USAA brokerage Roth IRA...?
i have an IRA. I have been contributing every month. Is it best to max it our as early as possible? Also, should I just leave it alone? It asks if I want to place a trade? Its a brokerage IRA through USAA. I am just learning how to invest so I am not sure what to do.
- 1 decade agoFavorite Answer
Your headed down the right path by having a brokerage account with USAA. USAA's fees and customer service are outstanding compared to other brokers. I have a USAA account as well. You will want to ensure that your money that you are contributing to the IRA is going into a mutual fund of some sort. If not, it will sit in your account and earn interest like a money market account, which is good but doesn't have the earnings potential as investing in mutual funds.
You need to evaluate how close you are to retiring and how risky you want your investments to be to help generate more cash for you when you retire. The link I have pasted below will help you determine which USAA funds to choose from based on how aggressive you feel towards your investments.
The general rule of thumb is that the closer in age you are to retiring you are more conservative with your investments and the longer you have to retire the more aggressive you are with your investments. It is also a given rule of thumb that you are better off investing more early than later. It allows your money to compound more times over the years than waiting until the last minute.
Yes. You will want to place a trade to invest in the mutual funds you have picked based on how aggressive you feel. If you need help or want to set up the IRA where it will automatically invest your contributions into mutual funds that you have picked out, just call their number:
Mutual Fund Information & Sales 1-800-531-8448
Monday - Friday, 7 a.m. - 10 p.m. CT
Saturday, 8 a.m. - 5 p.m. CT
Also, there is their free financial advice center you can call to help you make a decision:
Financial Advice Center 1-877-314-2255
Monday - Friday, 8 a.m. - 7 p.m. CT
Saturday 8:30 a.m. - 5 p.m. CT
- 4 years ago
If you are confident in your knowledge of investing and will actively manage your own account, then a discount brokerage or banking institution may work very well for you. On the other hand, if you don' t know much about investing or don't have the time or interest to do this yourself, paying a small fee to a professional may be a wise decision. Think about this, if by paying a professional you are able to achieve 1% better results on average over a period of 20 years, you will have roughly 30% more money in your account. That could mean an account of $130,000 instead of $100,000 - or - $65,000 instead of $50,000. Of course this depends on how much you invest. What I am trying to illustrate is that small differences in investment performance, when compounded over a long period of time, can make a major difference. If you don't know what you are doing, paying a fee to someone who does could be well worth it. Ask around...talk to a few different financial advisors...try to minimize your fees but be confident that you are getting competent help. Don't be surprised if you get a lukewarm response from advisors (brokers and other commissioned agents) - your $4,000 investment each year is not a large piece of business for them but they may be the ones to get you the best results. Good luck!
- 1 decade ago
if you are new to this game then get out of usaa...they charge hefty fees and obviously encourage trades. move your roth to vanguard or fidelity and pay the lowest fees in the industry..plus they do not solicit you and both have many options to fulfill your needs
- How do you think about the answers? You can sign in to vote the answer.
- Anonymous4 years ago
Sorry but I don't know about this
- tresaLv 44 years ago
so glad that I found this topic already answered! Its like you read my mind!
- Anonymous4 years ago
I think so