5 Most Asked IRA Questions
These are the top 5 questions i get asked about iRAs
1. Why should I invest in an IRA?
It depends. Maybe you should, maybe you can't, maybe you should invest in a ROTH IRA. If you are asking this questions then we need to have a conversation about what could be the proper IRA for you.
2. What can I invest in with my IRA?
Great question. I'll answer with the question, "What do you want to invest in? In an IRA, you can invest in many different companies, bonds, ETFs, or mutual funds. This is way it is so important to have a conversation about what you believe in and determine where you want to invest your money.
3. How much can I contribute to my IRA?
So many rules. Again, it depends on your situation. We'll need to have a conversation to determine if you are eligible and if so what makes sense for you.
4. What's the difference between a traditional and Roth IRA?
The main difference between a traditional and Roth IRA is the tax treatment. Traditional IRAs are pre-tax accounts, which means that contributions are generally tax-deductible, but withdrawals in retirement are considered to be taxable income. Roth IRAs are after-tax accounts, which means that you pay tax on the money now in exchange for tax-free treatment in retirement. Make sure to read my section on about Roth IRAs.
5. Can I borrow money from my IRA?
The short answer is No. There is no such thing as an IRA loan.