PGU – Insurance IRA
Saving for retirement can be difficult these days, but an IRA can be a valuable tool to help you do just that. An IRA is designed to help you save for retirement by giving you a place to store money while lowering the taxes you pay on it. At PGU, we can help you understand and choose between the different types of IRAs so that you get the one that can help you the most.
What an IRA Is
An IRA is an individual retirement account that can help you save for retirement and plan for your future by allowing you to make investments with money that is protected from some taxes. Because of the investment you choose to put in your IRA, they can help make your retirement much easier.
An IRA is an individual retirement account that can help you save for retirement and plan for your future by allowing you to make investments with money that is protected from some taxes. Because of the investment you choose to put in your IRA, they can help make your retirement much easier.
How an IRA Helps
Because the money you put into your IRA is taxed differently, an IRA can often significantly lower the amount of taxes you pay. In addition, once money is in your IRA, you can use it to invest in financial products managed by a financial professional. These products include CDs, stocks, bonds, annuities and mutual funds, all of which will be protected from taxes because they are part of your IRA. In many cases, you can even begin withdrawing money without tax penalties while you’re still working. Please note that any withdrawals before you reach the age of 59 ½ years will trigger a 10% tax penalty.
Because the money you put into your IRA is taxed differently, an IRA can often significantly lower the amount of taxes you pay. In addition, once money is in your IRA, you can use it to invest in financial products managed by a financial professional. These products include CDs, stocks, bonds, annuities and mutual funds, all of which will be protected from taxes because they are part of your IRA. In many cases, you can even begin withdrawing money without tax penalties while you’re still working. Please note that any withdrawals before you reach the age of 59 ½ years will trigger a 10% tax penalty.
Different types of IRAs
There are a few different types of IRAs. A Traditional IRA allows you to make tax deductible contributions as you go, so that you only pay taxes on the money your IRA earns when you withdraw it. With a Roth IRA, you pay taxes now so that you dont have to pay on money earned when you withdraw. A Rollover IRA gives you more investment options and is particularly helpful if you need to move money from a 401(k) from a past job. Each type of IRA has its own advantages and perks. Talk to a PGU representative today to discuss which one might be right for you.
IRAs can be very helpful in saving for retirement, and since no one can see the future, it’s important to get started as early as possible. When your retirement comes, it may be a good idea to have IRA funds waiting for you. Contact PGU today to begin a conversation about your future.