2007-01-30 06:59:53 · 3 answers · asked by aland411 1 in Business & Finance ➔ Investing
An IRA is simply an account classification not an investment itself. You can invest in a mutual fund within an IRA as you can in a non qualified standard brokerage account. If you're asking whether or not to invest in a mutual fund within an IRA or a non-qualified account, IRAs have a lot of obvious benefits that you should take advantage of. A traditional IRA will provide you with an initial tax deduction for contributions and tax deferral on gains or in the case of a roth IRA no initial tax benefit on contributions but tax free growth on gains...so if you're eligible for an IRA and the funds are for long term purposes such as saving for retirement than definitely take advantage of investing within an IRA.
2007-01-30 07:12:46 · answer #1 · answered by SmittyJ 3 · 1⤊ 0⤋
Depends on what you want out of it. An IRA is good for retirement purposes (especially a Roth IRA) but you can't get into it for just anything. Mutual funds are good to have your money grow, and you can still access it if you need it with fewer or no penalties like you would have with an IRA.
2007-01-30 07:07:59 · answer #2 · answered by Vicki's Mom 2 · 0⤊ 0⤋
An IRA can be set up for a stock fund or mutual fund; please rephrase your question. In general, mutual funds suggest variable term without penalties, while IRA suggest no withdrawal until retirement.
2007-01-30 07:07:59 · answer #3 · answered by xwdguy 6 · 0⤊ 0⤋