IRA Risk Tips

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From Quick Guide: IRA Basics

Summary: IRA accounts are invested but they are invested in low risk mutual funds that, over time, acquire large returns. Understand how to determine the risk involved with investing in ROTH IRAs, and make good financial decisions with tips and advice from an experienced financial adviser in this free video.

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By Patrick Munro
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Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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Video Transcript

"This is financial adviser Patrick Munro asking a question, are IRA contributions invested. Absolutely but there's an extra benefit to you as a contributor. A valid IRA is usually invested in fixed instruments certificate of deposit, mutual funds, stocks, things of that nature, that will generate interest and compound in value. Hopefully the underlying securities will not lose value, you have to be mindful of your risk management. But more importantly the gains that you receive within the IRA grow tax free or tax deferred rather until you take them out. You can take them out anytime penalty free after fifty nine and a half and only pay tax on the income that you do receive from the IRA. However if you choose to maintain the account in it's format until age seventy and a half then you are required to take out your IRA contributions at that time. But most definitely IRA contributions are invested in market or in bank system to generate income for your retirement. This is Patrick Munro answering the question are IRA contributions invested."

eHow Article: IRA Risk Tips

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