Where to open Roth IRA with low minimum?

[SleepyatDVC]

My DD got a job her first semester at college! Woohoo!!

She earned less than $500 total in 2017 but is looking to open a Roth IRA for all her earned income. The deal was that we would match her her contributions up to a certain amount.

However, many places have a minimum to open of $500, $1000, etc. and others will only waive the minimum if you do automatic contributions of $xx a month. However, since she didn't earn enough in 2017 for the minimum and we doubt she will earn enough in 2018 for the monthly minimum contribution (annualized), these companies are not an option. We would also prefer not to pay any monthly account maintenance fees due to a low monthly balance either.

I'm going to kept doing some research on this. But in the meantime, any suggestions?

Anyone's child run into a similar situation and if so, what did you do?

Thanks!

 

[gottalovepluto]

I'd look at Vanguard, I don't remember if there was a minimum when I opened but I haven't had any monthly fees and I think that's still their deal. She can trade Vanguard ETFs for no commissions, and pay a commission to trade non-Vanguard ETFs and stocks. (Idk about doing this for an adult dependent as I've never been in that situation, sorry.)

 

[SleepyatDVC]

I checked online and Vanguard seems to have a minimum of $1000 now.

I think TD Ameritrade will work for her. I just checked. Anyone with other suggestions? Thanks!

 

[Nebraska_Disney]

Vanguard is where I went to open up something for my son. We did the same and matched what he was putting in. Their STAR fund has a $1,000 minimum for any type of account (does not have to be IRA). I have utilized Vanguard for almost 25 years now and their low cost strategy is a great incentive as well as how easy it is to contribute to your account using online tools and electronic fund transfers.

 

[tvguy]

This Wells Fargo program has no minimum. https://www.wellsfargo.com/investing/retirement/ira/select/wellstrade/

Never mind, it has monthly fees.

 

[disneymagicgirl]

Fidelity

 

[Albort]

I'd look at Vanguard, I don't remember if there was a minimum when I opened but I haven't had any monthly fees and I think that's still their deal. She can trade Vanguard ETFs for no commissions, and pay a commission to trade non-Vanguard ETFs and stocks. (Idk about doing this for an adult dependent as I've never been in that situation, sorry.)

Vanguard is where I went to open up something for my son. We did the same and matched what he was putting in. Their STAR fund has a $1,000 minimum for any type of account (does not have to be IRA). I have utilized Vanguard for almost 25 years now and their low cost strategy is a great incentive as well as how easy it is to contribute to your account using online tools and electronic fund transfers.

ive read a lot of financial stuff on all sorts of forums/chatrooms. Vanguard seems to be the go to place for all investments. Im not too sure why. But since lots of people do that, i would say its a good choice!
Ive personally like Charles Schwab, but thats just me... lol

 

[georgina]

Vanguard is considered good because they have mutual fund accounts with low fees. But with earned income below $500, she can't open an account there yet. She may have to open a smaller account somewhere with less earning potential for a few years, until it gets big enough to transfer. I would check with your local bank. Some places will waive account maintenance fees if you get all statements online. And congratulations on her getting started early with the Roth IRA!

 

[clh2]

Our regular local bank offers Roth’s and regular IRAs with a $100 minimum.

And while the rate of return is very small, it might be an option for a year or two, until enough is accumulated to get to the minimum somewhere else (like fidelity or VanGuard)

 

[gmar1210]

Try fidelity.

 

[Minnesota!]

I opened one through my Capital One account - used to be ING. I was just throwing a very small amount in there each month as a side-side-side Roth. No minimums.

Capitaloneinvesting.com

 

[BridgetBordeaux]

Vanguard is where I went to open up something for my son. We did the same and matched what he was putting in. Their STAR fund has a $1,000 minimum for any type of account (does not have to be IRA). I have utilized Vanguard for almost 25 years now and their low cost strategy is a great incentive as well as how easy it is to contribute to your account using online tools and electronic fund transfers.

We did the same ....500 from our DD..........500 match from us.........she opened up a Roth Vanguard STAR account. Financial advice guy Clark Howard speaks about this fund frequently as a great way to open up a Roth for a young person.
They did not require any other actions from us. There were no forced contributions required after opening it.

 

[ruadisneyfan2]

I'd look at Vanguard, I don't remember if there was a minimum when I opened but I haven't had any monthly fees and I think that's still their deal. She can trade Vanguard ETFs for no commissions, and pay a commission to trade non-Vanguard ETFs and stocks. (Idk about doing this for an adult dependent as I've never been in that situation, sorry.)

I just helped ds21 to open a Vanguard account. (In his case, he did have the income and assets to not have to be limited.) My parents had a small custodial account that was turned over to him at his 21st birthday. I’m so happy that he was willing to be smart with this amazing gift. I know when I was his age I was all about spending! He actually opened 2 accounts. One is a Roth IRA with $3k and the other is an individual investment account with $10k. This account can be accessed if needed with no penalties but earnings are indeed taxed.

 

[georgina]

I opened one through my Capital One account - used to be ING. I was just throwing a very small amount in there each month as a side-side-side Roth. No minimums.

Capitaloneinvesting.com

That's a good idea. We have that account also, is paying 1%, which is better than a bank will give them!

I like Vanguard also, had my son put his money in a Target date retirement fund there (2060! seems a long way off) but it also has a $1000 minimum which the Op's DD can't do yet.

 

[ruadisneyfan2]

IIRC, Capital One 360's regular savings accounts earn 1% and they are FDIC insured. It doesn't earn a lot but it won't lose money either. It's great for short-term goals such as property taxes or a vacation.
Many Vanguard mutual funds earn around 30%. It's riskier of course but for long term investing, it earns a LOT more than our Capital One savings acct.

 

[BridgetBordeaux]

IIRC, Capital One 360's regular savings accounts earn 1% and they are FDIC insured. It doesn't earn a lot but it won't lose money either. It's great for short-term goals such as property taxes or a vacation.
Many Vanguard mutual funds earn around 30%. It's riskier of course but for long term investing, it earns a LOT more than our Capital One savings acct.

Careful...........although the recent super duper 12 month performance was really strong, that is far from typical diversified mutual fund returns. Numbers that hover between 4 to 9 percent as a multiyear average return is much more realistic for mostly stock funds. Funds that are a balance of stocks and bonds are less risky, and have slightly lower returns.

 

[ruadisneyfan2]

Careful...........although the recent super duper 12 month performance was really strong, that is far from typical diversified mutual fund returns. Numbers that hover between 4 to 9 percent as a multiyear average return is much more realistic for mostly stock funds. Funds that are a balance of stocks and bonds are less risky, and have slightly lower returns.

Thanks. I’m aware. I’ve had a Vanguard Primecap account for about 25 yrs. The 1 year avg is 29.6% and the 5 yr avg is 19.6%. Once you look back 10 years it really drops since it includes the recession in 2008 and the many years of recovery. Even then the 10 yr avg is 11.06%. Still doesn’t make me want to give it to Capital One to earn 1%.
Jmho

I have other less volatile Vanguard funds and have no problems sleeping at night.
Do what works for you.

 

[tlg588]

I consider Vaguard to be the premier mutual fund company. When looking for a low minimum TIAA-CREF used to be a good option. Solid companies with relatively low costs.