To Invest

6 Ways To Invest in an IRA   by James Leitz

An IRA is your personal retirement plan, an INDIVIDUAL RETIREMENT ACCOUNT. This is not some type of investment, but rather a type of account. Some accounts like joint accounts are taxable each year, as you earn interest or dividends. A traditional IRA offers tax write-offs and tax deferral. A Roth IRA is tax-free, with no write-off.

You can have several IRAs at different places, and you can move your IRA money from one place to another without triggering taxes and penalties if you know the rules. Remember, IRAs are big business and lots of financial firms want your money.

Here are 6 ways to invest in an IRA.

First, your local bank or credit union can set up an IRA for you. Most likely they will suggest you put your IRA money in a safe interest-paying investment like a CD or money market account. Perhaps they will have an investment representative on board who can offer you other alternatives.

Second, you might be comfortable working with someone you know quite well, like your insurance agent. Some of them offer IRAs. For example, you can invest in an annuity IRA, where your money is invested in a tax-qualified annuity.

Third, if you have a stock broker, he or she will be glad to work with you. Here you could have a brokerage account set up as an IRA. Full service brokers also offer mutual funds and other investments you can use to fund your IRA.

Fourth, discount brokerage firms offer IRAs also. With these accounts you can buy and sell stocks, bonds, ETF