Starting a savings account is one of the best and hardest things for anyone to do. Saving money in a way that works for the individual and works for future retirement goals takes time and effort. There are several different types of accounts that are for individuals or through employer-offered retirement plans.
Types of IRA Accounts
1. Individual Retirement Accounts (IRAs)
An IRA is a retirement account started as a way to save for retirement outside of an employer started retirement account. It can be set up in a couple of different ways though, through all of them, the tax advantage is a big way the money is preserved and invested.
Through all the accounts, $6,000 can be contributed a year unless the person is over the age of 50, then $6,500 can be contributed a year. The account cannot be accessed until the account holder reaches the age of 59 1/2. Access can be granted earlier in cases of extreme need, but the penalties are steep.
2. Traditional IRAs
A traditional IRA is one in which the money is contributed and does not get taxed until it is withdrawn. This often places the holder of the account into a lower tax bracket though it will still be set to be taxed at their income tax rate at the time of withdrawal.
3. Roth IRAs
A Roth IRA is exactly like a traditional IRA, except the money going into the account is taxed when it is put in. This makes all withdrawals made on the account tax-free because taxes have already been withdrawn.
4. Gold-backed IRA
Gold-back IRA is an account that has everything a regular IRA has in terms of stocks, bonds, and EFTs, but it also allows for physically valuable assets like gold to be included. The gold must be high purity and be set up to hold physical assets.
5. SEP IRA
A SEP IRA applies to the self-employed and freelancer community. It has the same kind of contributions and tax structures as a traditional IRA, but allow the holder to contribute up to $56,000 or 25% of their earnings. Business owners can deduct the contributions they make on behalf of their employees. This may place them in a lower income tax bracket.
6. Simple IRA
A simple IRA is one a small business or company with fewer than 100 employees can set up. It is an IRA plan in which the employer makes 2% or 3% contributions to the plan while the employee can contribute up to $13,000 a year if under the age of 50 or $15,500 if over the age of 50. The employer is eligible for a tax deduction if they set up the account for their employees. If the employee is attached to a union the employer does not have to contribute.
Adding gold to a portfolio is a smart way to stabilize and preserve the funds in the account. Gold is a precious metal which means when the economy and accounts tied to the market slide generally Gold holds its value or increases..
This keeps the account more stable during the trying times. Gold in its physical form is resistant to inflation. This adds considerably to account stability when the market is going up and down. Inflation reduces the value of the dollar in the typical accounts and as gold is a product of the earth it cannot be created as money can during times of economic instability. Gold has historically retained its value during time of market volatility.
Finding an Advisor
Finding the right place to open an account takes as much time and work as figuring out what will work best for the retirement account. The right account also means the right advisor. Finding an institution that takes care of customer accounts and helps them grow is crucial. It is worth the time to find the right institution and people.
When it comes to opening up a retirement account, the best thing to do is to research the possible accounts and compare the benefits of each. Adding physical gold to an account secures it against economic problems and provides a monetary gain to the account when the retirement age is reached.