Navigate your way to the proper IRA


Roth IRA: You make after-tax contributions, which allows income to grow and be withdrawn tax-free in retirement.

Traditional IRA: You make pre-tax contributions.  Your income is allowed to grow tax-free, but you will have to pay taxes upon withdrawal based on your income tax bracket at the time.

As the year comes to an end look at making an IRA part of your retirement plan.  Taxes and investment fees are the biggest hindrances to one’s portfolio returns.  Consider a low-cost index fund.  I prefer Vanguard but many others offer similar investment options.

The following link describes common IRA mistakes and will allow you to have better insight if you qualify for one: