10can
Contributing Member
Cash: $ 8.55
Posts: 39
Joined: 13 Jul 2006
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| Where to start Roth IRA |
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I was wanting to set up a Roth IRA for my 18 year old son.
Where is the best place to do this at?
Thanks
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Thu Jul 13, 2006 11:21 am |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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Boy, that's like asking what's the best flavor of ice cream -- there's so many and it all depends on your individual taste. 
Almost all investment advisors, stock brokers, banks, etc can open an IRA for you. In my opinion, the best places to do it are with major investment companies known for offering a large selection of no-load mutual funds and having low expenses. Vanguard and T Rowe Price would be the leaders, in my opinion, with Fidelity coming in close behind. If you'd rather do it through a brokerage account, any of the several on-line discount brokers would be fine.
I think mostly you want to look for good service and low expenses. Remember that of the expenses incurred in an IRA there's also a custodial expense, so check out how much that is and when it's applied.
~Tim~
Eye Candy : Why Whimsy
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Thu Jul 13, 2006 6:12 pm |
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10can
Contributing Member
Cash: $ 8.55
Posts: 39
Joined: 13 Jul 2006
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Can you only contribute to the Roth IRA if you have an employer with a W2?
I want to set my son's Roth IRA up but he is a student and not working right now. He earns a little summer money doing odd jobs but that is it. Can I still set his Roth IRA up and give him money to put into it?
Thanks
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Fri Jul 14, 2006 10:17 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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You have to have "taxable compensation" equal to or greater than the amount contributed. Your question is a great question, and honestly, I spent about 15 minutes trying to find a definitive answer online and couldn't. YOU have taxable compensation; can YOU contribute to your SON's IRA? Hmmmmm.
Many years ago my dad gave me some money to start my own IRA. Being young and not too concerned about the future, I just put it in a long-term CD and forgot about it. Imagine my surprise when the CD matured and the money had almost doubled!! That's when I first got an inkling of the "magic of compounding" and started to think, "hey, this is pretty cool!!" I was working at the time, so it's not the same situation.
I'd suggest calling one of the major investment companies, such as Fidelity, and asking. Their counselors should have an answer or be able to get an answer for you. And then, how about letting us know, too? 
~Tim~
Eye Candy : Why Whimsy
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Fri Jul 14, 2006 11:28 pm |
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10can
Contributing Member
Cash: $ 8.55
Posts: 39
Joined: 13 Jul 2006
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Good Idea
I will call and post what I learned.
Thanks
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Fri Jul 14, 2006 11:51 pm |
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