How to Start an IRA

Though many of us are intimidated by investment lingo, you should not be overwhelmed if you are interested in starting an IRA. Solid investment tools, IRAs can greatly impact your retirement plan. They are easier to establish with than you might think.

Instructions

1. Determine your eligibility for contributing to an IRA, which is most often based on income. Many online resources, books and financial planners can help you learn more about IRA eligibility.

2. Research to understand which type of IRA--traditional or Roth--is the best investment for your financial needs.

3. Choose what type of investment is best for your IRA. Considerations include the size of your IRA investment, timeframe, other investments and your investing style.

4. Find a provider. Options include banks, brokerage firms, mutual fund companies and insurance companies.

5. Establish your IRA. The process can be as simple as filling out a few forms and signing a check.

Tips & Warnings

• When choosing a provider, make sure to evaluate the different fees that can be involved with this type of investment.

• Many investments, including IRAs, can be established online. Consider this route if it seems convenient for you.