Apr 8

What is the interest rate for a Roth IRA? I realize who can contribute and what the limit is, but how do you make money with one? Does the bank that you go through help you invest, or are you completely on your own?

4 comments so far...

  • r&s mom Said on April 8th, 2010 at 7:30 pm:

    I think there is no set interest rate – you determine where you want your Roth money to go. You choose the mutual fund, stock etc. The bank normally doesn’t help you invest

  • lizzgeorge Said on April 8th, 2010 at 8:18 pm:

    An IRA is just a type of account–you can open one at a bank or through an investment company like Vanguard, Fidelity, Smith Barney, Merril Lynch, etc.). You can put whatever kinds of investments inside of one that the bank/investment firm/ offers. You can put stocks in it, or mutual funds, or ETFs or cash…so your return depends on whatever investment you choose.

    You get minimal help, unless you want to pay for a financial advisor. But most websites of companies will offer you asset allocation advice and recommendations on what funds may be right for you.

  • parsonsel Said on April 8th, 2010 at 8:56 pm:

    The rate of return is whatever the fund you chose gets. You can have more than one fund in your Roth portfolio too.

    I have some with higher rates than other. You can hire someone (financial advisor) to help you pick and chose and maintain your portfolio but then you have to pay him/her.

    You can go to a site such a Vanguard or Fidelity and do your research and open your Roth thru them all on your own.

    Some banks offer financial planning but I’ve never used such services so I don’t know if you have to pay or not.

  • amykins89 Said on April 8th, 2010 at 9:35 pm:

    A Roth IRA is a retirement brokerage account. You select a brokerage house to warehouse your Roth IRA. I would recommend Scottrade, because they do not charge you a “maintenance” fee on your account, plus there are no fees for buying mutual funds.

    So you have opened a Roth IRA and you are making contributions to the account. You have $3,000 sitting in your Roth account. You are not making anything on it until you decide that you are going to invest your $3,000 into a mutual fund that you have researched. In six months you have made 6% on your three thousand for a gain of $180.00.

    You can invest your money in bonds, stocks, etc.

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