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Tags: finance, ira, roth ira
 When you get old, you’re going to leave a lot of the “good stuff” behind. Take for example the perfect body you worked hard to achieve through long hours of working out – when you reach a certain age, you will be saying goodbye to the abs and hello to the flab.
You won’t be as attractive as you were before, heck no, time can be cruel, like when it replaces the smooth and spotless skin on your face with a bunch of wrinkles. So what’s left for you when you become an ancient artifact? Well for some old people “suffering” from the current state they’re in, they do still have one thing left, which did manage to “get better” through the years – you know what that is? It’s the money they managed to save all during their working days.
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Not just any small amount, but in large quantities, which in turns does well in giving them financial freedom as they’re forced into early retirement. One retirement plan many old farts can opt to get is the Roth IRA – IRA stands of Individual Retirement Arrangement. There’s nothing really that complicated about how the process runs.
What happens here is that a person secures his retirement by making contributions to an account of his own. The good thing about it is that the payments made are non-deductible; here the planner will be allowed to make payments until the specified limit set within the year has been reached.
The withdrawals made from this particular account are tax free, but take note that there are certain conditions tagged to it as well. Now you’re probably wondering how will you put one up for yourself, right? If not, continue reading further anyway: to set one up (taken that you’re actually interested), you have to go to a financial institution.
Not just any institution, they have to be approved by the IRS, or the Internal Revenue Service. You can’t just jump into an arrangement with a stranger or some quack on the streets, doing so can equate to highly unfavorable results for you. Worse case scenario is that you pool loads of cash to a scam artist, who takes your money and uses it for his own retirement.
I’m sure you don’t want that happening to you, so make sure the people you deal with are legit. There are plenty of organizations you can deal with, which include the bank, brokerage firms, and the insurance firm – what are some advantages for you to reap from if you do put up a Roth IRA? Well one would be that you’ll be permitted to make contributions even though you’ve reached the age of 70 years old onwards.
That gives you more time to make that account of yours “fatter”, which is a good thing in financial terms. Another would be the “understanding” of the conditions of this type of account. Understanding in the sense that they have any restrictions if you were to have ties with another retirement plan, such as the one provided by your boss.
There is a disadvantage though, which is: early withdrawals from your Roth IRA will be taxed 10%. There‘s also limits to the amount of contributions you can make to the Roth IRA, as mentioned earlier. Having a financial adviser guide you through it would be for your better good. It’s important that you understand each aspect of this before you decide to get one.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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