Having a job that offers 401(k) benefits is a huge plus for your future retirement. However, there are other retirement vehicles out there, and not every employer has this benefit. If you’re looking for a smart way to save your nest egg, check out Money Under 30’s best retirement accounts for 2021.
Account options: Traditional IRA, Roth IRA, SEP IRA, nondeductible IRA, Spousal IRA, Simple IRA, Self-directed IRA, 401(k), 401(a), 403(b).
Betterment offers investment employee-funded retirement accounts and investment advice with the intention “To invest your money at a low cost and manage it in a way that gives you a better outcome.”
Betterment partners with companies to provide 401(k) workplace benefits at an affordable cost. It also offers robo advisors for customers who want to boost their 401(k)s, 403(b)s, and 401(a)s, as well as all IRA types.
Betterment will help you manage your money better and even invest it for you in an affordable diversified portfolio. Betterment’s robo-advisors will select the fund for you, suggest an asset allocation according to your needs, and invest, reinvest, and rebalance — all with no work from you.
Cost: $45 annually
Account options: bloom doesn’t directly provide retirement accounts but can assist with 401(k) or IRA management
While you can’t open a retirement account directly through bloom, this online financial advisor service can make managing your funds easier. The company’s goal is to help its customers invest smarter.
Instead of picking an employer-sponsored plan, bloom allows you to fine-tune your retirement savings vehicle. When you sign up, you’ll link your retirement account to bloom, which will then give you advice and plans based on your situation.
Bloom offers a complimentary investment analysis when you enroll. After that, you can open a paid portfolio and get tailored financial planning tools and resources to simplify portfolio diversification and help you make more informed decisions.
When you open an Essential account for $45 each year, bloom will give you a custom portfolio. When you upgrade to a $120 annual plan, you will receive an advisor, have the ability to trade, and get withdrawal notifications. If you sign up for an Unlimited account (a $250 cost), you will receive priority access to bloom’s robo-advisors.
If you’re concerned about talking to a person instead of a robot, bloom employs advisors and analysts with real experience to help you grow your wealth and provide support when you need it.
Cost: 0.25% annual
Account options: Traditional IRA, Roth IRA, SEP IRA, 401(k) rollover
Wealthfront’s robo-advisor service provides a range of investing choices intended to help customers design personalized, affordable, and diverse portfolios. In addition to its retirement account options, you can sign up for one of Wealthfront’s individual, joint, or trust investment plans, including 529 college savings accounts.
Wealthfront offers a complimentary app that makes it easier to track your account. You can view your balance, returns, calculate how much money you will need during retirement, and check out a strategy that can help you modify your plan to reach your goals.
Cost: $0 – 0.35%
Account options: Traditional IRA, Roth IRA, mutual funds, brokerage accounts
Advisors: Robo- and personal advisors
Fidelity is one of the most well-known investment companies for individuals and businesses. Since 1946, it’s made a name for itself as one of the best IRA issuers, offering rollovers, individualized support, and robust tools for all IRA types.
You can get retirement planning and advice through Fidelity Personalized Planning & Advice, the Fidelity Go robo-advisor. This service gives you a blend of support from both robo- and personal advisors to maximize your wealth.
Fidelity Go is excellent for those who are new to investing and unsure what to do, allowing you to manage your account and investments entirely online. Additionally, Fidelity charges no fees for accounts below $10,000.
Account options: Traditional IRA, Roth IRA, SEP IRA, Simple IRA, stocks, ETFs, mutual funds, managed portfolios, bonds, CDs, annuities
Advisors: robo and personal advisors
TD Ameritrade is best for investors who have more experience. It’s consistently ranked as one of the best brokerages thanks to its range of platforms, tools, educational resources, and dedicated advisors.
It takes less than 15 minutes to open a new IRA account through TD Ameritrade, including diversifying it with various commission-free ETFs and fee-free mutual funds, stocks, bonds, and CDs. You can decide how hands-on or hands-off you want to be and view your portfolio from one portal.
TD Ameritrade offers a calculator to help you determine how much you’ll need to save for retirement, an IRA selection tool to pick the best account for your needs, and a fee analyzer for 401(ks) that displays fees and rollover availability.
- Poirot |, Lissa. “6 Best Retirement Accounts for 2021 – Take Control Of Your Retirement.” Money Under 30, 16 Dec. 2020, www.moneyunder30.com/best-retirement-accounts.