Finding Success with Your IRA

By Miranda Marquit

February 19th, 2009

Posted in IRAs, Economy, Funds, Saving for Retirement, Investment Strategy, Investment Advice, Investment Portfolio, Investment Opportunities

I have a Roth IRA for my retirement account. An IRA is one great way to find a measure of success in investing. Indeed, any retirement account can provide opportunities for success with investing. To make things easier, you can use E*Trade, which is offering 100 free trades with a new IRA account (no, I haven’t been paid to shill for E*Trade, and I don’t actually use E*Trade). But no matter where you have your IRA account, it is possible to maximize your investments. Stock Trading To Go offers this advice when dealing with your IRA:

Things to do with your IRA:

Use an IRA calculator, like the one at Morningstar.
Talk to someone about whether it makes sense to convert from a traditional IRA to a Roth IRA.
Think about tax-managed funds.
Consider your asset allocation plan.
Be contrarian — don’t always follow the “conventional” wisdom.

Things to avoid when it comes to your IRA:

Forget a spousal IRA for your partner.
Think a lot of cash on hand is necessary.
Put investments that are already tax-advantaged in your IRA.
Let your assets remain in a 401k that doesn’t meet your needs.
Put off investing in an IRA.
Assume that you are covered if all you have is 401k

Indeed, the IRA is truly a wonderful investment vehicle. Your best plan should be to include an IRA on top of 401k (especially if a company match is involved). We’re looking into a solo Roth 401k for me, and a spousal IRA for my husband, on top of the 401k he is supposed to get at work. The eventual hope is that we can max out our contributions to everything (that goal is years away).

Create a plan in which your retirement plans actually work together.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Basics of Retirement Investing (bargaineering.com)
Retirement Savings: Pay Lower Taxes Now (abcnews.go.com)
Let your retirement money grow (money.cnn.com)
8 Retirement Tips for 20-Somethings (usnews.com)

Money & Investing - Banks.com