IRA (Individual Retirement Account) Tips
Many of you who have businesses already, have some type of IRA established, such as a simple IRA or some form of a 401K. Those who are employed might have one of these through your employer. If you do not have either of them, there are still options. Regardless of what type of account you have, I encourage you to meet with your financial planner to maximize your contributions. Here is an excellent link to see the plan limits for 2015.
For those of you who do not have any of these available, you do have the capability to contribute $5,500 to an IRA on your own (Roth IRA is best). If you do not have a financial adviser to help, simply go to Vangaurd and it will walk you through it, at no charge.
One final thought, I opened up Roth IRAs for my three kids 4 years ago and have contributed the max to each plan yearly. What a gift! You can also withdraw this money for college, tax free and without penalty.
Imagine this: If you put in $5,500 into an IRA every year for the past 30 years without ever touching it, it would be worth over 6 million dollars today!!!
If you teach your children nothing else about finances, please open up an account in their name, contribute what you can and then when they take it over, make sure they discipline themselves to add as much as possible to it each year. (more on this in later blog posts)
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