Ally Bank IRA Retirement Savings and Investment Tools

Ally Bank IRA offers a range of investment options to help you grow your retirement savings.

With Ally Invest, you can choose from a variety of no-load mutual funds, exchange-traded funds (ETFs), and individual stocks and bonds.

You can also set up automatic transfers from your checking account to your IRA, making it easy to save money on a regular basis.

This feature allows you to take advantage of dollar-cost averaging, which can help reduce the impact of market volatility on your investments.

Ally Invest offers a variety of retirement account types, including traditional, Roth, and rollover IRAs. These accounts are perfect for individuals looking to save for their golden years.

A traditional IRA is a great option for those who want to deduct their contributions from their taxable income. You can also convert a traditional IRA to a Roth IRA, which allows tax-free growth and withdrawals in retirement.

On the other hand, a Roth IRA is ideal for those who want to pay taxes now and enjoy tax-free growth and withdrawals in retirement. You can contribute to a Roth IRA with after-tax dollars, and the money grows tax-free.

A different take: Roth Ira Basis

If you're a married couple, you may be eligible for a spousal IRA, which allows one spouse to contribute to an IRA on behalf of the other spouse. This is a great option for couples where one spouse doesn't work outside the home.

However, if you're looking for a custodial IRA for a minor with earned income, you may want to consider a different broker. Ally Invest doesn't offer custodial IRAs, but you can open a non-IRA custodial brokerage account.

Here's a quick rundown of the IRA options available at Ally Invest:

Overall, Ally Invest offers a range of retirement account options to suit your needs and goals. Be sure to review the features and benefits of each option to determine which one is right for you.

Ally Invest offers a range of self-directed investment options, including stocks, ETFs, bonds, CDs, and U.S. Treasurys.

You can invest in over 10,000 no-load mutual funds from more than 500 fund families. However, Ally Invest doesn't offer fractional shares, so you'll need to invest a whole dollar amount if you want to buy a specific stock or ETF.

Suggestion: How to Invest Ira

The broker's trading tools are decent, but may not be robust enough for intermediate and advanced investors who need detailed option data or after-hours charting.

Here are some key features of Ally Invest's IRA offerings:

If you're looking for a more hands-off approach, Ally Invest offers a Robo Advisor service with four types of portfolios based on your risk tolerance and goals. However, be aware that one of the portfolios requires you to hold 30% of your IRA in cash, which can be a drag on long-term performance.

Ally Invest offers a solid choice of retirement investment options, including stocks, ETFs, bonds, CDs, and U.S. Treasurys. You can also invest in mutual funds from over 500 fund families, with access to over 10,000 no-load mutual funds.

The broker's lineup is not as strong in other areas, however. For example, Ally Invest doesn't offer fractional shares, which allow you to invest with small dollar amounts. If you need this feature, you're better off going with Fidelity, Charles Schwab, or Robinhood.

Ally Invest does have a dividend reinvestment program (DRIPs), which lets you automatically invest any dividends you earn on shares you own back into the asset. This can be a great way to make your investments work harder for you.

Here are some key features of Ally Invest's self-directed investment options:

Overall, Ally Invest is a solid choice for self-directed investment options, but it may not be the best fit for everyone, especially those who need advanced research and screening tools.

Managed investment options can be a bit tricky, but let's break it down. Ally Invest offers a dedicated financial advisor service for a 0.75%-0.85% annual management fee, but that's not what I want to focus on.

For investors with less than $100,000 in investible assets, Ally Invest Robo Portfolios is a better option. It has a low $100 initial investment requirement and four types of portfolios based on your risk tolerance and goals.

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The Cash Enhanced Robo Portfolio from Ally Invest seems like a great deal at first, with $0 in fees. However, it comes with a catch: you must hold 30% of your IRA portfolio in cash. That's nearly one-third of your portfolio not invested in stocks or bonds.

This is a serious long-term opportunity cost, as uninvested cash earns a variable interest rate, which may not keep up with the stock market's average annual returns of 10%. Even with cash earning around 4%, it can't compete with the stock market's performance over the long term.

If you're looking for a no-fee portfolio, consider Charles Schwab's Schwab Intelligent Portfolios, which doesn't charge any fees. Alternatively, Fidelity Go offers a $0-fee portfolio to investors with less than $25,000 in an IRA.

Here's a comparison of Ally Invest's portfolio options:

Note that the Cash Enhanced Robo Portfolio's 30% cash requirement is a significant drawback, making it less appealing than the Market Focused Robo Portfolio, which charges a 0.30% management fee but only requires a 2% cash position.

For another approach, see: Ally Robo Advisor

You've got a 401(k) from your old job and you're not sure what to do with it. You can leave it where it is, but that might not be the best option. Leaving your 401(k) where it is can lead to lower returns due to higher fees.

You can roll it over to an IRA, which gives you more control over your retirement funds and lower annual fees. There are different types of IRAs, such as a Roth IRA or SEP IRA, depending on your eligibility.

You can also move it to your new job's 401(k) plan, but that might not be the best option either. If you're under 59.5, you can cash out your old 401(k) account, but that's not usually a good idea due to penalties and taxes.

Here are your four main options:

You can initiate a rollover from your old 401(k) plan to your new Ally Invest IRA by contacting your 401(k) plan administrator to request a check with your account number.

To complete the rollover, you can either follow the old-fashioned phone and paper route or opt for a digital IRA transfer. A digital transfer can save you time and effort, taking around 5-7 business days compared to 7-15 days for a manual request.

You can initiate a digital IRA transfer by clicking on "Transfer Funds" from the account dashboard and selecting your old broker and typing in your account number.

There are two types of rollovers to consider: direct rollovers and indirect rollovers. A direct rollover is usually free from taxes and fees if done correctly and is the most popular and seamless option to move your 401(k) savings.

A direct rollover involves your 401(k) account manager transferring your investment funds directly to your IRA custodian, without you receiving the funds.

You can request a rollover via indirect rollover or direct rollover, providing your account numbers and other details to initiate the rollover request.

Here are the key differences between direct and indirect rollovers:

You can initiate a rollover by following these simple steps: request a rollover, provide your account numbers and other details, and complete the transfer.

Ally Bank IRAs offer some amazing benefits that can help you save for retirement. One of the biggest advantages is the cost savings: no account minimum and low-cost trading.

You can invest in over 17,000 mutual funds without transaction fees, which can help you grow your retirement savings over time.

Ally also offers advanced trading features, such as forex trading, options trading, and automated portfolio management tools, making it a great option for active traders and investors.

If you're looking for a more hands-off approach, you can also choose from Ally's robo portfolios, which invest your IRA assets according to the company's guidance.

Here are some key benefits of Ally Bank IRAs at a glance:

Ally IRAs can be a great option for active traders, options or Forex traders, or beginner investors opening their first IRA or rolling over their 401(k).

Ally Bank IRA fees are relatively low, but there are some fees to be aware of. Ally Invest doesn't charge annual fees to maintain an IRA, but you'll pay a termination fee of $25 if you close your account.

Broaden your view: Ally Bank Fees

If you're transferring funds out of your Ally account, you can expect to pay a transfer fee of $50 for partial or full transfers. However, Ally does offer a transfer fee credit of up to $75 if you transfer $2,500 or more into an Ally Invest account.

Here's a breakdown of some key fees to keep in mind:

An Ally IRA can come with some drawbacks. One con is that Ally IRA fees can be high, with a $9.95 maintenance fee if your account balance falls below $100.

You'll also need to pay for some investment choices, like brokerage fees, which can range from $3 to $100 per trade.

Some Ally IRA accounts have minimum balance requirements, which can be a hurdle if you're just starting out with your retirement savings.

In addition, Ally IRA accounts may have limited investment options, which can be a drawback if you're looking for a wide range of choices.

You'll also need to consider the tax implications of an Ally IRA, as the money grows tax-deferred, but you'll pay taxes when you withdraw the funds.

A fresh viewpoint: Tax Deferred Annuity vs 401k

Invest fees can be a major headache, especially when it comes to retirement accounts like IRAs. Ally Invest IRA fees are relatively low, with no annual fee and $0 commission on stock, ETF, and mutual fund trades.

However, there are some transfer fees to be aware of. Leaving Ally Invest will cost you $50 for a full transfer, and an additional $25 IRA closure fee if you remove all your money.

Ally Invest has caught up with rivals in terms of trading commissions, with all commissions on stocks, ETFs, and mutual funds now costing $0. But, it's worth noting that the company still charges a $20 broker-assisted trading fee.

Here's a breakdown of the fees you can expect to pay with Ally Invest IRA:

It's worth noting that Ally Invest also offers a transfer fee credit of up to $75 if you transfer $2,500 or more into an Ally Invest account.

Roth fees can be a bit confusing, but let's break it down simply. Ally does not charge an annual fee to maintain a Roth IRA.

The only fees you'll encounter with Ally's Roth IRA are a termination fee of $25 and a transfer fee of $50, which applies if you partially or fully transfer funds out of your account.

Intriguing read: Ally Bank Overdraft Fees

To earn a $500 bonus, you'll need to open an Ally Bank IRA CD account. The bonus is only available for a limited time, so be sure to act quickly.

The qualifying deposit must be made from outside of Ally Bank between January 1, 2016, and May 31, 2016. This can include rollovers, trustee-to-trustee transfers, and contributions.

To meet the deposit requirement, you can make multiple deposits to your Traditional, Roth, and SEP IRA plans. The total deposit amount is $200,000.

You'll need to deposit the funds by May 31, 2016, to qualify for the bonus. The bonus will be paid out by July 31, 2016.

Here's a quick summary of the requirements: