Three ways to demystify IRAs

[King bell]

When it comes to saving for retirement, there are a lot of options out there. And it can be tough to figure out which one is right for you. But whether you're just starting out or you're getting closer to retirement age, an Individual Retirement Account (IRA) can be a great option.

An IRA is a retirement savings account that offers tax advantages. There are two main types of IRAs: traditional and Roth. With a traditional IRA, you can deduct your contributions from your taxes. With a Roth IRA, your contributions are made with after-tax dollars, but your withdrawals are tax-free.

No matter which type of IRA you choose, there are some great benefits that come with owning one. Here are three ways an IRA can help you save for retirement:

1. An IRA can give you tax breaks.

Whether you choose a traditional or Roth IRA, you'll get some tax benefits. With a traditional IRA, you can deduct your contributions from your taxes. And with a Roth IRA, your withdrawals are tax-free.

2. An IRA can help you save more money.

An IRA can help you save more money for retirement because it allows you to contribute more money than other types of retirement accounts. For example, in 2019, you can contribute up to $6,000 to an IRA.

3. An IRA can give you more investment options.

An IRA gives you the ability to invest in a wide range of investments, including stocks, bonds, and mutual funds. This can help you diversify your retirement portfolio and reduce your risk.

 

[Jasz]

The IRA is a great way to save money for retirement. It combines the flexibility of a 401(k) or other retirement plan with the security of an asset that's yours alone. But it's not always easy to understand how the IRA works, or how it can help you achieve your financial goals.

Here are a few ways to demystify IRAs:
1.Talk to your financial advisor. Your advisor can help you understand how your IRA fits into your overall investment strategy and identify potential conflicts of interest if you have other investments that could be affected by an IRA decision. He or she may also be able to provide guidance on what kinds of investments are appropriate for your situation, including which types of stocks or bonds might make sense for your portfolio and whether investing in real estate makes sense for you at this time.

2. Make sure you know all the details about where your money will go when it goes into an IRA account. Make sure you know exactly what types of investments are allowed in an IRA account—and whether those investments are subject to any restrictions such as being restricted from securities backed by subprime mortgages (SSBs).