Shaping Your Financial Future

Shaping Your Financial Future

Addressing Frequent IRA Questions and Concerns

by Angie Wells

Planning for your retirement is one of the most important things that you can do throughout your life. However, there are many people that lack experience or knowledge about the various retirement investment tools available to them. In particular, this can include individual retirement accounts, and if this applies to you, having the following couple of questions answered should help you to make informed choices for your financial future. 

Why Rollover Your Work Retirement Account Into An IRA?

It is a relatively common benefit for companies to offer their employees retirement plans, but if you leave your work or are unsatisfied with the performance of these plans, you have the option to rollover these accounts into your own individual retirement account. This can seem like a confusing or daunting task, but it is relatively routine. Also, it can provide you with some important benefits. 

When you rollover these employer-based accounts into an IRA, you will be able to take advantage of the range of options that are offered by the company managing the IRA. For example, this may include lower transaction fees or a greater range of investment options. In contrast, when these accounts are being managed by the employer or its financial services provider, you may be extremely limited in which investment options are available to you or pay higher-than-necessary fees.

What Happens to the IRA If You Pass Away Early?

Death is an unfortunate aspect of life that can greatly complicate your financial planning. If you are concerned about what happens to your retirement accounts if you die before reaching retirement, you should be relieved to know that these accounts are treated just like other assets. 

This will allow you to dictate how these assets will be distributed when you have died. You can do this by including the retirement account in your will or estate, but this can cause major tax implications for your loved ones. To help reduce these impacts, your attorney or financial adviser may be able to help create an effective strategy, such as using a tax-exempt life insurance policy to offset incurred taxes. 

Planning for the day you retire can be a dauntingly complex and stressful task. However, it is important for you to be informed about your individual retirement account, because this may be an essential part of your retirement strategy. Once you understand why you would want to rollover your employer-sponsored account to your IRA and how your IRA is managed when you die, you will have more of the information you need to be an informed investor. Speak with an adviser from an institution like Wells Fargo Advisors Financial Network for more help.


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About Me

Shaping Your Financial Future

A few years ago, I found myself in a tough spot. I was completely out of money, and my expenses kept piling up. I knew that if I didn't turn things around, I would be declaring bankruptcy for my business. To ward off financial disaster, I decided to invest a little time into learning how to budget. I made a few simple changes, including eating out less, paying attention to fines and fees, and avoiding excessive shopping trips. You wouldn't believe how quickly things changed. This blog is designed to teach beginners how to shape their financial future, so that you don't have to worry.