Who do you have your ROTH Ira with?

[guppy]

So I'm in debt payoff mode right now and I was initially thinking of waiting until the easy debts were knocked off, but now I'm thinking I should just suck it up and put more in retirement. Husband is at 8%, and I'm at a total of 9% approx. so far, but I'd like to open up a ROTH Ira instead of the pension/401k/403b that we're currently contributing to.

I was just wondering who all of you have your Roth IRA with?

I am going to look into Fidelity, Vanguard, or T. Rowe Price first since they are the major players that I've heard of. Any other suggestions?

[jIM_Ohio]

T Rowe price has about 110k of the 180k we have invested. The other 70k are in 401ks for self and wife.

T Rowe Price, Vanguard and Fidelity each have pros and cons


Here is my opinion of the 3 places-
look at 3 issues for each

1) cost of funds
2) number of funds to choose from
3) do they cater to low account individuals


T Rowe Price
Managed funds are low priced
index funds are most expensive of the 3
They have as many funds as Vanguard, so #2 in fund selection
They are best of 3 if you only send in $50/month in terms of fees.

Fidelity
Managed funds are most expensive of the 3
I heard some of their index funds are cheaper than Vanguard, not sure though, as I avoid index funds.
They have more funds than T Rowe or Vanguard, and its not even close. Fidelity might have more choices than T Rowe and Vanguard combined.
Not sure on fund minimums or ability to invest only $50/month now, at time I made my choices in 1997 it was not even an option.

Vanguard
Index funds are probably cheapest
Managed funds are probably second cheapest to T Rowe or cheapest (depends on which fund).
They have about same number of funds as T Rowe, but much less than Fidelity.
Low monthly deposits was a problem in 1997 when I was making choices.


Summary- with 110k account balance now, any of the 3 would take my money NOW without fees. Getting there (starting out) is a different story. Make sure you distinguish between these issues when evaluating. Its very possible I might like Vanguard better or the same as T Rowe, but fees for low balances might have slowed down my initial growth.


Here is my suggestion (and its deep in my blog somewhere too):

If you go with T Rowe Price, there will be a fee for every fund I owned with under a $5000 balance in AUGUST. For me fee was $10 per fund UNDER $5000. If you have combined assets of $10,000 all fees on all funds are waived. Because I have $10,000 my wife's fees are waived as well (she does not have $5000 in any single fund yet).

If you open a fund at T Rowe now, my advice would be to get that balance to $5000 before July 31. Its better to put all money in name of one spouse, get that fund to $5000, then make different contributions in August. Add funds for spouse, add a second fund to original account and similar. Plan to get any new funds opened to $5000 before July 31 of the following year, then you have $10,000 in one person's name and never paid a $10 custodian fee on any fund.

Check with T Rowe on this to see if fee structure changed.

[disneysteve]

Our Roths are both with Vanguard. We also both have rollover IRAs from previous jobs with Vanguard. I have a traditional IRA that I no longer contribute to with Charles Schwab.

[MonkeyMama]

All of the above. My ROTH is at T Rowe, dh's is at Vanguard, and I have a Fidelity ROTH (used to be a 401k).

For just starting out,

T Rowe you can invest as little as $50/month to start. BIG PLUS. I am not sure on the fees - I'm over $10k at this point (started with $50).

Fidelity - $2500 minimum investment, per fund? Is that correct? Just this past year they started charging fees for balances under $2500.

Vanguard - $3k minimum to purchase any fund (except STAR fund). If you get all your statements online, they don't charge any fees these days.

I believe all these companies act like discount brokerages and allow you to buy a wide variety of funds outside their fund family.

I have probably been the least impressed with Fidelity. A lot of their prior mutual fund *stars* haven't been doing so well recently. Their customer service is so-so.

T Rowe I am most impressed with as far as customer service and performance.

Vanguard generally has the cheapest funds. Not a lot to say about customer service, since I have done everything online.

The only reason I opened an account with T Rowe was for the $50 buy-in. Otherwise, I'd probably be mostly at Vanguard. BUT, I have become a T Rowe fan in the process. Their funds kick butt.

[Beppington]

My Roth is at Vanguard, as is my regular Individual account. I couldn't be happier with Vanguard. Not one problem of any kind since Aug 2005.

These index funds I invest in require $3K min to open & $100 min add'l investments: VBISX, VFINX, VIVAX, NAESX, VISVX, VGTSX, VTRIX & VEIEX.

These index funds I invest in require $10K min to open & $100 min add'l investments: VTGIX, VTMSX & VTMGX.

Most (all?) of these do have a $20 annual low-balance fee for balances under $10K, but an overall household account balance over $100K eliminates all of these.

[Beppington]

Vanguard - $3k minimum to purchase any fund (except STAR fund).

Correction: Some of their index funds do require $10K to open. I know at least these do: VTGIX, VTMSX & VTMGX.

If you get all your statements online, they don't charge any fees these days.

Correction: Funds with a low balances (under $10K) & with less than $100K total household account balance, will be subject to a $20 annual fee per fund with a balance under $10K. <---- EDIT: False by me; See Post #9 below.

Vanguard generally has the cheapest funds. Not a lot to say about customer service, since I have done everything online.

I love this about them! Their website is so good you rarely, if ever, need to call them.

[GREENBACK]

Mine is with Vanguard as well. I changed from Ameriprise(American Express) so I couldn't be happier. I think there was a 10k minimum for the reasons stated.

[MonkeyMama]

Actually, I will qualify my Vanguatd statement. I have never called them because that is dh's account. I do everything with it online, but he has had to call them a few times. So, I guess I Wouldn't know since *I* have never called them.

I've actually had some issues and had to talk to a real person. Moreso than with Fidelity or Vanguard.

[MonkeyMama]

Correction: Some of their index funds do require $10K to open. I know at least these do: VTGIX, VTMSX & VTMGX.



Correction: Funds with a low balances (under $10K) & with less than $100K total household account balance, will be subject to a $20 annual fee per fund with a balance under $10K.



I love this about them! Their website is so good you rarely, if ever, need to call them.

True on the $10k funds - but most new investors wouldn't consider them.

I disagree with your middle statement. Vanguard does not charge any fees if you only take online statements.

"shareholders have three options to invest fee-free with Vanguard: 1) establishing account access on Vanguard.com and choosing electronic delivery of statements, reports, and prospectuses; 2) maintaining total Vanguard[R] fund assets of $100,000 or more; or 3) consolidating accounts or investing additional assets to bring all account balances to $10,000 or more. "

[jIM_Ohio]

Let me add we have accounts (or had accounts) with all 3.

Our IRAs are with T Rowe now
current wife 401k is thru Fidelity
my 401k was with T Rowe from 1997-1999 and with Vanguard from 1999-2005 (might be off a year).


All their websites are functional
I have needed to call someone at Vanguard and T Rowe.

Not impressed with Fidelity's 401k site- if their IRA site is anything like it, run and run real fast to the other 2.

Vanguard had some features on their 401k site which I liked.

T Rowe IRA site is useable.

IMO all 3 need some work on what user interface is considered usable. Fidelity needs more work than other two IMO.

[Beppington]

I disagree with your middle statement. Vanguard does not charge any fees if you only take online statements.

"shareholders have three options to invest fee-free with Vanguard: 1) establishing account access on Vanguard.com and choosing electronic delivery of statements, reports, and prospectuses; 2) maintaining total Vanguard[R] fund assets of $100,000 or more; or 3) consolidating accounts or investing additional assets to bring all account balances to $10,000 or more. "

I apologize, you are correct! I missed that. I'll go back up & correct my previous post.

[swanson719]

We have 4 funds with Waddell and Reed. This is not a broker to choose if you want something low maintenance. You have to do most of the leg-work yourself. I chose this company because we want to go with Vanguard, but when I looked into them last year, there was the penalty for not having at least $2,000 or so in any one fund. Waddell and Reed don't do that, but charge a small up front load instead.

[cheerio]

Vanguard Roth

[maat55]

T. Rowe Price

[GrimJack]

I have accounts with TIAA-CREF and Vanguard:
NAESX,TISCX,VIMSX,VPACX. DW dropped from TIAA-CREF when they upped their fees. I notice that they did not even get mentioned - I kept them because I have a couple of retirement accounts that I can't touch until I retire so I left my account with them after the costs went up.