Whether your retirement dream involves a beach house on the Central American coast, living on the fairway green, or traveling around the world, an IRA is one of the best ways to get you from here to there.
But what exactly is an IRA? Short for “Individual Retirement Fund,” an IRA is a retirement account comprised of assets such as mutual funds, stocks, bonds, and cash.
An IRA offers excellent tax breaks and the first million dollars contained within the account is protected by federal bankruptcy laws.
Although there is no age requirement for opening an IRA, there are some age-specific restrictions on deposit amounts and withdrawals. For example, if you’re under the age of fifty, you can deposit up to $6,000.00 per year.
Six months after turning seventy years old, you are no longer permitted to contribute to your IRA.
Penalties may apply for early withdrawal.
Because an IRA is an individual account, you cannot open one with your spouse or any other family member(s). However, in the event of your death, the IRA will transfer to your designated beneficiary.
As always, make sure to consult with a financial specialist; and carefully consider your investment objectives, the risks, charges and expenses of any potential investment before investing.