How to Open Your Own IRA Account

Are you frustrated with the performance of your IRA (Individual Retirement Account) or investments? Would you like to take management of your IRA into your own hands? You're not alone. Many people have chosen to manage their own IRA account and thanks to the internet, it's easier than ever. Here's how to open your own IRA account.

Difficulty: Easy

Instructions

Things You'll Need:

• Internet access
• An online retirement account

1. Select the type of IRA that you would like to open based upon your financial goals. If you would like to have tax free income during retirement, perhaps a Roth IRA is best for you. If you are self employed, a SEP IRA may be the best choice. If you think your income will be lower in retirement than it is now, a traditional IRA may meet your needs the best. Regardless, conduct some online research to determine which will best fit your needs.

2. Choose an online broker to establish your IRA account. Many of the major mutual fund companies offer IRAs. Many of these types of companies allow you to invest in their mutual funds with no fees. Online discount brokers also allow you to open IRAs with ease. Simply follow the on screen instructions once you've selected the option to create an account.

3. Fund your IRA with cash. This can be done with new money or you can transfer money from a previous IRA to the new account. Typically, the online brokers will have a form for you to complete in order to transfer.

4. Choose the mutual funds, stocks, bonds, or etfs that you'd like to purchase in your IRA. Regardless of what you choose, you're now in complete control of your IRA. All financial decisions will now be made and executed by you.

Tips & Warnings

• Investing comes with the risk of losing all of your money. Proceed with research and caution.

Resources

• A Good Book on Managing Your Own IRA

[xrayness]

on 7/6/2009 Thanks for sharing this information about IRAs.