IRA Strategies
Charting Your Course: Understanding Your IRA Options
Welcome to the exciting world of IRAs! Here at Beacon Financial Group, we understand that confronting retirement savings options can feel overwhelming. That's why we're here to act as your coach, simplifying the process and helping you choose the best IRA for your unique needs. Forget Wall Street jargon and high-pressure tactics, at Beacon Financial, we understand the emotional and financial complexities involved in managing sudden wealth. As your advocate and coach, we aim to provide the guidance and tools you need to work toward a stable and prosperous future
Let's look at the different IRAs available, so you can make an informed decision about your financial future.
Top IRA Accounts: Choosing Your Champion
Here's a breakdown of the two most popular types IRAs to consider:
Traditional IRA: This account allows you to contribute pre-tax dollars, potentially reducing your current taxable income. Earnings grow tax-deferred, and you won't pay taxes until you withdraw funds in retirement (typically after age 59 ½).
Roth IRA: Contributions to a Roth IRA are made with after-tax dollars, but the beauty lies in tax-free withdrawals during retirement, including both contributions and earnings! This can be a fantastic option for those expecting to be in a lower tax bracket later in life.
Traditional vs. Roth IRA: A Head-to-Head Matchup
Trying to decide between a Traditional or Roth IRA? Here's a quick comparison to help you choose:
Traditional IRA |
Roth IRA |
Tax-deductible contributions |
After-tax contributions |
Tax-deferred growth |
Tax-free growth and withdrawals |
Taxes paid upon withdrawal |
Taxes paid upfront (on contributions) |
The best IRA for you depends on your current tax situation and your projected tax bracket in retirement. Beacon Financial Group is here to guide you through this decision and ensure you pick the IRA that best suits your goals. We take into account where you are at now and where we think you can be when you retire.
Thinking Beyond the Basics
There are additional IRAs that may be a good fit depending on your employment situation:
SEP IRA: Ideal for self-employed individuals and small business owners. Allows for significant contributions (up to the IRS limits) based on your net self-employment income.
Considering Conversions?
We can also discuss Roth conversions, a strategy to convert funds from a Traditional IRA to a Roth IRA. This choice can also be one of those confusing ones if you are at a crossroads between employers, or perhaps approaching retirement.
Remember, you're not alone in this! At Beacon Financial Group, we'll help you navigate all your IRA options and develop a personalized retirement plan to bring you peace of mind.
Frequently Asked Questions (FAQs)
Q What are the "best" IRA accounts?
The "best" IRA depends on your individual circumstances. We recommend speaking with a financial advisor at Beacon Financial Group to determine which IRA best suits your needs.
Q How do I open an IRA?
Opening an IRA is usually a straightforward process. Many financial institutions offer IRA accounts. We can help you compare options and guide you through the setup process.
Q What are the current IRA contribution limits?
Contribution limits change periodically. We recommend checking the IRS website for the most up-to-date information: https://www.irs.gov/.
Ready to take the next step?
Don't let the complexities of the IRA world scare you-we are here for you! Contact Beacon Financial Group today. Let's discuss your retirement goals and find the IRA that helps you chart your course to financial security.
Converting a traditional IRA to a Roth IRA is a taxable event and could result in additional impacts to your personal tax situation, including the taxation of current social security benefit payments. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.
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Securities offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS or Beacon Financial Group. Beacon Financial Group is affiliated with Kestra IS and Kestra AS.