Roth IRA providers

If you’re considering a Roth IRA, then you’ve probably already done your homework and you have a full understanding of the pros and cons of opening such a retirement account. The next step is to find a provider for your Roth IRA account, and fortunately you have a few options to choose from.

Banks are probably the most obvious provider of Roth IRA accounts. Banks are a good choice for people that don’t have a lot of money to invest because their minimum deposits are the lowest in the industry. However, as a result of their minimum account requirements, they don’t always provide the most flexibility for your investments, and whatever type of investments they offer (stocks, bonds, etc.), more than likely it will be in a strategy that the bank can profit from beyond their guaranteed rate of return on your account (which is often very low to begin with).

Mutual Fund companies can also create a Roth IRA account for you, and they can offer a wider variety of investment strategies than a traditional bank can offer. Mutual Fund Roth IRAs are by far the most popular form of Roth IRAs used by individual investors. But that doesn’t necessarily mean they are the best choice for your needs. Keep reading to learn how to find out which provider is the best for your Roth IRA account.

Yet another provider is a brokerage firm. These are the middlemen of the investment world, and they earn their keep by charging fees to clients whenever they open a new account or shift their money around. Obviously, brokerages will typically suggest their clients invest in stocks, but that may not be the best strategy for your needs.
One other option is a trust company. These are often self directed accounts and the account holder is in direct (and sole) control of his or her funds. With a trust company Roth IRA, you’ll have a much wider variety of investments to choose from, such as real estate, gold, tax liens, stocks, bonds, mutual funds, etc.

While it might seem like a lot of work, it’s advisable to research each type of Roth IRA provider before you sit down in a face-to-face meeting with an agent. It’s also advisable that you speak with multiple agents; ones that work directly with a provider and even freelance agents. You’ll often hear varying perspectives depending on which agent you speak with.

In the end, you must speak with a licensed agent within your state before you make any financial decisionsr relating to a retirement account. Only a licensed agent can legally provide you with counseling when it comes to investing in a traditional IRA or a Roth IRA.