What is a Good IRA Management Fee?
Individual retirement accounts, or IRAs, can be an excellent way to save for retirement – however the fees that accompany an IRA could have an outsized effect on its total value.
Management and transaction fees as well as fund expense ratios must all be covered, yet there are numerous cost-effective solutions that offer great service.
Betterment
Betterment offers various services to assist with managing an IRA. Their investment portfolios feature low-cost ETFs and mutual funds, and customer service team is available around the clock to answer questions about them. Betterment also offers fractional fund purchases to reduce diversification costs.
Digital plans from Betterment cost just $4 per month for accounts under $20,000 in deposits; for accounts with $20,000+ balances in recurring deposits or more, their digital plan costs 0.25% annually of account balance. Their robo-advisor tools use your goals, timeline and risk tolerance when designing portfolios to fit you perfectly.
Betterment is one of the oldest robo-advisors and is supported by some of the top venture capital firms worldwide, including Invest AB Kinnevik, Bessemer Venture Partners and Francisco Partners. Registered with both SEC and FINRA as members as well as insured by SIPC for deposit insurance protection, it also adheres to fiduciary duty and offers features like automatic rebalancing, tax loss harvesting and socially responsible investing on its platform.
Wealthfront
Wealthfront is one of the leading robo-advisors and provides investors with a host of services designed to fit your goals and risk tolerance. Their automated rebalancing and tax loss harvesting features make managing your portfolio easy while the platform also features savings and borrowing features.
User experience is straightforward and user-friendly; choose from automated portfolios like Classic, Socially Responsible, Automated Bond or Direct Stock Index Investing; further customize it by choosing specific ETFs for inclusion in your portfolio.
Wealthfront provides individual investment accounts, joint accounts and trust accounts – with traditional Roth and SEP IRA accounts available as IRA options – with deposit capabilities via ACH for deposit funds as well as access from any device – in addition to offering an 5.00% APY cash account option and in-app budgeting and goal setting tools to help manage finances more effectively.
Charles Schwab
Charles Schwab is an investment bank and brokerage firm that has become synonymous with the stock market. Through pushing boundaries and serving his customers well, Schwab has revolutionized how people approach investing. Today he boasts an incredible 3.6 million active accounts!
Schwab is known for providing investors with investor-friendly IRA offerings, offering traditional, Roth, SIMPLE, and SEP IRAs. Furthermore, no minimum deposits or balance requirements exist and commission-free trades on stocks, ETFs and mutual funds through its thinkorswim platform are also provided to clients.
Schwab offers Wealthfront, a top-rated robo-advisor that creates retirement portfolios suited to your risk tolerance and offers goal-based financial planning at a reasonable 0.25 percent management fee – perfect for anyone seeking professionally managed IRAs. Schwab is well known for their generous philanthropy efforts and employees are highly esteemed for their commitment to serving their clients.
E*Trade
E*Trade offers an array of retirement accounts, such as individual or Roth IRAs, SIMPLE IRAs and SEP IRAs as well as self-directed brokerage accounts such as Individual or Roth Individual 401(k). Investors can take advantage of E*TRADE’s free transfer service to move funds from other financial institutions into E*TRADE without incurring back-end loads and sales charges.
Morgan Stanley offers low trading commissions of $0 for online stock and ETF trades, with no-load funds that meet no-load criteria, excellent research capabilities, superior customer service and extensive breakdowns that go well beyond third-party reports.
Wealthfront, its robo-advisor, can create your IRA portfolio based on your risk tolerance, then automatically rebalance for you. Wealthfront charges a management fee of 0.25 percent annually or $25 for every $10,000 invested; additionally it features goal-based planning capabilities and provides access to various brokerage tools.
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