What Are IRAs? How to Open an IRA Account?

Retirement seems far away doesn’t it? While it may seem way off in the future, Lighthouse Services knows that if you don’t start planning early, your best chances will pass you by. IRA’s are a great way to start saving money and put yourself on the road to financial security in your later years.

What is an IRA?

Simply put, IRA stands for “Individual Retirement Account”. An IRA is another type of savings account that takes advantage of your pre-taxed earnings. These types of accounts were created by the IRS (Internal Revenue Service) to encourage people who weren’t offered savings plans, like pensions and 401k’s through their employers, to save money for their older age. There are different types of IRA’s to choose from so consult the team at Lighthouse Services to find out if Traditional or Roth IRA’s are better for your particular situation.

Why do I need an IRA Account?

The short answer to this question is “to save money!”. At the end of the day an IRA is still a savings account, and just like any other savings account, it holds what you put in it. The main advantage to having an IRA is that whether you’re saving money from your income, your stocks or mutual bonds, the money is put in your account pre-taxes. If you had any account growth in traditional bank offered savings accounts, this money would be taxed along with your income.

Whether you choose an IRA, 401k or some other type of retirement account, the main message here is to SAVE! Don’t travel the road to your golden years alone or with empty pockets. Contact the experienced and professional team at Lighthouse Services and let us help guide you through the maze of options when it comes to your money.