An
alternative retirement savings solution
With the uncertainty of Social Security and the changes
in employer-based pensions, individuals need to take the
lead in building their own nest egg. The good news: Individual
Retirement Accounts give you an excellent, safe way to invest
your funds and ensure your financial security in your retirement.
The various IRA products First Place offers provide tax advantages
such as tax-deferred and tax-free growth.
Whether you're looking for a conservative guaranteed
return or you want to aggressively manage your funds
for a higher return, First Place has an IRA to fit your
objectives.
The following calculators may be useful in planning your retirement.
What is the difference between a Roth IRA and Traditional IRAs?
View current Bank IRA rates
What is the right IRA strategy for me?
What is the difference between a Roth IRA and a Traditional IRA?
The biggest difference between the Traditional IRA (tax-deferred) and Roth IRA(tax-free) is the way the U.S. Government treats the taxes. If you earn $50,000 a year and put $2,000 in a Traditional IRA, you will be able to deduct the contribution from your income taxes (meaning you will only have to pay tax on $48,000 in income to the IRS). At 59 1/2, you may begin withdrawing funds but will be forced to pay taxes on all of the capital gains, interest, dividends, etc., that were earned over the past years.
On the other hand, if you put the same $2,000 in a Roth IRA, you would not receive the income tax deduction. If you needed the money in the account, you could withdraw the principal at any time (although you will pay penalties if you withdraw any of the earnings your money has made). When you reached retirement age, you would be able to withdraw all of the money 100% tax free. The Roth IRA is going to make more sense in most situations if you qualify for a Roth. A person filing their taxes as single can not make over $95,000. Married couples are better off, with a maximum income of $150,000 yearly.
The Roth IRA is attractive because earnings are tax-free. But for anyone somewhat strapped for cash, the deductible Traditional IRA may be the better choice since using pre-tax dollars makes it easier to fund theretirement account.
What is the best IRA investment strategy for me?
Each IRA has its own unique tax benefits and savings opportunities. To determine which IRA is right for you -- it is important to consider your personal goals and tax situation. You should consult with your personal tax advisor for more detailed tax information.
If you are the type of person that is highly averse to risk and you don't want to take any chances at all with your money, a First Place Bank IRA offers the security of FDIC
insurance. If you are more likely to take a little risk in exchange for high return potential, our First Place Investment Services division can offer you self-directed IRA options*
that provide greater return potential. As always, we suggest you contact us by phone at 1-800-997-9856 x2286 or through email, and let us assist you before making any final decisions.
*Securities and Investment Advisory offered through NFP Securities, Inc. a Broker/Dealer and Member NASD/SIPC and Federally Registered Investment Advisor.
Not FDIC Insured - No Bank Guarantee - May Lose Value
NFP Securities, Inc. is not affiliated with First Place Financial Corporation
