5 best IRA accounts for retirement savings
Did you know that an Individual Retirement Account or IRA is one of the effective ways to strengthen your retirement strategy? It will help you save money for your retirement, and you also get offered various tax benefits. You may have to spend a little extra now, but it is worth it in the long run, making IRAs a popular choice for many. Read on about the five best IRA accounts in the country.
Fidelity Investments Inc., generally referred to as Fidelity, is based out of Boston, Massachusetts. For its IRAs, the fees may vary per the type of investment vehicle selected. Stock, ETF, options trades, and a few mutual funds are available with zero commission fees. If you want personalized advice, Fidelity also provides you with the automated option, i.e., Fidelity Go. This account is free if you have a balance under $10,000, $3 a month would need to be paid for a balance between $10,000 and $49,999 and 0.35% for a balance over $50,000.
The Charles Schwab Corporation, founded in 1971, is one of the leading and acclaimed American Multinational Financial Services companies. For its IRAs, the fees may vary and depend on the selection of the investment vehicles. There are no account or trading fees, and its traditional IRAs are free to set up. If you are browsing for professionally managed or automated portfolios, Schwab Intelligent Portfolios or Schwab Intelligent Portfolio Premium comes in handy. However, you would need to pay $300 one-time and $30 monthly fees for the latter option.
Betterment, established in 2008, is one of the renowned American Financial Advisory Companies that offers cash management and digital investment services. It offers taxable and tax-advantaged investment accounts such as traditional and Roth IRAs. The investment vehicle selection will have an impact on the fees. There are two plans offered by the Robo advisor – Digital and Premium. There is no need for a minimum amount for the Digital plan account, but 0.25% of the account fees must be paid. A $100,000 minimum balance and 0.45% of the annual fees are required for the Premium plan. This option is also beneficial as you would have unlimited access to Certified Financial Providers (CFPs).
E-Trade Financial Corporation, established in 1982, is Morgan Stanley’s Financial Services Subsidiary and is stylized as E*Trade. It provides you with an electronic trading platform for trading financial assets. Its traditional IRAs are featured by STFs, options trades, and commission-free stocks. Core Portfolios is the Robo-advisor offered by E*Trade, wherein there is a need for $500 to set up this account. You would also need to pay charges of 0.30% as the annual advisory fees for Core Portfolios.
Merrill Edge, founded on 21st June 2010, is a part of the Retail Banking Division of the Bank of America. Its traditional IRAs offer $0 commissions on ETFs, online stocks, and options trades. There is an availability of three platform choices for account holders – Merrill Guided Investing, Merrill Edge Self-Directed, and Merrill Guided Investing. The professionally managed portfolios are more expensive than the traditional IRAs, with a fee of 0.45% to 0.85 % for Guided Investing. Also, for the convenience of account holders, Merrill Edge offers 24/7 customer support and a live chat option.
IRA accounts are worth it but primarily depend on your long-term savings goals and expectations. This post has explored the five best IRA accounts in the country for your easy reference. However, weighing all the positive and negative aspects is suggested.