Roth IRA Broker Fees and Growth

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Jennifer May

• January 16, 2022 16:56
• Edited

My Roth IRA fees are costing me overall instead of growing my fund. I've been with my broker since 2016 and have lost about $500 due to fees.

What are my options for changing this scenario? I don't know if this is a product of the market or the broker taking advantage. Help?

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  Martin Fried

  • January 17, 2022 01:08

  What are the fees from? Are they costs for trading or maintenance fees? Generally, the yearly fees, if any, are about $25 - $50 a uear. and trade costs (if any) are about $5.00/trade. Depending on your needs, you should be able to find an account with no costs for either if you do everything online.

  Check the nerdwallet article:  https://www.nerdwallet.com/best/investing/ira-accounts

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  Jennifer May

  • January 17, 2022 01:11

  Thank you, Martin! They are annual maintenance fees from what I can tell. Looks like $75. Thank you for the reference article too.

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  Martin Fried

  • January 17, 2022 03:03

  I think you could do better than that. If you are not into individual stocks, I spent years with an IRA on Vanguard. It had no yearly fees, and no trading costs - although they only have mutual funds. Vanguard practically invented low-cost index funds, and they have some very simple "target retirement" funds where you choose a fund that is targeted to your estimated time of retirement, and it automatically adjusts the holdings to that, moving to more stable funds as you approach retirement. They also have S&P index funds, etc, which Warren Buffett says is what most people should have. You might have one bad year, but mostly it will average at least 5 - 10% or more return.

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  Jennifer May

  • January 17, 2022 03:21

  I really appreciate your response. I am learning quite a lot.

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