T. Rowe Price IRA Review 2017
T. Rowe Price IRA account review: pros and cons, set up, maintanace fee, minimums.
- Stocks & ETFs: $19.95, $9.95 with conditions
- Options: $19.95 + $1 per contract, $9.95 +
$1.00 per contract with some conditions
- Mutual Funds: $35
Minimum to open: $2,500 for a cash account, $1,000 for an IRA.
Open an account: Open an account with T.Rowe Price
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T. Rowe Price IRA Account Review
In evaluating an IRA account, we consider the company’s offerings and services across several dimensions: investment options, cost, the online system (website),
research and analysis, tools, and customer service.
We will break it down for you below.
Opening T. Rowe Price IRA Account and Minimum Investment
The minimum initial investment for an IRA account is $1,000, which makes it affordable for pretty much anyone to get started saving for retirement.
We opened our account online in about ten minutes with no confusion or hassle. We own a Target Retirement fund (more about that later), which makes
monthly, automatic withdrawals from our checking account. All in all, pretty standard service.
T. Rowe Price IRA Investment Options
The first criterion for evaluating an IRA account, in our opinion, is investment options. In our T. Rowe Price account, we can purchase stocks,
bonds, METS and mutual funds – including non-T. Rowe Price funds like PICO and Dreyfus. Our preference for retirement investing is low cost,
no load Target Retirement funds, which T. Rowe price offers. These are professionally managed mutual funds that invest in a diversified basket
of stocks and bonds. For clients who are young, they invest in riskier, higher returning investments. As customers get older, they will automatically
start tilting investments toward safer, more conservative investments.
T. Rowe Price IRA Review: Fees
Let's break this into three categories: stock commissions, account fees and mutual funds fees.
- Commissions at T. Rowe Price are extremely expensive!
You are charged $19.99 per trade unless you make over 30 trades per year
or have at least $50K in your IRA - then commissions drop to $10 per trade. Other low
cost brokerage firms offer lower commissions - $5-$10 per trade - no matter the amount of trades you make or the value of your account.
- Accounts fees: $30 per year for an account under $50K. Most discount brokers don't charge account fees.
- Mutual funds are $35 per transaction. T. Rowe Price Brokerage charges a short-term trading fee which is equal to the greater of $50 or 1%,
but not exceeding $250, for all no-load,
no-transaction-fee (NTF) funds held less than six months. Also, a short-term trading fee of $5 applies to shares purchased systematically and
held less than six months. These fees are in addition to any short-term trading fee charged by the fund. The short-term trading fee is waived
for T. Rowe Price funds; however, individual fund redemption fees still apply.
- All T. Rowe Price fees.
T. Rowe Price IRA Review: Online Investing
The company's website is just OK. It’s not as good as at
top 10 rated brokerages.
It’s reasonably user-friendly. We can make trades and manage the account entirely online. We’ve never had any issues.
T. Rowe Price: Customer Service
Customer service at T. Rowe Price is good. We have called several times with questions, and the reps appear to be professional and knowledgeable.
T. Rowe Price Research
Research is very limited. To compare,
TD Ameritrade (TD Ameritrade review) offers third party research
from 13 different companies.
T. Rowe Price IRA Review: Trading Tools
They offer a modest range of tools to help you understand your investments. Most of them are pretty useless, but we will outline two that we like:
- Retirement Income Tool – easy-to-use tool to figure how much you need to save for retirement.
- Mutual fund screener – this is a nice way to shop for mutual funds. You can enter the asset class (large company stocks,
international bonds, etc) and pull up a list of available funds. From there you have access to Morningstar metrics (star rating, past performance, etc.)
T. Rowe Price Review: Investing Firm Recognition
In 2015 in U.S. Self-Directed Investor Satisfaction Study by J.D. Power T. Rowe Price finished fourth, only one point ahead of another giant of the
investment world, Scottrade offering competetive commissions ($7 per trade for stocks), excellent customer support and education, online investment services and free in-person guidance
at over 500+ branches around the country. Unlike T.Rowe Price, Scottrade always provides special offers for new clients.
At this moment Scottrade offers: Open Scottrade account today.
T. Rowe Price Brokerage Review Summary
T. Rowe Price is an OK company for an IRA account for inactive mutual funds investors. The service is standard and meets expectations.
T. Rowe Price Investments