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Author: philo88 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75624  
Subject: Roth IRA options? Date: 5/4/2010 12:31 PM
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Hi,
My family and I currently have Roth IRAs with Domini (invested in their Money Market Account with ShoreBank). Well, apparently Domini is ending its relationship with ShoreBank and the Money Market Accounts will now be with PNC. PNC will be charging us $3/month to manage the MMAs and are only offering a .10% APY. So we would be losing money each month. We are looking to move our Roths to another company. Does any one know of another investment company that will allow us to invest our Roths in a MMA? If this isn't the correct board for this questions, please advise.

thanks.
philo

(Cross-posted from Online Banking board)
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Author: Stas3000 CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67074 of 75624
Subject: Re: Roth IRA options? Date: 5/4/2010 1:17 PM
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Most of the discount brokers (Scottrade, TD Ameritrade, etc) offer no-fee IRAs. Some have $500 or $2500 deposit minimums, but others have no minimums at all.

No-fee = no monthly charges if you just want to leave money sitting in cash, which they typically sweep to a money market account that yields... yes, next to nothing. TD Ameritrade has had a fantastic rate of 0.05% for the last year or more. But there is no $3/month charge. :) If you want to buy bonds, stocks, etc, you'll typically have to pay commission or get charged via spread.

If you are not going to purchase securities beyond money market, then you may want to look into moving IRA funds to banks that offer better yields on CD's and money market accounts than 0.10% or 0.05%. (Banks can help you buy other investments too, I suppose.) You can check out http://www.depositaccounts.com/blog for current rates. I personally would recommend looking at investments other than a MMA for a Roth IRA since with current rates you're losing money to inflation, but that's a separate subject...

Hope this helps.

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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67075 of 75624
Subject: Re: Roth IRA options? Date: 5/4/2010 5:05 PM
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The last time I looked Fidelity still had no fee IRA's.

I assume that you want the money market fund because you are being ultra conservative. If so any money that you will not be spending soon should really be invested in something like a ladder of insured CD's. That will give you a sliver more income and actually be safer than a money market fund.

You should be aware that there will likely be a %50 to $75 dollar transfere fee when you move your account from your current company. You may want to factor that into your calculation if the new company is not that much better.

Greg

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Author: Lowcost Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67082 of 75624
Subject: Re: Roth IRA options? Date: 5/11/2010 12:06 PM
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Consider ETRADE for your Roth Account. From your ETRADE account you can invest your money in Stocks, Bonds, CDs, or Money Market. By the way, the CDs can be purchased from banks all over the USA.

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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 67083 of 75624
Subject: Re: Roth IRA options? Date: 5/11/2010 2:52 PM
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Consider ETRADE for your Roth Account. From your ETRADE account you can invest your money in Stocks, Bonds, CDs, or Money Market. By the way, the CDs can be purchased from banks all over the USA.



true of all discount brokers, i'd guess.

also true (i guess) that there's no account fees.

downside is you (OP) have to make your own decisions ..

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