minimums that had to be automated (this may have changed since they had their's there). Once they had a good little amount in there we transfered to Fidelity.

ING DIRECT Orange Retirement Accounts - IRAs - Investing Basics

[FrugalIII]

I opened my Roth IRA accounts a few years ago with T.Rowe Price. They have an automatic asset builder plan where you can contribute as little as $50.00 a month or at a time and no minimum to open the account. Works great and they are very nice folks. I do mine online though. Opened the account online, invest online etc. They have quite a few options available, all on their website. Check it out. You might find it useful.

[Skooby]

Originally Posted by FrugalIII

I opened my Roth IRA accounts a few years ago with T.Rowe Price. They have an automatic asset builder plan where you can contribute as little as $50.00 a month or at a time and no minimum to open the account. Works great and they are very nice folks. I do mine online though. Opened the account online, invest online etc. They have quite a few options available, all on their website. Check it out. You might find it useful.

All of this is true! I opened my Roth with T.Rowe Price in February and I've had no problems.