You want to save for retirement but you don’t no the right way to do it? On top of that you want to seek out profitable returns, and stay away from high costly fees. So in this article I’m going to show you the best way to save for retirement and where to do it at?
First off the best place to save for retirement is in a no fee IRA program. The reason I suggest a no fee IRA is because the fees are so much lower. In fact many people believe all IRA programs are alike but you couldn’t be any further from the truth. When it comes down to it mutual fund companies charge to types of fees, a sales charge fee and an annual fee.
The sales charge fee is typically paid up front when you invest the money and pays the representative who sells the investment. Any time money is invested in the account the representative will receive a small percentage. Fees will range from as low as 0% with some companies to as high as 6% with others. My suggestion is to stick a 0% sales charge, however most people don’t know what the best IRA company is.
The next fee that is typically charged is an annual fee. This fee is used to cover the management of the fund. Fees here will range from as low as 0.20% to as high as 1.20%. However I suggest you look for companies that charge a low annual fee, but again most people don’t know what kind of fees their mutual fund company is charging.
Now that we know what an IRA company should be charging for it’s fees you might be wondering what company has the best no fee IRA? For this I suggest Vanguard. With Vanguard they charge no sales fee, and their annual fee averages 0.23%. On top of that they also have an excellent track record. In the end when you compare Vanguard over other mutual fund companies most don’t even compare.
- The Best Place To Get An IRA With No Fee (2009taxes.org)
- Knowing Where to Find the Best Rates for Your IRA (2011tax.org)