Investing and saving for the future can be intimidating. But chances are, you’ve already started! You likely have a 401(k) through your employer, a workplace retirement plan that you and your employer pay into based on employment agreements. However, 401(k)s have contribution limits, which means you can only save a certain amount each year. A better strategy is to have a 401(k) and an individual retirement account – IRA. With this strategy, you can save more money and start investing it. But if you’re new to retirement savings, you might wonder where to start.
4 Simple Steps to Start Investing Your IRA
- Find out which type of IRA is right for you. Different IRAs have different benefits. For example, a traditional IRA has tax benefits today, while a Roth IRA has tax benefits in the future. There are also rollover IRAs to protect your 401(k) balance after you change jobs or retire. Each type of IRA has different contributions, withdrawals, and disbursement rules.
- Open an IRA. You can open an IRA at most banks, including Horizon. You’ll need your tax documents, ID, Social Security Number, banking information, and contribution methods. You’ll have to complete paperwork and talk with a financial advisor, but you can begin contributing to your IRA right away!
- Set up contributions. You can choose how much to contribute to your IRA. You can also decide how to contribute via checks, automatic transfers, or rollovers. There are yearly limits to how much you can contribute, but experts recommend contributing as much as possible. The more you save today, the more you can invest in the future.
- Invest your IRA. An IRA doesn’t make interest, so to maximize your earnings, you need to invest. You can invest your IRA savings in stocks, bonds, index funds, or mutual funds. These investments do make interest, which gives
you a higher return. A Horizon Advisor can help!
An IRA is an investment in your future that offers flexible savings. So contact the experts at Horizon if you’re ready to open an IRA or start investing stocks, bonds, and mutual funds in your existing IRA.