when i talked to my finacial planner he said
start a IRA which is like a bucket where yoy put in your mutal funds .. what is he syaing can somebody explain this to me please
Thanks in advance
2007-03-05 03:29:00 · 4 answers · asked by ASU 1 in Business & Finance ➔ Investing
If you can't understand your financial planner it's time to find a new one. Planning for a financially secure future should not be taken lightly. Invest the time to research it yourself. There are plenty of online resources for you (and that doesn't mean yahoo answers). Unless of course your financial future is not important enough for you to do your own research.
2007-03-05 03:42:58 · answer #1 · answered by Wurm™ 6 · 0⤊ 0⤋
I actually will no longer be able to think of of something extra financially insane (apart from flushing $one hundred charges down the lavatory) than putting a tax loose mutual fund into an IRA. you have taken a tax loose motor vehicle and made it taxable! under no circumstances positioned a tax loose investment into an IRA or 401(ok)! EVER. do exactly no longer do it!
2016-12-14 11:21:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hello
An IRA is like like another bucket... Nice image,
Let say that you gain some money with you mutual fund. At the end of the year, these gains will be added to your incomes and you will be taxed from them
If you put the mutuals fund in your IRA, the gain from these one will not be added to your incomes and you will not be taxed from these gain.
Idealy, The plan is to retrieved the your money from IRA at the end of your working life, at the moment when your incomes will be lower. At that time, you will be taxed for the money that you will retrieved from your IRA.
In short, you postpone the payment to the tax-men the gain that you make from your investment to a moment that you will have less revenu.
Hope thet my explanation is not to bad and my english is not to bad
M.Theriault
2007-03-05 03:42:28 · answer #3 · answered by Martin T 2 · 0⤊ 0⤋
An IRA is a special account (that the IRS has specific rules for). Money in the account can be invested in many ways, including left as cash, mutual funds, individual stocks, individual bonds, certain forms of real estate, etc.
Think of an IRA as a account where any of the money that's in it (or which grows within it) cannot be touched until you retire. In exchange for this restriction, you get tax benefits.
2007-03-05 03:38:51 · answer #4 · answered by Jay 7 · 0⤊ 0⤋