Looking for Company to Open Roth IRA with (Not Vanguard)

[Relmiw]

I'm finally starting my Roth IRA this year but I'm not sure where to open it. Scottstrade, Etrade, Ameritrade? Things like this. I haven't researched them all and was hoping someone already has some experience doing so. Does anyone have any recommendations? While I'd like to have it through Vanguard, I already have a Vanguard account and don't really want to put all my eggs in that basket.

I'm also going to be looking for an interest bearing online checking account. If I could kill two birds with one stone here, that would be great.

As a final note, I'm still not sure if I want to be solely bonds, stocks, or a combination of other assets and am definitely open to suggestion.

[shaggy]

I'm finally starting my Roth IRA this year but I'm not sure where to open it. Scottstrade, Etrade, Ameritrade? Things like this. I haven't researched them all and was hoping someone already has some experience doing so. Does anyone have any recommendations? While I'd like to have it through Vanguard, I already have a Vanguard account and don't really want to put all my eggs in that basket.

I'm also going to be looking for an interest bearing online checking account. If I could kill two birds with one stone here, that would be great.

As a final note, I'm still not sure if I want to be solely bonds, stocks, or a combination of other assets and am definitely open to suggestion.

Could you explain what you mean by "putting all your eggs in one basket" if you hold it at Vanguard? You can hold whatever investment you like in your roth, so choosing Vanguard doesn't give you less diversification than if you choose another company.

I would recommend that you DO keep your accounts consolidated with one company, and Vanguard is the best IMO.

I'd recommend T Rowe Price as second best.

[MakeAStash]

TRPrice is unreliable in my experience, so Fidelity or Schwab.

[Petunia 100]

As a final note, I'm still not sure if I want to be solely bonds, stocks, or a combination of other assets and am definitely open to suggestion.

I suggest a Vanguard Target Retirement Fund. They hold Total US Stock Market, Total International Stock Market, Total Bond Market (US) and now even a splash of Total International Bond Market.

Putting all your eggs in one basket refers to your investments, not your custodian. SIPC insurance guarantees you will receive your securities if your custodian fails. See here for more information: http://www.sipc.org/How/Covers.aspx

[disneysteve]

I'd echo what the others said about Vanguard. The "putting all of your eggs in one basket" comment doesn't apply in this situation as long as you diversify your holdings within your portfolio.

On the other hand, if you want a place that has investments and offers a checking account, take a look at Schwab. I believe they have a well-regarded account but I don't know the details.

[MonkeyMama]

I personally would not, and do not, keep all my accounts at one financial institution. Not putting all your eggs in one basket means precisely that. You can get significant diversification at one financial institution, but your eggs are still all in one basket so to speak. SIPC does not cover everything that can go wrong (mostly thinking to fraud), and does not cover an unlimited dollar amount.

I do like T Rowe for mutual funds. I use Fidelity for individual stock trading (last I shopped around it seemed one of the better stock trading deals). It would depend on what you want to invest in.

[disneysteve]

I personally would not, and do not, keep all my accounts at one financial institution.

Neither do I, but it is because no one company offers the best funds in every category. You can get everything you need from Vanguard or T. Rowe or Fidelity but there are some great funds out there from other companies. My REIT is with Cohen and Steers, for example. My small company value fund is with Heartland. My precious metals fund is with Oppenheimer.

[Relmiw]

To those that said "not putting your eggs in one basket" doesn't refer to what I'm doing here, MonkeyMama has it right. There's diversification across asset classes, but there's also diversification through financial institutions. It insures against fraud as well as theft. That seems awful brazen to me, keeping your entire savings behind one password resting with one company.

I'm hearing that I should look into Schwab.
MakeAStash, what makes TRow unreliable?

[shaggy]

TRPrice is unreliable in my experience, so Fidelity or Schwab.

I had a VERY hard time with Fidelity. My MIL had assets with them, and Fidelity kept refusing to transfer them to my DH despite us having all the paperwork in order. I had to hire a lawyer to get the money.

Incidentally, my MIL also had accounts all over the place (under her Depression-era fear that one of the companies could fail, like the banks in 1929), and it was a royal hassle to get her affairs in order after she died.

[kork13]

To those that said "not putting your eggs in one basket" doesn't refer to what I'm doing here, MonkeyMama has it right. There's diversification across asset classes, but there's also diversification through financial institutions. It insures against fraud as well as theft. That seems awful brazen to me, keeping your entire savings behind one password resting with one company.

I'm hearing that I should look into Schwab.
MakeAStash, what makes TRow unreliable?

Personal opinion: I prefer simplicity, so I have all of my investments (except 401k of course) with Vanguard. It's of the nation's top MF companies, so I'm not concerned with institutional failure and as for "keeping everything behind one password", if somebody manages to get or figure out my passwords, there's not alot I can do anyway. So brazen? Perhaps. In my eyes, I'm just taking a realist's approach to it... the chances of any of those scenarios is fairly miniscule.

Anywho, I have used Schwab in the past, and would agree that they're not a bad option for you. I had some investments there, plus a checking and savings account, all of which were just fine (and no fees on any of them to boot, which I appreciated). Schwab can open a mutual funds account for you, or you can open a brokerage account with them and hold just about any other type of assets you like. I will say that the customer service wasn't always the most helpful (alot of red tape and waiting on the line), but other than that I never had any complaints with them.

[shaggy]

Personal opinion: I prefer simplicity, so I have all of my investments (except 401k of course) with Vanguard. It's of the nation's top MF companies, so I'm not concerned with institutional failure and as for "keeping everything behind one password", if somebody manages to get or figure out my passwords, there's not alot I can do anyway. So brazen? Perhaps. In my eyes, I'm just taking a realist's approach to it... the chances of any of those scenarios is fairly miniscule.

I'm not even too concerned about the password, frankly. When you add or change anything on your Vanguard account (password, email address, bank account, etc) you get both e-mail and snail mail informing you of the change, and there is a 5-day delay between adding a new bank account and being able to withdraw money. It's not like someone can break in and everything will vanish overnight.

[kork13]

I'm not even too concerned about the password, frankly. When you add or change anything on your Vanguard account (password, email address, bank account, etc) you get both e-mail and snail mail informing you of the change, and there is a 5-day delay between adding a new bank account and being able to withdraw money. It's not like someone can break in and everything will vanish overnight.

Thank you, I actually wanted to say something about that, but couldn't work out a clear/concise way to voice that consideration.

[shaggy]

Thank you, I actually wanted to say something about that, but couldn't work out a clear/concise way to voice that consideration.

I forgot to add that the first time you log in on a new device or computer, you have to answer one of your security questions (chosen at random by the site) before you can login. So there are multiple layers of password protection.

[scfr]

I had a VERY hard time with Fidelity. My MIL had assets with them, and Fidelity kept refusing to transfer them to my DH despite us having all the paperwork in order. I had to hire a lawyer to get the money.

We had a similar negative experience with Fidelity when my grandfather died. They kept insisting that he (my late grandfather) sign a document. I guess they wanted us to hold a "please come back & sign the document grandpa" seance.

You are probably going to find people who have had negative experiences with all of the large financial institutions. Personally, I will never use Fidelity, but it doesn't mean you won't have anything but a great experience with them. Just make sure not to die.

[shaggy]

We had a similar negative experience with Fidelity when my grandfather died. They kept insisting that he (my late grandfather) sign a document. I guess they wanted us to hold a "please come back & sign the document grandpa" seance.

You are probably going to find people who have had negative experiences with all of the large financial institutions. Personally, I will never use Fidelity, but it doesn't mean you won't have anything but a great experience with them. Just make sure not to die.

FWIW, I didn't have any problems with T Rowe Price, Vanguard, or Schwab in the same situation.