Finance & Investment Tips : How Traditional IRA Works

Updated : Nov 14, 2019 in Articles

Finance & Investment Tips : How Traditional IRA Works


This is financial advisor Patrick Munro talking
about how a traditional IRA works. Traditional IRA stands for traditional Individual Retirement
Account and it’s a great saving vehicle for the American tax payer to get involved with,
especially when they’re at work. What an individual can do is put money away in this retirement
vehicle while they’re working. They receive a full benefit of not having to pay taxes
while this money accumulates, so therefore, when you’re not having to pay taxes on the
investment, it grows even larger quicker. The key, though, is to make sure that your
money inside the investment is safe from risk. It depends on what you’re investing in, you
want to be sure you stay away from risky investments such as stocks and mutual funds. Many of them
are subject to spikes in the downside when markets get very difficult out there. So,
as you’re younger, you can have more risk, but as you get older in life, in your traditional
IRA, you want to make sure you position your assets to avoid the risks that could happen
going forward. This is financial adviser Patrick Munro talking about traditional IRAs.

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