It is depending on what is in the IRA. If it is in ETFs, Mutual Funds, or Individual stocks that are not covered by the FDIC then you still own the securities even if Robinhood goes bankrupt. You at no point are at risk of losing your investment due to Robinhood's quality
@aliasaad697 Yeah RH is a trustworthy as just about any other broker, in fact I’d say I trust em more at this point than most. RH is safe, people just wanna cry because RH and several other brokerages had to halt some trading to play catch up with the volume.
@gracefulgalpal I hold all my dry powder in an investment account with them; 5% apr. I do have to pay for gold but it's a minor fee compared to the return.
@gracefulgalpal I think this has mostly been answered, you'll need to keep it there for five years and gold is only $5/month with the first month free. You'll need to recreate your target date fund. Off the top of my head it would be approximately the same if you allocate the percentages to VTI (us market), VXUS (international), and BND (us bonds). Holding those in Robinhood is like holding them anywhere else. Robinhood mostly make money when you actively trade so for buy and hold it doesn't really matter, they'll make a few pennies on each trade. Enable DRIP so your dividends go back to work.
@gracefulgalpal I would not even consider this. Chain yourself to Robinhood for 5 years for $3k? And you have to pay them a monthly subscription? I’ve been with Fidelity for a couple decades but it just seems like RH is a second or third tier brokerage. I guess do it if RH and Fidelity are the same to you, but if you need that $600/year you can walk some dogs or drive Uber or something without having to bed yourself to RH.
