6 Ways to Invest in an IRA

An IRA is your personal retirement plan, anThird, if you have a stock broker, he or she will be
INDIVIDUAL RETIREMENT ACCOUNT. This is notglad to work with you. Here you could have a
some type of investment, but rather a type ofbrokerage account set up as an IRA. Full service
account. Some accounts like joint accounts arebrokers also offer mutual funds and other
taxable each year, as you earn interest or dividends.investments you can use to fund your IRA.
A traditional IRA offers tax write-offs and taxFourth, discount brokerage firms offer IRAs also.
deferral. A Roth IRA is tax-free, with no write-off.With these accounts you can buy and sell stocks,
You can have several IRAs at different places, andbonds, ETF's and mutual funds online.
you can move your IRA money from one place toFifth, financial planners will be happy to help you set
another without triggering taxes and penalties if youthese account up, or to consolidate some of your
know the rules. Remember, IRAs are big businessexisting IRAs.
and lots of financial firms want your money.Sixth, no-load mutual fund companies do a ton of
Here are 6 ways to invest in an IRA.IRA business. The larger ones offer a broad array of
First, your local bank or credit union can set up anmutual funds to choose from, with no sales charges.
IRA for you. Most likely they will suggest you putThe important thing to realize is that you can invest
your IRA money in a safe interest-paying investmentin most conventional investments inside an IRA. You
like a CD or money market account. Perhaps they willcan make changes inside your account without
have an investment representative on board whotriggering a taxable event. For example, if you sell a
can offer you other alternatives.stock, your funds are simply transferred to your
Second, you might be comfortable working withcash account in your brokerage account. It is still in
someone you know quite well, like your insuranceyour IRA, so this transaction does not need to be
agent. Some of them offer IRAs. For example, youreported to the IRS.
can invest in an annuity IRA, where your money isWhen you remove money from your IRA, then you
invested in a tax-qualified annuity.report it.