My company is not offering custom selections of where to invest 401K money. So I am looking at IRAs but fidelity is charging interest on uninvested cash. What platform should I use to start IRAs?
Salaam and welcome, @ahmahmed90! There are a few things you can do in this situation.
- Option #1: Ask Fidelity to opt you out of their cash sweep program by explaining to them that you cannot accept interest payments for religious reasons. If they say no, try asking the same question to a different broker like Charles Schwab.
- Option #2: Create an IRA account through M1Finance and turn on auto-invest so there’s never any uninvested cash in your account.
- Option #3: Review your account statements once a year, tally up the total interest payments that you received, and simply donate the amount.
Thank you so much Saad! Ill defiantly try to explore all 3 options. For option #3, would I just donate from another account, how much interest was given to me? I will be penalized if I withdraw from the IRA account from what I know lol. Thank you.
Yes, donating from another account where you have savings in cash is probably best so you’re not having to deal with taxes and penalties from early withdrawal.