A recent survey has shown that over 69 percent of American adults have less than $1,000 in savings. The rising inflation and falling purchasing power of fiat currency make it hard for an average American to save enough for their retirement years. For those who are making an active effort to save money for their post-retirement days, there are a few unique and innovative options available in the form of Individual Retirement (IRA) and 401(k) accounts.
IRAs are the most preferred retirement fund option as it allows individuals to invest in their own capacity year-on-year for their future. The IRAs are administered as per the regulations set by the IRS. Though there are multiple types of IRAs, Traditional IRA and Roth IRA accounts lead the pack in terms of assets allocated.
According to the IRS, once an individual opens an IRA, a third-party custodian has to be assigned to manage the funds. The custodian, with the investor’s permission, can invest the funds in various types of assets like commodities, shares etc.
Traditional IRA and Roth IRA
Currently, the IRS allows individuals to invest a maximum of $5,500 per year into