IRAs (Individual Retirement Accounts) are popular retirement accounts in the United States with many tax advantages. The self-directed IRA is an account that allows the individual account holder to make investments in the account as opposed to a traditional IRA that is managed by employers or fund managers called IRA custodians. This article will help you figure out start and invest in a no-fee self-directed IRA.
Instructions
1. Open an account on one of the popular brokerages that offer no-fee IRAs including Fidelity, Scottrade and T. Rowe Price. See additional resources below for direct links to these companies' IRA start pages.
2. Fund your IRA with the minimum deposit, ranging from $500 to $1,000.
3. Use monthly payments to invest in your self-directed IRA. Some brokerages will waive the the startup fee if you commit to regular monthly payments. This is also a good idea in general as you benefit from dollar-cost averaging and force yourself to budget for your contributions.
4. Do not withdraw funds early from your IRA. IRAs work because you use after-tax monies to invest over a long time period. If you withdraw funds early, you will face an early-withdrawal fee of 10% or more.
Tags: invest, self, directed, funds early, monthly payments, withdraw funds, withdraw funds early
