T. Rowe Price IRA Review


T. Rowe Price Roth IRA, Traditional IRA, Rollover IRA, SEP IRA (individual retirement accounts) review, brokerage rating, mutual funds, IRA fees and commissions schedule. Is T. Rowe Price IRA good and safe way to invest?



T. Rowe Price IRA Commissions
ProductPricing
Stocks and ETFs $19.95 for accounts under $100,000
Stocks and ETFs $9.95 for accounts $100,000+ or with more than 30 executed trades in the prior 12 month
Mutual Funds $35
Options$19.95 plus $1 per contract (or $9.95 plus $1 per contract)
Commercial Paper, Treasury Auctions, Treasury Bills$50
Agency (FNMA, FHLMC), TIPS, Treasury and Coupon Notes and Bonds, Treasury 0% Coupon Bonds, GNMAs and CMOs$1 per $1,000 Bond
Corporate and Municipal Bonds$5 per $1,000 Bond
Gold, Silver, Palladium and Platinum$0—$9,999 - 0.025%


T. Rowe Price IRA Accounts Offered
  • Roth IRA
  • Traditional IRA
  • Rollover IRA
  • SIMPLE IRA
  • SEP IRA
  • Individual 401(K)
  • 401(k) for small business
  • 403(b)


T. Rowe Price The Company

T. Rowe Price is an international investment organization founded in 1937 by Thomas Rowe Price Jr. Headquartered in Baltimore, Maryland, the company has locations in twelve countries worldwide. The company is managing close to $800 billion in assets, including mutual funds and retirement accounts, for individuals, institutions, and financial intermediaries. The company also provides an array of research and consulting services to individuals, companies, and financial intermediaries.


Accounts & Investment Options

T. Rowe Price offers both Traditional and Roth IRA options, as well as options for small businesses and self-employed individuals: Simplified Employee Pension (SEP)-IRA, Savings Incentive Match Plan for Employees Individual (SIMPLE) IRA, as well as 401(k) options.

For individual investors T. Rowe Price offers the ability to invest in T. Rowe Price and non-T. Rowe Price mutual funds, ETFs, stocks and bonds. Competitors have similar offerings, and most brokerages provide the ability to invest in larger array of products. T. Rowe Price offers Target Retirement Funds, which are managed according to a specific retirement year, and favored by many beginner and less-active investors.


Minimum Investment

T. Rowe Price requires a reasonable minimum deposit of $1,000 to open a Traditional or Roth IRA. Subsequent minimum contributions are $100 per transaction, for which T. Rowe Price offers an automatic investment option. Most companies, such as E*trade, Scottrade, Ally Invest, and Fidelity Investments require zero minimum deposit. Charles Schwab also requires a $1,000 minimum, and Vanguard's can range from $1,000 to $3,000 depending on the type of account.


Fees

T. Rowe Price charges an annual Account Maintenance fee of $30 for IRA accountholders. The fee can be waived by enrolling in the company’s electronic statement delivery service, or by maintaining a combined balance of $50,000 within the company. Most discount brokers and even other larger companies such as Vanguard and Merrill Lynch do not charge an account maintenance fee. However, Capital One Investing charges a $25 fee and Morgan Stanley charges a whopping $75 for account maintenance.

T. Rowe Price charges $19.95 per trade for stocks, options, and ETF unless, you have greater than $100,00 invested or you complete 30 or more trades within 12 months, in which case the discounted rate is $9.95 per trade. T. Rowe Price’s competitors offer lower transaction fees across the board. For example, Ally Invest charges $4.95, and Scottrade charges $6.95.

The company offers investors over 100 mutual fund options, including those specific to T. Rowe Price. There is a $35 commission on mutual fund transactions, an average rate amongst competitors. Charles Schwab, Merrill Lynch, Fidelity, TD Ameritrade, and Northwestern Mutual all charge commissions ranging from $50 to $80. E*Trade, Capital One Investing, Scottrade, and OptionsHouse all charge fees around $20, while Ally Invest is on the low end at only $9.95. Unlike T. Rowe Price, all of these firms (except Capital One Investing) offer thousands of mutual funds, some of which are commission free.


Education & Research

For the average investor T. Rowe Price provides more than enough investment information, educational tools, and investment advice. The company prides itself on its research capabilities, and provides a decent number of articles on market and industry outlooks, as well as comprehensive descriptions of its funds. The company’s retirement advice section and tools are average at best.


Online and Mobile Access

T. Rowe Price offers its customers fully automated and online services. Opening an account and subsequent transactions can all be done from a computer in a matter of minutes. The website is intuitive and easy to navigate; all accounts are displayed on once screen, broken down by product or fund type, with balances and daily market changes displayed. The company also shows a “Personal Rate of Return” on the home page, which is based on activity in all accounts over a variety of time increments. This feature is useful in quickly determining how well your investments are performing.

T. Rowe Price’s mobile application is average—offering account balances, price changes, and the option to perform transactions. The application was not designed for the active investor, however. Overall stock prices are unappealing to eye and awkwardly assembled within the app. There is no option to track investments other than those already owned, and the app offers no news articles or real-time market updates like some competitors’.


Customer Service

The company offers quality customer service, with specific phone numbers for each line of business, which results in very short wait times per call. The customer service line is open during normal Eastern Standard Time (EST) business hours, which may be inconvenient for international customers. There is a 24-hour automated telephone trading line which is fairly simple to use and trades can also be made with a company representative through the normal IRA customer service line. The company can also be contacted via email through their website.


T. Rowe Price IRA Review Conclusion

T. Rowe Price IRAs can be of interest to retirement investors who want to purchase T. Rowe Price mutual funds. As long as minimum account balances are maintained and customers are enrolled in electronic services, the access to the company’s funds might be worth the price. But considering high commissions, few mutual funds and other products, and basic trading tools, T. Rowe Price is not the best option for IRA investors.


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Article was updated on 1/22/2017.




T. Rowe Price IRA reviewed by IRA-Reviews.com on . Rating: 3
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