If you have big dreams of early retirement, we’ve got some great news for you. Opening an IRA with DEXSTA is the best move you’ll make to achieve your retirement goals. There are a couple of different IRAs to consider, but the sooner you create an account, the sooner you’ll be prepared for the future.

What’s an IRA?

First, let’s establish what an individual retirement account (IRA) actually is. An IRA allows you to save money for retirement with the potential of tax-deferred or tax-free growth. With that, there are three main types: a traditional IRA, Roth IRA, and Rollover IRA. While each one has different advantages, they’re all a great option to supplement an employer-sponsored plan like a 401(k).

Why Retirees Love IRAs

Most Americans don’t start saving money when they should. As a result, a recent study says we’re working longer hours and retiring later in life. If you want a headstart on retirement, opening an IRA is essential. Early retirees love IRAs because you can potentially owe no money on taxes when you save with an IRA. In comparison to other traditional savings and brokerage accounts, this is a huge reason why retirees love IRAs. The one caveat is that your money usually needs to stay in the IRA investment earnings until you’re 59 ½ years old. 

Retirement Savings That Earn You Cash

When you diversify your portfolio from just having an employer-provided 401(k), it gives you more saving options. By investing in savings, your IRA account will accumulate value over time. You’ll be able to pull it out tax-free when you reach your designated retirement fund age. Then, your blossoming IRA account will be waiting for you in the future when you need it most. 

Roth vs. Traditional

Like we said before, there are three different kinds of IRAs. But the most common ones to choose from are a Roth IRA and a traditional IRA. Choosing the right IRA for you depends on when you can get a tax break and when you want to cash in on your future earnings.

If you plan on making more money or having a higher tax rate in the future, a Roth IRA is best. But if you expect you’ll have lower tax rates during retirement, then a traditional IRA and its initial tax advantages could be right for you. Whichever it is, DEXSTA will help you manage your account. 

Opening an IRA Could Help You Start Saving for Your Future

If you like the sound of opening an IRA, you can visit your local DEXSTA branch and we’ll set you up. After all, we care about your future and opening an IRA is a great move for accomplishing your early retirement dreams. Contact DEXSTA and we’ll diversify your portfolio today.