Diversify Your IRA Investments
IRA investors have access to various investment options. Robo-advisors such as Betterment can provide low fees while investing in stocks and ETFs with proven track records of producing solid returns.
Fidelity provides active traders with quality trading platforms and thousands of mutual funds without transaction fees, in addition to exceptional customer service that doesn’t nickel and dime its customers for services rendered.
Betterment
Betterment offers a user-friendly setup process with powerful goal setting tools and calculators, including external accounts-syncing features and helpful reminders to stay on track with your goals.
Betterment employs ETFs across 13 asset classes to manage its portfolio, helping it avoid overexposure to individual companies or sectors. Furthermore, its automated tax-coordination feature aims to minimize taxes by shifting investment gains into tax-efficient accounts; according to its research this feature has proven effective at increasing after-tax returns by an estimated 0.48 percent annually – more than covering its management fees.
Betterment offers individual and joint taxable brokerage accounts, Roth, traditional, inherited, rollover and SEP IRAs as well as trusts for individuals and joint accounts alike. In addition, Betterment also supports socially responsible portfolio options including Broad Impact, Climate Impact and Social Impact portfolios with no minimum account balance requirement – however fees may increase for higher balance accounts; additionally its money market account offers relatively high interest rates plus check writing privileges and debit card access for ease of investment management.
Fundrise
Fundrise was among the pioneering crowdfunding real estate investment platforms to launch on the market, offering REITs as investments that provide exposure to real estate rather than stocks and bonds.
Fundrise offers four investment plans tailored to your goals: the Supplemental Income plan focuses on properties that generate cash flow by renting or collecting rent, while Balanced Investing diversifies across growth and income properties. There are also two non-registered funds which provide even more investment variety but may be less liquid.
Fundrise registration is quick and simple, though before investing any money it is wise to read through its extensive investor disclosures and understand their limited liquidity – you can only sell shares you have held for five years or longer on Fundrise platform – plus they may suspend redemptions during periods of economic instability like during March 2020 when the coronavirus outbreak was taking hold (like they did then). Also unlike stocks dividends from REITs are taxed as ordinary income rather than capital gains.
Dividend Stock Funds
Dividend-paying stocks or funds that specialize in dividend stocks can help diversify your IRA investments. When making this decision, be mindful of your financial goals and risk tolerance when selecting investments for your IRA.
Choose a mutual fund with strong, long-term returns. Consider its expense ratios, top holdings and assets under management before making your decision.
Fidelity stands out as an excellent option for IRAs due to its friendly customer service, robust trading platform for active traders, and policy of not nickel-and-diming clients for services. Furthermore, it has an array of low-cost funds and ETFs.
Schwab Intelligent Portfolios brings Schwab’s investor-friendly service to robo-advising. For a flat fee, this IRA investment service will create and manage a personalized portfolio including tax loss harvesting and auto rebalancing – you can even upgrade to the premium tier for access to human advisors if desired.
Passively Managed Funds
Passive funds offer an ideal solution to diversify IRA investments without the hassle of picking individual stocks, with fees that are typically much lower than actively managed funds and minimum investments of as little as one dollar per share possible.
Passive funds may not be the solution to all of your investment woes, however. Over time, they typically trail active funds and if you want greater returns then consult an adviser about tailoring a more customized portfolio to your needs.
Vanguard has earned an excellent reputation for offering low-cost mutual funds, with numerous low-fee IRA options such as online stock and ETF trading platforms, great customer service and thousands of funds without transaction fees available without incurring fees – this has led NerdWallet’s editorial team to award Vanguard an A+ rating as an IRA provider.
Comments are closed here.