What is Traditional IRA?

Like a brokerage account, you can invest in stocks, bonds, and funds. However, it's specifically designed for retirement savings.

Why should you open Traditional IRA?

Here are the top benefits of Traditional IRA.

• Tax Deductions:

  • Depending on your income and whether you or your spouse participate in an employer-sponsored retirement plan, contributions to a Traditional IRA may be tax-deductible.

  • This can lower your current tax bill, leaving you with more disposable income.

• Tax-Deferred Growth:

  • Your investments within the Traditional IRA grow tax-free.

  • This means you won't pay taxes on the earnings (like dividends and capital gains) until you withdraw the money in retirement.

  • This can lead to substantial long-term savings.

• Flexibility in Investment Choices:

  • Traditional IRAs offer a wide range of investment options, such as stocks, bonds, mutual funds, and ETFs, allowing you to tailor your portfolio to your risk tolerance and investment goals.

Visualization Created for Tom: Tom is 24 years old and started working . If Tom invest just $7,000/year to Traditional IRA. How much money Tom will have when he turns 60?

With 11.03% return, Tom would have close to $2.9 million and with 14.56% return it will be close to $7.3 million dollars when Tom will be celebrating his 60th birthday.

The above table is the projection of the balance by the age considering different lifetime return percentage of four (4) Fidelity Funds which are in existence for more than 30 years.

Thank you and keep building your legacy through Generational Wealth! Take care and don't forget to enjoy the journey and take care of your health.

Note : Please note that the calculations are estimates based on certain assumptions, such as variable annual returns. This blog post is intended to illustrate the potential long-term benefits of consistent saving and investing, not to provide specific financial advice. The information presented on this blog, including any visualizations or projections based on average historical data, should not be considered financial advice. Investing involves inherent risks, and the value of investments can fluctuate significantly.

Call To Action : Open a Traditional IRA NOW!