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Where to Open a Roth IRA (THE 5 BEST PLACES FOR BEGINNERS) - YouTube
Channel: It's Your Girl Rose
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where is the best place to open a Roth
IRA after years of trying out lots and
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lots of different brokerages I've
narrowed it down to the five best places
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to open a Roth IRA so rather than
staying up until 2:00 a.m. trying to
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research all your options watch this
video for a rundown of the pros and cons
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of the five best platforms hey everyone
welcome back to my channel I'm Rhodes
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and this channel is all about money and
investing for beginners so if you're new
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here feel free to subscribe and hit the
notification bell for new videos like
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this every week when you're trying to
decide where to open your Roth IRA you
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really can't go wrong with Vanguard
although it's not my personal favorite I
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have to mention it because Vanguard is
the og of retirement investing
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practically half of all Americans have
their retirement portfolios at Vanguard
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for good reason Vanguard is known for
its super low-cost
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target-date funds target-date funds are
a special type of mutual funds that puts
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your retirement investing on autopilot
they gradually adjust your asset
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allocation as you get closer to
retirement age so once you do the
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initial setup and you buy into the fund
you don't have to do anything with it
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literally until you retire so target
date funds are a perfect option for lazy
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investors outside of a target date fund
you'd have to create your own portfolio
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of stocks bonds and cash and adjust the
asset allocations yourself over time
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since as you get older you'd want to
gradually move your money out of stocks
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which are more volatile into more stable
income producing investments like bonds
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obviously this takes some skill so
buying into a target date fund
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completely eliminates the need for you
to do that because the fund will do it
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for you so if you like the idea of
putting your retirement on autopilot
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then you'd probably like target date
funds in which case Vanguard would be a
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great place to open your Roth IRA
that being said Vanguard is also good
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for buying individual stocks other kinds
of ETFs and mutual funds and pretty much
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anything you might want to invest in so
like I said regardless of what you want
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to invest in a Vanguard Roth IRA will
allow you to do all of it with minimal
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fees another good place to open a Roth
IRA is fidelity I've used fidelity for a
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really long time and it's my personal
favorite
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like Vanguard it's a full sir
brokerage that offers everything anyone
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could ever need as an investor whether
you're a beginner or you're more
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experienced when I first opened a Roth I
was keeping it really simple and just
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investing in low-cost index funds but
over the years as I became more
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knowledgeable I started doing more
advanced strategies like buying
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individual stocks trading options and
even international stocks and no matter
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what it is that I wanted to do fidelity
offered it so if you're a beginner at
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investing you'll probably start with
something simple like index funds but if
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you ever want to branch out and do more
advanced things as you grow and learn as
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an investor then the last thing you want
to do is to have to move your IRA
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elsewhere because your current brokerage
doesn't offer those things that's just
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the big headache so when you're deciding
where to open your Roth IRA you want to
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think about how you're going to grow as
an investor and choose a platform that
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will grow with you something else I like
about fidelity is its low commissions
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although Vanguard and fidelity are very
similar in terms of the range of
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products you can invest in and they're
both great for index funds and
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target-date funds fidelity actually
offers lower commissions for a lot of
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things for example Vanguard charges
seven dollars per stock trade whereas
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fidelity charges $4.95 that's a pretty
big difference and fees and commissions
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are really something you should consider
before you open your Roth IRA anywhere
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last but not least if you open a Roth
IRA at fidelity you'll also get really
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good customer service you don't have to
go through endless automated telephone
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menus and whatnot just to talk to a real
person it's never taken me more than 30
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seconds to get to a customer service
representative at fidelity and they'll
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hold your hand and walk you through step
by step any question you have about your
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account whether it's how to place your
first trade or how to rollover your 401k
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or how to do anything so in summary if
fidelity and Vanguard are very
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comparable
however fidelity I think obviously I'm a
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little bit more biased but I do think
they offer lower fees for a lot of their
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products the third place I recommend
opening a Roth IRA is acorns I'm a huge
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fan for two reasons I know a lot of
people who have a hard time saving money
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but through the acorns roundup feature
they've been able to save hundreds of
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dollars without even trying the app
helps you come up with money to invest
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by connecting your debit card and
rounding
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your purchases so that you can invest
with your spare change so if you open
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your Roth IRA acorns you'll probably be
able to keep adding a good chunk to your
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retirement savings just from the spare
change round the feature the second
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reason I like acorns is that of course
it's great for beginners whereas
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fidelity and Vanguard are brokerages
acorns is a robo-advisor
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that means that acorns will tell you
what to invest in and do it all for you
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for example when you open your Roth IRA
at acorns one of the first questions
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they'll ask you is which of their five
portfolios you want to invest in you
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don't have to choose which stocks to buy
and you don't have to know what's going
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on in the stock market right now all you
have to do is pick which portfolio that
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you want ranging from most conservative
to most aggressive then once you've
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picked your portfolio you can check out
what's gonna be in it each portfolio is
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professionally designed and backed by
lots of data to optimize your returns
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while reducing your risk
so other than choosing one of these five
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cookie-cutter portfolios there's really
no other work required on your part to
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set up your Roth IRA at acorns it just
doesn't get any more streamlined than
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that it coins makes it really easy for
you to get the funds in your Roth IRA
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invested in the market as soon as
possible with zero knowledge where is
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this fidelity or Vanguard there's gonna
be a little bit more of a learning curve
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if my 90 year old grandmother wanted to
get a cell phone
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I'd start her off with a flip phone not
an iPhone an iPhone has too many
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features and she would just get confused
acorns is like the flip phone of
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investing limited options but super
simple to use for beginners so I think
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if you're just starting out you're gonna
like acorns a lot - is another investing
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app and it's a little bit different from
acorns but it's a great place for
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beginners to open your Roth IRA like
acorns stash has a roundup feature that
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lets you invest with your spare change
but what differentiates stash from
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acorns is it's themed portfolios so they
have investment options like clean and
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green the collection of companies that
are advancing things like clean energy
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and solar and wind power they have stuff
like do the right thing so basically
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they do the right thing Fund is a
collection of companies that stash has
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gathered into an ETF companies that make
positive impacts on society and
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environments basically all of their
are organized by theme so it's not
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hidden under some obscure financial
jargon technology that you're gonna have
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to look up it's just stuff like robots
sitting that's pretty much investing
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companies that are really public or
water the world they even have a fun
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calls women who lead so that's gonna and
seeing gender diversity women in
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leadership positions this makes it
really easy for you to build a portfolio
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around your passions and your values
without having to navigate through a
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bunch of obscure financial jargon and
technical information so if you like
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that and that's how you want to invest
in your Roth IRA you might want to look
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into stash another cool thing about
stash is that you can also buy
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fractional shares of individual stocks
and ETFs which you can't do with acorns
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so between the two stash offers a lot
more features and possibilities for
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customization for your personal
preferences then acorns does next is
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betterment betterment is another
investing app similar to stash and
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acorns in that it is a Robo advisor I
would say betterment is not as simple
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and easy to use as acorns or stash but
it offers better advice and a wider
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range of account options in addition to
Roth IRAs Fetterman also offers a lot of
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other account types such as traditional
IRAs SEP IRAs joint accounts trust
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accounts 401k rollovers as well as fully
taxable non retirement investment
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accounts betterment also offers an
awesome savings account called the smart
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saver account this pays over two percent
that's obviously better than the rate
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you'd get up pretty much any bank right
now so with that arm in you can keep
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your savings and your investments in one
place which is always nice because
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that's one less username and password
that you have to keep track of the
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reality is you're probably gonna need
more than a Roth IRA you're gonna need
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an emergency fund in an investment
account to save up for a down payment on
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a house in a few years or just to save
up for your dream vacation
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everyone needs multiple accounts for
various purposes so rather than having
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all your accounts at all these different
places you can basically have all of
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those in one place at Vetter mint
because of the wide range of account
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options it offers you can even give your
accounts a custom name to really remind
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you what your invest
torez and keep you motivated so if you
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like the idea of goals based investing
and having all your financial stuff in
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one place then definitely consider
opening your Roth IRA at betterment so
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in summary if you're a total beginner
and you just need a really simple dumbed
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down approach then go with a Roth IRA at
acorns now if you want something as easy
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to use as acorns but you're looking for
something a little more robust and
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you're working towards several financial
goals at once and you like the idea of
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having all your accounts in one place
then I recommend going with betterment
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if you like the idea of investing in
themed portfolios and being able to buy
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fractional shares of individual stocks
and investing according to your passions
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and values then go with a Roth IRA at
stash and finally if you want to open a
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Roth IRA on a platform that can do it
all whether it's international stocks
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bonds options and has amazing customer
service then I recommend going with
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fidelity or Vanguard although they're a
little bit harder to navigate for the
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beginner if you can get over the
learning curve and you feel confident
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enough to research your own investments
then you'll definitely appreciate a more
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advanced option like fidelity or
Vanguard so hopefully by now you have a
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pretty good idea where to open your Roth
IRA I've covered a lot here but the most
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important thing is to get started just
pick a platform open your Roth IRA do
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your research and start investing the
choice of where you open your Roth IRA
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isn't going to make or break your
financial future for more beginner
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friendly videos about investing make
sure you also check out these two videos
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right here and if you're new to the
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remember to go after your dreams
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