Good Strategies For Maximizing IRAs

An Individual Retirement Account (IRA) can be a good retirement saving tool.  There are a few strategies that savvy investors can use to get the most out of an IRA.  Compounding money can have a snowball effect so starting early with investing can have a major impact on how much that person will have in the future.  People should avoid waiting until tax day to contribute to their IRA.  There is a theory known as “asset location” that financial advisers are increasingly recommending that involves distributing retirement investments across accounts based on how they will be taxed.  This article also discusses the benefits of converting an IRA into a Roth IRA.  Finally, it is important to properly name the beneficiaries so that the proceeds from the retirement account are not subject to probate fees. 

See R. Julius Mandelbaum, The Best Strategies to Maximize Your IRA, Investopedia, November 6, 2015.