Does it matter where I open an Roth IRA?

[jerseyguy]

Curious if it matters where I open an Roth IRA. I could go to my local Washington Mutual, or should I call the Merrill Lynch, Fidelty etcs of the world. Very new to this investing arena but trying to learn a lot in a short time. I am constantly reading of the immense value of the IRA but no one seems to mention if it matters where it get done. Thanks.

[Ima saver]

I would open a roth IRA at a low cost, no load mutual fund. I reccommend the Vanguard Funds. I would not call Merrill Lynch, I am sure there would be some cost. Fidelity now has no load funds, but I believe vanguard funds are lower in cost. I am with Vanguard Index 500.

[jerseyguy]

Thanks much for the recommendation. So would I just call Vanguard or go to their website and set it up by myself.

[Fern]

It matters very much where you open a Roth IRA.

A Roth IRA is just the tax-deferred wrapper, but you still have to decide what kind of investment. It could be a bank account (this i wouldn't advise), a mutual fund or something else.

I'd suggest a no-load mutual fund from a well-known, reputable name, such as Fideltiy or T. Rowe Price or Vanguard. (Keep in mind that not ALL of Fidelity funds are no load, just some of them.) Deciding what kind of mutual fund depends on a lot of factors such as your age and time to invest (10 years as opposed to 30, say), your tolerance for risk and so on. If you're in your 20s or 30s, i would say a fairly aggressive stock fund.

[jeffcovey]

a roth ira is just a type of investment account; where you put your money matters just as much as for any other account. i also recommend vanguard, and have my roth ira there. it's very easy to set up your account through their website.

[Ima saver]

Since I am new to computers, I just called vanguard and asked for a prospectus. I did everything thru the mail. I have my roth's in the Vanguard Index 500 fund and the Vanguard Star Fund.

[fiffer010]

I'm also with Vanguard and like them. I'm in the Vangaurd index 500 and Vanguard mid-cap index.

[jerseyguy]

Thanks everyone for your responses.. seems overwhelming that Vanguard is preferred choice. If anyone else has any opinions, please feel free to express your thoughts. This is such a great site, glad I found it.

[Russell]

I have my ROTH "account" with Scottrade.com but the holdings/investments in the account are in various index funds, mutual funds and stocks.

[Bluezy]

Hi Jersey Guy!

I have yet to open a ROTH, however, I have a Trad IRA with Janus. Not an institution for the faint of heart, my returns in Janus Core Equity have been tremendous in 2005.

Further plans have been to end my relationship with Janus to move on to T. Rowe Price. I decided not to jump on the Vanguard bandwagon to take advantage of T Rowe Price's Latin America Fund. (Again, this type of investment is not for the faint of heart...I had to use all my retirement funds a few years back for survival and am making super aggressive moves to regain those funds. It's working! )

Where you open your ROTH is always important. Research all companies through Morningstar.com or Smartmoney.com. Also invest in a copy of the Wall Street Journal at your local coffee house and get as much information as possible. Finally, the experience of all the fab posters here is better than any paid financial planner.

All the best to you in your financial future! Cheers!