Is A No Fee IRA A Good Retirement Option

					              Is A No Fee IRA A Good Retirement Option?

A no fee IRA has a number of benefits, but is this a good retirement option for most
investors? Investing in retirement will ideally mean having low expenses including fees,
because these costs deduct from the amount for investment and can add up significantly
over time. When you invest, you want your money to grow. Fees lower the amount that
you have invested and the returns you will see from your capital. Smart investors
maximize the capital invested for retirement to take advantage of compounding over
time. Fees charged for an IRA can vary widely and may include many different expenses
and charges. Choosing an IRA that does not charge fees is typically considered the best
move by investment experts and financial advisers for retirement funds.

IRA fees come in many types, and these include load fees, annual investment manager
fees, marketing expenses, investment advisory fees, account administration fees, account
maintenance fees, and many others. A no fee IRA will not charge most of these fees
because they are simply added expenses which do not affect the investment returns. Most
fees will not increase the success of your investments or generate additional returns and
will only decrease the capital and compounded interest that your investment receives.
Most financial advisers believe that retirement funds are better off in passively managed
accounts rather than actively managed accounts which have more fees involved. Load
fees are just sales commissions to the professional who is giving investment advice, and
most investors are capable of choosing the best investment options without professional
help. No load funds usually perform just as well as load funds, but have lower costs
involved so more of your hard-earned capital is invested for your retirement.

No fee IRA accounts are generally regarded as a good idea for retirement capital but
these accounts are not right for everyone. Research shows that actively managed funds
have a higher portfolio turnover and more expenses, due to the buying and selling that
occurs more frequently with this type of fund. A better choice for your retirement money
is to use an Individual Retirement Account that does not involve fees. If you do not feel
comfortable choosing investments you can pay for investment advice instead of choosing
load funds. A load fee will typically range anywhere from 3% to 6% of the investment
amount and there is no guarantee that the professional will not steer you to a fund that
pays more in commissions rather than one that is best for your situation.

Before deciding whether a no fee IRA is the right choice for your retirement capital you
should examine the specific IRA type and the firm offering the account. Each IRA may
be different, and just because an account does not charge fees does not necessarily mean
that it is the best account for your retirement needs and investment requirements. Careful
research and account evaluation is the only way to determine whether a specific IRA is
right in your circumstances, and picking the first no fee account based solely on this fact
can be a huge mistake.

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