Please help me start my roth ira

[llwr]

I've been meaning to do this for ages and just get stuck in the research phase.

I know I can probably go to any bank, stock broker, financial adviser, etc, and get it done, but I'd like to do it on my own.  Is that crazy?  I'm really concerned about fees, and getting "sold" something because the person helping me gets a bonus from it.  I'm pretty comfortable doing the work myself; hopefully that's not just ignorance.  I think I'm really getting a block about finding the perfect place to start this instead of just getting it done.

I'd love to get your advice who to set this up with.  I'm looking for low-fee places, reliable funds, and low dollar amounts.  We're just starting this, so the maximum contribution I can make is only $5000. 

[rockymtnmama]

I would go with someplace like Fidelity or Charles Schwab.  Low fees, and they don't work on commission.

PS - I do this stuff for a living (financial planner)!

[TiredX2]

I would suggest Fidelity or Vanguard, but there are a lot of other low options out there as well.  I actually prefer Vanguard's investment options, but DP's 401(k) is at Fidelity and it was just so easy.

Right now I am looking for a place that has:

1) No minimum/no fee

2) Minor accounts

[velochic]

Originally Posted by TiredX2 

I would suggest Fidelity or Vanguard, but there are a lot of other low options out there as well.  I actually prefer Vanguard's investment options, but DP's 401(k) is at Fidelity and it was just so easy.

Right now I am looking for a place that has:

1) No minimum/no fee

2) Minor accounts

We have a minor account for dd with Vanguard.  She doesn't have much... maybe $3000 with them in the STAR fund.  It has a low required initial investment and it's a balanced fund that is designed for beginners.  It does have a minimum initial investment and of course there are expenses (as with every mutual fund), but they are low as well.  Anyway, it might be worth taking a look.  I linked to the info page from Vanguard for it above.

I agree with Fidelity or Vanguard for the OP, as well.  We have both, although we use Fidelity much, much less than Vanguard.  The bulk of our net worth is in Vanguard funds.  I've been very happy with them.

[monkey's mom]

Love Vanguard here! I highly recommend them.

5,000 is the max contribution you could make (guessing you are under 50 yrs. old), so don't worry about that. BUT if you make it before April 18 it can be your 2010 contribution. Then you'll have until April of next year to make your 2011 contribution.

[Carson]

Another one who has been happy with vanguard.  thanks for the reminder, i need to make my 2010 deposit.

[TiredX2]

Originally Posted by velochic 

We have a minor account for dd with Vanguard.  She doesn't have much... maybe $3000 with them in the STAR fund.  It has a low required initial investment and it's a balanced fund that is designed for beginners.  It does have a minimum initial investment and of course there are expenses (as with every mutual fund), but they are low as well.  Anyway, it might be worth taking a look.  I linked to the info page from Vanguard for it above.

I agree with Fidelity or Vanguard for the OP, as well.  We have both, although we use Fidelity much, much less than Vanguard.  The bulk of our net worth is in Vanguard funds.  I've been very happy with them.

Sorry I wasn't clearer.  DD wants to start a Roth IRA (she has babysitting money) and it is proving problematic to find a place that will open a Roth for a minor.

[velochic]

Originally Posted by TiredX2 

Sorry I wasn't clearer.  DD wants to start a Roth IRA (she has babysitting money) and it is proving problematic to find a place that will open a Roth for a minor.

Oh, I see.  Yes, there has to be a proof of taxable employment to have a Roth IRA, so I see the issue.  That's the sticky wicket when it comes to trying to set up an IRA for kids who do things like babysit and mow lawns.  I've read of instances where parents have tried to find loop holes around allowance/babysitting/etc. (claiming their child works for them, and therefor has an earned income) and then have had the IRS come back and sue them for fraud.  I can understand the cautiousness for doing any IRA for a minor that is not filing taxes of their own, but I think with proper documentation it should be a viable option.  Good luck!

[TiredX2]

Originally Posted by velochic 

Oh, I see.  Yes, there has to be a proof of taxable employment to have a Roth IRA, so I see the issue.  That's the sticky wicket when it comes to trying to set up an IRA for kids who do things like babysit and mow lawns.  I've read of instances where parents have tried to find loop holes around allowance/babysitting/etc. (claiming their child works for them, and therefor has an earned income) and then have had the IRS come back and sue them for fraud.  I can understand the cautiousness for doing any IRA for a minor that is not filing taxes of their own, but I think with proper documentation it should be a viable option.  Good luck!

Yes, unfortunately even with proof of taxable employment many places just won't do IRAs for minors.  Vanguard supposedly will, but not in our state.  It looks like we'll have to go with a place I feel less comfortable with (like Ameritrade or the like).
 

[annethcz]

I'll also add a vote for Vanguard.  I started a ROTH IRA there a few years ago, and it was very easy to set up.  Their fees are relatively low, and they have an excellent track record.