Expert: Paul Henneman - 12/23/2009

Question
dear sir,

once again but from USA. can you please tell me opening an retirement account with the bank is good or with brokerage firm like AMETRADE.com and so.

regards,
MAnsoor  

Answer
Mansoor,
   Thank you for your question!
Yes, opening a retirement account (IRA or ROTH IRA) is very good, as long as you do not plan on needing those funds until you are about 60 years of age or older. There are significant penalties if you withdraw funds earlier than that.

A bank typically will have higher fees, and specific retirement programs. If you want someone to work with and advise you, and preset investment programs, then a bank may be your best option.

If you prefer lower fees, and plan on managing your retirement account yourself, then an online service such as TDAmeritrade, Etrade, Scottrade, or one of the many others would be best.   Their platforms are very good, so it really depends upon if you want to decide what investments you want to hold in your retirement account, or if you want an advisors help at a bank.  The advisors at a bank will not be very good.

You could also work with an outside independent financial advisor, they are often much better than the ones at the banks. They will charge fees, and you have to do alot of work to determine if the advisor is a good one.

I hope that this helps, please do not hesitate to follow up if I can offer anything additional.

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com