Home » Finance

Q and A Regarding Managed IRAs

Apr 1, 2008
For most Americans, the goal of any investment strategy is to fund retirement. We expect to work until retirement age and then we expect to be financially comfortable. One way to achieve this goal is to invest in a managed IRA. To help you understand this choice a little better, some common questions are listed below.

Q: I just left my old job. Can I roll over my pension and 401K plan into an IRA without tax consequences?
A: Yes, absolutely. Make sure that you create an IRA account where the financial company will help you with this step.

Q: I have a 401K at work. Can I still create my own IRA outside of work?
A: Again the answer is yes. The only caveat is that there is a limit based upon the amount of contributions per year that is tax-deductible. The IRS website should have more information on what those limits are.

Q: I want to get money out of my IRA in order to help me purchase my first home. I am 30 years old. Is this going to hurt me?
A: For the most part, this type of withdrawal should not hurt you. Although IRAs are created to help you save for retirement and to give you tax breaks today, there are some withdrawals that are not penalized no matter what your age is.

One of the most common withdrawal reasons is for the purchase of a primary home. Check with your IRA manager about any forms you need to fill out or what actions you will need to take. You will, though, have to pay taxes as this withdrawal is considered income.

Q: I want to help my children prepare for their future. Can I set up an IRA for them?
A: Probably not! One of the prerequisites to creating an IRA is having earned income, so unless your children are earning money every year, they may not be eligible.

What you can do is educate your children to the advantages of compound interest for the time they do become eligible for an IRA. Let them check out retirement calculators and see how $50 a month invested at age 16, 17 or 18 can grow by the time the child reaches retirement age.

Q: I amm thinking about selecting a managed IRA because I do not have time to manage the fund myself. But I still want some control over what is best for me. What can I do?
A: Any decent fund manager is going to take your input and find out more about you before making decision on how to invest your IRA funds. You should view your fund manager as a paid partner who is also an expert in financial investments. To make sure you are comfortable with your selection, ask to set up a time to discuss investment choices on a periodic basis.
About the Author
Caterina Christakos is an experienced investor and instructor. To learn more about managed Iras go to:
http://www.highyieldinvestmentreview.com
Rating:
Please Rate:
(Average: Not rated)
Views: 248
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources