If you are shopping around for an online broker and have always been as annoyed as I am with paying an annual fee to have a Roth IRA, Scottrade may be your place.
Every Roth IRA I have seen charges an annual fee of anywhere from $30-$45 and for people with small balances that annual fee can really chip away at your retirement savings. In fact, about 7-8 years ago Linda opened up a Roth IRA (which was a good move) and funded it with $150. She did not continue adding to it on a regular basis (that was a bad move honey).
A little while after we got married I got a statement from her broker showing that she had a NEGATIVE balance in her account. It wasn’t because she was secretly shorting stocks, but because the annual IRA fee wiped her account out – to a negative balance.
Lesson learned: if you don’t regularly contribute to your retirement savings and have a small balance the IRA fee might gobble it up.
All this just to say that I am excited Scottrade is now offering no-free Roth IRAs! I currently do my investing at Sharebuilder and Zecco and probably won’t be switching just for this, but hopefully it might encourage other brokers to do away with their IRA fees as well.
A note from Scottrade about the Promo…
There is no minimum annual contribution and you choose your investment vehicles. There are also no open, closing, annual or custodial fees.
If you are interested in the Scottrade deal, you can find out more here.