Which IRA Is Best For You?

An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future.

For individuals three types of IRA's will normally come under consideration.

The Traditional or Regular IRA
The Education IRA
The Roth IRA

Education IRA is now called the Coverdell Education Savings Account (ESA).

Education IRAs allow you to save for qualified higher educational expenses for a beneficiary. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18.

Contributions are allowed prior to the beneficiary turning 18, and contributions may not exceed $2,000 per beneficiary per year.

Contributions are made with after-tax dollars. There is NO deduction for the contribution. Withdrawals, however, are tax- and penalty-free when adhering to certain rules.

The traditional IRA allows you to contribute an amount and take a current deduction for the contribution. Withdrawal minimums must begin at a certain age and all withdrawals are taxable at the rate applicable when withdrawals are made. The main benefit is that any growth or gains remain free from taxation up to the point of withdrawal. Thus you would be getting tax-free accumulation.

The Roth IRA is perhaps the simplest - and potentially the most effective - sheltered account available.

Roth IRA has a tax structure different from any other IRA: contributions are after-tax (no deduction is available) but growth is tax-free; AND once you put your money in you NEVER pay taxes again.

Additionally, unlike a regular IRA, a Roth IRA does not require that you start withdrawing funds at age 70½ or any other time.

It's more flexible?

Since you have already paid taxes up front, there are no minimum distribution requirements and since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement.

There are special techniques and strategies in creating and managing ANY IRA that create some huge benefits for the right person under the right circumstances.

If you've ever been successful investing in things other than stocks and bonds, you've probably wished that these investments could be included in your IRA, 401(k) or other tax-deferred retirement plans.

Amazingly to most people it's possible to have retirement dollars in vehicles such as:

Real Estate
Limited Liability Corporations,
Private Stock Offerings,
Trust Deeds,
Mortgage Notes,
Leases and Lease Options,
Joint Ventures,
U.S. Treasury Gold and Silver Coins,
Gold Bullion and many others.

While some investors are privy to the information above, most people are just clueless to the fact that they have a lot more avenues for investing than what their Wall Street Journal tells them.

If you are interested in exploring what your financial advisor knows that you don't, including where they put THEIR money for strategic returns and investments, you can check out my free site on IRAs at http://www.irainfo4u.com.

More information about these strategies are also presented in my new book, "Scientific Wealth Strategies."

C.C. Collins is a Wealth Building Advisor and Author of "Scientific Wealth Strategies" at http://wealthscientist.com Find more information at http://www.irainfo4u.com

Latest News


The 3 Investing Rules of a Billionaire Family
Motley Fool - 18 hours ago
By Alex Dumortier, CFA During the second half of the 20th century, Larry Tisch and his brother, Bob, turned an investment in a New Jersey resort hotel into ...

Six Signs of a Winner
Motley Fool - 1 hour ago
We believe there are several lessons to be drawn from the Progressive story that will help your future investing performance -- and that have helped our ...

A Letter to Barack Obama
Motley Fool - 18 hours ago
This is still investing, but again, it is not gambling. A low-cost choice such as Vanguard Total Market (FUND: VTSMX) will currently provide an investor ...

Raw Story

'Investing in Iran now like investing in Krups in 1938'
Jerusalem Post, Israel - Aug 29, 2008
"Investing in Iran in 2008," Sneh told his Austrian hosts, "is like investing in Krups Steelworks in 1938, it's a high risk investment. ...
Israel Has Decided: Iran Will Not Have Nukes Arutz Sheva
all 21 news articles

Sify

The fine art of contrarian investing
Sify, India - Aug 28, 2008
Contrarian investing is a proven way of finding multi-baggers and generating great wealth in the long run. Simply put, a contrarian investment strategy ...

Gold investing could be buoyed by SA refusal to self-generate
BullionVault (press release), UK - 5 hours ago
"If there's an easier route to buying investment gold, I have not found it," says one BullionVault customer. Find out for yourself and start Investing in ...

Economist

New US rules aimed at helping investing in foreign markets
Forbes, NY - Aug 27, 2008
United States - WASHINGTON (Reuters) - US investors are expected to have an easier time assessing and accessing foreign markets under rules adopted by the ...
Stockwire.com: Force Protection, Inc. (NASDAQ:FRPT) just released ... Trading Markets (press release)
Standards Deviations: US Financial Accounting Heads for Change Knowledge@W. P. Carey (subscription)
all 325 news articles

Investing by the Numbers
Seeking Alpha, NY - 9 hours ago
I’m going to be reviewing a few books on quantitative investing. Many of these will not be suitable for everyone, and as I do these reviews, ...

UPDATE 1-Templeton's Mobius likes Russia despite Georgia
Reuters - 18 hours ago
By Herbert Lash and Dan Burns NEW YORK, Aug 29 (Reuters) - One of the pioneers of emerging market investing on Friday said he had not backed off his bets on ...
Russia's foreign exchange reserves rise by $400 million MarketWatch
all 6 news articles

SUCCESSFUL INVESTING with Andrew Leckey
Royal Gazette, Bermuda - 17 minutes ago
Q. What is your opinion of shares of United Parcel Service Inc.? - RA, via the Internet A. Expectations of a weak US economy and high fuel prices continuing ...

Resources