Individual Retirement Accounts: Pro's & Con's, Do's & Don'ts

An Individual Retirement Account, or annuity, (IRA) is a popular way to provide retirement benefits in a tax-efficient way. The process to set up an IRA is extremely simple. An employee simply makes contributions to a account that in turn is taken and invested into various things such as mutual funds and the stock market. The investment grows without any taxes being paid on it until retirement. The amount that is paid out at retirement …

…However, anyone who chooses to invest in an IRA should be completely aware of the time restraints and penalties for early withdrawals. Overall, the safety of an IRA is good. The best attribute of an IRA is the tax-free compounding of the investment money. I would recommend this investment alternative to anyone who believes that Social Security will not be around for our generation. Also, an IRA would be a good investment for college students.