What You Don’t Know About Your IRA Can Hurt You

By Admin Prepare

March 5, 2021

The IRA is one of the main staples of retirement planning. In fact, millions of people use IRAs to save for and provide an income in retirement. However, many people are not getting as much out of these plans as possible because they don’t know as much as they should about IRAs.

IRA stands for individual retirement account. An IRA is a very flexible account because you can invest it anyway you want to, and you can customize your deposits and take withdrawals however you would like. You can even control what happens to your IRAs after you pass away and leave them to your spouse, your children, your grandchildren or any of your heirs.

According to research from the Investment Company Institute, 43.9 million U.S. households own at least one type of IRA. Traditional IRAs are the most popular and are owned by 27% of all U.S. households. Roth IRAs are the second-most popular and are owned by 19% of all U.S. households. These statistics do not include ownership of 401(k) accounts, which are employer-sponsored plans that are offered by some employers. These statistics demonstrate that millions of people are taking steps to plan for their retirement by saving money in individual accounts whether or not they also participate in employer-sponsored plans at their jobs.

So, with all these factors and benefits, it is important to know as much as you can about IRAs; you also need to know how to get all the possible benefits out of them. But, unfortunately, many people don’t know everything they should, and this costs them money. To learn many of the most common factors and benefits about IRAs which many people do not know about, visit the Prepare Institute website (www.theprepareinstitute.org) and find a retirement course or class near you.

Content is for educational and informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article.