It is never too early or too late to begin planning your retirement. If you have an IRA, then you are already ahead of the curve. However, you should ask yourself these five simple questions in order to ensure that you get the most out of your retirement fund.
1. How can I make the most out of my IRA?
If you have previous retirement accounts, either from an employer or from yourself, you should consolidate them into a single IRA for maximum efficiency. If you have money stored away in a former employer’s plan, then consolidate it into your IRA for increased flexibility and overall growth. As your primary retirement fund, your tax-deferred IRA should always be your main focus while investing.
2. How can I allow my IRA to grow?
You can diversify your portfolio by avoiding the volatile stock market and instead opting for non-correlated assets. These assets range from oil to real estate and can be domestic or abroad. These assets come with their own risks; however, they are generally less unstable as stocks and bonds.
3. Am I being overcharged for my IRA?
While a single fee for maintenance won’t harm your funds, you should ensure that you aren’t spreading your IRA out too thin. It’s best to have your IRA consolidated into one account in order to reduce fees. These fees can greatly add up, and it’s best if you take charge now to rid yourself of excessive diversification.
4. What is the optimal age for my IRA?
Work with your tax adviser to find the best age to start withdrawing from your IRA. Since an IRA is tax-deferred and age-sensitive, you want to find the best time to ensure maximum profits. IRAs can often pay out more at certain age brackets, and these brackets may be very specific. Talk to your adviser today to guarantee the best rates and payouts.
5. Should I upgrade to a Roth IRA?
Roth IRAs may be tax-deferred and possibly tax-free to you and your heirs. While the Roth IRA was once limited to those under a certain income level, it has now been opened up with more options for a wider range of people. Talk with your adviser to see if a Roth IRA would benefit your current situation. The need for careful analysis is especially important when considering a conversion of an Traditional IRA to a Roth IRA. This strategy is a unique planning tool that requires review of the immediate tax costs versus long-term benefits before executing.