This is financial advisor Patrick Munro talking
about what is an IRA account. An IRA also known as an Individual Retirement Account
is a well known long entrenched retirement vehicle for folks in the working world. It
is a vehicle that allows you to place money into a tax deductible vessel for future growth.
The government allows you every year a certain limit based on your income. If your income
grows they increase the limit that you’re allowed to contribute. So, it’s important
to max out your contributions every year, so that you’ll make sure that you have the
most money available in retirement when you leave the company. The dollars that you have
from your IRA will replace the paychecks that you used to have in retirement if you do this
correctly. One of the correct ways is to avoid risks in the internal investments of your
IRA. Make sure as you are younger you can have a little more risk, but as you get older
trim back the risk and be more conservative in your IRA. This is Patrick Munro talking
about the benefits and definition of an IRA.