Common IRA Do’s And Don’ts

Perhaps one of the wisest financial strategies that almost every financial expert offers his or her client is the fact that they must NOT stop contributing to their retirement regardless of the financial situation that they find themselves in.

While most experts are also saying that it is best to play it smart when it comes to IRA funds, the most advised approach would be to try something new, despite the fact that it is working.

However, since these are just generalizations, here is a list of specific IRA Do’s and Don’ts that will help you find success when it comes to investing in a retirement fund:

Do’s

#1: Find an excellent IRA Calculator, especially the types that are available on sites such as MorningStar.

#2: Consider whether a conversion from a traditional IRA to a Roth will do you good.

#3: Tax-managed funds are an excellent option to consider.

#4: Your overall asset-allocation plan must be kept in mind.

#5: Take a contrarian approach to investing.

Don’ts

#1: Forget or omit your spouse

#2: Make the assumption that investing in an IRA fund requires a substantial investment.

#3: Keep investments such as variable annuities or municipal (that come with tax benefits) inside an IRA.

#4: Keep assets stuck inside a non-performing IRA

#5: Avoid investing in an IRA just because you need to use that money for something else in the short-term.

#6: Assume that you don’t need an IRA just because you are already contributing to a 401(k) plan.