No. of Recommendations: 1
Best custodian for your IRA depends on what you plan to invest in. Fools would suggest an S&P 500 Index fund, such as Vanguard 500 Index fund (VFINX). Vanguard is an excellent custodian for that kind of account.

If you plan to invest in stocks, like Foolish 8 or Rule Breakers, then you will want to have a discount broker as your custodian. You will still want an S&P Index fund as your major investment. Most brokers offer them, though transaction fees are bit higher. You can also buy SPY, the S&P 500 tracking stock traded on the AMEX. Or start at Vanguard and move to a discount broker later when you've accumulated some capital to work with.

By the way, if you have significant business income, you might want to look into Simple IRA and Keogh plans. They have much higher contribution limits than your Roth IRA, so you can accumulate that nest egg faster.

Otherwise, take a look at long term buy and hold investing (LTBH) in a taxable account. You'll probably want to save every penny you can under the circumstances. LTBH again in an S&P 500 Index fund gives you best possible tax treatment in a taxable account.

Best of luck to you.
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