Investment Choices

• Having a wide range of investment choices available is important, so look for a plan administrator who has access to a large universe of stocks, bonds, mutual funds and fixed income investments. Since the money in a Roth IRA is allowed to grow tax free, these plans are excellent vehicles for high growth mutual funds and even individual stocks. Make sure you have the freedom to trade in these areas before you open your account.
  
  

Performance

• The performance of the funds in your Roth IRA is critical, since excellent performance can translate into a larger nest egg, and a bigger retirement paycheck, down the road. Examine the past performance of each fund you are considering, and compare that performance to the performance of an unmanaged index like the Standard & Poor's 500. Avoid funds that have consistently performed worse than the index and focus on funds that have consistently performed better than their peers. Keep in mind that you can capture the performance of the broad market by investing your Roth IRA in low-cost index funds as well.
  
  

Costs

• The cost of investing is always a major consideration, and it can be even more critical for a retirement plan like a Roth IRA. The money in your Roth IRA is likely to be invested over decades, and even a small difference in fees and expenses could have a huge impact on the performance of your portfolio. Compare the fees and expenses carefully when shopping for a Roth administrator. Some administrators charge a quarterly or an annual fee for managing your money, while others provide those services free. Also look at the expense ratio of each mutual fund offered by the administrator. Those fees vary widely, and going with a low-cost fund can save you a lot of money.
  
  

Ease of Moving Money

• It is important to rebalance the money in your Roth IRA to maintain the desired mix of stocks, bonds and fixed income investments. When you shop for a Roth IRA administrator, be sure to gauge the ease of making these adjustments. Find out how often you are permitted to move your money around and shift it from one fund to another. Some administrators provide unfettered trading to their clients, while others impose a fee for those who trade excessively.