Individual Retirement Account (IRA) Strategies
Capital Ingenuity can teach you everything you need to know about your IRA.

An IRA is a special type of retirement savings account that allows individuals to receive favorable tax treatment. Two of the most common types of IRAs are the traditional IRA and the Roth IRA. Generally speaking, a traditional IRA can provide a tax deduction for contributing to the account while a Roth IRA provides tax benefits at the point of withdrawal.

Once an IRA is funded, a variety of different investment can be purchased in it including, but not limited to, stocks, bonds, mutual funds, and exchange traded funds. While these types of investments are permitted, not all IRAs offer all of the available options. For instance, it is possible to establish an IRA with a mutual fund company that only offers their own family of mutual funds inside the account.

While IRA accounts offer several very important benefits, they are also subject to a variety of rules. Additionally, the concepts of building a portfolio can be somewhat complicated to understand without the proper knowledge. Unfortunately, the interests of the representatives that offer IRAs are not necessarily aligned with your information needs.

Typically, representatives of investment companies that offer IRAs are compensated based on how much money you put into your IRA, not on whether or not you make any money from your investments in it. First, there can be an incentive for representatives to push investors into investing more money than they can really afford, while at the same time not helping their clients with managing their personal budgets. Second, there can be an incentive for the representatives to focus their time on signing up as many investors as possible, instead of spending an adequate amount of time educating each investor on different investment strategies.

At Capital Ingenuity, we give our clients an unbiased understanding of their IRA and educate them in different strategies with which they can invest the funds in their accounts. Our Educators/Coaches are not compensated based on how much money you put into your account, so the only focus is to provide you with a thorough understanding of your IRA and the investments in it.

Unfortunately, many investors suffered significant losses in their IRAs when the stock market declined in 2008 and 2009. Many people lost money because they simply did not understand the different investment options available in their IRAs. Investors with a thorough understanding of their investment options were able to reallocate their funds in ways that could reduce risk and possibly even make money during that time period.

If your IRA suffered significant losses, Capital Ingenuity can provide you with the knowledge necessary to give you a better likelihood of getting your account value back to even. Investments always have risks associated with them and there are no guarantees. But with a better understanding of the risks and potential rewards in a given situation, you can have the best chance of making money again.