Do you want to invest your money in an IRA but don’t want to get hit up with the high fees that they often carry? This seems to be the problem with most people who are investing their money for retirement. In fact some people have no clue as to how much they are paying in fees or what a good fee is. So in this article I’m going to show just exactly what you need to do see how much your paying on your retirement and were to find the cheaper rates at.
First you’ll want to see how big of a sales charge the mutual fund company is charging. A typical sales charge for an IRA retirement investment will run anywhere from 4.5% to as high as 6%. This means every dollar you put into your account 6% will be be paid out to the representative. However their are companies that do charge 0% and at the end of this article I will show you just which company does this.
The next fee that is typically found in an IRA account is an annual fee. An annual fee is charged to help maintain the fund. Typical fees run around 1% to 1.20% but some companies will charge as low as 0.23% which is a lot cheaper than most companies.
Finally, the last fee some companies will charge is a 12b-1 fee. This fee is typically referred to as a junk fee. This fee usually covers advertising cost for the company which is passed on to consumers. However not every company charges this fee in fact I recommend that you stay away from these fees altogether.
In the end it’s easy to see that a no fee IRA is one of the best ways to go when it comes to retirement. So who should you invest your money with when it comes to an IRA? I suggest Vanguard because they carry no sales charge, no 12b-1 fees, and a very low annual fee around 0.30%.
Do you want to invest your money for retirement but don’t want to get hit up with the high fees? This is why I suggest Lending Club because they have one of the be no fee IRA programs around, and in this article I’m going to show you three simple reason why it’s better to go with Lending Club over other investment programs.
First off, by going with Lending Club you are not investing money in the traditional sense like you do with mutual funds, stocks, and bonds. Instead with Lending Club you are investing your money and lending it out to others who are being charged and interest rate. In fact this method is very similar to how banks earn money but with Lending Club they are managing all of your loans for you.
Secondly, with Lending Club you won’t face the volatility like you do with mutual funds. Mutual funds go up and down everyday from the constant buying and selling of stocks. However with Lending Club you are their is no constant volatility, instead you can invest your money and know that it won’t be bouncing all over the place. In fact I even believe Lending Club can be recession proof since over 40% of the borrowers are using the money to pay off credit card debt.
Finally the last reason you should choose Lending Clubs No Fee IRA program is because they don’t charge any fee to invest. With a typical mutual fund they will charge an initial sales charge which can run around 5% to 6% and they also charge an annual fee that will usually be around 1% to 1.20%. When you compare a mutual fund that invest $5000 in it with the fees I’ve mentioned Lending Club will earn nearly $30,000 more over 30 years than the mutual fund.
In the end a no fee IRA or Roth IRA are the best way to save for your retirement. In fact the best Roth IRA advice I can give you is to avoid the high cost fees and you will earn far more for your retirement than anywhere else.