Where to open Roth IRA for young broke people

[xMoneyMakerx]

O.K. I think the title says it all.

i am a 23 year old just barely getting into the money world. I have been reading alot of good info and i think i want to open up a roth ira pretty soon, but all the websites i have seen require a rather large minimum (at least for me) does anyone know of a good website with a low minimum or better yet no minimum? Any info will be greatly appreciated.

[sweeps]

Re: Where to open Roth IRA for young broke people

It's my understanding that T. Rowe Price has a $1000 minimum BUT if you use their "Automatic Asset Builder", you can contribute as little as $50/month without an opening deposit.

[Optsol]

Re: Where to open Roth IRA for young broke people

One route is to open a brokerage account, and buy an ETF that represents the mutual fund you have in mind, like the SPDRs.

Ameritrade, for example, has no minimum to open a roth.

[sweeps]

Re: Where to open Roth IRA for young broke people

One route is to open a brokerage account, and buy an ETF that represents the mutual fund you have in mind, like the SPDRs.

Ameritrade, for example, has no minimum to open a roth.

This is a possibility, but run the numbers to find out how much you'd be spending in commissions.

[Russell]

Re: Where to open Roth IRA for young broke people

Mine's with Scottrade.com I believe the min is $500 to open an account.

Just a thought, say you're saving $100 a month for ROTH, you can keep it in a savings account until you have the $500 to open an account.

[PRICEPLUS]

Re: Where to open Roth IRA for young broke people

Fidelity has a program whereby you can start with a small amount and add to each month. T. Rowe has one as well which is what I started with. There are others and it is well worth your investigating.

[xMoneyMakerx]

Re: Where to open Roth IRA for young broke people

Maybe i did this wrong but when i went to scottrade i got rejected because of my credit. I didn't know you had to have good credit to open up an ira?

[Russell]

Re: Where to open Roth IRA for young broke people

Yes that sounds like a mix up because you're not borrowing money from them so the credit shouldn't matter. I'd fill out the application online.

Also, I think you want ROTH not the traditional IRA...may want to do a bit of research on that. www.fool.com have a few good getting started articles.

[Ima saver]

Re: Where to open Roth IRA for young broke people

I think you can open a roth ira at a bank and then have it transferred over to a mutual fund when you have enough to meet the minimum.

[gakline]

Re: Where to open Roth IRA for young broke people

I think you can open a roth ira at a bank and then have it transferred over to a mutual fund when you have enough to meet the minimum.

You can open a Roth anywhere. My first one was with a high paying CD.

[xMoneyMakerx]

Re: Where to open Roth IRA for young broke people

Thanks i just realized that my bank has roth ira's and the minimum is $50.00 i think i'm gonna look into that. THANKS!

[Ima saver]

Re: Where to open Roth IRA for young broke people

Great, that is a good place to start. When it gets big enough, I would suggest you move it to a good mutual fund with very low fees. I suggest Vanguard. They will send you a form to fill out and they will get the bank to transfer your money into your vanguard account.

Good luck!!

[locolorenzo24]

Re: Where to open Roth IRA for young broke people

Do you have to start off with a big investment and then use the automatic asset builders? Or can you just start that with like 50 a month??

[sweeps]

Re: Where to open Roth IRA for young broke people

Do you have to start off with a big investment and then use the automatic asset builders? Or can you just start that with like 50 a month??

You can start the T. Rowe Price account with just the $50/month. No big initial investment needed.

[gakline]

Re: Where to open Roth IRA for young broke people

I think the same with Fidelity. You should be able to check out any of their websites.