Roth IRA Broker Fees and Growth
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?
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
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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