Ever considered solo IRAs? We live in scary economic times. You never know what the headlines will read the next day. Will the stock market be in the basement again? Is another large bank in trouble? What will happen to my investments? Will I ever be able to retire?
Or, maybe you are already a casualty of our crumbling economy. Did you lose your job? Has your company been taken over? Does your company even offer a retirement plan? What is your future going to be like if you are unable to prepare for it now?
One way to gain control over your future is to invest in an individual retirement account. Solo IRAS put you in charge of your investments. Like company sponsored 401K plans, IRAS represent huge tax savings.
Before we go on with our discussion about how an IRA can give you control over your future, let's take a look at some of the more common types of solo IRAS:
A traditional IRA allows you set aside up to $5000 a year, if you are under 50. If you are already over 50 you can deposit up to $6000 per year. If your company does not offer a retirement plan, you may be able to write off your contributions on your taxes.
Rollover IRA's can be created if you lose your job or your company has been taken over by another and you have a 401k plan, or if decide to transfer your money from an existing IRA or 401k plan to one that has a better yield. This type of IRA protects your money from the huge penalties that can be charged if you withdraw your money before you are 59 .
Roth IRAS work a little differently than other types of solo IRAS. In other IRAS, you are not taxed on your contributions until you withdraw them. On Roth IRAS, you are taxed prior to the money going into the account, but after it has been deposited it becomes tax-free. So, even if you were to withdraw it, there would be no additional taxes. There are special rules to set up one of these types of accounts so you will want to consult a specialist.
With an IRA you make your investment choices. For instance, you can purchase money earning real estate. The profits that you receive go into your retirement account and are not subject to taxation. With property selling at rock bottom prices, you can quickly build up your portfolio. You can also sell properties that are not working out and as long as you put the profit from your sale into the IRA you can avoid penalties. Today's market is ripe for this kind of investment.
Having a choice about where your money goes and how it is invested, gives you the power to control your destiny. Isn't it time that you thought about investing in one of the many different types of Solo IRAS?