I need to open an IRA because a) I’m on the state expanded medicaid and would like my holiday overtime pay to not cost me my heathcare and b)I’m in my 30s and would like to retire before I die
I love America’s healthcare system so much
I know I need a traditional IRA for the tax deferment on my MAGI (how they determine healthcare eligibility in my state), I know I care about low fees, and I know I want a place with a socially responsible fund option (it doesn’t have to be the absolute greenest, but I don’t want to give my $$ to fossil fuel company)
Beyond that, I have NO IDEA how to choose which brokerage (is that the right term even??) I should be going with. And because this is all Big Scary Adulting stuff, I have viciously procrastinated, researched my brain into a pickle, and am now finally asking in the place I should have started out.
Vanguard is well established and known for their low fees. They have socially responsible / ESG funds Vanguard ESG funds
I LOVE Vanguard, and have had great experience with their customer service help (free) the few times I have needed them. The website is relatively easy to use, and you can do all of this online.
If you go with a Schwab or a vanguard you should be able to later roll over to somewhere else if you don’t like them without a bunch of BS. So if it comes down to it, just go with what seems easiest and change it later! Just because you open the IRA doesn’t mean you also need to invest the money. It’s not ideal to let it sit there forever doing nothing but it’s also OK to park it for a bit and then decide what you want to invest in when you have the chance to review info that is important to you and your values.
Getting it into the IRA on time is what matters here. Also… do your own checking here, but in the past I THINK it was possible to make contributions up until tax deadline and classify them either in the prior year (The year applicable to the tax return you’re working on ). I don’t know if there’s something special about timing regarding healthcare considerations, though.
I third Vanguard, their IRAs are extremely easy to set up, customer service is great, fees are very low, and they now have the ESG funds like Gdogg said. 10/10 recommended.
I have had to do emergency IRAs for similar reasons (even later in the year though, in April for taxes for prior year) and I’ve found vanguard SUPER fast to do!
Another vote for Vanguard! I didn’t know they had the ESG funds (cool!) but a big part of what swayed me is they are investor/customer owned, so fewer hidden agendas and conflicting goals.
I only know because I think there was an email about it announcing their introduction. I have not yet opened one (yet), since I have several other index funds that I want to get to a certain dollar amount first, but I might maybe next year? I think the expense ratio is higher on the ESG funds (than the admiral total stock index, admiral total bond index, admiral total international stock index, and admiral total market funds - which are the only ones I have ever ever used through Vanguard) but they are still low I think as is par for the course for Vanguard. Also since they are new(ish) they don’t really have a return history yet, so I’ll likely start small.
I’m actually not sure with the healthcare if I need to do the IRA at the end of the year or by tax day
but I figure I’ll serve myself better by assuming the earlier deadline --and trying to get a straight answer out of the state insurance at this time of year would be impossible
Piling on to say Vanguard. They’ll get it done fast. Don’t know for sure if you can do everything online, but if you do have to make a call, they’ll answer the phone.
I have a Vanguard IRA and it was incredibly easy to set up.
My bestie has Fidelity and I believe they’re also pretty easy to set up set up. They have environmental funds as well, though I think their expense ratio is a little higher (but still under 1 percent).
I have not yet opened one (yet), since I have several other index funds that I want to get to a certain dollar amount first, but I might maybe next year? I think the expense ratio is higher on the ESG funds (than the admiral total stock index, admiral total bond index, admiral total international stock index, and admiral total market funds - which are the only ones I have ever ever used through Vanguard) but they are still low I think as is par for the course for Vanguard. Also since they are new(ish) they don’t really have a return history yet, so I’ll likely start small.