Lesson 4.6

How To Open an IRA Account

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  • •Accounts can be opened by three methods:

    • Over the phone and the forms will be sent for your signature  and return

    • Online

    • In person at a Schwab office

  • Opening an account is easy and could be profitable for you (more to follow)!

  • Click on Brokerage Account

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  • •This shows there are two types of Brokerage Accounts
    • Individual Account
    • Joint Account
  • Click on “more info” to expand each of these account 

  • Both accounts allow you to:
    • Trade stocks, bonds, ETFs
    • Access Schwabs research and third parties research
    • View your account on line 24 hours a day, seven days a week
    • There is no fee to open an account
    • Fees are possible depending on the investment you make
  • Remember Brokerage accounts are taxable every year!

  • There are three types of IRA accounts:
    • Traditional IRA
    • Roth IRA
    • Rollover IRA
  • We have discussed the Pros and Cons of the first two IRAs but did not discuss the Rollover IRA
    • A Rollover IRA is when you move your IRA from one investment company/employer to a different company/employer
    • This is not something you should need right now
  • Click on the more info for Traditional and Roth IRA

  • Both accounts list the Key benefits as shown here.
  • A Custodial Account is for those under 18 years old. You'll need an adult to setup up the account with you. After turning 18, you can remove the adult. 

  • Benefit of opening an account at Charles Schwab* is Free Money plus low fees
    • Requirements:
      • Must be a new customer to Schwab
      • Existing customers are not eligible
      • Accounts can be opened for brothers, sisters, friends or anyone else
    • When you open your account ($100 minimum) mention that you were referred to Schwab and ask for the “Referral Bonus”.

    • After the required waiting period (currently 45 days) Schwab will add $100 to our account. This is Free Money so don’t pass it up!

*Neither FinMango nor the instructors receive any monetary or gift compensation for recommending Charles Schwab. The highlight it based solely on the low Total Expense Ratio charged for the index funds and the $100 Bonus after the required waiting period.

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