‘Wealth Hacker’ Jeff Rose: The 6 Best Roth IRAs for Beginners
Written by
Jennifer Taylor
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Cory Dudak
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Choosing a Roth IRA can be tough — especially when you’re just starting out.
If you’re feeling overwhelmed, Jeff Rose, CFP, founder of Good Financial Cents and the YouTube channel Wealth Hacker wants to help. The financial expert recently posted a posted a video highlighting the best types of Roth IRAs, depending on the factors such as your preferred level of involvement and investment type(s).
Best for Hands-On
If you want to go to a physical location and talk to a real person about your IRA, Charles Schwab is your best option, Rose said in his video. The company has more than 400 branches nationwide, with over 1,200 financial consultants, according to its career website.
He said Charles Schwab also has low fees — or even no fees — and has no minimum deposit requirements. You’re also able to invest in a notably wide range of investments, allowing you to create a truly customized portfolio.
Best for Hands-Off
If you don’t know much about investing or simply have no desire hand-pick your investments, Betterment is your best choice, Rose said. The company serves as a robo-advisor, meaning your investment is managed with automated technology.
“Basically all you have to do with Betterment is choose your investment goals or your retirement goals,” he said.
Another reason to choose Betterment — Rose said their fees are a fraction of what you’ll pay many other firms.
Best Hybrid
Perhaps you’re looking for an IRA that allows you to be involved to an extent. In this case, Rose advised opting for M1 Finance.
“What you get are their investment pies,” he said. “Essentially, what you’re doing here is creating your own investment portfolio.”
An M1 portfolio is literally shown as a pie, with holdings signified by slices. You can then choose from a wide-variety of stocks and ETFs to include in your IRA.
Best for Real Estate
Say you want to invest in real estate with a Roth IRA — your best option is Fundrise, Rose said.
A real estate crowdfunding platform, Fundrise allows you to join forces with other investors to purchase real estate, he said. A Fundrise investor himself, Rose said one of his favorite things about investing with the company is the ability to see the actual properties he buys, any projects in the works and any sales that take place.
Fundrise has a real estate portfolio valued at more than $7 billion, consisting of build-for-rent housing communities, multifamily apartments and industrial assets in the Sunbelt, according to its website.
Best for Match
You read that right — just like with a 401(k) match, it’s possible to find an IRA match. For this, Rose said you’ll need to go with Robinhood.
“Right now, they are the only Roth IRA account provider that offers a 1% match,” he said.
Worth noting, you can get a 3% match on annual contributions with a Robinhood Gold subscription, which costs $5 per month or $50 per year.
Best for Passive Investors
If you just want to let the market work its magic, Rose suggested going with Vanguard). He said they have a variety of options, but the Vanguard Digital Advisor is likely the best choice for beginners.
A robo-advisor, you’ll need a minimum of $100 to enroll in the Vanguard Digital Advisor, paying an average of $15 to $16 in annual fees per every $10,000 invested in an all-index, according to the company website.
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