In this video you will get an understanding of what an Individual retirement account (IRA) is and how it can be a benefit to you. Also, you will get a lesson on the history of how the IRA came about and where it is today. You will learn about 7 (SEVEN!!!!) types of IRAs, learn about the difference between a Traditional and ROTH IRA and go over contribution limits.

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Financial Education is something that is not taught to people very much. Some people will then say their country or state/region or town/community or their school. The reality is that the basic concepts of personal Financial Education are not taught in most places which is why people are having so many issues with money.

The goal of the Financial Education Series that I have created is to remedy that. I believe that people are capable of managing their money once shown the proper ways to do it (I have clients that I have helped to get their finances in order) and can then thrive and not fall victim to the marketers and sales people that have one goal:

Take YOUR money from you and put it into their pockets

Everyone who is selling you something has that as a goal.

I believe that once people choose to be better with their finances, then I can help them to increase their net worth by making sounder choices and be in a better place. If I did not believe that I could help someone to be better off, I would not take them on as a client.

Take a look at all of the videos in the Financial Education Series and see where you can improve your finances and where I may be able to help you to get your money right. Not everyone needs help in everything, but everyone can improve through the use of a Financial Advisor who acts as a #Fiduciary for their clients, which is what I do.

Here is the description of this video in the Financial Education Series. Hope you enjoy and learn something. If you have questions, please reach out and I can assist you in improving your financial situation….(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Understanding IRAs

Individual Retirement Accounts (IRAs) are a popular way for individuals to save for retirement. These accounts offer tax advantages and can be a valuable part of a comprehensive retirement savings plan. However, understanding IRAs and how they work is crucial in order to make the most of these accounts.

There are several different types of IRAs, each with its own set of rules and benefits. The two most common types are traditional IRAs and Roth IRAs. With a traditional IRA, contributions are typically tax-deductible, and taxes are deferred until the funds are withdrawn during retirement. On the other hand, contributions to a Roth IRA are made with after-tax dollars, and withdrawals are tax-free in retirement.

One of the key benefits of IRAs is the ability to invest the funds in a variety of options, such as stocks, bonds, mutual funds, and more. This flexibility allows individuals to potentially earn higher returns on their investments compared to a standard savings account.

Another advantage of IRAs is the ability to contribute to them even if you are already participating in an employer-sponsored retirement plan, such as a 401(k). This can provide you with an additional opportunity to save for retirement and potentially lower your taxable income.

It’s important to note that there are annual contribution limits for IRAs, which are set by the IRS. For 2021, the annual contribution limit is $6,000 for individuals under 50 years old and $7,000 for individuals 50 and older. Additionally, there are income limits that determine whether or not you can contribute to a Roth IRA, so it’s important to be aware of these limitations.

When it comes to withdrawing funds from an IRA, there are specific rules and penalties to consider. With a traditional IRA, withdrawals before the age of 59½ are generally subject to a 10% early withdrawal penalty in addition to regular income taxes. However, there are certain exceptions to this rule, such as using the funds for qualified higher education expenses or first-time home purchases.

With a Roth IRA, contributions can be withdrawn at any time without penalty, but earnings on those contributions may be subject to penalties if withdrawn before the age of 59½ or if the account has not been open for at least five years.

Overall, IRAs can be a valuable tool for saving for retirement, but they require careful consideration and planning. It’s important to understand the different types of IRAs, contribution limits, investment options, and withdrawal rules in order to make the most of these accounts. Consulting with a financial advisor can help you develop a personalized retirement savings strategy that includes IRAs as part of a comprehensive plan.