Ask Terry Questions Roth IRA Account Question

Roth IRA Account Question

By Terry Savage on April 19, 2021 | Financial Planning / Retirement

Hi Terry,
I am going to contribute $7000.00 into a Individual Roth IRA for 2021. I am 62 years old. I can contribute it into my established Roth IRA account that I set up with my financial advisor. There would be the usual 1% service fee that my advisor charges to regulate my retirement accounts. As an alternative, I could contribute the Individual Roth IRA into an account through my work which the service fee would be significantly less. I would use the Target date fund with Transamerica, Clear Track 2025 Portfolio. I am not sure what to do. I have a good relationship with my financial advisor. I do not want to create a problem but I want to be smart. Could you give me your thoughts on this scenario? Thank you

Terry Says

First, I’m assuming that you have “earned income” from work that allows you to contribute to an IRA.

And I also assume that you know how much risk (moderate, I’d guess) you want to assume at this stage of your life.

In your position, I’d contact Vanguard where they only have a $45 service fee for a Roth IRA (waived if you have $50,000 of assets with them) an open an account in their Equity-Income fund, or balanced fund. just let it keep growing there, since no withdrawals will be required. Consider it a long-term “bet on America.” And one that won’t cost you much.
Be sure to name a beneficiary!!

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