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Definition of the Week: IRA
Investment Knowledge from stockbrokers.com
IRA
What is an IRA? An IRA, or an Individual Retirement Account, is a retirement account that allows individuals to set aside money each year and receive huge tax benefits from the government. There are five types of IRA’s: Roth IRA, Traditional IRA, SEP IRA, Education IRA, and Simple IRA. The Roth IRA and the Traditional IRA are easily the two most popular IRA types. The IRA allows an investor to choose from numerous investment options, which allows you to keep a balanced portfolio at all times.
Stockbrokers.com Explains an IRA:
You should always be looking for ways to save money for retirement, and there simply isn’t a better plan available than the IRA. Depending on your personal situation, a Roth IRA or a Traditional IRA might be more suitable. With a Traditional IRA contributions made are tax deductible, but earnings are only tax-deferred. With a Roth IRA the contributions are not tax deductible, but earnings and principle can grow completely tax-free. The IRA is a wonderful retirement savings tool.
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[...] the most important tasks you’ll ever have. An Individual Retirement Account, also called an IRA, is an investing tool used by individuals to earn and set aside money for retirement. The IRA has [...]
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