February 26, 2020

Choose the Best IRA for Your Situation

Choose the Best IRA for Your SituationIf you are thinking ahead to retirement, it is important for you to understand just what an IRA is, and how it is supposed to work. IRA is short for Individual Retirement Arrangement. With a self managed IRA, money is deposited on a regular basis. Sometimes it is deposited in after taxes, and sometimes before. For a majority of people, a no fee IRA is the preferred choice.

On November 8, Marketwatch.com rolled out an article that explained why people should be wary when it comes to “5-year rules” for Roth IRAs. The primary reason for this extra level of scrutiny is that these IRAs can actually lead to more taxes and penalties. Learning all of the rules that attach to a particular “no fee IRA” could help to make sure that you do not experience any more anxiety than necessary.

The aforementioned Marketwatch.com article goes on to describe how anyone who is under the age of 59 and 1/2, and who wants to withdraw $10,000 or more from the IRA, could trigger an additional 10% tax rate, in addition to normal taxes that would apply. Like many “hidden” self directed 401K rules, rules for these IRA types could be very financially painful if you are not careful.

According to the ICI, four out of ever 10 households in the U.S. owned some kind of IRA fund in 2012. That same year, eight out of every 10 IRA account holders also had some kind of employee sponsored retirement plans. No matter what kind of no fee IRA you may prefer, it is always best to discuss things with an expert beforehand.

Only then can the increasingly complex rules that the IRS doles out every year be explained in a way that is simple and concise. Once that is done, you will be able to make the best choice possible.

Invest IRA Funds in the Right Retirement Plan for Your Future

Invest in the Right Retirement Plan to Prepare for Your FutureIn 1974, the introduction of the Employee Retirement Income Security Act (ERISA) signaled the beginning of Individual Retirement Funds, or IRAs. Today, there are all kinds of options available to hard working people who want to make sure they have the money to handle all of their expenses not only now, but in the future as well. Options like equity trust self directed IRA programs can provide the money management and investment opportunities that individuals need to be prepared for the future after they retire. In order to make sure the money they save is protected and being handled properly, working with skilled and experienced IRA custodians who understand all of the facts and trends associated with retirement programs is a good idea.

Some of the numbers regarding IRA funds are pretty astounding. According to the EBRI, they account for just over 26.5% of all retirement holdings in the U.S. So even though the rules and policies regarding IRAs can be a bit complex, many people are choosing to invest in equity trust self directed IRA programs and others. Evidently, the potential benefits of doing so outweigh the difficulties that might come with setting up an IRA account.

As of 2011, the average IRA fund in the U.S. was worth nearly $92,000. And today, current estimates suggest that the total assets for American IRA funds are worth more than a trillion dollars. Those jaw dropping numbers mean that self direct IRA funds and other options are being used by many Americans who want to properly prepare for the future. While it can be tough to stay disciplined and put from every paycheck into an account, doing so can prove to be highly worthwhile.

Today, there are several different IRA types that people can choose from. For many, “Roth” IRA funds are the best option, and they account for 12% of all IRA accounts. But like every other choice, there are pros and cons to “Roth” funds. So in order to make the best choice, doing a bit of research and contacting a professional is always a good idea. Though this might be a bit time consuming, doing so can go a long way towards properly preparing for life after work.

Out Live Your IRA Account Comfortably, and Without Worry

Live Out Your Finest DaysDid you know that American IRA funds amount to at least one trillion dollars, and, according to the Employee Benefit Research Institute (EBRI), U.S. men and women contribute to more than 15 million active IRAs? The cost of living is higher than ever, and that reality becomes especially relevant during retirement. Living the rest of your days comfortably, and without worry, depends on decisions you make today. Make the right decisions. Start by identifying, and clarifying, the following myths about IRAs.

I Don’t Have Enough Money for an IRA

IRAs, or individual retirement arrangements, must meet IRS standards. For the most part, IRA accounts are widely available, and getting one can be as simple as talking to your bank or credit union about financing options. Forty-eight percent of Americans, however, believe that they cannot afford an IRA account. How much truth is there to that claim?

There are a number of different IRA types, including a self directed IRA account or self managed IRAs, providing Americans with options and a certain freedoms. New plans make getting an IRA simpler, and more affordable, than ever. Today, people can choose no-fee IRAs, or choose options that reduce, or sometimes even waive, down payment in favor of setting up automatic contributions.

I Have a 401(k), so I Cannot Have an IRA, Too

Contrary to popular belief, you do not have to choose an IRA or a 401(k) only. It is perfectly acceptable to contribute to more than one retirement plan. In fact, just last year, a staggering number of Americans, or up to 80%, funded an IRA account and a corporate-sponsored retirement plan. As long as you follow IRS IRA contribution limits, having more than one plan is a smart way of diversifying retirement funds, and maximizing benefits.

I Do Not Qualify For an IRA

Many Americans mistakenly believe that they do not qualify for an IRA account. Why? An alarming number of U.S. men and women insist that they do not qualify for an IRA account because they are self-employed, or because they are too old. These claims are unfounded.

Americans ages 50 and up are, in fact, given special privileges to contribute even more to their IRA plans. Currently, contributors 50 and older can sink as much as $5,500 into IRA accounts per year. Self-employed individuals, on the other hand, may want to consider self directed IRA accounts.

Regularly contributing to an IRA is a sound financial decision. Know your funding options, or even select self directed IRA accounts, to keep retirement funds plentiful, and your last days as comfortable as possible.