How to Choose the Best IRA
If you’re thinking about a comfortable retirement, a great first step is opening up an individual retirement account (IRA). It’s an easy and safe way to invest money towards retirement.
You might be wondering where to start and how to choose the right IRA for your financial needs. BluCurrent Credit Union is happy to help give you some answers.
Benefits of Investing for Retirement with an IRA
You get tax-deferred investments that can grow over time. The funds used in your individual retirement account can be invested into nearly any financial asset.
It’s also great to know that if you don’t like your IRA provider, it’s incredibly easy to roll over your account to a new bank, credit union, or brokerage company.
Types of IRAs to Consider
There are quite a few to choose from:
- Traditional IRAs
- Roth IRAs
- SEP IRAs
- SIMPLE IRAs
Typically, though, you’ll choose between two IRAs:
- Traditional IRA
- Roth IRA.
A traditional IRA allows you to put away money for retirement without paying taxes on it until you take it out.
Whereas the Roth IRA will involve you paying taxes upfront, once you take it out, you won’t have to pay a tax on it.
Both of these have the same contribution limits for tax year 2023: $6,500 for people under 50 and $7,500 for people above 50.
How Do I Choose Between a Roth or Traditional IRA?
If you think you’ll have a higher income when you retire than you do now, choose a Roth IRA.
Roth IRAs have an income limit. If you exceed it, go with a traditional IRA instead.
Shop Around & Compare Rates
Each provider, be it a bank or credit union, offers different rates, fees, and service options for their individual retirement accounts. Look carefully at these and make comparisons.
Choose Between a Self-Directed or Account Managed IRA
You can choose to manage the investments of your IRA or have a “custodian” manage the funding methods and investment options for the account.
If you’re self-managing an IRA account, you can choose to invest money into various assets, be it stocks, bonds, mutual funds, ETFs, REITs, and more.
Get Guidance & Help
When looking for the right IRA, you’ll want to choose an institution that has the resources to help you with any questions or concerns you may have regarding your investments and your retirement account.
BluCurrent can help answer your questions online, via phone, through video banking or at any of our branch locations.
Watch Out for Fees!
Keep a watchful eye on any fees in your IRA contract. Fees aren’t inherently bad. However, they cut into the profitability of your portfolio. It’s important to watch for these.
Signs of an Amazing IRA Provider
Low fees, good customer service, wide investment options, user-friendly website, and mobile app.
At BluCurrent, we go the extra mile. If you already have many IRA accounts, we can consolidate them into a single account, making it all easier to keep track of.
Open BluCurrent’s Personal IRA
If you’re closer to retirement and need a relatively safe, stable set of investment options for your individual retirement account, we offer great investment options at competitive rates.
Contact BluCurrent for Rates and Information
As a community-centered credit union, we make sure to take care of our members’ needs and questions, should they have any. Contact us for any questions regarding investment accounts at BluCurrent Credit Union in Southwest Missouri.