An Individual Retirement Account (IRA) is a powerful investing vehicle. There are several different types of IRAs that people can utilize based on their income and employment status. In our opinion, the IRA is one of the most effective investing tools, right behind the HSA (Health Savings Account), for its flexibility, investment options, and tax advantages.
Here are a few reasons why:
- IRA contributions often provide tax deductibility.
- IRA assets grow tax-deferred over the years and decades.
- IRA assets are protected from creditors in many states.
- Some IRA early withdrawals (before age 59½) may be excluded from penalties.
- IRA distributions can be very helpful in replicating families’ incomes in retirement.
- IRA funds can be used to buy many different assets, including real estate, gold, stocks and bonds.
- Roth IRA‘s can be used for college educational expenditures tax free.
- Many universities exclude retirement accounts from their family expected contributions when determining how much a family should pay for their child’s college.
These are a handful of the many benefits associated with IRAs. To know which IRA might be most appropriate for your family, contact us to schedule a free consultation.
