Choose the independent retirement account that’s right for you. In a traditional IRA, deposits are tax deductible in the year they’re contributed to your account. When you begin withdrawing your funds, any amounts you receive will be taxed at your personal income tax rate in effect at that time.
If you are near or already in retirement, more conservative investments are typically suggested. If you have decades of earning years ahead of you, you can take on more risk in your investments, because your account will have time to recover from losses prior to your planned withdrawal of the funds. It is possible to get a guaranteed-principal, or principal-protected, IRA, but returns may be lower. These can be good products if used as part of a diverse portfolio.
Remember that fees will reduce your overall returns. Make sure fees are not undermining earnings. Talk to one of our financial professionals for expert advice on retirement investing.
