How much money do I need to open an IRA?

[Guest shanna_RN_1]

I'm interested in opening an IRA, but I can't seem to find out the minimum requirement for opening one. I'm on a limited budget, so it's needed information. Any help would be appreciated. Thanks

[JanetM]

That varies by company. Some banks will open them if you promise to direct deposit minimum amount per month. Some of the large fund companies require minimum deposit to get into a specific fund.

Get a copy of Money magazine and call a few who advertise and ask.

[John G]

Other sources: Internet search under discount brokerage or mutual funds. Also the March issue of Consumer Reports often lists an array of mutual funds with 800 numbers.

Most custodians will accept a lower initial if you commit to monthly direct contributions from your checking account. Ask. Examples:

Oakmark funds have a $500 minimum if you also committ to monthly contributions. See: http://www.oakmark.com/forms/irca_app.htm

TIAA-CREF apparently has a $50 minimum if you are going auto monthly. See: http://www.tiaa-cref.org/pdf/iras/mfirains.pdf

Also, you can start a savings plan right now to accumulate the minimum and then open a Roth when you accumulate enough funds. You won't earn a lot of interest on small amounts, but if you are dilligent in saving, you will reach the minimum soon enough.

I am not recommending that you buy stocks at such a low level, but you will find low mimums at: http://buy-stocks-online.com/ . . . . low as in zero.

Banks typically have low entry levels - but not all banks have good investment options or low annual fees.

Don't forget to factor in service and convenience. Ask lots of questions. Most companies really value new Roth customers because they stay for a long time. You can also just plain ask them to waive the initial amount or waive the annual fees. (not all have annual fees, something to ask about)

Good luck.

[John G]

Bryant, as moderator, I deleted your post. It is inappropriate to advertise or solicit sales via this message board. While your intentions may have been noble, allowing solicitations opens the door to a lot of abuse. You are welcome to post again and mention an example without the solicitation.

TO ALL: The folks who post here will often mention the brand names (Etrade, Schwab, Vanguard, Fidelity, Scottrade, etc.) This message board does not endorse any product or company. The names of firms are used as examples. In a universe of hundreds of brokerages, 10,000 stocks and another 10,000 mutual funds the consumer has many choices. It is a very competitive market place. A reasonable way to proceed is to always consider three different service providers.... just like you might get three quotes for a new kitchen or roof.

[dh003i]

shanna,

Fidelity allows you to start with $200 (provided regular contributions). Most Vanguard funds allow a $1000 minimum initial investment for Roth IRAs.

If you really want to go with one company in particular, but their initial fee is too high, try calling them up and seeing if they'll lower it.