Author Topic: Best investment management company for custodial IRA?  (Read 212 times)

UniversityGeek

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Best investment management company for custodial IRA?
« on: March 20, 2017, 05:48:25 PM »
I advised my parents to open a ROTH IRA for my younger sister. The problem is she's younger than 18 so we'll need to set up a custodial IRA. From my understanding Vanguard is typically the best company for IRAs due to their low cost index funds like VTSAX. However, I heard that Vanguard charges $1,000 to open custodial IRAs while other places like Charles Schwab only charge $100. I also heard that the the fees for custodial IRAs are different than those for regular IRAs even within some of the same investment companies. So my question is what would be the best investment company for a custodial IRA (Vanguard, Charles Schwab, Scottrade, etc) and why? Additionally, how easy would it be to transfer the IRA to vanguard when she turns 18 in order to take advantage of its low cost index funds?

tomorrowsomewherenew

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Re: Best investment management company for custodial IRA?
« Reply #1 on: March 20, 2017, 06:58:31 PM »
I believe you're confusing "charges" with a minimum investment. Vanguard doesn't charge anything as far as I'm aware, but you need to have $1,000 in order to fund the IRA.

MDM

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Re: Best investment management company for custodial IRA?
« Reply #2 on: March 20, 2017, 10:01:59 PM »
Fidelity, Schwab, and Vanguard will all let you open a custodial IRA for $100.

See Where to start a child's Roth IRA with very low income? for details.