by Catherine Rein
(last updated April 24, 2009)
The number and variety of IRAs can be confusing and overwhelming at first, but after a bit of research you can find the IRA that meets your needs. Opening an IRA is a great way to invest for retirement or college and depending on the type of IRA you choose, you won't pay taxes on any money earned from investments until you withdraw the money from the IRA. There are eleven different kinds of IRAs. They are designed for different types of investors and for different purposes. You can find more information on the various IRAs here:
If you are deciding where to put your savings dollars think about this investment "pecking order." Briefly, the rank of where to put retirement savings should be in the following order: 1) Employer plan with a match, 2) Roth IRA, 3) Employer plan without a match, 4) Traditional IRA, 5) Taxable investment, 6) Annuity. This retirement savings order prioritization maximizes the return and minimizes taxes and commissions.
Remember to talk to a professional financial advisor with any questions before investing money in any kind of Retirement or Education IRA.
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