Saving for retirement is something that many American consumers take very seriously. Investing in an IRA (individual retirement account) is a popular way to generate funds that can be accessed when an individual decides to leave the workforce. Protecting the money you have invested in your IRA is critical when it comes to ensuring you will be able to enjoy financial security during retirement.
Here are three simple things that you can do to protect your IRA in the future.
1. Understand the fee structure being used by your investment firm.
If you are partnering with an investment firm to help you make decisions when it comes to investing the money in your IRA, you need to understand the fee structure being used by your firm. If your firm uses a commission-based fee structure, your advisor will receive a commission each time you opt to make an investment.
Different investment options yield varying commission rates. A flat fee structure means that your advisor is being paid a flat rate to assist you, regardless of the investment options you choose. Understanding the fees structure being used by your investment firm will allow you to make better investment decisions when it comes to growing your IRA account.
2. Make sure you know who to talk to within your investment firm when trying to gather information.
There are many types of advisors working within an investment firm, so knowing who you need to talk to when trying to decide the best way to grow your IRA account can be a beneficial way to protect your retirement funds.
If you are considering a major change in your investment strategy, you should consult with a fiduciary. These fiduciaries have a responsibility to recommend the investment options that are best suited to help you meet your long-term goals. When you want to learn about new investment products that are available to you, then speaking with a salesperson is your best option.
3. Take the time to educate yourself on your investment options.
The most important thing that you can do to protect your IRA is take an active role in the management of your funds. Ask your financial advisor to explain how various investment options will affect the growth of your account, and be sure that you closely monitor the performance of your portfolio.
Your financial advisor can recommend products to help you invest your money wisely, but ultimately it is you that must make investment decisions that help grow your IRA account.
Using these simple tips to protect your IRA will ensure that you are able to become financially prepared for retirement.
Share10 April 2017
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