Your investment selections can range from conservative to aggressive. For example, you may choose investments that offer safety of principal, such as money-market funds, government securities, and certificates of deposit. Or, if higher yields are your goal, you may select investments with slightly higher risk to principal, such as corporate bonds, bond mutual funds, government unit investment trusts, or preferred stocks. If you're looking for long-term appreciation and inflation protection, and can accept the risks of market fluctuation, common stocks, equity mutual funds, or convertible securities may be your investments of choice. Another smart decision at this time of year may be to consolidate your IRAs.
Many people have IRAs at a number of different financial institutions.
Since most IRAs incur fees and other expenses, multiple IRAs can actually impair the accumulation of assets. A single account results in one monthly statement, as well as ease in beneficiary planning and the calculation of any required minimum distributions upon reaching age 70 . Finally, if you anticipate a career change, a corporate downsizing, or retirement, this is an excellent time to learn about IRA rollovers. Talk with your Financial Advisor to learn about your rollover options well in advance. At First Union Securities, we understand the rewards available to our clients by saving through IRAs.