ASHEVILLE, NC / ACCESSWIRE / April 4, 2021 / What should investors think about when they consider retirement age? After all, according to a recent post at American IRA, a Self-Directed IRA administration firm based in Asheville, NC, many people think about retirement from the perspective of someone younger investing for the long-term, but do not think about the consequences of their actions when they hit retirement age. For instance, there are developments later in life that will affect how investors should think about what retirement will look like.
There are typically two ages, which occur around 59 and 72, that investors should pay particular attention, according to the post. The age of 59 ½ signals the beginning of "retirement age" for investment purposes, because this is the age at which investors will no longer have to pay a 10% penalty for withdrawing retirement early. Many people retire much later in life than this, but it is an important milestone that notes just how far an investment may have come.
There is a second age, which is more relevant for understanding RMDs, or Required Minimum Distributions. As the post notes, Required Minimum Distributions kick in for those accounts in which an investor utilized before-tax money. In other words, for investors who made tax-deductible contributions towards an account like a 401(k), Required Minimum Distributions eventually kick in. This is not the case for Self-Directed Roth IRAs, wherein an investor has put aside money that was taxed, meaning after-tax contributions were made earlier in the life of the investment.
"This article talks about things from the retirement perspective," said Jim Hitt, CEO of American IRA. "For many investors, it's all about optimizing savings now. And that is a great way to get started. But for investors who are using a Self-Directed IRA, they often work as their own retirement planner, in some respect. And articles like these are useful for thinking about things from the retirement perspective."
For more information, visit the post at www.AmericanIRA.com or call American IRA at 866-7500-IRA.
About:
"American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $500 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."
SOURCE: American IRA, LLC