As a strong believer in the need to financially prepare for retirement, I wanted to take this opportunity to pass on some information on IRA accounts. According to a recent survey, only 18% of Americans are currently contributing to an IRA account – which is the same as contributing towards your future!
There are two main types of IRA's to choose between: a Roth or traditional IRA
First, you’ll need to decide whether you want to save on taxes today (with a deductible traditional IRA) or in retirement (with a tax-free Roth IRA). Talk to family and friends who have an IRA account and see what they chose. What swayed their decision?
Next, you will need to decide where it makes sense to invest your money. Consider an IRA as the basket that holds your retirement money. You get to decide what goes in that basket, meaning which stocks or mutual funds you want to buy. This can be a challenging decision to make with so much at stake, and so many variables to consider.
That’s why, to make these decisions, I believe that choosing a reputable financial agent to work with is very important! Here at Blackstone Financial, we work closely with you to provide a financial plan that fits your unique needs.
There are two particular things to note as you make this decision:
- Fees - By law, a broker can charge an annual fee to maintain your IRA, but many don't.
- Commissions - Make sure the bulk of your contribution is going toward your retirement nest egg, not to trading commissions.
Along with purchasing a home, hsaving an IRA account is a huge investment towards your future. Maxing out your IRA is a big step toward making your retirement plans a reality. Also, check your employer-sponsored retirement plan, such as your 401K. If your employer matches contributions, make sure you take advantage of that free money!
For more information on ways to solidify your future financial status, give me a call.
Posted May 25th, 2017