The Gold Standard: Types of IRAs and Lear Capital
Of all the disciplines which drive the modern world, managing finances is one of the most confusing and resented of all potential career paths. Even if you are well-versed in a specific area of economic theory, the nitty-gritty of how things work is often far removed from your area of study.
Though an individual retirement account is a term often thrown around, there are many types that each work a little differently. Knowing the ins and outs of where your money goes is important for many reasons, if only just for a little peace of mind. Here are a few of the most common types of IRAs, as well as some descriptions to help you pick which of these confusing options is best for you.
Traditional Retirement Account
Don’t be fooled by the fancy titles and modifiers of other retirement accounts, the traditional is still one of the most solid additions to anyone’s finances. Sometimes the additions of extra modifiers are very welcome, but an IRA is already a stable investment for any household, low or median income included. Though you may not be able to put in the full amount every month, something is better than nothing, and you’ll be thankful you put in anything as the years pass by.
Roth IRAs are possibly a more appealing option for high-income bracket situations. Roth IRAs flip the normal dichotomy of retirement accounts, meaning that regular contributions are taxed but once you reach retirement age you pay no taxes on your investment growth, distributions, or other withdrawals. If you can afford to pay that extra throughout your life, a Roth account is a desirable account since down the road your investments are effectively safe from taxation.
While this might sound great if you’re swimming in money, the amount you put in is still limited by the government, normally to 6000 or 7000 dollars. Here is a great summary of Roth IRAs, their ins and outs, and whether they’re right for you: https://www.nerdwallet.com/article/investing/how-a-roth-ira-works. Don’t be afraid to ask a financial advisor for help on this, though the theory is easy the details can get complicated.
SEP (Standard Employee Pension) IRA
If you’ve heard of 401(k)’s, the principle for acquisition is much the same. This account is for employers to fund the financial growth of their employees. Limits for contribution are often much higher than individual accounts, which makes sense on a financial level. If your job offers this after a while, it’s a great idea to let them or help them set one up. Also, if you’re the only employee of your business, you are eligible for this unique style of saving.
One of the potentially trendiest additions to this financial system is that of gold IRAs, which allow you to invest your earnings into real precious metals stored somewhere in the United States. Most companies like Lear Capital tend to offer multiple varieties of metal, and this is so you can hedge your bets that you just hedged by opening the account. Gold often works on its own graph against inflation and economic troubles. As financial trust lessens, people want precious metals, it makes sense when you think about it.
Go for a gold IRA if you feel like the fluctuations of the market aren’t for you or your anxiety. It’s a good thing to have a gold retirement account when prices are high and everyone else is struggling since you might be the only one set to actually live properly during economic downturns. Don’t be fooled though, a retirement account is what it is, and you can’t just store the gold in your house. To have a proper gold retirement account, you must store that metal somewhere the IRS can see.
If you have a stay-at-home spouse for whatever reason, you should look into a Spousal IRA. These accounts allow both spouses to contribute equal amounts to the same account even if one of them isn’t working. This really is a law-based provision for parents and married couples who may be just a bit down on their luck, and for many people nowadays this is very much needed, so click here for a great summary from Forbes on the ins and outs of this type of account.
Don’t let retirement catch you unaware, though there are probably many terms swimming in your head from one of these accounts on their own, it’s important to get started. If you need advice, seek the help of an expert, but the most important thing of all is to just get started on whatever IRA you want to invest into. The early bird gets the worm, and for financially stable individuals this can mean setting yourself up early for a prosperous and relaxing future.